MIRA
INFORM REPORT
|
Report Date : |
07.02.2012 |
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) : |
31.03.2011 |
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Date of Incorporation : |
29.11.1978 |
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Com. Reg. No.: |
08-003417 |
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Capital
Investment / Paid-up Capital : |
Rs.1000.000 Millions |
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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. |
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No. of Employees
: |
5585
[Approximately] |
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 77800000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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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Branch office : |
Located at:-
Tel. No. 91-22-56919760/61/62
Tel. No. 91-11-26449819
Tel. No. 91-33-25501299 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mrs.
Kiran Mazumdar |
|
Designation : |
Chairperson
and Managing Director |
|
Address : |
874/1,
7th Cross III Block, Koramangala, |
|
Date of
Birth/Age : |
20.11.1978 |
|
Qualification
: |
B.Sc.
(Hons.), PG Diploma in Malting & Brewing |
|
Date Of
Appointment : |
01.12.1978 |
|
Previous
Employment: |
Jupiter
Breweries, Kolkata, |
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|
|
|
Name : |
Dr.
Neville Bain |
|
Designation : |
Director |
|
Address : |
High
Trees, |
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Date of
Birth/Age : |
17.04.1955 |
|
Date of Appointment
: |
08.08.2000 |
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|
|
|
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 |
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Designation : |
Mr. Catherine
Rosenberg |
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Name : |
Mr.
Suresh Talwar |
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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. Peter Bains |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
Chinappa M. B. |
|
Designation : |
Chief
Executive Financer – Syngene |
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Qualification
: |
B. Com. ACA |
|
Date of
Appointment : |
12.07.1999 |
|
Last
Employment : |
Finance Manager
ITC Limited, |
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|
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|
Name : |
Dr.
Harish V. Iyer |
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Designation : |
President
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Name : |
Mr.
Kiran Kumar G |
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Designation : |
Compliance
Officer, Company Secretary |
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|
|
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Name : |
Mr. |
|
Designation : |
Group
Head of Human Resorces |
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|
|
|
Name : |
Mr.
Sandeep Rao |
|
Designation : |
Vice
President – Business Development and Licensing |
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Qualification
: |
M. Sc. PGDM |
|
Date of
Appointment : |
15.06.1999 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
80881394 |
40.44 |
|
|
80881394 |
40.44 |
|
|
|
|
|
|
39535194 |
19.77 |
|
|
1407558 |
0.70 |
|
|
40942752 |
20.47 |
|
Total shareholding of Promoter and Promoter Group (A) |
121824146 |
60.91 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10343950 |
5.17 |
|
|
10516496 |
5.26 |
|
|
7046855 |
3.52 |
|
|
27907301 |
13.95 |
|
|
|
|
|
|
13926585 |
6.96 |
|
|
|
|
|
|
15305872 |
7.65 |
|
|
1565733 |
5.78 |
|
|
9470363 |
4.47 |
|
|
1080924 |
0.54 |
|
|
8097078 |
4.05 |
|
|
105374 |
0.05 |
|
|
186987 |
0.09 |
|
|
50268553 |
25.13 |
|
Total Public shareholding (B) |
78175854 |
39.09 |
|
Total (A) + (B) |
200000000 |
100.00 |
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
- |
- |
|
Total (A) + (B) +(C) |
200000000 |
- |
(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 31.03.2011):-
|
Particulars |
Unit |
Licenced Capacity |
Installed Capacity |
Actual
Production |
|
Pharmaceuticals |
Kg. |
* |
** |
15700047 |
* 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 : |
5585
[Approximately] |
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Bankers : |
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Facilities : |
(i) The Company has working capital facilities
with Hongkong and Shanghai Banking Corporation (HSBC). These facilities are
repayable on demand, secured by pari-passu
first charge on current assets. As on March 31, 2011, the Company
has utilised fund based limits of Rs.740.229 millions inclusive of foreign
currency denominated loans of Rs.668.100 millions (US$ 15 Million ). (ii) 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, 2011, the Company
has utilised Rs.0.414 millions. (iii) The Company has working capital facilities
with ABN Amro Bank. These facilities are repayable on demand, secured by a pari-passu first charge on
the current assets of the Company. As on March 31, 2011, the Company has
utilised Nil inclusive of foreign currency denominated loans of 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, 2011, the Company has utilised ` Nil. During the year, the Company
has repaid the entire amount. (ii) 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.648.938 millions. As at March 31, 2011, the Company has utilized
Rs. 648.624 millions. The amount due for repayment during 2011-12 is Rs. Nil. (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 equal
annual installments starting from April, 2009 and carrying an interest rate
of 3 percent per annum. The amount due for repayment within one year is
Rs.Nil. The amount due for repayment in 2011-12 being Rs.0.331 millions has
been paid as at March 31, 2011. (iv) On 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
commercialisation of the project in five equal annual installments. During
the year, the Company has received the remaining Rs.7.000 millions towards
the Pilot Plant project. In addition, DSIR has further sanctioned Rs.4.000
millions towards a development project and the same was received in August,
2010. The amount due for repayment during 2011-12 is ` Nil. (v) On November 3, 2009, the Department of
Biotechnology (‘DBT’) under the Biotechnology Industrial Partnership
Programme (‘BIPP’) has sanctioned financial assistance for a sum of ` 53,000
to the Company for financing one of it’s research projects. Of the said
sanctioned amount, the Company has received a sum of Rs.37.100 millions
during the year 2010-11. The loan is repayable over 10 half yearly
installments after one year from the date of completion of the project, and
