MIRA
INFORM REPORT
|
Report Date : |
01.09.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BIOCON
LIMITED |
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|
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|
Registered Office : |
20th
KM, |
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Country : |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.11.1978 |
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Com. Reg. No.: |
08-3417 |
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|
CIN No.: [Company
Identification No.] |
U00309KA1978PLC003417 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB00214E |
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|
Legal Form : |
Subject
is a public limited liability company. The company’s shares are listed on the
stock exchanges. |
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Line of Business : |
Manufacturers,
Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic
Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 37000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Good |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company engaged in manufacturing and marketing of Biochemicals,
Enzymes and Pharmeceuticals. The company’s track are fine and is making very
good progress in its turnover and profits. It has also plans to expand
further. The
company’s trade relations are reported as fair. Payments are usually correct
and as per commitments. The
company can be considered good for normal business dealings. |
LOCATIONS
|
Registered Office / Factory : |
20th
KM, |
|
Tel. No.: |
91-80-28422169/28523434 |
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Fax No.: |
91-80-28422623/25531662/28523423 |
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E-Mail : |
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Website : |
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Area : |
15000
sq.fts. [Owned] |
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|
Factory 1 : |
Plot No 113/C2,
Bommasandra Industrial Area, Bommasandra, |
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Factory 2 : |
Plot No 2,3,4
& 5, Bommasandra – |
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Overseas office: |
1406,
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|
Tel. No.: |
91-732
636 2950 |
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Fax No.: |
91-732
636 2951 |
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|
Branch office : |
Located
at:-
Tel. No. 91-22-56919760/61/62
Tel. No. 91-11-26449819
Tel. No. 91-33-25501299 |
DIRECTORS
|
Name : |
Mrs.
Kiran Mazumdar |
|
Designation : |
Chairperson
and Managing Director |
|
Address : |
874/1,
7th Cross III Block, Koramangala, |
|
Date of
Birth/Age : |
20.11.1978 |
|
Qualification
: |
B.Sc.
(Hons.), PG Diploma in Malting & Brewing |
|
Date Of
Appointment : |
01.12.1978 |
|
Previous
Employment: |
Jupiter
Breweries, Kolkata, |
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|
|
|
Name : |
Mr.
J. M. M. Shaw |
|
Designation : |
Whole-
time Director |
|
Address : |
874/1,
7th Cross III Block, Koramangala, |
|
Date of
Birth/Age : |
12/04/1949 |
|
Date of
Appointment : |
29/09/1998 |
|
|
|
|
Name : |
Dr.
Neville Bain |
|
Designation : |
Director |
|
Address : |
High
Trees, |
|
Date of
Birth/Age : |
17/04/1955 |
|
Date of
Appointment : |
08/08/2000 |
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|
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|
Name : |
Prof.
Ravi Mazumdar |
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Designation : |
Director |
|
Address : |
706, |
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Date of
Birth/Age : |
14/07/1940 |
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Date of
Appointment : |
08/08/2000 |
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|
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|
Name : |
Prof.
Charles L. Cooney |
|
Designation : |
Director |
|
Address : |
14/09/1961 |
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Date of
Birth/Age : |
35, |
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Date of
Appointment : |
27/07/2001 |
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|
Name : |
Dr.
Bala Manian |
|
Designation : |
Mr.
Catherine Rosenberg |
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|
Name : |
Mr.
Suresh Talwar |
|
Designation : |
Director |
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|
Name : |
Prof Catherine Rosenberg |
|
Designation : |
Alternate Director |
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|
Name : |
Mr. John Shaw |
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Designation : |
Director |
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|
Name : |
Mr.
Anthony Allison |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
Ajay Bhardwaj |
|
Designation : |
President
– Group Marketing |
|
Date of
Birth/Age : |
46
Years |
|
Qualification
: |
M. S. [Chemical
Engineering] |
|
Experience : |
22 Years |
|
Date of
Appointment : |
01.01.1986 |
|
Last
Employment : |
Project Engineer
Max India Limited, |
|
|
|
|
Name : |
Dr.
Chaitanya R. Divgi |
|
Designation : |
Chief
Executive |
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|
|
|
Name : |
Mr. J
M M Shaw |
|
Designation : |
Vice
Chairman |
|
Qualification
: |
M. A [Hons] |
|
Date of
Appointment : |
01.04.1999 |
|
Last
Employment : |
President –
Berghaus International Fashion Group, |
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|
|
|
Name : |
Prof.
Hans Wigzell |
|
Designation : |
Head
[Centre for Medical Innovations] |
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|
|
|
Name : |
Dr.
Arun Chandavarkar |
|
Designation : |
President
(Operations and Technology) |
|
Qualification
: |
Ph. D. [Chemical
Engineering] |
|
Date of
Appointment : |
08.11.1990 |
|
|
|
|
Name : |
Mr.
Murali Krishnan |
|
Designation : |
President
(Finance) |
|
Qualification
: |
B. Com. CA |
|
Experience : |
24 Years |
|
Date of
Appointment : |
09.11.1981 |
|
|
|
|
Name : |
Mr.
Rakesh Bamzai |
|
Designation : |
Vice
President, Marketing |
|
Date of
Birth/Age : |
45
Years |
|
Qualification
: |
B. Sc. [Food and
Fermentation Tech] |
|
Experience : |
17 Years |
|
Date of
Appointment : |
19.04.1995 |
|
Last
Employment : |
Assistant General
Manager – Marketing Advanced
Biochemical’s Limited |
|
|
|
|
Name : |
Mr.
Chinappa M. B. |
|
Designation : |
Vice
President, Finance |
|
Qualification
: |
B. Com. ACA |
|
Date of
Appointment : |
12.07.1999 |
|
Last
Employment : |
Finance Manager
ITC Limited, |
|
|
|
|
Name : |
Mr.
Shrikumar Suryanarayan |
|
Designation : |
President
(Research & Development) |
|
Qualification
: |
M. Tech
[Chemicals Engineering] |
|
Date of
Appointment : |
02.05.1984 |
|
|
|
|
Name : |
Dr.
Goutam Das |
|
Designation : |
Chief
Operating Officer, Syngene |
|
|
|
|
Name : |
Mr.
A. S. Arvind |
|
Designation : |
Chief
Operating Officer, Clinigene |
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|
|
|
Name : |
Dr.
