MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
BIOCON
LIMITED |
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Registered Office : |
20th KM, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
29.11.1978 |
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Com. Reg. No.: |
08-3417 |
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CIN No.: [Company
Identification No.] |
L24234KA1978PLC003417 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB00214E |
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Legal Form : |
Public
Limited Liability Company. The Company's shares are listed on the Stock
Exchange. |
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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 : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 62000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. Financial position of the company
appears to be good. Fundamentals are strong and healthy. Trade relations are
fair. Business is active. Payments are reported to regular and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office/Factory : |
20th
KM, |
|
Tel. No.: |
91-80-28422169/28523434/
28082808 |
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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. ft. |
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Locations : |
Owned
|
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Factory 1 : |
20th
KM, |
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Factory 2 : |
Plot No 113/C2,
Bommasandra Industrial Area, Bommasandra, |
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Factory 3 : |
Plot No 2,3,4 and
5, Bommasandra – |
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Factory 4 : |
Plot 213-215 IDA
Phase – II,pashamlaram Medak District – 502307,Andhara Pradesh |
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Overseas office: |
1406,
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Tel. No.: |
732
636 2950 |
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Fax No.: |
732
636 2951 |
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|
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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
As on 31.03.2010
|
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, |
|
|
|
|
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 |
|
|
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|
Name : |
Dr.
Neville Bain |
|
Designation : |
Director |
|
Address : |
High
Trees, |
|
Date of
Birth/Age : |
17.04.1955 |
|
Date of
Appointment : |
08.08.2000 |
|
|
|
|
Name : |
Prof.
Ravi Mazumdar |
|
Designation : |
Director |
|
Address : |
706, |
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Date of
Birth/Age : |
14.07.1940 |
|
Date of
Appointment : |
08.08.2000 |
|
|
|
|
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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|
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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 |
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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 |
|
|
|
|
Name : |
Mr. J
M M Shaw |
|
Designation : |
Vice
Chairman |
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Qualification
: |
M. A [Hons] |
|
Date of
Appointment : |
01.04.1999 |
|
Last
Employment : |
President –
Berghaus International Fashion Group, |
|
|
|
|
Name : |
Prof.
Hans Wigzell |
|
Designation : |
Head
[Centre for Medical Innovations] |
|
|
|
|
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 |
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|
|
|
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 |
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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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|
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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 |
|
|
|
|
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 |
|
|
|
|
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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|
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|
Name : |
Mr.
Prasad B. S. V. |
|
Designation : |
General
Manager, Productions |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
80,892,224 |
40.45 |
|
|
80,892,224 |
40.45 |
|
|
|
|
|
|
1,407,558 |
0.70 |
|
|
39,535,194 |
19.77 |
|
|
40,942,752 |
20.47 |
|
Total shareholding of Promoter and Promoter Group (A) |
121,834,976 |
60.92 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16,750,367 |
8.38 |
|
|
9,768,547 |
4.88 |
|
|
7,547,637 |
3.77 |
|
|
34,066,551 |
17.03 |
|
|
|
|
|
|
6,645,479 |
3.32 |
|
|
|
|
|
|
14,453,865 |
7.23 |
|
|
12,024,475 |
6.01 |
|
|
10,974,654 |
5.49 |
|
|
938,384 |
0.47 |
|
|
8,949,014 |
4.47 |
|
|
713,390 |
0.36 |
|
|
268,492 |
0.13 |
|
|
105,374 |
0.05 |
|
|
44,098,473 |
22.05 |
|
Total Public shareholding (B) |
78,165,024 |
39.08 |
|
Total (A)+(B) |
200,000,000 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 Million 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 (As on 31.03.2010):-
|
Particulars |
Unit |
Licenced Capacity |
Installed Capacity |
Actual
Production |
|
Pharmaceuticals |
Kg. |
* |
** |
11779973 |
* Exempted
from the licensing provisions of the Industries (Development and Regulation)
Act, 1951 in terms of notification No.S.O.477(E) dated July 25, 1991.
**
Installed capacity has not been disclosed as these are variable and subject to
changes in product mix, and utilisation of manufacturing facilities, given the
nature of operations
GENERAL INFORMATION
|
No. of Employees : |
3673 |
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Bankers : |
·
State Bank of
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Facilities : |
(i)
The Company has working capital facilities with State Bank of India (SBI).
These facilities are repayable on demand, secured by a Pari
Passu first charge on
current assets.The company has utilized Rs Nill (March 31,2009)-Rs. 0.291 Million
Inclusive of foreign currency loans of Rs Nill (US$ Nil) (March 31,2009 –
Nil (US$ Nill) (ii) The Company has working capital facilities with Hong and Shanghai Banking Corporation (HSBC) .These facilities are repayable on demand, secured by Pari-Passu first charge on current assets. As on March 31, 2010, the Company has utilised fund based limits of Rs 694.435 Millions Limits (March 31,2009) Rs-784.274 Millions)Inclusive of foreign currency denominated loans of Rs.427.025 Millions (Us$ 9.5 Million) March 31,2009 –Rs.763.050 Millions (US$ 15 Million) (iii) The Company has working capital facilities with Canara Bank (CB). These facilities are repayable on demand, secured by a pari – passu first charge on current assets of the Company As on March 31,2010 ,the company has utilized Rs.0.124 Million (March 31,2009 – Rs Nill) incluysive of foreign currency denominated loans of Rs. Nil(Us$ Nil) (March 31,2009 –Rs Nil (US$ Nil) (iv) The company has working capital facilities with ABN Amro Bank.Theses facilities are repayable on demand ,secured by par passu first charge on the current assets of the company .As On March 31,2010 the company has utilized Rs.202.275 Millions (March 31,2009 –Rs 230.000 Millions )Inclusive of foreign currency denominated loans of Rs.202.275 Millions (Us$ 4.5 Million) (March 31,2009 –Rs Nil (Us$ Nil)
(i) Under the
Industrial Policy of the Government of Karnataka, the Company on February 4,
1998 obtained an order from the Karnataka Sales Tax Authority for allowing
deferment of sales tax (including turnover tax) for a period upto 8 years
with respect to sales from its Bommasandra manufacturing facility for an
amount not exceeding Rs 24.375 millions. As at March 31, 2010, the Company
has utilised Rs 0.354 Million (March 31, 2009 - Rs 0.354 Million). (li) Under
the Agro Food Processing Industrial Policy of the Government of Karnataka,
the Company on February 9, 2000 obtained an order from the Karnataka Sales
Tax Authority for allowing deferment of sales tax (including turnover tax)
for a period upto 12 years with respect to sales from its Hebbagodi
manufacturing facility for an amount not exceeding Rs 648.624 millions. As at
March 31, 2010, the Company has utilised Rs 648.624 millions (March 31,2009 -
Rs 611.196 millions). (iii) On
March 31, 2005, the Company entered into an agreement with the Council of
Scientific and Industrial Research ('CSIR'), for an unsecured loan of Rs
3.312 millions for carrying out part of the research and development project
under the New Millennium Indian Technology Leadership Initiative ('NMITLI')
Scheme. The loan is repayable over 10 annual equal installments starting from
April 2009 and carry an interest rate of 3 per cent per annum. The amount due
for repayment within one year is Rs Nil (March 31,2009 –Rs 0.331 Million).The Amount due during 2010-11 being Rs
0.331 Million,has been
paid off as at March 31,2010 (iv) During
the year ended March 31, 2009, the Department of Scientific and Industrial
Research ('DSIR') has sanctioned financial assistance for a sum of Rs 17.000 millions
to the Company for part financing one of it's research projects. Of the said
sanctioned amount, the Company has received the first installment of Rs
10.000 millions during the year 2008-09. The research project has been
completed during the year ended March 31,2010. The assistance is repayable in The form of
royalty payments post commercialization of the project in five equal annual
installments (v) The
company has obtained foreign currency packing credit laon of Rs.359.600
Millions (US$ 8 Million) from HDFC Bankas at March 31,2010.The loan is
repayable on May 22,2010 |
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Banking Relations : |
Fair |
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Auditors : |
S.R.Batliboi
and Associates - Chartered Accountants |
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Address : |
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Associates: |
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Subsidiaries/ Joint venture: |
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Fellow
Subsidiaries: |
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Enterprise
owned by Key Management |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
220000000 |
Equity shares |
Rs.5/- each |
Rs. 1100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity shares |
Rs.5/- each |
Rs. 1000.000 millions |
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Note:
Of the above equity
shares:
(i) 30,800 equity shares of Rs 100 each were
allotted as fully paid bonus shares by capitalisation of general reserve in the
year ended March 31, 1997.
ii) 23,471 equity shares of Rs 100 each were allotted as fully paid-up
shares in the year ended March 31, 2000 pursuant to a contract for
consideration other than cash.
(iii) On March 30, 2002, the Company acquired 99.9 per cent equity in
Syngene International Limited through the issue of 202,780 equity shares of Rs
10 each.The consideration was determined on the basis of a fair valuation, as
approved by the statutory authorities in India. The related securities premium
at Rs 403.8 per equity share has been credited to securities premium account.