carries an interest rate of 2 percent per annum. The amount due for repayment
during 2011-12 is ` Nil. (vi) On August 25, 2010, the Department of
Science and Technology (‘DST’) under the Drugs and Pharmaceutical Research
Programme (‘DPRP’) has sanctioned financial assistance for a sum of Rs.70.000
millions to the Company for financing one of it’s research projects. Of the
said sanctioned amount, the Company has received the first installment of `
14,000 during the year 2010-11. The loan is repayable over 10 annual
installments starting from July 1, 2012, and carries an interest rate of 3
percent per annum. (vii) The Company has obtained foreign currency
loan of Rs.222.700 (US$ 5 million) from BNP Paribas as at March 31, 2011. The
loan is repayable by September 18, 2011. As at March 31, 2010, the Company
had availed foreign currency loan of Rs.359.600 millions (US$ 8 million) from
HDFC Bank. |
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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 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
220,000,000 |
Equity shares |
Rs.5/- each |
Rs.1100.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200,000,000 |
Equity shares |
Rs.5/- each |
Rs.1000.000 millions |
|
|
|
|
|
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
(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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
18468.091 |
14662.867 |
12748.753 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
19468.091 |
15662.867 |
13748.753 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
740.643 |
896.834 |
1014.565 |
|
|
2] Unsecured
Loans |
945.743 |
1021.228 |
624.862 |
|
TOTAL BORROWING
|
1686.386 |
1918.062 |
1639.427 |
|
|
DEFERRED TAX
LIABILITIES |
395.518 |
410.408 |
410.408 |
|
|
|
|
|
|
|
TOTAL
|
21549.995 |
17991.337 |
15798.588 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
6662.376 |
6599.909 |
6752.841 |
|
Capital work-in-progress
|
1032.909 |
583.344 |
376.872 |
|
|
|
|
|
|
|
INVESTMENT
|
4858.229 |
4186.382 |
3466.855 |
|
Intangible Assets
|
134.490 |
184.062 |
388.850 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2747.374 |
2447.986 |
1945.224
|
|
|
Sundry Debtors
|
4181.044 |
3836.444 |
3101.713
|
|
|
Cash & Bank Balances
|
2102.320 |
771.218 |
60.427
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
4086.880
|
4030.711
|
2662.748
|
Total Current Assets
|
13117.618 |
11086.359 |
7770.112 |
|
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
1834.522 |
1856.471 |
1218.262
|
|
|
Other Current Liabilities
|
1319.197 |
1959.772 |
978.708
|
|
|
Provisions
|
1101.908 |
832.476 |
759.972
|
Total Current Liabilities
|
4255.627 |
4648.719 |
2956.942 |
|
Net Current Assets
|
8861.991 |
6437.640 |
4813.170 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
21549.995 |
17991.337 |
15798.588 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13250.660 |
11280.695 |
9034.360 |
|
|
|
Other Income |
605.716 |
658.327 |
747.738 |
|
|
|
Licensing and Development Fees |
2064.963 |
350.130 |
89.005 |
|
|
|
TOTAL |
15921.339 |
12289.152 |
9871.103 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing contract research and other
expenses |
9824.660 |
8709.669 |
6936.814 |
|
|
|
TOTAL |
9824.660 |
8709.669 |
6936.814 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
6096.679 |
3579.483 |
2934.289 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
23.778 |
19.910 |
49.371 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
6072.901 |
3559.573 |
2884.918 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
901.691 |
797.290 |
742.830 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
5171.210 |
2762.283 |
2142.088 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
578.715 |
278.713 |
103.967 |
|
|
|
Exceptional item net |
0.000 |
0.000 |
[997.450] |
|
|
Add/ less |
Tax effect on exceptional items |
0.000 |
0.000 |
77.326 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
4592.495 |
2483.570 |
1117.997 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9470.267 |
8009.190 |
7704.962 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Interim
dividend on equity shares |
300.000 |
0.000 |
0.000 |
|
|
|
Proposed
final dividend on equity shares |
600.000 |
700.000 |
600.000 |
|
|
|
Tax
on proposed final dividend, net of reversal of earlier year Rs.6.552 |
90.783 |
74.136 |
101.970 |
|
|
|
Transfer
to general reserve |
459.250 |
248.357 |
111.799 |
|
|
|
BALANCE CARRIED
TO THE B/S |
12612.729 |
9470.267 |
8009.190 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of goods on FOB basis |
5243.403 |
4828.653 |
4628.839 |
|
|
|
Licensing
and development fees |
1658.269 |
136.093 |
89.005 |
|
|
|
Other Income |
0.000 |
48.090 |
NA |
|
|
|
Interest
on foreign currency loan given to subsidiary company |
33.234 |
44.204 |
NA |
|
|
TOTAL EARNINGS |
6934.906 |
5057.040 |
4717.844 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3821.639 |
3823.858 |
2622.733 |
|
|
|
Packing Materials |
45.249 |
30.784 |
32.513 |
|
|
|
Maintenance Spares |
30.477 |
25.808 |
13.821 |
|
|
|
Capital Goods |
502.097 |
208.571 |
239.037 |
|
|
TOTAL IMPORTS |
4399.462 |
4089.021 |
2908.104 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.49 |
12.77 |
5.79 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Net Sales |
3480.300 |
3920.700 |
3861.200 |
|
Total Expenditure |
2613.600 |
2920.600 |
2965.900 |
|
PBIDT (Excl OI) |
866.700 |
1000.100 |
895.300 |
|
Other Income |
83.300 |
84.600 |
101.800 |
|
Operating Profit |
950.000 |
1084.700 |
997.100 |
|
Interest |
5.900 |
5.900 |
5.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
944.100 |
1078.800 |
991.300 |
|
Depreciation |
231.800 |
234.500 |
231.600 |
|
Profit Before Tax |
712.300 |
844.300 |
759.700 |
|
Tax |
108.300 |
163.600 |
112.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
604.300 |
680.700 |
647.300 |
|
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 |
604.300 |
680.700 |
647.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
28.84 |
20.21 |
11.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
39.03 |
24.49 |
23.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
26.14 |
15.62 |
14.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.18 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.30 |
0.42 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.08 |
2.38 |
2.63 |
LOCAL AGENCY FURTHER INFORMATION
Results of
Operations:
For the year ended March 31,2011
consolidated revenues grew by 17% driven by a strong growth in
biopharmaceutical segment, EBITDA grew by 24% and Profit after tax (PAT) grew by
25% to Rs. 3675 million as compared to Rs. 2932 million in the previous
financial year.