Sambasivam Ganesh |
|
Designation : |
Chief
Scientific Officer |
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|
|
Name : |
Dr.
Subir Kumar Basak |
|
Designation : |
General
Manager, Business Development |
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|
|
|
Name : |
Mr. Ravindra
K. C. |
|
Designation : |
General
Manager, production |
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|
|
Name : |
Dr.
Harish V. Iyer |
|
Designation : |
General
Manager, Research and Development |
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|
Name : |
Dr.
Tara Jayaram |
|
Designation : |
General
Manager, Quality Assurance |
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|
Name : |
Mr.
Ramalingeswara Rao K. |
|
Designation : |
General
Manager, Marketing |
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|
Name : |
Mr.
Akash S. Puranik |
|
Designation : |
General
Manager, Marketing |
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|
|
|
Name : |
Mr.
Sandeep Rao |
|
Designation : |
General
Manager, Marketing |
|
Date of
Birth/Age : |
32
Years |
|
Qualification
: |
M. Sc. PGDM |
|
Experience : |
7 Years |
|
Date of
Appointment : |
15.06.1999 |
|
|
|
|
Name : |
Mr.
Gautam Reddy |
|
Designation : |
General
Manager, Group HR |
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|
|
|
Name : |
Mr.
Sundaresh S. R. |
|
Designation : |
General
Manager, Commercial |
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|
|
Name : |
Mr.
Anindya Sircar |
|
Designation : |
General
Manager, IPR |
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|
|
|
Name : |
Mr.
Prasad B. S. V. |
|
Designation : |
General
Manager, Productions |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of
Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Individuals /
Hindu Undivided Family |
40430197 |
40 |
|
Foreign |
|
|
|
Individuals
(Non-Resident individuals / Foreign Individuals) |
703779 |
1 |
|
Bodies Corporate |
19767597 |
20 |
|
Public shareholding |
|
|
|
Institutional |
|
|
|
Mutual Funds /
UTI |
5792224 |
6 |
|
Financial
Institutions /Banks |
361463 |
0 |
|
Insurance
Companies |
747037 |
1 |
|
Foreign
Institutional Investors |
7218169 |
7 |
|
Non-institutional |
|
|
|
Bodies Corporate |
1953987 |
2 |
|
Individuals |
|
|
|
Individual
shareholders holding nominal share capital up to Rs 0.100 Million |
8259587 |
8 |
|
Individual
shareholders holding nominal share capital in excess of Rs 0.100 Million |
7285591 |
7 |
|
Any Other- |
|
|
|
Non resident
Indians |
677435 |
1 |
|
Trusts |
5239220 |
5 |
|
Foreign
Nationals |
1482036 |
1 |
|
Clearing Members
|
81678 |
0 |
|
Total |
100000000 |
99 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic
Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc. |
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Products : |
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Brand Names : |
"BIOCON" |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual
Production |
|
Enzymes |
Kg. |
|
|
4576302 |
|
Pharmaceuticals |
Kg. |
|
|
9689578 |
GENERAL
INFORMATION
|
No. of Employees : |
250 |
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Bankers : |
Ř State Bank of Ř Hongkong Bank, Manipal Centre,
Tel. No. 91-80-5585444 Fax No. 91-80-5584411 Ř
Canara
Bank, Vasanthanagar Branch, |
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Facilities : |
(i) On January 8, 2007, the Company renewed
its total rupee and foreign currency denominated fund based working capital
facilities with State Bank of India (SBI) of Rs 200.000 Millions which has
been subsequently enhanced to Rs 700,000 These facilities are repayable on
demand, secured by a pari-passu first charge on current assets and carry an
interest rate of 2 to 7 per cent per annum for foreign currency denominated
loans and 7 to 13 per cent per annum for rupee loans. The Company has
utilised Rs 490.895 Millions (March 31, 2006 - Rs 130.007 Millions) inclusive
of foreign currency loans of Rs 36.764 Millions (US$ 802 & Euro 31)
[(March 31, 2006 - Rs 128.856 Millions) (US$ 2,897)] as of March 31, 2007. (ii) On August
23, 2004, the Company renewed its fund and non fund based working capital
facilities with Hongkong and Shanghai Banking Corporation (HSBC) for Rs
545.000 Millions, which has been subsequently enhanced to Rs 845.000
Millions. These facilities are repayable orj demand, secured by pari-passu
first charge on current assets of the Company and carry an interest rate of 2
to 7 percent per annum for foreign currency denominated loans and 5 to 15 per
cent per annum for rupee loans. The Company has utilised fund based limits of
Rs 4.249 Millions (March 31,2006 - Rs 239.405 Millions), inclusive of foreign
currency denominated loans of Rs Nil • [March 31, 2006 - Rs 218.419 Millions
(US$4,910)] as of March 31, 2007. (iii) On August
26, 2004, the Company renewed its working capital facilities with Canara Bank
('CB') for Rs 200.000 Millions. These facilities are repayable on demand,
secured by a pari-passu first charge on current assets of the Company and
carry an interest rate of 2 to 7 per cent for foreign currency denominated
loans and 7 to 12 per cent per annum for rupee loans. The Company has
utilised Rs 32.026 Millions (March 31, 2006 - Rs 114.586 Millions) inclusive
of foreign currency denominated loans of Rs 31.981 Millions (US$ 734) [March
31, 2006 - Rs 112,116 (US$ 2,521)] as of March 31, 2007. (iv) On November
5, 2004, the Company renewed its fund and non fund based working capital
facility with ABN Amro Bank for Rs 230.000 Millions. These facilities are
repayable on demand, secured by a par! passu second charge on the fixed
assets of the Company and carry an interest rate of 2 to 7 per cent for
foreign currency denominated loans and 7 to 12 per cent per annum for rupee
loans. The Company has utilised Rs 60,161 (March 31, 2006 - Rs 193.551 Millions)
inclusive of foreign currency denominated loans of Rs 60,161 (US$ 1,380)
[March 31, 2006- Rs 192.262 Millions (US$ 4,322)] as of March 31, 2007. (v) On August 10, 2005 all the above banks have entered into an
inter-se agreement for operational convenience for the above working capital
limits effecting the modification of the above charge and creation of a pari
passu charge on the current assets of the Company in favour of all the above
banks. |
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Banking Relations : |
Satisfactory |
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Auditors : |
Arthur
Anderson Chartered
Accountants |
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Associates: |
˜
Biocon
Group ˜
Syngene
International Private Limited Syngene
International Private Limited is a 99.99% owned subsidiary of Biocon. It was incorporated
on Novemvber 18, 1993. By way of a restructuring, 99.9% of the shares in
Syngene held by Kiran Mazumdar Shaw, ICICI and a few other scientists were
transferred to Biocon in consideration for the issue of shares by Biocon to
the shareholders of Syngene on March 31, 2002. The paid-up capital of Syngene
is Rs. 28.750 millions. ˜
Clinigene
International Private Limited Clinigene
International Private Limited is a 100% owned subsidiary of Biocon Limited.