(b) Also refer to Note 3 in schedule 17 for shares allotted under the
Employees Stock Option Plan.
(c) On November 11, 2003, the Company issued 86,324,700 equity shares of
Rs 5 each as fully paid-up bonus shares by capitalisation of balance in the
profit and loss account of Rs 431.624 millions.
(d) On September 15, 2008 the Company issued 100,000,000 equity shares
of Rs 5 each as fully paid bonus shares by capitalisation of balance in the securities
premium account of Rs. 500.000 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1000.000 |
1000.000 |
500.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
14662.867 |
12748.753 |
12781.963 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
15662.867 |
13748.753 |
13281.963 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
896.834 |
1014.565 |
892.634 |
|
|
2] Unsecured
Loans |
1021.228 |
624.862 |
546.219 |
|
TOTAL BORROWING
|
1918.062 |
1639.427 |
1438.853 |
|
|
DEFERRED TAX
LIABILITIES |
410.408 |
410.408 |
398.237 |
|
|
|
|
|
|
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TOTAL
|
17991.337 |
15798.588 |
15119.053 |
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APPLICATION OF FUNDS
|
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|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
6599.909 |
6752.841 |
6518.596 |
|
Capital work-in-progress
|
583.344 |
376.872 |
646.341 |
|
|
|
|
|
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INVESTMENT
|
4186.382 |
3466.855 |
4772.602 |
|
Intangible Assets
|
184.062 |
388.850 |
276.000 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
2447.986 |
1945.224
|
1677.350
|
|
|
Sundry Debtors
|
3836.444 |
3101.713
|
2256.629
|
|
|
Cash & Bank Balances
|
771.218 |
60.427
|
81.244
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
4030.711
|
2662.748
|
1235.457
|
Total Current Assets
|
11086.359 |
7770.112 |
5250.680 |
|
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
3816.243 |
2196.970
|
2345.166
|
|
|
Provisions
|
832.476 |
759.972
|
0.000
|
Total Current Liabilities
|
4648.719 |
2956.942 |
2345.166 |
|
Net Current Assets
|
6437.640 |
4813.170 |
2905.514 |
|
|
|
|
|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
17991.337 |
15798.588 |
15119.053 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11280.695 |
9034.360 |
8320.839 |
|
|
|
Other Income |
658.327 |
747.738 |
971.165 |
|
|
|
Licing and Development Fees |
350.130 |
89.005 |
NA |
|
|
|
TOTAL |
12289.152 |
9871.103 |
9292.004 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
2238.765 |
6936.814 |
6511.351 |
|
|
|
Material Cost |
5473.629 |
NA |
NA |
|
|
|
Employee Cost |
997.275 |
NA |
NA |
|
|
|
TOTAL |
8709.669 |
6936.814 |
6511.351 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
3579.483 |
29342.289 |
2780.653 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
19.910 |
49.371 |
28.698 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
3559.573 |
2884.918 |
2751.955 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
797.290 |
742.830 |
689.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
2762.283 |
2142.088 |
2061.975 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
278.713 |
103.967 |
106.384 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
2483.570 |
2038.121 |
1955.591 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
2483.570 |
2038.121 |
1955.591 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4828.653 |
4628.839 |
4776.275 |
|
|
|
Recovery of freight, insurance etc on
exports |
NA |
0.000 |
1.480 |
|
|
|
Technical Licensing fees |
136.093 |
89.005 |
448.413 |
|
|
|
Other Income |
48.090 |
NA |
NA |
|
|
|
Interest
on foreign currency loan given to subsidiary company |
44.204 |
NA |
NA |
|
|
TOTAL EARNINGS |
5057.040 |
4717.844 |
5226.168 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3823.858 |
2622.733 |
2518.296 |
|
|
|
Packing Materials |
30.784 |
32.513 |
20.723 |
|
|
|
Maintenance Spares |
25.808 |
13.821 |
26.087 |
|
|
|
Capital Goods |
208.571 |
239.037 |
300.946 |
|
|
TOTAL IMPORTS |
4089.021 |
2908.104 |
2866.052 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.78 |
5.79 |
22.51 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
3322.700 |
3446.100 |
5101.200 |
|
Total Expenditure |
2342.500 |
2300.700 |
2540.900 |
|
PBIDT (Excl OI) |
980.200 |
1145.400 |
2560.300 |
|
Other Income |
60.600 |
60.100 |
58.200 |
|
Operating Profit |
1040.800 |
1205.500 |
2618.500 |
|
Interest |
6.500 |
4.500 |
5.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
1034.300 |
1201.000 |
2612.800 |
|
Depreciation |
211.700 |
217.800 |
228.600 |
|
Profit Before Tax |
822.600 |
983.200 |
2384.200 |
|
Tax |
99.600 |
109.900 |
268.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
723.000 |
873.300 |
2115.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
723.000 |
873.300 |
2115.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
20.21 |
20.65 |
21.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.49 |
23.71 |
24.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
15.46 |
11.42 |
11.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.16 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42 |
0.33 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.38 |
2.63 |
2.23 |
LOCAL AGENCY FURTHER INFORMATION
Results of
Operations:
For the year ended March 31, 2010 consolidated revenues grew by 44%, EBITDA grew by 31% and Profit after tax (PAT) before exceptional items, grew by 22%. The company has posted a strong 27% growth in its biopharmaceutical business despite the challenging environment that prevailed in the last year. The landscape was characterized by pricing pressures, reduced spending from consumers and companies and intense competition between companies for the end markets. This year They entered new markets, strategically moving up the value chain with formulations in addition to APIs and improved operational efficiencies in their manufacturing processes.
Business Operations overview and Outlook:
During the year, total revenues increased by 44% from Rs.
16,732 millions to Rs 24,048
millions. In the year under review, Statins segment
grew 26%, Immunosuppressants by
27% and Insulins by
11%. Their domestic branded
formulations business grew 35%
with successful market share wins
for their key brands. The Indian pharmaceutical market is
estimated to grow at over 17%
per annum and presents a good market opportunity for the company. As
The research services landscape has been in a state of flux for the last decade. In what started as a labour arbitrage opportunity in the early nineties for 'low probability candidates', is now converting into a good business model with the integrated drug discovery process. Big pharma companies are facing the pressures of reduced R andD budgets, shrinking revenues, higher costs of drug development and declining Rand D productivity. The financial meltdown has further added to their woes.
On the research front, they have made significant progress
in their partnership with Mylan
for developing biosimilars for global markets. They expect
to commence clinical trials in
Subsidiaries and
Joint Ventures:
Syngene International Limited
Syngene has
consolidated its position as
Discovery services. The commencement of operations from their recently commissioned biologics pilot plant and the AAALAC accredited Vivarium, coupled with Formulation Development capabilities positions Syngene as the ideal partner for providing high quality discovery services at competitive prices in both large andsmall molecules.
In March 2010, Syngene partnered with Endo
Pharmaceuticals to develop a
novel biological therapeutic
molecule against cancer. Under the
terms of the agreement, Endo will retain all rights to
the molecule developed and in
return Syngene will receive
research fees, milestone payments and
success fees from
Endo. This is a first in
biological therapeutic entity and Syngene is proud to be a part of this.
For the current financial year, Syngene registered a 30% growth in revenues from Rs. 2,065 million in the previous year to Rs. 2,676 millions.
Operational margins increased from Rs. 607 millions to Rs. 878 millions representing a 45% increase, primarily driven by revenues generated by the EMS facility which was fully operational during the year. Depreciation charge increased from Rs. 231 millions to Rs. 451 millions.
Syngene earned a net profit of Rs 308 millions for the year as against loss of Rs 225 millions for the previous year. The increase is primarily attributed to an exceptional forex loss in the previous year.
Clinigene
International Limited
For the year, Clinigene, a wholly own subsidiary registered revenue of Rs. 403 millions as against Rs. 330 millions in the previous year and earned a profit of Rs. 22 millions as against a profit Rs. 45 millions in the previous year.
Being a full-service clinical research organization,
covering early- to
late phase clinical development programs, Clinigene is now well positioned
to cater to clinical development requirements for its partners globally.
Biocon
Biopharmaceuticals Private Limited
Biocon Biopharmaceuticals Private Limited (BBPL) began as a 51:49 JV with CIMAB SA, to manufacture monoclonal antibodies and other Recombinant Therapeutics.
For the year, BBPL earned revenues of Rs. 381 millions as against Rs. 186 millions in the previous year. BBPL earned a profit of Rs.26 millions from loss of Rs. 52 millions in the previous year. Due to a limited product portfolio, sales have been under pressure and expect to improve performance in the coming year.
In March 2010, Biocon, through its 100% subsidiary Biocon SA entered into a agreement with CIMAB SA, to acquire its 49% stake in BBPL.