The highlight of this past year was
the strategic partnership with Pfizer for taking their biosimilar insulin
global.
The standalone financial statements
reflect higher profits on account of transfer of certain intangible to
subsidiaries within the group, which are eliminated upon consolidation.
A detailed performance analysis is
also discussed in the Management Discussion and Analysis, which is annexed to
this report.
Business
Operations overview and Outlook:
During the year, Company’s revenue
increased by 17% from Rs. 24048 million to Rs. 28137 million. The growth in
biopharmaceuticals sales was driven by a significant increase in sale across
business segments including statins, immunosuppresants and insulins. The
immunosuppresants segment specifically grew by over 30%. The domestic branded
formulations business grew 36% on increasing market share of key brands,
introduction of new products and the launch of two new divisions –
Immunotherapy and Comprehensive Care.
They have sought both research and
marketing partnerships as a way to access global markets and they have forged some key strategic partnerships this
year. The most visible and high-profile partnership that they recently
announced was with Pfizer to commercialize their insulins portfolio which is
going to be a very important growth driver in the foreseeable future.
Industry reports cite the insulin
market at about US$ 15 billion today and estimated to grow to a size of US$ 20
billion by 2020. The insulins space accounts for 46% of the total diabetes drug
segment. They estimate this business will continue to grow at about 6% per
annum going forward, factoring the advent of biosimilar insulins. Biocon’s
partnership with Pfizer aims at addressing this very large opportunity first in
the emerging markets, which offer sizeable volume and thereafter at a later
stage, enter the developed markets. Clinical trials for recombinant human
insulin for the European Market are in progress and patient recruitments are
currently underway. Biocon’s insulin business in
Another significant event in this
past year was the supply agreement with Optimer Pharmaceuticals for the supply
of Fidaxomicin API. Biocon is the currently sole supplier of this product for
certain regulated markets and has been involved with this project from 2005.
They have made considerable progress
in their partnership with Mylan for developing biosimilar monoclonal antibodies
for the global markets. In addition to this, they have some very key strategic
research partnerships with Amylin, Vaccinex, the Center for Immunology in
Within the novel pipeline, the
Company released encouraging preliminary data from a recently concluded Phase
III clinical study conducted in
However, multiple secondary
endpoints on both efficacy and safety were met, further strengthening the
emerging profile of IN-105.
Their coveted T1h program for a
novel Anti-CD6 targeting monoclonal antibody is in Phase III clinical trials
for Psoriasis. Additionally, their novel anti-CD20 molecule (BVX 20 with
Vaccinex) has completed preclinical studies and they are scheduled to commence
clinical trials this year. Their novel programs are expected to unlock
substantial value upon licensing in the coming years.
Subsidiaries and
Joint Ventures:
Syngene International
Limited
Syngene continues to be one of the
leading contract research organizations in the country which offers integrated
services across discovery and development continuum. State-of-the-art
infrastructure, talented and experienced scientific and techno-commercial team,
flexibility of business models, robust communication systems, ability to
consistently deliver with quality and speed are some of the reasons why Syngene
has become a preferred partner of choice for several small, medium and large
companies around the world. In addition to pharmaceutical companies, Syngene
has developed a broad customer base in other industries including fine
chemical, petrochemical, agro, cosmetic and electronic companies.
During the year, Syngene continued to
successfully manage large relationships including those with Bristol-Myers
Squibb, Merck and DuPont Agro division which involved various aspects of drug
discovery and development research.
With the emergence of biologics over
past few years as important medicinal interventions, Syngene also offer
services in discovery and development of biologic molecules. Syngene’s
state-of-the-art biologics pilot plant is capable of delivering clinical trial
material of both bacterial and mammalian origin.
During the financial year 2010-11,
Syngene registered a strong growth of 21% in revenues from Rs. 2675 million to
Rs. 3231 million. Operational Margin (EBITDA) increased from Rs. 877 million to
Rs. 1005 million representing a 14% increase during the year.
Increased charge on account of
depreciation has led to a marginal decline in the net profit which was at Rs.
283 million for the year against of Rs. 308 million for the previous year.
Clinigene
International Limited
For the year , Clinigene registered
revenues of Rs. 289 million Clinigene had a challenging year and has incurred a
loss of Rs. 37 million on account unfavourable market conditions, delay in
study startup and intensive pricing pressures.
Clinigene is continuing to evolve
and adapt its capability platforms and service offerings against a background
of continued macro market pressure as global RandD spends are being reduced,
consolidation of market players continues and the shift to globally capable
preferred partnerships accelerates. In addition to their standard service
platforms, they have identified several more specialized areas, for example
patient based early studies, complex BA/BE studies and immunoanalytical
services where Clinigene offers strong capabilities. They believe that, these
new speciality services, which have relatively high entry barriers, will allow
us to drive new and differential revenue opportunities.
Biocon
Biopharmaceuticals Private Limited
During the year Biocon
Biopharmaceuticals Private Limited (BBPL) became a wholly owned subsidiary of
the Company. For the year , BBPL earned revenues of Rs. 491 million as against
Rs. 381 million in the previous year. The net profits for the year stood at Rs.
192 million as against Rs. 26 million in the previous year.
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. For the current year BRL
registered revenues of Rs. 649 million as against Rs. 392 million in the
previous year. BRL continues to progress the development activity on the
monoclonal antibody program in joint collaboration with Mylan. BRL has reported
a net loss of Rs. 322 Million for the year ended March 31, 2011 against a loss
of Rs. 51 million in the previous year.
