Biocon reports Q2FY25 revenue of Rs 3,623cr amid generics pressure

Biocon Limited, a leading global biopharmaceutical company, released its consolidated financial results for Q2FY25, reporting a total revenue of Rs 3,623 crore. This represented a flat year-on-year change, with operational revenue at Rs 3,590 crore, showing a 4% increase compared to the previous year. The company emphasized an 8% growth in operating revenue when adjusted for previous branded formulations revenue.

Strong biosimilars performance offsets generics decline

Biocon’s biosimilars segment showcased impressive growth, reporting a 19% increase on a like-for-like basis, reaching Rs 2,182 crore. This growth was credited to higher market shares in North America and significant expansion in European and emerging markets. Meanwhile, the generics business faced a downturn, experiencing an 8% revenue drop to Rs 624 crore due to pricing and demand challenges, compounded by a planned shutdown of an API facility.

Leadership insights highlight resilience and strategic wins

Kiran Mazumdar-Shaw, Chairperson of Biocon Group, highlighted the company’s strategic success, particularly in the biosimilars segment, which bolstered its overall financial resilience. The debut bond issuance worth $800 million on the Singapore Stock Exchange and a syndicated $300 million loan were notable financial milestones, securing significant investor interest.

Peter Bains, Group CEO, pointed out that while the generics segment faced difficulties, new approvals and product launches in the UK and emerging markets are expected to drive a turnaround in the second half of the fiscal year.

Syngene and regulatory achievements

Syngene, Biocon’s research services arm, experienced a 2% decline in year-on-year revenue but noted sequential growth and momentum in its pilot projects. Regulatory updates included successful U.S. FDA inspections with corrective action plans in place, ensuring continued product supply without disruptions.

Expert analysis on the financial trajectory

Analysts noted that while the revenue boost from biosimilars has been pivotal, challenges in generics and ongoing cost management are areas for close monitoring. The strategic debt refinancing bolsters Biocon’s liquidity and enhances its ability to reinvest in growth, which could provide further momentum in upcoming quarters.