Biocon Research
Limited
Biocon Research Limited (BRL) is a wholly owned subsidiary set up to undertake discovery and development research work in biologics, antibody molecules and proteins. BRL has during the year entered into a collaborative agreement with Mylan to jointly develop and commercialize certain monoclonal antibodies.
For the current year BRL registered revenues of Rs.
393 millions and has
commenced development activity on the monoclonal antibody program.
BRL has
reported a net loss of Rs. 51 millions for the year ended March 31, 2010.
Biocon SA
Biocon SA, a wholly owned subsidiary in
AxiCorp GmbH
AxiCorp is a specialized Pharma marketing and distribution
company based in
For the current financial year AxiCorp earned revenues of Rs. 9,117 millions and a profit of Rs. 299 millions, contributing 38% to the group revenues and 10% to the group net profit.
NeoBiocon FZ LLC
NeoBiocon FZ LLC. is a research and marketing pharmaceutical
company based in
NeoPharma.
For the year under review, NeoBiocon registered revenues of Rs 48 millions and a net profit of Rs 5 millions.
In addition to launching oncology products, NeoBiocon is the process of obtaining regulatory approvals for an entire range of formulations in the GCC Market.
Accounts of subsidiary companies:
The Company has
obtained exemption from the Government of India, Ministry
of Company Affairs from attaching the financial accounts of the subsidiary
companies to this Report pursuant to Section 212 of the
Companies Act, 1956. However, a statement showing the
relevant details of the Subsidiaries is
enclosed and is a part of the Annual Report.
Employees Stock
Option Plan (ESOP):
Pursuant to the provisions of Guideline 12 of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme), Guidelines, 1999, as amended, the details of stock options as on 31 March 2010 are set out in the Annexure to the Directors' Report.
MANAGEMENT DISCUSSION
AND ANALYSIS
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India.
INDUSTRY OVERVIEW,
The global market for Pharmaceuticals in 2009 was USD 837
billion, a growth of 7% over previous
year on a constant USD scale (Source: IMS). The
global pharmaceutical market is expected to grow between 4-6% in
2010, a decline over the 7% growth in 2009, according to
market research firm ORG IMS data. The
decline will come from US patent expiries and price cuts in the world's second largest market,
The global pharmaceutical industry has been in a state of flux for the last few years. The industry's major markets are reeling under pressure with stagnating sales, thinning late-stage R and D pipelines, lower new drug approvals and increasing genericization.
One of the challenges for the industry in this decade has been declining RandD productivity. While RandD spending has more than doubled in the last decade, the number of new molecules entering the market has plummeted. Research ROI, therefore, is fast reaching a plateau and is projected to grow at a 1.7% CAGR over 2009-14 as opposed to 11% in 2000-08. Realization
that RandD output is not a function of R andD spend has companies looking at other ways to increase their late-stage RandD pipelines. Further adding to the industry's woes is stagnating sales. While sales of the key large cap US and EU Pharma majors grew at a CAGR of 8.4% over 2000-08, it is expected that this will plateau and marginally de-grow by 0.1% over the next 5 years (Source: Evaluate Pharma, Wall Street Research and Company filings).
The global recession of 2008-09 further added to these challenges. For the first time in this decade, R and D spend in the year 2009 fell 0.9% to $124 billion on the back of slower prescription sales and reimbursement pressures. Market research group Evaluate Pharma estimates that RandD spend grew an average 10% per year for the period 2002-08. Consensus estimates indicate that RandD spend will grow at the more realistic levels of 2-3% over 2010-16. The last phenomenon that added to these challenges is the expected trend in patent cliff. The average patent expires which stood at $2.8 billion in the period 1990-2000 rose to $10.6 billion in 2001-09 and is expected to be a whopping $24.6 billion in 2010-14. Growth of generics is expected to further erode the bottom lines of pharmaceutical companies.
According to IMS, over the next five years, products with
sales of
more than $142 billion are
expected to face generic competition in big
markets, reducing prescription
drug spending by $80 billion to $100 billion
through 2014. Patent expirations in the
Consolidation is the norm - Companies are now looking
at newer avenues to increase
their RandD pipelines, reduce
costs and improve
time-to-market.
Consolidation is one such route. Companies took this route
to scale
up, access niche
therapeutic segments and enter new geographies. Total
deal values from pharmaceutical
Mergers and Acquisitions (MandAs) tripled in
2009 versus 2008 on an equivalent
number of deals (Source: Evaluate Pharma). The year saw the completion of three mega mergers-
Pfizer-Wyeth, Merck andCo-
ScheringPlough and Roche-Genentech.
Total deal value in 2009 touched
$188 billion, the largest since
2000. A spate of smaller mergers also took place in
2009. In
Strategic Alliances and Licensing will gain traction - In an effort to spread risks and reduce time-to-market, companies are acquiring late stage RandD assets, forging co-development and marketing alliances. Licensing is also becoming a quick way of getting to the market and improving the bottom lines.
Biologics are the way to go - Many companies are increasing the number of biologics in their overall product portfolios. This stems from the fact that biologics enjoy a greater probability of launch success, and when successful, are also larger contributors to growth. In 2009, the biological drug market generated over $125 billion in revenues worldwide (Source:
Visiongain).
Biosimilars will
rule - Obama's Healthcare Reform Act has provided
some clarity to the biosimilar pathway in the
market research firm Visiongain, the global market for monoclonal antibodies will be worth $41 billion in 2010. It remains one of the most exciting and promising areas within the world pharmaceutical market today. There are currently more than 25 products in clinical use worldwide, including eight blockbusters.
Pharmerging countries
are tomorrow's pharmaceutical
landscape -Finally, changing
demographics is causing a seismic shift in focus to
what are called
'Pharmerging' countries. Rising GDP and per capita income,
better access to
healthcare and globalization have made
countries like China,
India, Brazil, Russia, Mexico,
Venezuela and a few others very
attractive to big pharmaceutical companies. Drug sales in emerging
markets, led by
Many companies are re-assessing their 'Pharmerging' market strategies and re-assessing their geographic portfolios. Companies are attempting to build or buy market share in these 17 countries. The 'Pharmerging' countries accounted for 16% of the total world market or $123 billion in 2009. Despite this, these markets continue to be underserved. According to IMS,
in 2009, the top 1 5 pharmaceutical companies got only 0.9% of their combined sales from China, 2.9% from Brazil, India and Russia and 5.6% from the Tier 3 markets comprising 13 countries.
BIOCON'S BUSINESS
STRATEGY AND OPERATIONAL PERFORMANCE
Focus Areas and
Strategy
Biocon is an emerging global biopharmaceutical enterprise with products and research services that span the entire drug value chain, from pre-clinical to clinical development through to commercialization.
Within
biopharmaceuticals, They
manufacture generic APIs like
Statins and Immunosuppressants
that are sold in the developed markets of US and
In research services, Syngene is engaged in the business of custom research in drug discovery while the other fully-owned subsidiary Clinigene is in the clinical development space. Both subsidiaries cater to a diverse client base that include global pharmaceutical majors, mid-size pharmaceutical and biotech companies as well as start-ups.
Biocon's strategic focus in the medium and long-term is very clearly on Biosimilars and Novel products.
BIOSIMILARS - They have a clearly defined biosimilar
strategy that includes development and manufacturing. Marketing and
distribution of these products are done
by Biocon in
Biocon is one of the
early entrants into the biosimilar space in
In the medium-term (3-6 years), their strategic intent is to take their biosimilar insulins into the developed markets and their monoclonal antibodies into India and the emerging markets. In the long-term (> 6 years), They intend to take their monoclonal antibodies into the developed markets and their novel drugs in the global market. Their monoclonal antibodies (MAbs), which is a co-development partnership program with Mylan Inc., are in pre-clinical development.
Their biosimilar MAbs will follow a similar commercialization path of an 'India and emerging market first' strategy and eventually to the developed markets through strategic partnerships with companies like Mylan and others.
NOVELS - Biocon
has two programs in late-stage
clinical development in
IN-105
IN - 105 is Biocon's oral insulin program which
They believe is the
most advanced program
in the oral insulin space globally. It is a
conjugated peptide and a new
molecular entity which is metabolically active and shows
lower immunogenicity and
mitogenicity when compared to insulin. It
has a very good safety and clearance profile. They
have a stable tablet formulation
and have established its oral delivery through a
number of Phase 1
and Phase 2 studies and have now started a Phase 3
trial in
T1h
T1 h is an anti-CD6 monoclonal antibody. The target is a Type 1 cell membrane glycoprotein which is predominantly expressed by T cells and a B cell subset. It has a very unique ALCAM binding profile where it binds to activated T cells, B cells, and monocytes and can potentially benefit many autoimmune conditions. They have pursued trials in both Psoriasis and Rheumatoid Arthritis. Good remission rates observed in a recent clinical trial has enabled Biocon to design a very important second clinical trial. An additional trial in Rheumatoid Arthritis is also being initiated.