Being a research driven enterprise,
the Company is in the initial stage of operations and has enlarged its scope to
other challenging research projects during the year.
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 revenues rose from Rs. 9117 million to Rs. 9800 million. The Company
earned a net profit of Rs. 353 million for the year against Rs. 299 million for
the previous year. Given the synergies brought about by the Pfizer partnership,
the Company has decided to divest its 78% stake in AxiCorp to the existing
group of promoter shareholders.
NeoBiocon FZ LLC
NeoBiocon FZ LLC is a pharmaceutical
research and marketing company based at
During the current year, NeoBiocon
registered significant growth in revenue to Rs. 60 million and a net profit of
Rs. 21 million.
In addition to launching oncology
products. NeoBiocon’s range of branded generic products, now approved by the
UAE Ministry of Health, has been successfully launched to address the
therapeutic segments of cardiology, diabetology and infection management.
Biocon SDN. BHD.
During the year, Company has
incorporated a wholly owned subsidiary in
In the first phase of capital outlay
the Company envisages an investment of US$ 161 million and expects the facility
to go on stream by year 2015.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Overview, Opportunities and Outlook
The Indian Pharmaceutical sector is
now aiming for the next big opportunity in pharmaceutical manufacturing viz.
Biologics, especially bio-similars.
The biopharmaceutical market is
currently worth nearly US $137 billion and growing rapidly. Industry experts
estimate that it could be worth US $319 billion by 2020. Moreover, at least 48
biologic products with combined sales of nearly US $60 billion are due to come
off patent over the next decade. Today
Business and Operational Overview
During this year, Biocon’s total
revenues increased by 17% from Rs. 24048 million to Rs. 28136 million. The
growth in biopharmaceuticals sales was driven by a significant increase in
sales across business segment including statins, immunosuppresants and
insulins. The immunosuppresants segment grew over 30%. The domestic branded
formulations business grew 36% on key brands successfully increasing market
share and the introduction of new products in two new divisions – Immunotherapy
and Comprehensive Care.
Portfolio approach
Biocon has successfully developed
comprehensive portfolios of statins and immunosuppressants as generic APIs in
the small molecule space and this has contributed to 75% of their revenues and
delivered a sustainable 5-year CAGR of 24%. The path ahead is to expand their
small molecule portfolios to prostaglandins and peptides. Biocon is selective
about the portfolios that it chooses and hopes to move up the value curve from
APIs to dossiers, especially in the ANDAs. They believe that this approach will
give us and drive much higher value growth for us in the year ahead. Their
approach in large molecules has been, again, a portfolio approach where they
have focused on 2 broad portfolios; the first is the insulins which includes
recombinant human insulin and insulin analogs, and the second portfolio is the
monoclonal antibodies basket. In the large molecule space, however, they have
chosen to straddle both biosimilars as well as novel programs as a
risk-balanced strategy where they believe that the novel programs have the
potential of large upside, if successful. Their portfolio approach has yielded
good financial returns and has allowed us to forge very strong partnerships.
Research and Marketing partnerships
are the way to go
They have sought both research and
marketing partnerships as a way to access global markets and they have forged
key strategic partnerships this year. The most visible and high-profile partnership
that they recently announced was with Pfizer to commercialize their insulins
portfolio which is going to be a very important growth driver for the Company
in the foreseeable future.
Industry reports cite the insulin
market at about US$ 15 billion today and estimated to grow to a size of US$ 20
billion by 2020. The insulins space accounts for 46% of the diabetes drug
segment. They estimate this business will continue to grow at about 6% per
annum going forward, factoring in the advent of biosimilar insulins. Of course,
it is well-recognized that insulin analogs are rapidly outpacing recombinant
human insulin and it is also well-accepted that biosimilar insulins are
inevitable.
They think there are compelling
reasons for biosimilar insulins to enter the regulated markets, driven by
escalating concerns on cost of therapies in these markets, clarity on
regulatory path ways and expiry of patents on product analogues.
They highlight them below –
1. Cost compulsions are likely to
escalate in the regulated markets over the next few years with ageing
populations and this makes a strong case for biosimilars;
2. Regulatory pathways for approval
more or less clear;
3. Product patents on the analogues
expiring through 2019. Market data indicates the growth of diabetic population
across the world and more pronounced in developing economies specifically in
Biocon’s partnership with Pfizer
aims at addressing this very large opportunity first in the emerging markets,
which themselves offer sizeable markets and then at a later stage, enter the
Biocon’s insulin business in
They have made considerable progress
in their partnership with Mylan for developing biosimilar monoclonal antibodies
for the global markets. In addition to this, they have some very key strategic
research partnerships with Amylin, Vaccinex, Center for Immunology in
Another supply partnership in this
past year is with Optimer Pharmaceuticals for the supply of Fidaxomicin API.
Biocon is the sole supplier of this product for
Late-stage Novel programs to see
unlocking of value
Their novel pipeline comprises of
products in diabetes, oncology and auto-immune diseases.
Within their novel pipeline, the
Company released encouraging preliminary data from a recently concluded
clinical study conducted in
Their coveted T1h program for a
novel Anti-CD6 targeting monoclonal antibody is in Phase III clinical trials
for Psoriasis. The target indications are expected to address a market size of
US$ 20 billion by 2015. Additionally, their novel anti-CD20 molecule has
completed preclinical studies and is expected to get into the clinic in
Emerging Markets are large and offer
great growth opportunities
The emerging markets are going to be
high growth, high-return markets for Biocon. They have already delivered a 40%
growth in their emerging markets business this year and they expect to improve
on this in the years ahead. Biosimilar insulins are certainly going to be very
important for these emerging market strategies. The current emerging market
estimate for this insulin business is about US$ 1.5 billion with a 5-year CAGR
of 15%. Estimated at US$ 5 billion by 2020, the insulin market in the emerging
economies account for 70% of the world’s diabetic population they offer us
quick market entry. Biosimilar Mabs in the emerging markets are also a very
important opportunity for us. Generics, again, are going to be extremely
important for this as APAC alone accounts for 16% of the US$ 124 billion
generics market with the fastest growth rate.