It was incorporated on August 4, 2000 with an authorised capital of Rs 5.000
millions. The paid-up capital of Clinigene is Rs. 0.500 million. v Biocon Biopharmaceuticals
Private Limited (BBPL) BBPL
is a Joint Venture company of Biocon in collaboration with CIMAB SA, |
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|
|
|
Subsidiaries : |
·
Ciligene
International Private Limited ·
Syngene
International Private Limited ·
Biocon
Biopharmaceuticals Private Limited |
|
|
|
|
Joint
venture: |
·
Syngene
International Private Limited ·
Clinigene
International Private Limited ·
Biocon
Biopharmaceuticals Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120,000,000 |
Equity
shares |
Rs. 5/- each |
Rs. 600.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity
shares |
Rs. 5/- each |
Rs. 500.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
500.000 |
500.000 |
500.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
8916.405 |
7530.435 |
6459.384 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
9416.405 |
8030.435 |
6959.384 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
587.331 |
677.549 |
493.279 |
|
|
2] Unsecured
Loans |
480.402 |
372.927 |
270.136 |
|
TOTAL BORROWING
|
1067.733 |
1050.476 |
763.415 |
|
|
DEFERRED TAX
LIABILITIES |
397.569 |
279.738 |
219.597 |
|
|
|
|
|
|
|
TOTAL
|
10881.707 |
9360.649 |
7942.396 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
6649.894 |
2278.123 |
2048.296 |
|
Capital work-in-progress
|
299.048 |
4564.301 |
3100.026 |
|
|
|
|
|
|
|
INVESTMENT
|
786.000 |
1390.554 |
2237.345 |
|
Intangible Assets
|
512.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1506.589
|
712.922
|
839.521 |
|
|
Sundry Debtors
|
2748.526
|
1728.842
|
1159.635 |
|
|
Cash & Bank Balances
|
76.313
|
34.201
|
3175.114 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
467.779
|
362.845
|
267.203 |
Total Current Assets
|
4799.207 |
3345.622
|
2838.810
|
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1759.431
|
1818.890
|
1275.111 |
|
|
Provisions
|
405.011
|
399.061
|
|
Total Current Liabilities
|
2164.442 |
2217.951 |
2282.081 |
|
Net Current Assets
|
2634.765 |
1127.671 |
556.729 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
10881.707 |
9360.649 |
7942.396 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
8237.402 |
6874.924 |
5034.462 |
|
|
Other Income |
393.457 |
56.911 |
|
|
|
Total Income |
8630.859 |
6931.835 |
5034.462 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1710.491 |
1608.734 |
1474.802 |
|
|
Provision for Taxation |
126.989 |
273.904 |
228.076 |
|
|
Profit/(Loss) After Tax |
1583.502 |
1334.830 |
1246.726 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
4489.161 |
3577.231 |
|
|
|
Recovery of
freight, insurance etc on exports |
38.757 |
1.504 |
|
|
|
Technical
Licensing fees |
272.352 |
10.781 |
|
|
Total Earnings |
4800.270 |
3589.516 |
2999.826 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
2375.579 |
2481.980 |
|
|
|
Packing Materials |
15.051 |
2.164 |
|
|
|
Capital Goods |
188.097 |
349.095 |
|
|
Total Imports |
2578.727 |
2833.239 |
2111.684 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses, Contract research
and other expenses |
6266.690 |
5077.718 |
|
|
|
Interest and finance charge |
77.618 |
16.887 |
|
|
Total Expenditure |
6344.308 |
5094.605 |
3421.130 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales Turnover |
|
|
2274.000 |
|
Other Income |
|
|
41.900 |
|
Total Income |
|
|
2315.900 |
|
Total Expenditure |
|
|
1688.800 |
|
Operating Profit |
|
|
627.100 |
|
Interest |
|
|
08.900 |
|
Gross Profit |
|
|
618.200 |
|
Depreciation |
|
|
163.000 |
|
Tax |
|
|
15.100 |
|
Reported PAT |
|
|
448.600 |
200706
Quarter 1 –
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
(166.80) million Consumption of Raw Materials Rs 1143.60 million Power Cost Rs
204.30 million Employee Cost Rs 194.70 million Other Expenses Rs 313.00 million
Tax Includes Provision for Current Tax (including fringe benefit tax) Rs 15.10
million Deferred Tax Rs (8.50) million EPS is Basic Status of Investor
Complaints for the quarter ended June 30, 2007 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 16
Complaints disposed off during the quarter 16 Complaints unresolved at the end
of the quarter Nil 1. The earnings considered in ascertaining the Company's
earnings per share comprise of the net profit after tax. The number of shares
used in computing the basic earnings per share is the weighted average number of
shares outstanding during the period/year. The number of shares used in
computing diluted earnings per share comprises the weighted average share
considered for deriving basic earnings per share, and also the weighted average
number of shares, if any which would have been issued on the conversion of all
dilutive potential equity shares. In accordance with the revised SEBI (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999
(Revised), the ESOP Trust has been consolidated with the Company. 2. The above
results were reviewed by the Audit committee on July 17, 2007 and then approved
by the Board of Directors at their meeting held on July 18, 2007. 3. The
figures have been reclassified wherever required, to conform with the classification
in the financial statements for the quarter ended June 30, 2007.