Biocon intends to develop its
They have made significant inroads into several emerging markets with their Insulins and Immunosuppressants. They have strengthened their presence in emerging markets like Brazil, Mexico, Chile, and many countries in the Middle East and Africa this year. They see emerging markets as a strategic focus area and plan to push ahead with expanding business opportunities there.
Operations - Manufacturing,
Process Design, Engineering, Quality and IPR
The process of
producing Biotech products is
inherently complex and
requires highly specialized
knowledge. Extensive process
and product characterization are required to transform
laboratory scale processes into reproducible commercial manufacturing
processes. They have been able to build
two global scale
bio-manufacturing facilities, including an
aseptic fill and
finish facility, which meet USFDA and EU GMP norms. their manufacturing capabilities
are in Fermentation (small molecules and proteins), Synthetic
Chemistry, MAbs and Fill/Finish (vials, cartridges, lyophillised
and PFS). They are
one of the largest producers
of statins and
immunosuppressants globally. They are
Process design and engineering for all the facilities (manufacturing and research) is developed by in-house engineers. Their Company has experienced internal teams for design, execution and commercials. They have instituted a web-based solution for monitoring and tracking all major
projects.
TheCompany has one of the largest IP portfolios among Indian pharmaceutical and biotech companies. They have a strong IPR team that drafts patent applications in-house.
Marketing and Distribution
They sell APIs to pharmaceutical companies across the globe from their USFDA approved manufacturing facilities. They have also licensed out their products in certain geographies and as a part of that agreement They manufacture and supply bulk formulations to their partners.
Marketing and distribution of all their products in
In addition, for products in the diabetes segment, They create and host programs to increase public awareness about diabetes and its associated risks.
Axicorp GmbH, their subsidiary in
Research and
Development
Research and Development
is the backbone
of their Company. their R andD initiatives
are primarily focused on developing
affordable therapeutics. Currently,
They are focused on developing therapeutics for the treatment of
chronic illness in the areas of
oncology, diabetology and
immune-mediated diseases. They typically carry out early drug discovery
and clinical trials in
India up to the proof-of concept stage and then
seek partners for
expanding clinical trial activities and marketing in the developed
markets. This strategy helps
them take advantage of lower R
andD costs and
faster clinical development
timelines in
People
People are their key assets. Their goal is to create a culture of excellence. Their human resource department strives to hire the best talent available, keep them engaged and competitive and create a harmonious, satisfactory work culture.
Some key initiatives
taken this year -
* An online performance appraisal process was developed in house.
* Expressions 2010 Employee Satisfaction Survey was launched in March 2010.
* Enhancing leadership development programs on strategic R andD management for
senior managers organized in collaboration with IIM (
* Training programs on innovation and situational leadership targeted at
middle and senior managements.
* Collaborations with educational institutes to make courses more industry
oriented and thereby augment their talent pipeline.
Biocon Group
|
Education |
2008-2009 |
2009 -10 |
|
PhD |
182 |
259 |
|
Post Grad |
1380 |
1918 |
|
Graduate Engineers |
82 |
102 |
|
CA/MBA/ICWA/CS/LLB |
175 |
172 |
|
Graduate/diploma non technical |
1076 |
1111 |
|
Undergraduates |
559 |
658 |
|
Total |
3454* |
4220** |
* excluding 190 employees in AxiCorp
** excluding 258 employees in AxiCorp
FINANCIAL PERFORMANCE
The Company, in 2003-04, carried out a sub-division of equity shares of face value of Rs 10 each into 2 equity shares of Rs 5 each. Consequently, the issued, subscribed and paid-up capital of Rs 18.377 Millions has been divided into 3,675,300 shares of Rs 5 each.
The Company, in 2003-04, issued 86,324,700 equity shares of Rs 5 each as bonus shares in the ratio of 23.4877958 shares for every one share held to the shareholders existing as on November 11, 2003, which was the approved record date for this purpose, by capitalisation of the balance in the profit and loss account of Rs 431.624 Millions
In March 2004, the Company made an IPO of 10,000,000 fresh equity shares of Rs 5 each at a price of Rs 315 per share.
The Company, in 2008-09, issued 100,000,000 equity shares of Rs 5 each as bonus shares in the ratio of one share for every one share held to the shareholders existing as on September 15, 2008 by capitalisation of reserves in the securities premium account of Rs 500.000 Millions
Reserves and surplus
The total reserves and surplus has increased from Rs 12748.753 Millions in March 31, 2009 to Rs 14662.867 Millions in March 31, 2010. The increase is primarily on account of profits made during the year of Rs 2483.570 Millions and adjusted for the proposed dividend of Rs 774.136 Millions inclusive of Dividend distribution tax.
In March 31, 2009, the reserves were capitalized to the extent of Rs.500.000 Million for issue of bonus shares.
Loan funds
There has been an increase in the loans outstanding from Rs 1639.427 Millions in March 2009 to Rs 1918.062 Millions in March 2010.
Unsecured loans increased by Rs 396.366 Millions primarily on account of short-term borrowings of Rs 396.366 Millions.
The Company utilized
deferred sales tax payment facility of Rs
37.428 Millions in respect of sales made during the year. As at March
31, 2010, the Company
has utilized Rs 648.978 Millions under such facility. The
sales tax liability is repayable in ten half yearly installments.
Secured loans decreased by Rs 117.731 Millions due to
decrease in bank borrowings.
Fixed Assets
(Rs In Millions)
|
|
2010 |
2009 |
% |
|
Gross Block |
10018.002 |
9486.156 |
6% |
|
Less: Accumulated depreciation |
3418.093 |
2733.315 |
25% |
|
Net Block |
6599.909 |
675.284 |
-2% |
|
Add: capital work in progress |
583.344 |
376.872 |
55% |
|
Net fixed assets |
7183.253 |
7129.713 |
1% |
|
Net Asset turnover ratio |
1.76 |
1.35 |
30% |
During the year 2010, the Company has capitalized fixed assets to the extent of Rs 667.724 Millions. The primarily additions are in plant and machinery of Rs 397.669 Millions and research and development equipments of Rs 113.764 Millions
On December 1, 2009, the Company completed the acquisition of Active Pharma Ingredient business of M/s. IDL Speciality Chemicals Limited. The assets acquired have been capitalised in the books of the Company at fair value. The fixed assets are depreciated over their remaining useful life as assessed by an independent valuer. The depreciation charge, for the year, on acquired assets is Rs 8.768 Millions.
The capital work-in-progress as at March 31, 2010, represents advances paid towards purchase of fixed assets and the acquisition costs relating to assets not ready for use.
The Company has a capital commitment of Rs 947.617 Millions as at March 31, 2010 as compared to Rs 106.501 Millions as of March 31, 2009.
Investments
The Company as at March 31, 2010 held current investments in mutual funds of Rs 3526.918 Millions as compared to Rs 2888.579 Millions as of March 31, 2009. During the year, the funds generated from operating activities were invested in current investments as reflected in Liquidity section below.
The long-term investments have increased from Rs 578.276
Millions to Rs 659.464 Millions over the
previous year. Additional
investments during the
year include investment of Rs
32.356 Millions in Vaccinex Inc,
The Company continues to hold its investments in its subsidiaries Syngene, Clinigene, Biocon SA and Biocon Research Limited and joint ventures viz., Biocon Biopharmaceuticals Private Limited and Neo Biocon.
Intangible Assets
During the year ended March 31, 2010, the Company transferred the right to develop and commercialise Oral Insulin to Biocon Research Limited, for a consideration of Rs 673.260 Millions (US$ 14 million). As there are certain obligations of the parties to conclude the arrangements, the consideration has been treated as deferred revenue by the Company as at March 31, 2010.
During the year ended March 31, 2009, the Company acquired marketing rights of hR3 and EPO from BBPL for a sum of Rs 128.850 Millions. These rights give the Company an exclusive right of marketing the products in certain territories. Pending receipt of regulatory approvals from the authorities of such countries, no amortisation has been recorded by the Company.
As at year end, net value of intangibles assets are Rs 184.062 Millions
Current assets, loans
and advances
The current assets, loans and advances have increased from Rs 7770.112 Millions to Rs 11086.359 Millions an increase of 43% over the previous year. This was mainly due to
- Increase in inventories from Rs 1945.224 Millions to Rs 2448 Million largely on account of 25% growth in sales.
- Sundry debtors stood at Rs 3836.444 Millions (net of provision for doubtful debts of Rs 71.537 Millions) as at March 31, 2010 as compared to Rs.2961.729 Millions (net of provision for doubtful debts of Rs 56.231 Millions) as at March 31, 2009. These debtors are considered good and realisable. Debtors represent an outstanding of 110 days and 109 days of revenue as at March 31, 2010 and March 31, 2009 respectively on a moving average of 3 month's sales. Provision for doubtful debts represents 0.13% and 0.17% of gross sales for the year ended March 31, 2010 and March 31, 2009 respectively.