Trend of Externalizing RandD
continues on a firmer path
The research services landscape
continued to be challenging this year. While Big Pharma is still externalizing
over 22% of its RandD, they also see risk sharing and resource sharing models
evolve along with a move from component to integrated discovery programs and
from chemistry to biologics. It is no longer cost, time and productivity
arbitrage that are rationales for externalizing research. Finally, although Big
Pharma can in-license from small biotechs in order to fill up the research
pipelines, it is amply clear that this is not adequate. This is the main reason
why externalizing the development of biologics is becoming a big opportunity
for their research services companies, Syngene and Clinigene. Both are very
well-positioned to offer this integrated platform of end-to-end solutions for
both NCEs and NBEs. An important partnership that they have developed in this
risk sharing integrated model is BBRC, which is a dedicated, integrated R and D
hub customized for Bristol-Myers Squibb to pursue pipeline development. This
facility has over 450 scientists and it works in a seamless way with its labs
back in the
Biopharmaceuticals
Their business focus is on the
manufacturing and marketing of biopharmaceuticals that require fermentation and
synthetic chemistry skills.
Statins and Orlistat:
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 across
Their Statins segment grew 13% YoY
despite pricing pressures owing to enhanced capacity enabled by improved
productivity. The Statins portfolio witnessed a changing product mix in this
financial year. Atorvastatin and Rosuvastatin gained share in Statins
portfolio. Orlistat a drug in the anti obesity saw a significant sales growth
primarily an account of ban on its peer’s.
Insulins:
Insulin is a hormone that regulates
the energy and glucose metabolism in the body. Biocon markets recombinant human
insulin in
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.
This segment posted a 35% YoY growth
driven by patent expiry despite pricing pressures.
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. There was significant
revival in the insulins franchise both in the Insugen and Basalog. The launch
of Insugen 100, the global standard, has been widely accepted by diabetic
fraternity. Biocon has focused its efforts to improving diabetes care in
The Comprehensive Care and
immunology division was launched in the current fiscal with a vision of
providing quality and affordable therapy in the critical care segment.
Biocon’s pipeline of innovative and
biosimilar molecules as well as marketing partnerships will be the driving
force to expand in India and other markets in the years to come.
The Biocon’s formulation division
dedicated marketing team of over 1,100 people for the finished dosages
business.
Performance of Subsidiaries, Joint Ventures and Associates
Syngene International Limited
Syngene is a 99.99% owned subsidiary
of the Company. Syngene was incorporated on November 18, 1993. Syngene operates
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. 2675.660 millions to Rs. 3231.378 millions representing a growth of 21%. 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 27% from Rs. 688.117 millions to Rs. 876.148
millions in fiscal 2011 and the staff costs increased by 20% from Rs. 666.393 millions to Rs. 800.278
millions. Increase in material cost and increase in staff costs are due to a
growth in sales. Other costs increased by 24% from Rs. 443.585 millions to Rs. 550.195
millions.
Net profit for the year has
decreased by Rs. 25.400 millions from Rs. 308.144 millions to Rs. 282.744
millions mainly due to increase in depreciation by Rs. 58.277 millions from Rs. 450.872
millions in the year ended March 31, 2010 to Rs. 509.149
millions in the year ended March 31, 2011.
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. For the year
ended March 31, 2011, Clinigene has total revenue of Rs. 289.337 millions. Clinigene is continuing to evolve
and adapt its capability platforms and service offerings against a background
of continued macro market pressure as global RandD spends are being reduced,
consolidation of market players continues and the shift to globally capable
preferred partnerships accelerates.
During the year, the Company has
identified several more specialized services for example patient based early
studies, complex BA/BE studies and bio-analytical services. These new specialty
services, which have relatively high entry barriers, will drive new and
differential revenue opportunities. Studies conducted by Clinigene were
successfully audited by the USFDA and EMA.
Biocon Biopharmaceuticals Private Limited
BBPL was incorporated on June 17,
2002 and currently has paid-up share capital is Rs. 176.000
millions. In April 2010, Biocon SA acquired the 49% equity stake held by CIMAB
SA in BBPL. In March 2011, Biocon purchased the 49% equity stake in BBPL from
Biocon SA. Consequently, as at March 31, 2011 all the equity shares of BBPL are
held by Biocon.
For the year, BBPL earned revenues
of Rs.
491611 as against Rs. 381.302
millions in the previous year. BBPL has commenced full fledged operations and
for the year posted a net profit of Rs. 192.047 millions as against Rs. 26.062 millions in the previous year.
As at March 31, 2011, BBPL had
accumulated losses of Rs. 159.238 millions.
Biocon Research Limited
Biocon Research Limited (‘BRL’) was
incorporated in 2008, as a wholly owned subsidiary of Biocon Limited and is
engaged in carrying out research and development of new drugs, drug delivery
systems and contract research.
Total revenue of BRL increased from Rs. 392.944 millions to Rs. 649.591
millions in fiscal 2011.
BRL spends in research and
developments expenses increased from Rs. 416.649
millions to Rs. 940.991 millions in fiscal 2011.
NeoBiocon
NeoBiocon FZ LLC. is a research and marketing
pharmaceutical Company based in
Financials of NeoBiocon were
consolidated based on the Accounting Standard 27 – Financial Reporting of
Interests in Joint Venture issued by ICAI. Accordingly, only 50% of the
operations incorporated for the consolidation purpose. NeoBiocon’s turnover has
increased from Rs. 23.927 millions to Rs. 59.608 millions representing a significant growth
in business and net profit has increased from Rs. 2.713
millions to Rs. 21.243 millions for fiscal 2011.