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt
Equity Ratio |
0.12 |
0.12 |
0.11 |
|
Long
Term Debt Equity Ratio |
0.05 |
0.04 |
0.04 |
|
Current
Ratio |
1.29 |
0.97 |
1.68 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.51 |
2.48 |
2.99 |
|
Inventory
|
6.93 |
8.21 |
8.82 |
|
Debtors |
3.69 |
3.82 |
4.74 |
|
Interest
Cover Ratio |
21.94 |
65.86 |
71.08 |
|
Operating
Profit Margin (%) |
26.70 |
25.69 |
30.58 |
|
Profit
Before Interest and Tax Margin (%) |
20.20 |
22.54 |
27.94 |
|
Cash
Profit Margin (%) |
24.34 |
21.57 |
28.13 |
|
Adjusted
Net Profit Margin (%) |
17.85 |
18.42 |
25.48 |
|
Return
on Capital Employed (%) |
18.34 |
19.47 |
27.80 |
|
Return
on Net Worth (%) |
18.18 |
17.84 |
28.25 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.460.00/- |
|
Low |
Rs.440.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Biocon Ltd was incorporated in the year 1978. Biocon is
Biopharmaceuticals has been and will continue be the mainstay of Biocon it
promise exciting growth opportunities. This segment is involved primarily in
manufacture and marketing of active pharmaceutical ingredients (API) that
require advanced fermentation and other skills and offer significant market
potential in the regulated markets once the product goes off patent. Within
this segment, statins constitute major products. Statins are a group of popular
cholesterol-lowering drugs.
The significant growth in sales in the recent past has resulted in full
utilisation of capacity in the existing manufacturing facilities. A number of
generic companies who are in the process of registering their formulations in
the
The facility will initially be for manufacture of statins. It will have a
modular design and will contain provisions for adding further capacity as and
when required. Further, the facility will also be capable of manufacturing
other products involving fermentation as well as synthetic conversion
processes.
In March 2004, the company tapped the capital market through 100% book building
method. The IPO comprises of 10 million equity shares of Rs 5 each with a price
band of Rs.270 -Rs.315 per equity share. The proceeds from the book building
will be utilised for setting up a new facilities and chemical synthesis
operations with an estimated fund of Rs.413.40 crores.
During 2004-05 the company has launched Insugen its branded formulation of
recombinant human insulin for diabetes in the Indian Market.
The company has commenced Phase II Clinical trails for its drug TheraCIM
(h-R3), a humanised monoclonal antibody, for the treatment of head and neck
cancer and will be extended to include Pancreatic, Colorectal, Lung, Breast and
Brain Cancers.
The subsidiaries of Biocon are Syngene International Pvt Ltd and Clinigene
International Pvt Ltd. Biocon Biopharmaceuticals Pvt Ltd, a joint venture
company formed by Bicon with CIMAB a Cuban company, to manufacture monoclonal
antibodies and other Recombinant Therapeutics. The construction of state of the
art Biologicals facility for the above-mentioned products has commenced and the
project is expected to be completed by September 2005.
In 2006, The company has made the single largest capital investment in its
history to establish
BUSINESS
Subject is engaged in the business as Manufacturers,
Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic
Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc.
Subject is also engaged in to carry on the business of
manufacturing, processing, distilling, compounding, formulating, acquiring,
buying, selling, importing, exporting and dealing in all enzyme products from
animal, microbial, plant sources, products from fish sources, vegetable and
herb extracts, agricultural products including cattle feed, and all chemicals
heavy or fine, organic, inorganic, biological or any other formulations,
derivatives and compounds thereof from mineral origin or from other chemicals
or from by-products or waste products of other trades and industries and other
branded preparations and compounds, derivatives and formulations thereof and
consumers products based thereon, pharmaceutical specialities, surgical
specialities, cosmetics, germicides, detergents and acids.
The company is in trade terms with :
˜
Anil Agro Products Private Limited
˜
Avani Enterprise
˜
Bangalore Paper Filter Company
˜
Bangalore Genei Private Limited
˜
Cauvery Mineral Water Private Limited
˜
Drawcans Private Limited
˜
Eskay Fine Chemicals
˜
International Fibre Glass Products (Private) Limited
˜
Millenium Chem Pharma Private Limited
˜
Quantum Drugs and Chemicals
˜
Ragukul Industries
˜
Senthil Papai and Food Products Limited
˜
Speciality Organics Private Limited
˜
Microtrol Sterilisation Private Limited
˜
Bayer Chemicals
˜
Sunil Agro Food Private Limited
˜
Venus Casein Products
Its products range include:-
v
Biopharmaceuticals
v
Enzymes
Its services range include:-
v
Custom Research
v
Clinical Research
Results
of Operations:
During the year under review, consolidated revenues grew 25 percent while
Operating Profits (EBITDA) and Profit after Tax grew by 23 percent and 15
percent respectively. The improved performance was a result of a strong focus
on operational efficiencies and aggressively defending their market position in
the face of strong competition in the generic API space and monetizing some of
their research programmes by way of licensing and partnering.
Business
Operations overview and Outlook
The volume growth and increased market share in the European Markets for
Statins were negated by pricing pressures in the key Statin products. Further
supply of Statins to the US markets were also affected due to delayed launch of
Pravastatin and Simvastatin consequent to grant of 6 months exclusivity to
generic players who were the first to file ANDAs. However, the opening up of
these markets together with the commissioning of the new facilities at
The Company continued to make significant progress in
Insulin with increased sales in both the domestic and export markets. During
the year the Company entered into licensing agreements covering
Immunosuppresants are also expected to offer significant growth opportunities
consequent to product patent expiry in key markets of Mycophenolate Mofetil and
Tacrolimus in the period 2008-2012.
Biocon's foray into direct marketing of formulations continued to make impressive
strides with the launch of the Oncology and ephrology Divisions. During the
year the Oncology Division launched BIOMAb-EGFR(TM) a therapeutic monoclonal
antibody-based drug for treating solid tumors such as head and neck cancers,
representing Biocon's first novel antibody to be developed and launched in
Biocon continues to invest incrementally to progress it's innovation pipeline.
While during the year Biocon monetized some of it's research programs by way of
licensing and partnering , it's rich product pipeline including IN-105, BVX 10,
BVX 20 and anti-CD6 are expected to contribute significantly to Biocon's growth
in the future years. During the year the Company has completed Phase I studies
of IN-105.