- Loans and advances have increased from Rs 2802.732
Millions to Rs 4030.711 Millions as on
March 31, 2010. This increase is mainly on account of
increase in other
receivables, which has increased from Rs 187.033 Millions to Rs 1412.648
Millions mainly due to increase in receivables of Rs 976.199
Millions from Biocon Research
Limited due to
transfer of intangibles assets
and research and development expenses
cross-charged during the year.
Current liabilities
and provisions
The current liabilities and provisions have increased by 57% from Rs.2956.942 Millions as at March 31, 2009 to Rs 4648.719 Millions , as at March 31, 2010.
This increase is primarily
due to
- Increase in deferred revenues from Rs 484.424 Millions to Rs 1201.250 Millions largely on account of transfer of Oral Insulin and certain monoclonal antibodies to Biocon Research Limited during the year.
- Increase in sundry creditors from Rs 1064.437 Millions to Rs 1596.959 Millions primarily on account of increase in sundry creditors for raw materials and packing materials.
Proposed dividend is Rs 700.000 Millions for the year ended March 31, 2010 as against Rs 600.000 Millions in the previous year.
Biocon's total income for the year ended March 31, 2010 comprises of three
components:
* Sales of Biopharmaceuticals products;
* Technical Licensing fees; and
* Other income.
The following table sets out the contribution of each of these components of Biocon's income expressed as a percentage of Biocon's total income for the years ended March 31, 2010 and March 31, 2009:
|
Sales |
2010 |
2009 |
|
Biopharmaceuticals |
91.79% |
91.5% |
|
Technical Licensing Fees |
2.85% |
0.9% |
|
Other Income |
5.36% |
7.6% |
|
Total Income |
100.0% |
100.0% |
Share of revenues from net sales between domestic and export markets are as
follows:
Share of revenues
(Rs
In Millions)
|
|
2010 |
% |
2009 |
% |
|
Domestic |
6404.589 |
56.8% |
4405.521 |
48.8% |
|
Exports |
4876.106 |
43.2% |
4628.839 |
51.2% |
|
Total |
11280.695 |
100.0% |
9034.360 |
100.0% |
Biocon's net sales grew by 25% to Rs 11280.695 Millions in 2009-10 while the total income grew by 24% to Rs 12289.152 Millionss ,152. Company's export revenues from product sales have increased by 5%, and domestic sales have increased by 45%.
SEGMENT-WISE
PERFORMANCE
BIOPHARMACEUTICALS
Their business focus is on the manufacturing and marketing of biopharmaceuticals that require fermentation and synthetic chemistry skills.
Statins:
Statins are cholesterol-lowering agents used to treat and
prevent coronary diseases
and are amongst the largest selling drugs worldwide. their statins
portfolio presently comprises
Simvastatin, Pravastatin, Atorvastatin, Fluvastatin,
Lovastatin and Rosuvastatin. Biocon is
primarily selling Statins in Indian,
Their Statins segment grew 26% YoY despite pricing pressures owing to enhanced capacity enabled by improved productivity. Simvastatin remained Biocon's largest product by sales in this segment.
Insulins:
Insulin is a hormone
that regulates the energy and glucose
metabolism in the
body. Biocon markets recombinant human insulin in
Their insulins business grew 11% YoY with growing momentum in emerging market sales. There has been an increase in formulation sales in the emerging market, signifying a movement up the value chain in this business. During the year, They have entered several new markets like Brazil and Chile among others and as of the end of the year They have vial and cartridge
registrations in approximately 40 countries.
Immunosuppressants:
Immunosuppressants prevent organ and tissue rejection in transplants and require high technology based manufacturing capabilities. Currently Biocon produces mycophenolate mofetil (MMF), sirolimus and tacrolimus. In addition to the sales of MMF and Tacrolimus in the domestic market, the Company has also commenced exports to the US Market and certain countries in the EU region.
This segment posted a 28% YoY growth despite pricing pressures. Tacrolimus API sales to customers awaiting ANDA approvals have also added to this momentum.
Branded Formulations:
Branded formulations
are finished dosages currently
sold in
Their Company is positioning itself as a key player in
diabetes therapy on a global
scale. Their insulins are gaining market share in
Biocon has a dedicated marketing team of over 750 people for the finished dosage business.
OTHER FINANCIAL DATA
Technical Licensing
Fees
These fees represent income received by Biocon towards transfer of proprietary technology with respect to certain bio-generics under long-term contracts. They also include fees received by Biocon towards out-licensing its proprietary products. During the year, the Company has a registered licensing income of Rs 350.130 Millions an increase of Rs 261.125 Millions as compared to previous year primarily due to licensing income from sale of development rights of certain products candidates.
PERFORMANCE OF
SUBSIDIARIES
Syngene International
Limited
Syngene is a 99.99% owned subsidiary of the Company. Syngene was incorporated on November 18, 1993. Syngene works in two main research areas: Synthetic Chemistry and Molecular Biology. Syngene is also involved in custom chemical synthesis. During the year, Syngene has confidently moved into Integrated Drug Discovery services.
Syngene's total income primarily consists of net sales from Contract research and manufacturing services income. Substantially all of Syngene's contracts are based on time and material management. Revenue from these contracts is recognized when services are rendered, in accordance with the terms of the contract. Syngene's total revenue has increased from Rs.2064.815 Millions to Rs 2675.660 Millions representing a growth of 29%. The growth in operations is supported by increase in revenues from existing and new customers.
Syngene's expenses mainly comprise of raw-material costs and staff costs. Raw material cost consists of lab consumables used for research. The raw material costs increased by 31% from Rs 524.175 Millions to Rs 688.117 Millions in fiscal 2010 and the staff costs increased by 29% Rs 527.074 Millions to Rs 666.393 Millions. Increase in material cost and increase in staff costs are due to 29% growth in sales. Other costs increased by 9% from Rs 406.831 Millions to Rs 443.585 Millions.
Net profit before exceptional items for the year has
decreased by Rs 18.654 Millions
from Rs 327.798 Millions to Rs 308.114 Millions
mainly due to increase in
depreciation by Rs.220.692 Millions from Rs 230.692 Millions in the year ended
March 31, 2009 to Rs 450.872
Millions in the
year ended March 31, 2010. In previous
year, Syngene had
an exceptional loss
of Rs 551.761 Millions on account
of Mark-to-Market losses
on foreign exchange forward contracts.
Clinigene
International Limited
Clinigene is a 100% owned subsidiary of Biocon Limited. Clinigene was established to undertake clinical and other trials and validation for drugs and pharmaceuticals and to conduct research in the area of medical sciences for development of new and improve upon existing medical diagnostic, surgical and therapeutic techniques.
Clinigene's total income principally consists of income from clinical research fees and also Bio-analytical and Bio-equivalence studies. Clinigene enters either into time and material contracts and/or fixed price arrangements. Revenue from time and material contracts are recognised on a monthly basis as services are rendered in accordance with the terms of the applicable contracts. Revenue from fixed price contracts is recognized based on the percentage completion method. Total revenue of Clinigene increased from Rs 330.520 Millions in fiscal 2009 to Rs 403.304 Millions in the fiscal 2010, primarily on account of increase in clinical research fees.
Clinigene's expenses comprise of research material costs, consultancy fees, staff cost, other operating expense, interest cost, depreciation and provisions for current tax. Consultancy fees have increased by 8% from Rs.11.316 Millions to Rs 12.168 Millions as compared to 2009. Clinigene's staff cost has increased by 19% from Rs 58.339 Millions to Rs 69.150 Millions as compared to previous year. Interest expenses have decreased from Rs 7.594 Millions to 5.763 Millions on account of repayment of term loan.
Profit for the year ended March 31, 2010 of Rs 0.022 Million as against Rs 45.302 Millions
in the previous year.
Biocon
Biopharmaceuticals Private Limited
Biocon Biopharmaceuticals Private Limited is a 51% joint venture Company with CIMAB. BBPL was incorporated on June 17, 2002 and currently has an authorised share capital of Rs 440.000 Millions. Currently, paid-up share capital of the Company is Rs 176.000 Millions.
For the year under review, BBPL earned revenues of Rs.381.302 Millions as against Rs.185.590 Millions in the previous year. BBPL commenced full fledged operations only recently and for the year under review has a net profit of Rs 26.062 Millions as against a loss of Rs 51.736 Millions in the previous year.
As at March 31, 2010, BBPL has accumulated losses of Rs 351.285 Millions.
On March 31, 2010, CIMAB SA, BBPL and Biocon SA have entered into an agreement to acquire the 49% equity stake held by CIMAB SA in BBPL. The transaction has been consummated in April 2010.
Biocon Research
Limited
Biocon Research
Limited ('the Company') was incorporated in
The Company earned revenue of Rs 0.393 Million and has a loss of Rs 50.595 Millions as at March 31, 2010.