Iatric a Inc
Biocon has made a strategic
investment of Rs. 138.470 millions in a
Biocon SA
Biocon SA a wholly owned subsidiary
was incorporated in year 2009 in
AxiCorp GmbH
During the year 2009, Biocon SA
acquired 71% stake in AxiCorp GmbH,
Axicorp operations are consolidated
with the financial results of the group with a 3 month lag. The Company
registered revenue of Rs. 9800.683 millions and PAT of Rs. 353.225 millions for year ended December 31, 2010
as against revenue of Rs. 9117.360 and of Rs. 299.322 millions for year ended December 31, 2009.
Axicorp has contributed 35 % to the
group revenues and 8% to the group net profit for the year ended March 31,
2011.
Consequent to an offer made by the
minority shareholders of AxiCorp, Biocon would divest its stake in its German
subsidiary, AxiCorp GmbH, to the existing group of promoter shareholders.
Biocon had entered into a global alliance
with Pfizer in October 2010. This divestment is in line with the objectives of
the global alliance wherein the synergies derived from global development and
investments can be leveraged for the German market as well.
Background
Biocon Limited ('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 (‘BRL’), 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 entered into an agreement
with CIMAB SA (‘CIMAB’) to set up a Joint Venture Company Biocon Biopharmaceuticals
Private Limited (‘BBPL’) to manufacture and market products and carry out
research activities. BBPL was incorporated on June 17, 2002 with Biocon holding
51 per cent of share capital. In April 2010, Biocon SA acquired the 49% equity
stake held by CIMAB SA in BBPL. In March 2011, Biocon purchased the 49% equity
stake in BBPL from Biocon SA. Consequently, as at March 31, 2011 all the equity
shares of BBPL
are held by Biocon.
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 had
received an approval as the developer as Biocon SEZ at the
Web Details
Business
Description :
Subject(Biocon) is a global biopharmaceutical company with
products and research services ranging from pre-clinical to clinical development
through to commercialization. Within biopharmaceuticals, the Company
manufactures generic active pharmaceutical ingredients (APIs), such as Statins
and Immunosuppressants that are sold in the developed markets of the
Biocon focuses on the research, development, manufacture and
commercialization of biopharmaceutical products including active pharmaceutical
ingredients and biologicals. The company operates in a single business segment
of Bio-pharmaceuticals. The company divided its Bio-pharmaceuticals segment
into two divisions, namely, active pharmaceutical ingredients (Pharma) division
and contract research services division. Pharma division of the company
manufactures and markets APIs, biologicals, branded formulations and dosage forms.
APIs include anti diabetic agents, anti-inflammatory agents, anti-oxidants,
cardiovascular agents, anti-obesity agents, digestive-aid enzymes, hemostatic
agents, hepatoprotective agents, immunosuppressants, gastro-intestinal agents
and neutraceuticals. The company offers human insulin, insulin glargine,
insulin lispro, insulin aspart, erythropoietin, filgrastim, streptokinase and
monoclonal antibodies. Its oral insulin products IN-105 and T1h are in
development stage. Branded formulations are developed for four therapeutic
areas, namely, Oncology, Nephrology, Cardiology and Diabetology. For the fiscal
year ended 2011, the company reported revenue of INR2,453m for the Pharma
division, reflecting an increase of 17.5% over revenue in 2010. The division
accounted for 87.67% of the company’s total revenue in 2011.The company through
its subsidiary companies, Syngene and Clinigene provides conventional and
clinical research services, and contract manufacturing services to
international pharmaceutical and biotechnology. It offers contract
manufacturing services in various areas such as mammalian and microbial cell
culture fermentation; synthetic chemistry; formulation development; and vials,
cartridges, lyophilized, pre filled syringes and fill finish services. For the
fiscal year ended 2011, the company reported revenue of INR3,448m for the
Contract research division, reflecting an increase of 13.4% over revenue in
2010. The division accounted for 12.33% of the company’s total revenue in 2011.
Biocon focuses on research and development (R and D) activities to develop
innovative products in the market. It has also established Biocon Research
Limited as a wholly owned subsidiary to undertake research in novel and
innovative drug initiatives. The company spent INR82.25m on its R and D
activities which accounted for 0.29% of the total revenue of the company for
fiscal year ended 2011.The company offers its products and services across the
world through subsidiaries, joint ventures affiliates and marketing
partnerships. The company has five subsidiaries, namely, Syngene International
Limited, Clinigene International Limited, Biocon Biopharmaceuticals Private
Limited, Biocon SA and Biocon Research Limited. Its joint ventures include
NeoBiocon FZ LLC, Iatrica Inc, and Axicorp GmbH. Geographically, the company
classifies its revenue in two areas, namely,
Subject(Biocon) is a fully integrated healthcare company
engaged in the manufacturing of biopharmaceutical products through using
fermentation-based technology. The company produces wide range of active
pharmaceutical ingredients (APIs), branded formulations and biologicals. Its
core therapeutic areas include anti-diabetic, cardiovascular,
anti-inflammatory, anti-obesity, hemostatic, hepatoprotective,
gastro-intestinal, neutraceuticals, digestive-aid enzymes, immunosuppressants
and anti-oxidants. In addition, the company provides contract manufacturing and
research services in various fields such as mammalian and microbial cell
culture fermentation; formulation development; synthetic chemistry; and vials
to biotechnology and pharmaceutical companies. Biocon operates across the world
through its subsidiaries and joint ventures. The company is headquartered in
Produces biopharmaceutical health care products using proprietary fermentation technologies to develop biomolecules
Biocon Limited (
Bio-Technology Research and Development
Board of Directors :
Dr. Kiran
Mazumdar-Shaw
Dr. Kiran Mazumdar-Shaw is Executive Non-Independent
Chairman of the Board, Managing Director of Biocon Limited, is a first
generation entrepreneur with more than 30 years experience in the field of
biotechnology. After graduating in B.Sc. (Zoology Hons.) from
Mr. John M. M. Shaw
Mr. John M. M. Shaw is Executive Non-Independent Vice
Chairman of the Board of Biocon Limited He is also a controlling shareholder
and director of Glentec International. He completed his M.A. (Economic Hons.)