Subsidiaries and Joint Ventures:
Syngene International Limited:
For the Financial year 2006-07, Syngene registered strong growth of 34% in
revenue, with grew from Rs 982 million to Rs 1,316 million. profit after tax
increased by 10% from Rs.452 million to Rs 497 million in the current
fiscal.
Syngene continues to be one of
Syngene has a strong knowledge base with over 700 scientists. A new research
facility is expected to be completed in 2007-08 and additional investments are
planned to support future growth and establish Syngene among the leading custom
research organisations in the world.
Clinigene International Limited:
Clinigene International Limited is a wholly owned subsidiary of the Company
focussed on Clinical Development.
For the current financial year, Clinigene earned a net profit of Rs.8 million
as against a loss of Rs.11 million in the previous year. The Company registered
a revenue of Rs. 115 million as against Rs.57 million in the previous
year.
With demand for outsourced research expected to grow exponentially, Clinigene
has expanded its operations into a new 60,000 sq ft facility. This facility
will house a new unit for conduct of BE/BA and Phase I studies and coordinate
Phase II to Phase IV Clinical Trials for a large number of global Pharma and
Biotech companies.
Biocon Biopharmaceuticals Private
Limited:
This is Biocon's 51:49 JV with CIMAB SA, to manufacture monoclonal antibodies
and other Recombinant Therapeutics. During the year the Company completed the
first indigenously developed monoclonal antibody, BIOMAb EGFR for the treatment
of head and neck cancer, representing a significant initiative in the Company's
foray into original molecules. The Company has set up one of Asia's largest
Monoclonal Antibody facility at
MANAGEMENT'S
DISCUSSION AND ANALYSIS
1. Industry Structure and
Development
The global pharmaceutical sales continued to grow at 7 percent at constant
exchange rates in 2006, to reach a record USD 643 billion. North America,
Europe and
Lipid Regulators remained the top selling therapy class in 2006, with sales of
USD 35 billion, while Oncologics grew 20% to a shade below USD 35 billion to
represent the second highest selling class of products. Respiratory Agents with
sales of USD 25 billion grew 10% to the move into the third position.
Antidiabetics at the 5th position also experienced double digit growth with sales
of USD 21 billion.
Pharmaceutical growth continued to be driven by increased longevity of
populations, strong economies and innovative new products. 31 new products were
launched in key markets in 2006. Overall the contribution of new products
launched between 2001 and 2005 reached USD 14 billion in 2006.
The biopharmaceutical market has undergone rapid expansion since its emergence
thirty years ago. The 2006 bio-pharma market for the top 20 biologics is
estimated at USD 63.83 billion, having grown 27.78 percent from 2005's revenues
of USD 49.95 billion and the double-digit growth of the market is expected to
continue to the end of the decade.
Generic Pharmaceutical Industry
The generic drugs market refers to regulated markets for drugs whose patents
have expired or been invalidated. The expiration or invalidation of product
patents typically leads to the entry of generic, or non-branded, formulations
in the regulated markets, resulting in increased competition and leading to a
decline in price and margin of drugs.
Generics will assume a more central role as patients bear a greater percentage
of their healthcare costs and payers seek to restrict the growth of healthcare
expenditures. In 2006 sales of generics in seven key markets (
Outlook
The global pharmaceutical industry is forecasted to grow at 6-9% compounded
annual growth rate through 2010. Growth will be mainly driven by the emergence
of new markets including Asia, Easter Europe and
Opportunities
The surge in generics together with the recent patent expiry of Simvastatin,
and Pravastatin in US provides Biocon with attractive opportunities in the near
to medium term. Supply of Insulin to Innovator companies, Patent expiry of key
immunosuppressant drugs and the opening up of bio-similars is also seen as
large opportunities. Success in Biocon's Research and Development initiatives
into new drug discovery could also yield significant benefits.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2007
(All amounts in Indian Rupees and US Dollars in thousands, except share
data including share price)
Background
a. Incorporation and history
Biocon Limited
('Biocon' or 'the Company'), promoted by Ms Kiran Mazumdar Shaw ('KMZ'), was
incorporated at
In March 2002, the
Company acquired 99.99 per cent of the share capital of Syngene International
Limited ('Syngene') (formerly Syngene International Private Limited) a contract
research company. Syngene was also promoted and controlled by KMZ and the
consideration for such acquisition was the issue of 202,780 equity shares of
Biocon of Rs 10 each, determined on the basis of fair values as approved by the
statutory authorities.
Also, the Company,
on March 31, 2001, acquired 100 per cent equity of Clinigene International
Limited ('Clinigene') (formerly Clinigene International Private Limited), a company
that undertakes clinical research activities. Biocon entered into an Agreement
on February 22, 2002 to set up a Joint Venture Company, with CIMAB SA
('CIMAB'), a company organised and existing under the laws of
In March 2004, the
Company completed an Initial Public Offering ('IPO') and made a fresh issue of
10,000,000 equity shares of Rs 5 each at a price of Rs 315 per share.
Consequently, on April 7, 2004, the equity shares of the Company were listed on
the National Stock Exchange of India and The Stock Exchange, Mumbai. The
proceeds of the issue had been used for setting up the new facilities at
b.
The Company's
The direct costs
incurred at the Biocon Park Facility during the extended trial run period
including depreciation charge have been expensed in the Statement of Profit and
Loss. The processed quantity of the 'extended trial run production' has been
transferred to other operating facility of the Company for further processing.
c. Purchase of
Intellectual Properties of Nobex Inc.,
The Company had
entered into Research and Development Agreements and Investment Agreements with
Nobex Inc.,
Subsequently on
March 20, 2006, the Company emerged as the winning bidder for the assets
primarily including, without limitation, patents relating to certain
technologies for Oral Insulin, Oral BMP, Basil Insulin and Apaza (collectively
hereinafter referred to as 'IPs'), for a total consideration of US$ 5 million.
The closing for the sale process has been completed in April 2006. Accordingly,
the total commitment made by Biocon, including investments already made,
aggregates to US$ 12 million (Rs 496 million).