NeoBiocon
NeoBiocon FZ LLC. is a research and marketing pharmaceutical
Company based in
NeoBiocon registered a turnover of Rs 47.854 Millions and net profit of Rs 5.426 Millions for the year ended March 31, 2010. In accordance with Accounting Standard 27 - Financial Reporting of Interests in Joint Venture issued by ICAI, only 50% of the operations have been considered in the consolidated financial statements.
latrica Inc
Biocon has made a strategic investment of Rs 138.470 Millions in a US based research Company IATRICa Inc to jointly develop novel immunoconjugates for the treatment of cancer and infectious disorders. As at March 31, 2010, Biocon has a 30% stake in IATRICa.
The research initiatives of IATRICa are underway and it has
initiated work on two new molecules.
Biocon SA
Biocon SA a
wholly owned subsidiary was incorporated
in year 2009
in
As at March 31, 2010, Biocon SA holds 78% equity interest in
AxiCorp GmbH, Germany
and has commenced clinical the development of insulin
for the European markets.
Axicorp GmbH
During the year
2009, Biocon SA acquired 71% stake in
Axicorp GmbH, a
Company incorporated in
Axicorp operations are consolidated with Biocon with a 3 month lag. The Company registered revenue of Rs 9117.360 Millions and PAT of Rs 299.322 Millions for twelve months ended December 31, 2009 as against revenue of Rs 4797.341 Millions and PAT of Rs.99.641 Millions for nine months period ended December 31, 2008.
On a consolidated basis, AxiCorp has contributed 38% to the group revenues and 10% to the group net profit for the year ended March 31, 2010.
Consolidated
financial statements
Biocon has prepared consolidated financial statements in accordance with Indian GAAP by consolidating its subsidiaries- Syngene, Clinigene, Biocon Research Limited, Biocon SA and AxiCorp and Joint Ventures BBPL and Neo Biocon and associate company IATRICa Inc.
The abbreviated consolidated Indian GAAP profit and loss account is as under:
Abbreviated
consolidated profit and loss statement -Indian GAAP
(Rs in Millions)
|
|
2010 |
2009 |
|
Total Income |
24048.363 |
16732.254 |
|
Profit before tax (PBT) |
3514.741 |
2599.991 |
|
PBT margin |
14.6% |
15.5% |
|
Profit after tax, after minority interest and share of losses in associates, before exceptional items |
2932.442 |
2403.102 |
|
Net margin |
12.2% |
14.3% |
|
Exceptional Items |
- |
(1471.885) |
|
Profit after tax |
2932.442 |
931.217 |
Background
Subject
(‘Biocon’ or ‘the Company’), was incorporated at
On
January 10, 2008, Biocon entered into an agreement with Dr. B.R. Shetty to set
up a joint venture company NeoBiocon FZ-LLC, incorporated in
The
Company has also established Biocon Research Limited, a subsidiary of the
Company to undertake research and development in novel and innovative drug
initiatives.
Effective
April 30, 2008, Biocon acquired 71% equity interest in AxiCorp GmbH
Biocon
is an integrated healthcare company engaged in manufacture of biotechnology
products for the pharmaceutical sector. The Company is also engaged in research
and development in the biotechnology sector. During the year ended March 31,
2007, the Company has received an approval as the developer as Biocon SEZ at
the
approval
for SEZ unit to be located within Biocon SEZ
Clinigene International
Limited:
Clinigene International Limited is a wholly owned subsidiary of the Company focused on Clinical Development.
For the year, Clinigene registered revenues of Rs 330 million as against Rs 227 million in the previous year and earned a profit of Rs 45 million as against a profit Rs 24 million in the previous year.
Being a full-service clinical research organization, covering early- to late phase clinical development programs, Clinigene is well positioned to cater to clinical development requirements for its partners globally.
Biocon
Biopharmaceuticals Private Limited:
Biocon Biopharmaceuticals Private Limited (BBPL) is Biocon's 51:49 JV with CIMAB SA, to manufacture monoclonal antibodies and other Recombinant Therapeutics. BBPL commenced full fledged operations only recently and has primarily been engaged in the manufacture of BIOMAb-EGFR(TM) for oncology application.
For the year , BBPL earned revenues of Rs 186 Million as against Rs 137 Million and pared its losses to Rs 51 Million from Rs 133 million in the previous year. During the ensuing financial year, it expects to receive product approvals for new indications and commence sales to global markets.
Biocon SA:
In April 2008, Company incorporated a wholly owned
subsidiary Biocon SA in
Biocon SA, during the year has registered revenues of Rs 34 Million and recorded profit of Rs 29 Million.
AxiCorp GmbH:
AxiCorp is a specialized Pharma marketing and distribution
company based in
For the current financial year i.e. from date of acquisition to December 2008, AxiCorp earned revenues of Rs 4797 million and a profit of Rs 100 million. The year being the initial year of consolidation previous year's numbers are not applicable.
On a consolidated basis AxiCorp has contributed 29% to the group revenues and 7.5% to the group net profit.
NeoBiocon FZ LLC:
NeoBiocon FZ LLC. is a research and marketing pharmaceutical
company based in
During the year, NeoBiocon has set-up its operations and has successfully commenced marketing of oncology products in the GCC markets.
NeoBiocon is also in the process of obtaining regulatory approvals for an entire range of formulations and expects to launch the same.
Biocon Research
Limited:
During the year, the Company formed a wholly owned subsidiary M/s. Biocon Research Limited to undertake discovery led development research work in biologics, antibody molecules and proteins.
OUTLOOK:Global pharmaceutical sales is expected to rise at a lower rate of 4.5%-5.5% this year to top $820 billion, but the US market will grow by 4% to reach $292-$302 billion, as per the US National Association of Pharmaceutical Representatives (NAPRx). Initial expectations for growth in the US US economy,' says NAPRx, which is the largest US The top five European Union (EU) countries - France , Germany , Italy , Spain and the UK It is estimated that Japan, the world's second-largest market, will see higher growth, between 4%-5% to $84-$88 billion, boosted by approvals for new anti-cancer agents, disease prevention programs and the absence this year of the government's biennial price cuts. The 'pharmerging' markets - China , Brazil , India , South Korea , Mexico , Turkey and Russia Along with the pharmaceutical industry's growing focus on these high-growth markets, they are benefiting from increased government spending on healthcare and broader public and private healthcare funding, which is driving greater access to and demand for innovative medicines.
Statins:
Statins are cholesterol-lowering agents used to treat and prevent
coronary diseases and are amongst the largest selling drugs worldwide. The
Company's statins portfolio presently comprises lovastatin, simvastatin,
pravastatin, atorvastatin besides other statins under development. Biocon is
currently exporting simvastatin to the
The
Immunosuppressants:
Immunosuppressants prevent organ and tissue rejection in transplants and
require high technology based manufacturing capabilities. Currently Biocon
produces mycophenolate mofetil (MMF), sirolimus and tacrolimus. In addition to
the sales of MMF and tacrolimus in domestic market, company has also commenced
the exports to US Market and certain countries in the EU region. Company has
filed a DMF for MMF, tacrolimus and sirolimus to address the
Other biopharmaceutkal products:
Biocon also supplies a range of other Biopharmaceutical products. Biocon
markets recombinant human insulin in
Operating activities
Net Cash flows from operating activities for fiscal 2009 decreased by
56% over fiscal 2008. This is due to sale of Enzyme business in fiscal 2008 and
increase in working capital during the year.
Investing activities
The Company's cash flows from investing activities were used primarily
to fund purchase of fixed assets and trade investments.
Financing activities
The net cash outflows from financing
activities are due to decrease in short term borrowings.
PERFORMANCE OF SUBSIDIARIES
Syngene International Limited
Syngene is a 99.99% owned subsidiary of Company. Syngene was
incorporated on November 18, 1993. Syngene works in two main research areas:
Synthetic chemistry and molecular biology. Syngene is also involved in custom
chemical synthesis.
In March, 2009, Syngene opened a fully dedicated research and
development facility for Bristol-Myers Squibb (BMS). The 200,000 square-foot
facility is located in Biocon Park and employs 270 researchers, to help BMS's
discovery and early drug development efforts. Syngene's total income primarily
consists of net sales from contract research services and sales of compounds.
Substantially all Syngene's contracts are based on time and material
management. Revenue from these contracts is recognised as and when services are
rendered, in accordance with the terms of the contract. Syngene's total revenue
has increased from Rs 16.04 millions to Rs 2.064 millions representing a growth
of 29%. This growth in revenue is on account of increase in the number of
clients.
Syngene's expenses mainly comprise of raw-material costs and staff
costs. Raw material cost consists of lab consumables used for research. The
increase in revenue was mainly offset by increase in material cost by 8% from
Rs 0.483 millions in fiscal 2008 to Rs 0.524 million in fiscal 2009 and a 44%
increase in staff costs from Rs 0.366 million to Rs 0.527 million. Increase in
material cost and staff cost are due to increased business and increase in head
count. Other costs increased by 72% from Rs 0.236 million to Rs 0.406 million
in the fiscal 2009.
