Veteran biopharma company Biocon’s first quarter profit declined by 35.39 percent. The company’s consolidated net profit fell to Rs 108.04 crore for the quarter ended June 30. The main reason for this decline in the company’s profit was the loss to its partner startup Bicara Therapeutics Inc. In the first quarter of the last financial year (2020-21), the company had a net profit of Rs 167.8 crore. The company’s generic segment revenue declined 22 per cent to Rs 486 crore in the first quarter of the current financial year. It was Rs 621 crore in the same period of last financial year.
The company said, the impact of COVID-19 on profits
According to the company’s filing, its consolidated revenue stood at Rs 1807.08 crore in the first quarter of the current financial year. Whereas in the same period of the last financial year it was Rs 1712.1 crore. The company’s executive chairperson Kiran Shaw Mazumdar said that operational difficulties due to COVID slowed down the company’s revenue growth. Production was disrupted at the company’s API facilities in both Bengaluru and Hyderabad. This hit the revenue growth.
Loss in Startup Bicara reduced profits
The company has said that losses from its Boston-based affiliate start-up Bicara Therapeutics Inc have affected profits. Kiran Shaw Mazumdar said that this year many medicines of the company can get approval. Its manufacturing facilities in India and Malaysia are to be inspected by the USFDA onsite. If this is done on time, then the company’s medicines can get approval soon. The demand for the company’s research services remains the same. However, the revenue of the biosimilars business has declined. It achieved revenue of Rs 758 crore in the first quarter of the current financial year. At the same time, it was Rs 692 crore in the same period of the last financial year.
S&P gave negative rating to Adani Discom, due to this the company’s outlook was downgraded
Kiran Shaw’s husband retires from the board
According to Biocon’s filing, its Vice Chairman and Non-Executive Director John Shaw is retiring from the board on 23 July 2021. It was said in the AGM that he has contributed a lot in taking the company from a small enzyme company to this point. Today Biocon is known worldwide as a well-known biopharmaceuticals company. John Shaw is the husband of Kiran Shaw Mazumdar.