As at September
30, 2006, as the Company was yet to determine its firm plan to monetise the IPs
either in the existing form or through further development and
commercialisation, the underlying intangible assets of Rs 524,209 relating to
the IPs, including legal costs directly related to the acquisition of the IPs
of Rs 28,451 capitalised as a part of these intangible assets, were not ready
for its intended use and hence were carried at cost. In the board meeting of
October 18, 2006, the Company has decided to license out certain of its IP
(Apaza) and to retain the rest of the IPs for its further developments and
commercialisation. The Company has estimated the value of IPs for Apaza based
on the valuation report obtained during Q1, to be US$ 2 million. The balance of
the IPs is valued at US$ 10 million, equally spilt between Oral Insulin and
BMP.
As the Apaza is
ready for its intended use, the amortization is considered effective October
2006. Accordingly, the financial statements include a charge of Rs 9 million as
amortization of intangible asset disclosed under schedule 8 (ii).
|
Contingent
liabilities |
Rs
in millions |
|
(a) Taxation
matters under appeal |
20.960 |
|
(b) Corporate
guarantees |
|
|
(i) Corporate
guarantee given in favour of the CED in respect of certain performance obligations
of Syngene. The Company has informed that necessary terms and conditions have
been complied with and no liabilities have arisen |
217.500 |
|
(ii) Corporate
guarantee given by Syngene in favour of the CED in respect of certain
performance obligations of Biocon. |
465.000 |
|
(c) Corporate guarantees given in favour of the CED in respect of
certain performance obligations of BBPL. The Company has informed that the
necessary terms and conditions have been complied with and no liabilities
have arisen |
131.352 |
|
(d) Corporate guarantees given in favour of the CED in respect of
certain performance obligations of Clinigene. The Company has informed that
the necessary terms and conditions have been complied with and no liabilities
have arisen |
27.205 |
|
e) Corporate guarantees given in favour of State Bank of India (SBI),
towards Term loan granted to BBPL.
The Company has informed that the necessary terms and conditions have been
complied with and no liabilities have arisen |
650.000 |
|
(f) Claims against the Company not acknowledged as debts |
2.170 |
Fixed Assets
- Land
- Buildings
- Leasehold improvements
- Plant and machinery
- Research and development equipment
- Furniture and fixtures
- Vehicles
Milestone
|
Year |
Key Events, Milestones and
Achievements |
|
|
|
|
November
1978 |
Biocon
commenced operations as a joint venture between the promoter Ms. Kiran
Mazumdar-Shaw and Biocon Biochemical’s Limited, an |
|
July
1982 |
BCZ
was incorporated to focus on research and development in relation to enzymes. |
|
1984 |
Biocon
began focussing on research and development, to develop novel enzymes for the
Biocon group worldwide through solid-state fermentation process technology
referred to as "koji technology". |
|
April
1989 |
HLX was
incorporated as a pharmaceutical biotechnology company, which later
diversified into pharmaceutical bulk activities. |
|
July
1989 |
Biocon
along with Unit Trust of India/Technology Development and Investment
Corporation of |
|
November
1992 |
UTI/TDICI
transferred their entire shareholding in BCZ to Biocon Limited, |
|
January
1993 |
Bicon
received ISO 9001 accreditation from RWTUV, |
|
November
1993 |
Syngene
was incorporated as a CRO to conduct research for third party clients in the
area of drug discovery and development. Syngene's skill set in the areas of
molecular biology and synthetic chemistry are complementary to their
expertise in the areas of fermentation and microbial genetics. |
|
February
1995 |
Unilever
acquired 50% of the shares in BCZ by acquiring the entire shareholding of
Biocon Biochemicals Limited, Unilever
also acquired shares in Biocon from Biocon Biochemicals Limited, |
|
December
1995 |
BQIL
was established with their Company and Unilever acquiring around 50% stake
each. BQIL commenced manufacturing operations from August 1996 |
|
February
1998 |
HLX
commenced manufacturing operations |
|
June
1999 |
Glentec
International acquired the entire shareholding of Unilever in BCZ, BQIL and
the company. |
|
March
2000 |
The
company acquired the entire shareholding of BCZ, BQIL & HLX from Glentec
International, Ms. Kiran Mazumdar-Shaw and others in exchange for issue of
shares by the Company. Glentec
International acquired a majority stake (approx 64%) in Syngene as part of a
fresh issue of shares. |
|
March
2000 |
ICICI
Ventures and its affiliate funds were inducted as shareholders of the company
by way of subscription to 15.35% of the share capital of the company. |
|
May
2000 |
ICICI
Ventures, and its affiliate funds also acquired 10% in Syngene from Glentec
International. |
|
May
2000 |
The
company’s proprietary bioreactor christened PlafractorTM based on solid
matrix fermentation received a |
|
December
2000 |
Clinigene
was incorporated to conduct longitudinal clinical studies in select disease segments
as a wholly owned subsidiary of the company. |
|
January
2001 |
As
part of a court based restructuring, BCZ, BQIL and HLX were amalgamated into
the company, with effect from April 1, 1999. The
company Lovastatin facility was approved by the US FDA |
|
March
2002 |
The
company acquired 99.99% of Syngene from its other shareholders, including
ICICI Venture and its affiliate funds, which divested their entire stake in
Syngene in exchange for issue of shares by the company. Syngene was made a
99.99% subsidiary of Biocon Limited. |
|
March
2003 |
BBPL
was incorporated to manufacture and market a select range of biotechnology
based life saving drugs as a 51:49 joint venture with CIMAB and the company |
|
May-September
2003 |
ICICI
Ventures along with its affiliate funds divested its shareholder interests in
the company in favour of other private equity funds, being AIG AOF, a wholly
owned subsidiary of AIG Asian Opportunity Fund L.P. and IVF and also to the
Welfare Trust. |
|
March
11, 2004 |
Biocon
goes for an IPO to raise Rs 3000.000 millions to fund its huge capital
expansion plans. |
|
March
18, 2004 |
Biocon's
IPO gets oversubscribed 32 times |
Board
of Directors
Dr. Neville Bain • Chairman,
Finance Director, Cadbury
Schweppes Plc. • Author of several management
books on corporate governance, strategy and people management
Prof. Charles L. Cooney • Professor, Chemical &
Biochemical Engineering,
Dr. Bala S. Manian • Chairman and Co-founder,
Reametrix Inc. • Co-founder, Quantum Dot
Corporation and Surromed Corporation, USA • Expert in the design of electro-optical systems • Authored several peer-reviewed
scientifi c publications and holder of many patents • Recognised through several
awards for contributions as educator, inventor and entrepreneur, including
Technical Academy Award in Digital Cinematography by Academy of Motion
Pictures, Arts and Sciences
Prof. Ravi Mazumdar • University Research Chair
Professor, Department of Electrical and Computer Engineering,
Dr. Kiran Mazumdar-Shaw • Chairman & Managing
Director, Biocon •
First generation
entrepreneur with more than 28 years experience in biotechnology and industrial
enzymes • Master Brewer,
Prof. Catherine Rosenberg • University Research Chair
Professor and Chairman, Department of Electrical and Computer Engineering,
Mr. John Shaw • Vice Chaiman, Biocon • Served in senior positions in
various locations around the world • Chairman, Madura Coats Limited between 1991-1998
Mr. Suresh Talwar • Partner, Crawford Bayley &
Co., an Indian law fi rm of repute. • Director, Cadbury India Limited, Birla Sun Life Insurance Co.