in History and Political Economy from
Dr. Neville C. Bain
Dr. Neville C. Bain is Non-Executive Independent Director of
Biocon Limited He has experience in the field of finance, strategy and general
management. He graduated from
Dr. Professor Charles
L. Cooney
Dr. Professor Charles L. Cooney Ph.D., is Non-Executive
Independent Director of Biocon Limited He is the Professor of Chemical and
Biochemical Engineering, Faculty Director of the
Dr. Bala S. Manian
Dr. Bala S. Manian is Non-Executive Independent Director
with Biocon Limited He has been a part of the
Professor Ravi
Mazumdar
Professor Ravi Mazumdar Ph.D., is Non-Executive Non-Independent
Director of Biocon Limited He completed his Ph.D from the
Mr. Suresh Talwar
Mr. Suresh Talwar is Non-Executive Independent Director of
Biocon Limited He is a partner in Talwar Thakore and Associates a law fi rm of
repute. He completed his B.Com from the
PRESS RELEASE:
Indian biotech Biocon
posts 15.78% ddrop in cons net profit
26 January 2012
MUMBAI, Jan 26
* The total income of the group increased to Rs 5321.800 millions for the quarter ended December 31, 2011, from Rs 5184.400 millions a year ago, the company added.
* Commenting on the results, chairman and managing director Kiran Mazumdar-Shaw said: "Our performance in the first three quarters of FY12 has been good on the manufacturing and services fronts where profits were up nearly 29 per cent (excluding licensing income)."
Announces Q3 Results,
Limited Review report, Results Press Release and Fact Sheet for quarter ended
on Dec 31, 2011
25 January 2012
PRESS RELEASE:
Biocon’s
Nine-Month Revenues Driven by Growth in Branded Formulations, Emerging Markets
and Research Services
Revenues at Rs 15110 Millions; EBITDA at Rs 4250 Millions; PAT at Rs 2410
Millions
Commenting
on the results, Chairman and Managing Director Kiran Mazumdar-Shaw stated, “Our
performance in the first 3 quarters of FY12 has been good on the manufacturing
and services fronts where profits were up nearly 29% (excluding licensing
income). Licensing income, however, was sharply down from the exceptional
levels recorded last fiscal which resulted in flat earnings overall. As I have
frequently stated, licensing income is a timing issue and subject to periodic
variability. We have seen exceptional growth in our Research Services business,
an outcome of the strategic investments we have made in enhancing our
integrated service offerings. Moving up the value chain is integral to our
growth strategy which is reflected in the strong growth delivered by our
Branded Formulations vertical. Our focus on Emerging Markets is also enabling
us to realize a greater potential for our APIs and Insulins portfolios. Our R
and D pipeline is advancing satisfactorily with 2 late-stage candidates and
several early stage programs with enormous value creation potential through
licensing. We have shaped our broad-based business into key growth verticals,
which we believe will enable us to deliver sustainable, long-term value to our
shareholders.”
Highlights:
-- 9 months FY12 Financials reflect a robust performance by :
- Branded Formulations vertical which grew by 40% YoY.
- Emerging Markets which now contribute ~50% of Biocon’s revenues.
- Research services: 28% YoY growth in revenues, reflecting the growing
traction in our integrated offering for accelerating innovation for our global
customers.
-- Announced Positive Efficacy Data on Novel Monoclonal Antibody, Itolizumab in
Pivotal Phase 3 Psoriasis Study in
-- Successful launch of INSUPen®, an innovative delivery device for Insulin and
analogs enabling us to comprehensively expand the market through vials and
cartridges.
-- EBITDA and PAT margins at 28% and 16% respectively.
Biocon Group (consolidated;
excluding Axicorp)
Business Performance and Outlook (Vertical-wise)
Small Molecules and Biosimilars
A comprehensive portfolio of over 100 products spread across 70 nations has
helped the Biopharma business (excluding licensing income) post 11% YoY
increase in revenues in the first nine months of this fiscal. The growth in the
third quarter was driven by robust performances in Immunosuppressants and the
branded formulations segments.
Immunosuppressants have grown over 40% in Q3FY12 vs. Q3FY11 on the back of
strong Tacrolimus and MMF sales.
Statins have remained buoyant with improved margin realization.
Biocon’s Fidaxomicin commercialization partner, Optimer, has received marketing
approval for DIFICLIR™ tablets in the European Union in December 2011. In its
press release, Optimer has indicated plans to launch in EU by the fourth
quarter of FY12 with their marketing partner Astellas Pharma. Biocon is the
sole supplier of the drug substance for the global markets. Fidaxomicin is used
for the treatment of adults with CDI (Clostridium difficile Infections) and
CDAD (Clostridium difficile-associated diarrhea).
Dr. Arun Chandavarkar, Chief Operating Officer, Biocon Limited, said: “We
believe that our strategy of investing in technology platforms to create a
differentiated API portfolio has begun to yield results as seen by the ramp up
in immunosuppressant sales. Whilst we continue to expand our portfolio of APIs,
we will explore select opportunities to add value through developing
formulations to support our domestic branded formulations business as well as
exports.”
