Biocon's Q3 Results Factor In One-Off Items That Boosted Numbers

Biocon Ltd. has a couple of one-time items that aided numbers in the third quarter of fiscal 2024.

The company included the sale proceeds of Rs 350 crore earned from the divestment of their branded formulations India portfolio to Eris Lifesciences Ltd. as part of subsidiary Biocon Biologics Ltd.'s revenue. The segment reported a growth of 65%, according to the financial results. The sale led to a surge in operating revenue, Ebitda and margin.

The biopharmaceutical firm also received Rs 456 crore from "dilution gain" from Bicara Therapeutics Inc., which was part of its other income. Therefore, a total one-off of Rs 827 crore was booked as part of its third-quarter numbers.

Both the one-off items also bumped up profitability.

These did positively impact the Ebitda, profit and margin. Biocon also had a "one-time expense from the Viatris deal" in this quarter," Chief Executive Officer and Managing Director Siddharth Mittal told NDTV Profit on Friday. "Going forward, there will be no one-offs," he said.

Managing Director Siddharth Mittal told NDTV Profit on Friday. "Going forward, there will be no one-offs," he said.

The biopharmaceutical firm expects to maintain a core Ebitda margin in the range of 23–25%. It stood at 27% in the third quarter, as compared with the 23.44% Ebitda margin that was calculated using financial numbers, as per standard accounting disclosures.

Mittal said no timelines could be provided for Biocon's two big launches—gAspart and bevacizumab—as the U.S. Food and Drug Administration's inspections on the respective Malaysian and Indian facilities were still pending.

It also cannot comment on timelines regarding the acquired product, Eylea, since the matter is still in court.

Biocon's generic active pharmaceutical ingredient business reported a decline in the quarter due to pricing pressure and competition from other suppliers. Mittal said this should not be a long-term issue and Biocon is resorting to cost-efficiency measures to improve competitiveness for its APIs in the market.

The company aims to continue achieving double-digit growth in its formulation generics business and expects a few new launches in the fourth quarter.