Net profit before exceptional items for fiscal 2009 has decreased by Rs
0.004 million to Rs 0.326 million from Rs 0.331 million primarily due to
increase in depreciation by Rs 0.072 millions. During the year Syngene incurred
Mark to Market loss of Rs 0.551 million due to adverse exchange fluctuation
resulting a net loss of Rs 0.224 millions.
trade terms
·
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
Fixed Assets
- Land
- Buildings
- Leasehold improvements
- Plant and machinery
- Research and development equipment
- Furniture and fixtures
- Vehicles
Board of Directors
Dr. Neville Bain
·
Chairman,
·
Board Member, Scottish and
· Former Group CEO, Coats Viyella Plc.
· Former Deputy Group Chief Executive and Finance Director, Cadbury Schweppes Plc.
· Author of several management books on corporate governance, strategy and people management
Prof.
Charles L. Cooney
·
Professor, Chemical and Biochemical Engineering,
· Director, Genzyme Inc. and Bio-Processors Inc.
·
Recipient of prestigious awards, including Gold
Medal of the
Dr.
Bala S. Manian
· Chairman and Co-founder, Reametrix Inc.
·
Co-founder, Quantum Dot Corporation and Surromed
Corporation,
· 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
Prof.
Ravi Mazumdar
·
University Research Chair Professor, Department of
Electrical and Computer Engineering,
· Fellow of the Institute of Electrical and Electronics Engineers (IEEE) and Fellow of the Royal Statistical Society
Dr.
Kiran Mazumdar-Shaw
· Chairman and Managing Director, Biocon
·
First generation entrepreneur with more than 28
years experience in biotechnology and industrial enzymes Master Brewer,
·
Awarded the Padmabhushan, one of
Prof.
Catherine Rosenberg
·
University Research Chair Professor and
Chairman, Department of Electrical and Computer Engineering,
Mr.
John Shaw
· Vice Chairman, Biocon
· Served in senior positions in various locations around the world
· Chairman, Madura Coats Limited between 1991-1998
Mr.
Suresh Talwar
· Partner, Crawford Bayley and Company., an Indian law firm of repute.
· Director, Cadbury India Limited, Birla Sun Life Insurance Company Limited, LandT Limited
· Area of professional specialisation includes
· corporate law and related fields
· 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 and D in
early stage drug discovery and development for a diverse global clientele.
A subsidiary of Biocon, Syngene
provides customised RandD 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
CONSOLIDATED AND UNAUDITED PROFIT AND LOSS
STATEMENT
Rs. In Millions
|
Particular |
Q1 FY 11 |
Q1 FY 10 |
Variance |
|
Income |
|
|
|
|
Biopharmaceuticals |
5900.000 |
4320.000 |
37 % |
|
Contract Research |
720.000 |
640.000 |
13 % |
|
Total Sales |
662.000 |
4960.000 |
34 % |
|
Other Income |
100.000 |
90.000 |
-- |
|
Total Income/ Revenues |
6720.000 |
5050.000 |
33 % |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Material and power costs |
4030.000 |
2890.000 |
39 % |
|
Staff costs |
700.000 |
530.000 |
32 % |
|
Research and development (Net) |
210.000 |
200.000 |
6 % |
|
Forex loss / gain |
20.000 |
(30.000) |
-- |
|
Other expenses |
350.000 |
350.000 |
0 % |
|
Manufacturing, staff and other expenses |
5310.000 |
3940.000 |
35 % |
|
PBDIT/EBIDTA |
1410.000 |
1110.000 |
27 % |
|
Interest and Finace charges |
70.000 |
60.000 |
24 % |
|
PBDT |
1340.000 |
1050.000 |
27 % |
|
Depreciation |
380.000 |
320.000 |
16 % |
|
PBT |
960.000 |
730.000 |
32 % |
|
Taxes |
160.000 |
140.000 |
20 % |
|
Profit for the period |
800.000 |
590.000 |
35 % |
|
Add/ less: Minority interest/ shares of losses in associates |
(30.000) |
(10.000) |
-- |
|
Net profit (PAT) |
770.000 |
580.000 |
33 % |
|
EPS on issued capital Rs. |
3.84 |
2.90 |
-- |
Note: The figures are rounded off to nearest crores, percentages are based on absolute numbers. Biopharmaceuticals includes licensing income of Rs.210.000 millions in Q1 FY 2011 VS. Rs.20.000 millions in Q1 FY 2010. Gross research and development spend for Q1 FY 2011 was Rs.325.000 millions.
CONSOLIDATED AND UNAUDITED BALANCE SHEET
Rs. In Millions
|
SOURCES OF FUNDS |
30.06.2010 |
|
Shares Capital |
1000.000 |
|
Reserves and Surplus |
17370.000 |
|
Total Shareholders Funds |
18370.000 |
|
Minority Interest |
340.000 |
|
Deferred Tax Liability |
510.000 |
|
Secured Loans |
3240.000 |
|
Unsecured Loans |
1200.000 |
|
Total Loans Funds |
4450.000 |
|
Total |
23660.000 |
|
|
|
|
APPLICATION OF FUNDS |
|
|
Fixed Assets (Net) |
12820.000 |
|
Intangible Assets |
2530.000 |
|
Investments |
4310.000 |
|
Inventories |
4290.000 |
|
Sundry Debtors |
4390.000 |
|
Cash and Bank Balances |
850.000 |
|
Loans and Advances |
1170.000 |
|
Total Current Assets, Loans and Advances |
10700.000 |
|
Less: Current Liabilities and Provision |
6700.000 |
|
Net Current Assets |
4000.000 |
|
Total |
23660.000 |
Unaudited
Financial Results for the Quarter Ended December, 31, 2010
Rs. In Millions
|
Particular |
Quarter
Ended |
9
Months ended |
|
|
Unaudited |
Unaudited |
|
|
31.12.2010 |
31.12.2010 |
|
Net Sales/ Income
form operation |
5016.800 |
11602.000 |
|
Other Operating
Income |
84.400 |
268.000 |
|
Total Income |
5101.200 |
11870.000 |
|
Expenditure |
|
|
|
Increase / Decrease
in stock |
171.200 |
(309.000) |
|
Consumption of
raw material / purchase |
1299.600 |
4595.200 |
|
Purchase of
traded goods |
189.500 |
399.200 |
|
Power cost |
207.800 |
598.600 |
|
Employees cost |
380.500 |
1048.500 |
|
Depreciation |
228.600 |
658.100 |
|
Other expenditure
|
292.300 |
851.600 |
|
Total expenditure
|
2769.500 |
7842.200 |
|
Profit from
operation before other income, interest and exceptional items |
2331.700 |
4027.800 |
|
Other income |
58.200 |
178.900 |
|
Profit before interest
and exceptional items |
2389.900 |
4206.700 |
|
Interest |
5.700 |
16.700 |
|
Profit after
interest but before exceptional items |
2384.200 |
4190.000 |
|
Exceptional items |
0.000 |
0.000 |
|
Profit / Loss
from ordinary activities before tax |
2384.200 |
4190.000 |
|
Tax expenses |
268.300 |
477.800 |
|
Net profit / Loss
for the period |
2115.900 |
3712.200 |
|
Paid up equity
share capital (face value of equity shares of Rs. 5/- each) |
1000.000 |
1000.000 |
|
Reserves excluding
revaluation reserves |
- |
- |
|
Earning per
shares (in Rs) Basic |
10.81 |
18.96 |
|
Earning per
shares (in Rs) Diluted |
10.72 |
18.80 |
|
Public
shareholding |
|
|
|
Number
of Shares |
78165024 |
78165024 |
|
% of
Shareholding |
39.08% |
39.08% |
|
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-
Number of Shares |
- |
- |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
- |
- |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
- |
- |
|
b)
Non Encumbered |
|
|
|
-
Number of Shares |
121834975 |
121834976 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter
Group) |
100% |
100% |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
60.92% |
60.92% |
Note:
1. The unaudited financial results of the Company for the quarter ended December 31, 2010 have been subjected to limited review by the statutory auditors, The above results have been reviewed by the Audit Committee on January 19, 2011 and approved by the Board of Directors of the Company at their meeting held on January 20, 2011.
2.
The financial statements for AxiCorp
3.
During the current quarter, Biocon SA, has entered into a strategic agreement
with
4. Total number of shareholder complaints pending at the beginning of the quarter was nil. Complaints received during the quarter were 88. All Complaints, except one have been resolved as at December 31, 2010.
7. The prior quarter/year figures have been reclassified wherever required to conform to the classification of the current period. For and on behalf of the Board of Directors
Milestone
01 Kiran
Mazumdar-Shaw awarded the prestigious ‘Nikkei Asia Prize’ 2009 for regional
growth.
02 Biocon launches
BASALOG™ - long lasting basal insulin for
type 1 and type 2 diabetes.
03 Biocon inks
partnership with
Cell for Innovation Management.
04 Biocon announces strategic collaboration with Mylan to enter the global generic biologics market.
05 Syngene’s Vivarium
receives official accreditation by AAALAC.