Branded Formulations
The Indian pharmaceutical market is expected to grow at a CAGR of 15% over the
next 10 years and quadruple to a size of $55 billion by 2020 from a 2010 market
size of $12.6 billion (IMS). The chronic therapy segment, that represents only
25% of the market, is outpacing the acute segment growth by 5 percentage
points. Biocon is present in the chronic segment with over 70 brands spread
across six verticals namely, Diabetology, Oncotherapeutics, Nephrology,
Cardiology, Immunotherapy and Comprehensive Care. Outpacing the market, this
vertical has posted a combined YoY growth of 40% for the 9MFY12.
- Diabetology – Biocon ranks #3 in the 4O IU insulin space, with a
growth rate of 43% that outpaces the market growth of 17% (ORG IMS Nov 2011
MAT). This growth has come on the back of our presence in the vials segment.
INSUPen®, our foray into insulin delivery devices in November’11, will enable
us to compete effectively in the cartridges segment thereby revving up growth.
INSUPen® has garnered strong support from doctors and patients alike. It has
also received accolades for its high quality and ease of use features, unique
packaging of insulin Refills and a comprehensive IT- based patient-care model
that also offers on-call and on-field support through 120 diabetes care
advisors.
The existing product portfolio’s growth as of ORG IMS MAT November 2011 was led
by Basalog®, the largest brand in the Glargine vials market.
Insugen® 100 IU, a FY 10-11 launch, has made steady in-roads into the 100 IU
insulin market and has garnered 8% of market share in the first year of its
launch.
- Comprehensive Care – In the third quarter of FY12, the comprehensive
care business unit delivered a strong performance driven by Albubet®, Penmer®
and Biopiper®. The current portfolio was strengthened with the launch of
Suprava®, Cegava® and Albubet Safe®. Within a year of the division’s launch, three
of its brands now feature among the top 10 brands in their respective
categories.
- Nephrology - The third quarter of FY12 saw the Nephrology business
unit deliver a strong growth driven by commendable performances in both the
renal transplant and dialysis portfolios. This quarter was marked by the launch
of Tacrograf® 0.25mg, the lowest strength of Tacrolimus to be launched globally
for the management of post-transplant recipients on Tacrolimus.
- Oncotherapeutics – Abraxane® completed three years of launch in the
last quarter, and is the fastest growing brand in the highly competitive taxane
market. In its fifth year since launch, BIOMAb EGFR® continues to be developed
via a robust clinical development program in multiple difficult-to-treat-tumors
such as glioblastoma multiforme, esophageal cancer, cervical and lung cancer.
BIOMAb EGFR® has gained the trust of over 250 Indian oncologists who have
extended the benefit of this molecule to over 3500 Indian patients. BIOMAb
EGFR® features in the 2011 Top 20 most successful New Drug Launches in
- Immunotherapy – The division has grown robustly over the last quarter
driven by the three flagship brands: TBIS® (Tacrolimus) PICON® (Pimecrolimus)
and PSORID® (Cyclosporin). According to ORG IMS Nov 2011 MAT, TBIS® has now
moved from 4th to the 3rd place value-wise over the last quarter. PICON is now
ranked 2nd in volume terms as per ORG IMS November MAT 2011. The business unit
also launched Calpsor® (Calcipotriol) and Calpsor C® (Calcipotriol + steroid)
in the last quarter. Both these products have been well received by
dermatologists.
- Cardiology – The Injectible portfolio has demonstrated strong growth
of 55%. STATIX® (Atorvastatin) is now a visible brand in the market.
Research Services
The research services business has built on the momentum of the first half and
delivered a robust 28% growth in top line for 9MFY12 vs. 9MFY11.
Syngene – This quarter saw Syngene tying up with Cellectis Bioresearch, a
specialist in genome customization and a subsidiary of Cellectis for the
development of novel, genetically customized cell lines by employing Syngene’s
biology platform.
Clinigene – In December 2011, Clinigene partnered with Pacific
Biomarkers Inc. (PBI), a premier biomarker and specialty efficacy testing
services provider to the American drug development industry, for addressing
specialty biomarker and high-end clinical lab needs of the global pharma and
biotech industry.
Commenting on this performance Peter
Bains, Director, Syngene International, said, ‘’This has been a very
encouraging quarter for Syngene. We are retaining and growing our customer base
and we are seeing clear traction against our strategy to broaden our range of
discovery and development capabilities to provide a more integrated service
capability to support our customers changing RandD models and goals. Growth has
been anchored in our small molecule discovery and development services which
has been supported by encouraging acceleration in our Biologics, Discovery
Biology and Custom manufacturing services”.
Novel Molecules
Biocon continues to advance its novel portfolio, including the Anti-CD20 and
fusion MAb programs.
Itolizumab: The phase III study for Chronic Plaque Psoriasis (TREAT-PLAQ)
was completed in December 2011. Results from the interim, 28-week data
analysis have shown promising results, indicating that Itolizumab
has successfully met the primary endpoint of significant improvement in
PASI-75 (Psoriasis Area and Severity Index) score after 12 weeks of treatment
in patients with moderate to severe psoriasis compared to placebo. The results
also indicate that multiple secondary endpoints after 12 and 28 weeks of
treatment have also been met. In this 28-week interim analysis, the
treatment regimens were statistically significantly better than placebo. The
molecule also exhibited an excellent safety and tolerability profile with
very low rates of infection (~10%) in active treatment arms suggesting a favorable
risk benefit profile compared to currently available biologic treatments.
IN-105: We are continuing to engage with global pharmaceutical companies
for partnering the novel IN-105 oral insulin program.
Peptide Hybrid: A US IND has been filed by our partner, Amylin, for AC165198.
About Biocon
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 pm IST on January 25,
2012 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 number for this call is 1800 102 1300 (India
Toll Free number is 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 January 25, 2012 – February 1, 2012 on the same dial-in
numbers provided above. The transcript of the conference call will be posted on
the company 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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.67 |
|
|
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.63.56 |
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.