BIOCON LTD. Q3 FY25 Results

The Biocon Group reported Q3FY25 Operating Revenue of Rs 3,821 crore, with performance driven by a sustained double-digit growth of 14% on a like-for-like basis in Biosimilars and a return to growth in Research services, which grew by 11%. The growth trajectory is clearly visible with sequential growth across all the three business segments this quarter. EBITDA at Rs 787 crore, reported a growth of 16% while Profit before Tax and Exceptional Items at Rs 138 crore, improved significantly from a marginal loss last year, on a like-for-like basis. "Syngene’s return to growth, combined with global approvals for bUstekinumab and European approval for gLiraglutide, will pave the way for launches and drive growth in Q4 and beyond. These developments will strategically position the Biocon Group for enhanced long-term growth.”

Biocon Group’s Q3FY25 financial performance was led by 10% like-for-like growth in Operating Revenue. The strengthening of operational building blocks has improved growth visibility across all three businesses, reinforcing our confidence in continued growth for the rest of this fiscal year and beyond. "The Biosimilars business sustained its growth momentum in this quarter and now has clear line of sight for multiple new product launches beginning in Q4FY25. Syngene’s growth rebound this quarter sets a positive trajectory for the remainder of the year. Recovery in the Generics business in the fourth quarter will be driven by the launch of our first GLP-1 generic in the UK and EU, coupled with new product launches in the U.S.”

The 10% sequential revenue growth in the Generics business was primarily driven by API sales, supported by an improved performance from generic formulations. ‘We crossed important milestones in the quarter with the European Union (EU) DCP approval for Liraglutide and the successful regulatory outcomes of the U.S. FDA inspections of both our Bengaluru API sites. “We expect to see an improved performance in the quarters ahead, on the back of the launch of our GLP-1 product Liraglutide in the UK and EU, as well as new product launches in the U.S.”

This quarter marked the completion of one year since the successful integration of the acquired business. The business delivered a robust 14% year-on-year growth on a like-for-like basis, underpinned by an increase in market shares in North America demonstrating strong customer confidence and geographic expansion in Europe, and 14 launches in Emerging Markets. During the quarter we received several regulatory approvals for our bUstekinumab, YESINTEK, including from the U.S. FDA, Japan and a positive recommendation for approval by the CHMP to EMA. The U.S. FDA classified our manufacturing facilities in India, and Malaysia, as VAI, thereby paving the way for new product approvals in the United States. Several key milestones that we achieved this quarter will consolidate the business and drive growth in the coming quarters.

Syngene’s third quarter performance saw a return to growth across all business divisions that sets us up well for the next quarter. Our revenue from operations was up by 11% and reported profit after tax (before exceptional items) grew by 14%. "Our Discovery Services division saw the initial ‘China+1’ pilot projects, with large and midsize pharma companies, starting to convert into longer term contracts. This underscores Syngene’s ability to build strong partnerships through a combination of great science and high operating and quality standards. The quarter also saw positive momentum in our CDMO division led by biologics. Growth in the quarter suggests that market dynamics, particularly in U.S. biotech, are stabilising, albeit later than expected.”