06 Kiran
Mazumdar-Shaw features on the Forbes list of ‘The World’s 100 Most Powerful Women’.
07 Biocon and Amylin Pharmaceuticals enter a global development and commercialization agreement for a Novel Peptide Hybrid.
08 Biocon among Top
20 Indian companies in Forbes ‘Best Under A Billion’ list.
09 Kiran
Mazumdar-Shaw in Financial Times’ ‘Top 50 Women in Business’ list.
10 Biocon explores
investment in
11 Syngene and Endo
Pharmaceuticals,
12 Biocon and Bayer
join hands to create awareness on self monitoring for diabetics.
13 Kiran Mazumdar-Shaw named among TIME magazine’s 100 most influential people in the world.
14 Biocon acquires
stake of its Cuban partner CIMAB
15 Biocon and Optimer Pharmaceuticals announce manufacturing and supply agreement for a novel API, first-in class anti-infective (C. difficile).
PRESS RELEASE:
Biocon delivers strong Q3 performance with growth across
businesses
Announces clinical efficacy data from
phase iii trials on in-105
Biocon Limited announces earnings for
the nine months ended December 31, 2010.
Revenues at Rs 20970.000 millions;
EBITDA at Rs 4710.000 millions; PAT at Rs 2670.000 millions
"Commenting on the financial performance, Kiran Mazumdar-Shaw, Chairman
and Managing Director said "Biocon has delivered the highest ever PAT this
quarter and has crossed the Rs:100 crore mark. The operating margin has also
increased to 24% this quarter reflecting the improved quality of earnings. This
marks an important growth milestone which will enable us to invest in advancing
our research programs and expand our manufacturing and marketing partnerships,
which we believe, are catalysts of growth for the future."
Biocon Group (consolidated)
For Nine-Months ended December 31, 2010
- Total Income at Rs 20970.000 millions. Up 21% YoY.
-
EBITDA at Rs 4710.000 millions. YoY growth was 28%.
- PAT
at Rs 2670.000 millions. YoY growth was 25%.
-
EBITDA Margin at 22%.
-
Earnings Per Share at Rs 13.6.
-
Headcount at 5,300+ employees.
For three months ended December 31, 2010
- Total Income at Rs 738 crores. Up 15% YoY.
-
EBITDA at Rs 178 crores. YoY growth was 34%.
- PAT
at Rs 101 crores. YoY growth was 24%.
-
EBITDA Margin at 24%.
-
Earnings Per Share at Rs 5.2.
Business Performance and Outlook
Biopharmaceuticals
The Biopharma business posted a 22% YoY increase in revenues in the nine-months
of this fiscal on the back of strong growth in the sales of immunosuppressants,
statins and the branded formulations segment.
There has been a significant increase in the sales of both MMF and Tacrolimus
to the
Domestic Branded Formulations - The
six verticals in branded formulations, namely, Diabetology, Oncotherapeutics,
Nephrology, Cardiology, Dermatology and Comprehensive Care, have posted a
combined YoY growth of 32%.
In Diabetology, the response of diabetes specialists to the launch of Insugen
100 i.u. in
The Immunotherapy division was launched in September 2010 with a vision to
present a portfolio of unique, effective, and affordable medicines
predominantly for the treatment of immune-related dermatological disorders. The
current portfolio comprises of Tbis (Tacrolimus) and Picon (Pimecrolimus).
In October 2010, the company also forayed into the Dermatology market with a
scientific symposium which was attended by over 100 dermatologists from across
the nation.
Axicorp
Effective August 2010, the German government has forced drug makers to give a
16% rebate for the next 3 years. AxiCorp's action plan is focused on managing the
situation by eliminating certain low margin products from the current
portfolio.
Said Dirk Ullrich, CEO, AxiCorp GmbH, "The impact of revamping our product
portfolio led to a sales dip in this past quarter and will impact the next
quarter as well but it does provide the opportunity for further quality growth
thereafter. In the first nine months, AxiCorp showed a sales growth of 28% vs.
2009 and a net profit growth of 33%".
Research Services
Syngene - Dr. Goutam Das, retired at
the end of December 2010 after sixteen years of outstanding leadership at
Syngene. Pursuant to this, Mr. Peter Bains has taken interim charge of Syngene.
Mr. Bains brings a wealth of experience from big pharma having had a 23-year
career at GSK in which at various times he was Head of Global Marketing and SVP
of Commercial Development for GSK's International Region. His experience and
insights will bring a fresh perspective to Syngene's businesses as traditional
models and technologies are being challenged and new collaboration models are
evolving.
Syngene's business has gained momentum in the current quarter with a 21% growth
in top line and a 3% improvement in EBITDA margins; Increased traction in
biologics and integrated research services are expected to drive further growth
in the year ahead.
Commenting on the business outlook, Peter Bains said: "The rationale for
external Research and Development is no longer simply about cost, but now also
about value added services that enhance the success of drug development
programs. FTEs have made way for preferred suppliers of integrated offerings
which in turn are now being replaced by strategic development partnerships. I
believe Syngene and Clinigene are in a unique position to offer integrated, end
to end drug discovery and development services both for small molecules and
biologics."
Research Pipeline
IN-105: Announced preliminary efficacy
data from phase III clinical trials on IN-105 - Top line data show encouraging
results in patients with Type 2 Diabetes.
The company released encouraging preliminary data from a recently concluded
clinical study conducted in
Initial data analyses show that an unexpectedly high placebo effect prevented
IN-105 from meeting its primary end point of lowering HbA1c levels by 0.7%
compared to placebo. However, multiple secondary endpoints on both efficacy and
safety were met, further strengthening the emerging profile of IN-105.
Most notably on efficacy, the IN-105 patient arm demonstrated a statistically
significant reduction in post prandial glucose levels compared to placebo
throughout the duration of the study. On secondary safety endpoints, IN-105
demonstrated an excellent overall safety profile with no incidence of serious
adverse events, and no occurrences of clinical hypoglycaemia. Data also show
that the drug is weight neutral and non immunogenic.
Releasing the data, said CMD Kiran Mazumdar-Shaw, "Based on these
encouraging results, Biocon is committed to continue its global development of
IN-105 in partnership with a global pharmaceutical partner for which we plan to
initiate partnering discussions shortly".
T1h: Phase III clinical trials for
the Anti-CD6 targeting monoclonal antibody (T1h) program for Psoriasis are
ongoing. Patient enrollment has been completed and the primary end point is
expected to be evaluated in Q1 FY12.
BVX-20 (Anti-CD20): The MAb has been
established as safe in non-human primates. An application to conduct first-in
man studies with BVX-20 MAb in NHL patients has been submitted to the DCGI.
Corporate Developments in Q3 FY11
Biocon to set up manufacturing and
Research and Development unit in Malaysia
Biocon announced a strategic foreign direct investment in
The project would focus on the production of Insulins in the first phase.
Biocon proposes to invest around RM500 million (approximately US $161 million)
in this facility in the first phase which is targeted to be operational by
2014.
About Biocon
Established
in 1978, Biocon Limited (BSE code: 532523, NSE Id: BIOCON, ISIN Id:
INE376G01013) is
Disclaimer
Certain statements in this release concerning our future growth prospects are
forward-looking statements, which are subject to a number of risks,
uncertainties and assumptions that could cause actual results to differ
materially from those contemplated in such forward-looking statements.
Important factors that could cause actual results to differ materially from our
expectations include, amongst others general economic and business conditions
in India, our ability to successfully implement our strategy, our research and
development efforts, our growth and expansion plans and technological changes,
changes in the value of the Rupee and other currency changes, changes in the
Indian and international interest rates, change in laws and regulations that
apply to the Indian and global biotechnology and pharmaceuticals industries,
increasing competition in and the conditions of the Indian biotechnology and
pharmaceuticals industries, changes in political conditions in India and
changes in the foreign exchange control regulations in India. Neither our
company, our directors, nor any of our affiliates, have any obligation to
update or otherwise revise any statements reflecting circumstances arising
after this date or to reflect the occurrence of underlying events, even if the
underlying assumptions do not come to fruition.
Earnings Call
The
company will conduct an hour long call at 3:00 pm IST on January 20, 2011 where
the senior management will discuss the company's performance and answer
questions from participants. To participate in this conference call, please
dial the numbers provided below five to ten minutes ahead of the scheduled
start time. The dial-in numbers for the call are 1800 425 4061 / 1800 425 4250
/ 1800 22 4061 / 1800 425 1300 (India Toll Free numbers are accessible through
all mobiles and landline services) Other toll numbers are listed in the
conference call invite which is posted on the company website www.biocon.com.
The operator will provide instructions on asking questions before the start of
the call. A replay of this call will also be available from 20 January 2011 -
27 January 2011 on the same dial-in numbers provided above. The transcript of
the conference call will be posted on the corporate website.
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 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.44.99 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
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 |
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 |
|
- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.