Limited, L&T Limited • Area
of professional specialisation includes
corporate law and related fi
elds • Legal counsel to numerous
Indian companies, multinational corporations and Indian/foreign banks
Established
in 1994 as a subsidiary of Biocon, Syngene is a chemical synthesis-driven
Custom Research Company (CRC). They are the first Indian biotechnology CRC to
receive special export status by the Government of India.
Lead by their synthetic
chemistry division, Syngene specialises in developing high value organic
molecules through multi-step synthesis involving diverse and complex
chemistries. Extending their expertise to molecular biology, they have also
developed an impressive capability to produce biopharmaceuticals through rDNA
technology using microbial, yeast and mammalian host systems.
Collaborative work underlines
Syngene's work ethos. Their team of highly skilled scientists closely interacts
with their global clients to offer them quality services with particular
attention to confidentiality, time-lines and cost-effectiveness.
Syngene
Syngene
is an internationally reputed Custom Research Company (CRC) with
multi-disciplinary skills in synthetic chemistry and molecular biology.
Leveraging the convergence of information technology and biotechnology, they
conduct high value R&D in early stage drug discovery and development for a
diverse global clientele.
A
subsidiary of Biocon, Syngene provides customised R&D services to the
pharmaceutical and biotechnology sectors, on a strong platform of
confidentiality and intellectual property protection. With state-of-the-art
facilities, dedicated connectivity and highly qualified researchers, they offer
their customers a powerful value advantage in the field of outsourced research
and development
Press release
Biocon scouts for buys to boost pharma biz
August 21, 2007
Publication : Business Line
We are looking at accessing global markets : Mazumdar Shaw
Biocon Ltd is scouting for acquisitions and may list its shares on
international bourses in its effort to strengthen its pharmaceutical business.
"We will look at inorganic growth. We are definitely having a strategy to
look for an appropriate opportunity. We are looking at how to grow our
pharmaceutical business," Biocon Chairman and Managing Director Ms Kiran
Mazumdar Shaw said.
"We will look at an international listing. That's a very important
objective for us", she said. "We will do it at a time when we are
really in a position to partner one of our porgrammes at a very, very high
valuation".
Biocon. made a string of announcements in the last couple of months, including
those relating to agreements with Abraxis Bioscience and Invitrogen, setting up
a joint venture in
"We focus strongly, and have created an infrastructure to address global
scale. Now, we are looking at how do we access global markets".
Ms Mazumdar Shaw said that
The company would invest more on its discovery programmes, which has shown a
"lot of promise" and needs investment to "unlock huge
value".
She added: "We divested our enzymes business so that the realization can
be used to invest promising research programmes".
On the current thrust of Biocon, Ms Mazumdar Shaw said that efforts are being
made to see that the company is able to keep its performance at a certain
level, in the face of sharp appreciation of rupee against the US dollar in
recent months.
"We have already been impacted in the last quarter", she said, adding
that hedging does not fully help companies when the rupee appreciates some 10
per cent in 3-4 months in an "abrupt way. We are looking at how best to
deal with depreciation of dollar and not let it erode our profits".
For the quarter ended June, Biocon clocked revenues of Rs.272 crore and net
profit of Rs.53 crore.
KIRAN MAZUMDAR SHAW,
INTELLECTUAL LEGACY
February
05, 2007
Publication
: Business World
New
York Times called her "
Who is the one person in the life who made a difference and how?
My late father, R.I Mazumdar for he made me believe that scientific knowledge
is hard currency. Not everyone has this intellectual asset. He also encouraged
me to pursue a career by applying my knowledge in a gainful manner. He believed
that women who did not utilize their education in a meaningful manner had in
essence destroyed valuable intellectual capital for the country. I followed my
father to take a master's brewing degree in
You have been named as
I believe I have created intellectual wealth from very frugal resources and
that is what I am acknowledged for. I do hope I can inspire ordinary people to
build enterprises from very little monetary resources but a rich mind to
succeed. I am proud of having created a valuable organization and that is the
wealth I am proud of Biocon is really about building intellectual wealth and
not about creating material wealth. It is the opportunity that the company has
provided to hundreds of scientists that matter to me.
Do you think you had to sacrifice on the personal font to achieve professional
success?
No not really, it is important to have family support and co-operation to
succeed in one's career. For women especially, balancing home and work life may
become difficult without adequate support from the family. Whilst it is true
that I was single when I built Biocon, the real growth came when I got married.
My husband has played a vital role in our success today.
Looking back, do you think you could have done anything differently?
I certainly believe that everything happens with a reason. I wanted to join
medical school and when that did not happen I took up biology instead. And that
led me to specialise in brewing. However when I was not accepted as a brew
master in
As a woman heading a company, do you take any special interest in the women in
the company? Do you favour women for jobs at Biocon?
Knowledge does not have gender divide-women scientists, women engineers, women
writers have enormous opportunities to excel and succeed. At Biocon we do our
best to ensure gender sensitivity issues are addressed. Women are encouraged
not to come at odd hours in the night and if women have to travel to interior
areas of the country a male escort is provided. Biocon has a fully equipped
creche that enables employees to have their children cared for while they
pursue their careers at the work place, these considerations take care of
employee apprehensions. However, I am not the kind of person who will appoint
women for the sake of their gender but for the role they play.
Do you think women still have a difficult time proving themselves at work in
the 21st Century?
Indian business women are making their mark in diverse fields from banking to
Biotechnology. I see Indian women being an increasing tribe of high performance
across the globe. Women have realised that they can be as successful as their
male counterparts and with encouragement, achieve any success. In order to be
successful, Indian women need to develop a sense of self-confidence, a sense of
determination and a willingness to work hard, One should not be de-motivated by
failure but learn from one's mistakes. A sense of overall perseverance is very
essential.
How important is a role model in one's life?
I have drawn inspiration from several people at each stage of my life; my
father, my Irish collaborator with whom I started Biocon, Mr. Vaghul Chairman
of ICICI who bet on my technology and financed my first large fermentation
project. Prof Mashelkar, D.G.CSIR who endorsed my R and D focus and made me
believe in intellectual property. My husband who invested in me in every way,
Dr. M.K.Bhan, Secy, Department of Biotechnology who is helping to build a
strong Biotechnology capability in the country. Dr. Devi Shetty who has
inspired me in terms of a new healthcare approach for the masses and of course
my team who inspired me every day to build a company that will truly be a torch
bearer for Indian Biotechnology.
For those who admire you, what would you advise?
If you have a vision, a plan and the conviction, you should follow it and
success will come to you. Biocon is testimony to a vision that a team of like
minded people with the same drive toe excel can achieve.
If you had to take an opportunity to thank or pay tribute to a special woman,
who would it be and why?
I am truly inspired by women of courage and conviction in the business world
who have broken glass ceilings, gained the respect of the corporate world and
made a big difference to their companies by changing the gender mindset that
unfortunately still exists in the so called intellectual arena. I would like to
especially pay a tribute to Indian women in the corporate world like Indira
Nooyi, Naina Lal Kidwai, Shikha sharma, Swati Piramal, Anu Agha, Mallika
Srinivasan, the ICICI trio and many others who are helping to build a new
Biocon arm Syngene, Swedish co
to develop new diarrhoea drug
September
04, 2006
Publication
: Business Line
Biocon`s
custom research subsidiary Syngene International and Swedish drug company
Innate Pharmaceuticals AB have said they are working together on a new class of
drugs - virulence blockers - against bacterial diarrhoea.
Virulence blockers are considered to be an alternative to antibiotics but not
exploited. Over the next three years, the two partners will conduct clinical
studies and develop a candidate drug up to a limited phase II stage,
manufacture and market it globally, a Syngene press release said. Once
therapeutic effect is demonstrated, Syngene will conduct further clinical
studies to enable the virulence blocker to be registered as a drug for treating
bacterial diarrhoea
Innate will have European marketing rights and Syngene for the rest of the
world. Each company will receive royalties on the sales achieved by the other.
The tie-up is expected to bring the potential drug faster to the clinical
trials phase. The drug disarms certain bacteria without affecting the body's
normal bacterial flora; it reduces the chances of the bacteria getting
drug-resistant. Innate Pharmaceuticals has worked on many of these substances
and applied for patents.
Biocon did not disclose the financial details, merely saying, "The
cooperation greatly reduces Innate Pharmaceuticals' risk exposure and provides
it with the financial capacity to further develop virulence blocking drugs.
Additional resources will also allow Innate Pharmaceuticals to strengthen the
patent protection for its virulence blockers."
Innate Pharmaceuticals and Syngene have been working together in several
projects over the past three years."The new agreement reiterates our
commitment to new research initiatives together," said Mr Sune Rosell,
Innate CEO.
Dr Goutam Das, COO, Syngene, said, "Together we are committed to
developing virulence blockers as alternatives and complements to antibiotics.
This effort is also towards a new class of targets hitherto not exploited"
Diarrhoeal diseases affect over one billion people worldwide every year,
causing around four lakh deaths in India and over 3,000 deaths in the US.
Innate was formed in 2000 as a commercial platform for the research taking
place at two Swedish institutions —
Biocon and Bentley Announce
Approval and Expansion of Bentley's Nasulin Phase II Studies in
Biocon's Clinigene International
Private Limited to conduct clinical trials
India's
largest Insulin producer, Biocon Limited has announced today that its licensing
partner, Bentley Pharmaceuticals, Inc. (NYSE: BNT), a specialty pharmaceutical
company, has received approval from the Drug Controller General of India (DCGI)
to proceed with a Phase II clinical evaluation of Nasulin in Type II diabetic
patients. Nasulin is Bentley's intranasal insulin product utilizing its
proprietary delivery technology CPE-215. As per the licensing agreement, Biocon
is responsible for developing and marketing Nasulin in
This approval follows the completion of Bentley's pharmacokinetic clinical
studies of Nasulin studies in
Mr. John Sedor, President of Bentley commented, "This expansion marks an
incremental milestone in the clinical development of Nasulin. We are encouraged
by the progression of data we've accumulated in the insulin program which
further validates our intranasal delivery technology platform and its potential
to deliver other therapeutic peptides in similar formulations to insulin."
Mr. Rakesh Bamzai, President Marketing, Biocon said "We are very excited
about the progress made in the nasal insulin program with Bentley. Biocon truly
believes that non injectable insulins will drive the future of diabetes therapy
the world over."
Clinigene, a CAP accredited CRO and wholly-owned subsidiary of Biocon, Limited,
will administer the complex program. Dr. A. S. Arvind, Chief Operating Officer,
Clinigene International Private Limited said, "Phase II clinical studies
for this product will consist of 80 patients and will be conducted in six
centers in
Chairman and CEO of Bentley, James Murphy, remarked, "Biocon has been a
reliable partner for several years and has significant experience in developing
insulin products. The Bentley researchers together with the clinicians and
regulatory staff of Biocon and its subsidiaries are fully committed to the
clinical advancement of Nasulin."
Data received from the Nasulin Phase II program in
About Bentley
Bentley Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on
advanced drug delivery technologies and generic pharmaceutical products.
Bentley's proprietary drug delivery technologies enhance the absorption of
pharmaceutical compounds across various membranes. Bentley manufactures and
markets a growing portfolio of generic and branded generic pharmaceuticals in
Additional information regarding Bentley Pharmaceuticals may be obtained
through Bentley's web site at www.bentleypharm.com.
About Biocon
Established in 1978, Biocon Limited is one of
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.88 |
|
|
1 |
Rs.82.58 |
|
Euro |
1 |
Rs.35.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|