HYDERABAD (Reuters) – Indian biopharma company Biocon reported third-quarter revenue on Thursday that fell about 3% when compared with the year-earlier period, which included revenue from its domestic branded formulation business that has since been divested.
The Bengaluru-based company, which counts the U.S. as its key market, reported revenue from operations of 38.2 billion rupees ($441.39 million) for the quarter, compared with 39.54 billion rupees a year earlier.
Revenue from Biocon’s biosimilars business, its largest, fell 7.9% to 22.9 billion rupees. Biosimilars are copies of high-priced drugs used to treat illnesses such as rheumatoid arthritis and cancer.
After adjustments, the company’s revenue from operations rose 10% on a like-for-like basis, according to Biocon.
Its generics division, however, has been under pressure due to pricing challenges and a planned facility shutdown, the company said in November.
Revenue from the generics unit fell 2.4%, while revenue from its research services business rose 11%.
Biocon, which expects a recovery in its generics business in the next few quarters, is banking on its portfolio of obesity drugs, which have seen skyrocketing demand in global markets.
The company reported a consolidated net profit of 251 million rupees in the third quarter, compared with 6.6 billion rupees a year earlier when it had recorded gains related to dilution of Biocon’s stake in its associate company Bicara and the divestment of its domestic formulation business.
The company’s quarterly results were also impacted due to tax expenses, Biocon said.
The company increased its equity shareholding in its biologics unit by 1.5% for 5.6 billion rupees and expects the purchase to be completed by next month.
($1 = 86.5450 Indian rupees)
(Reporting by Rishika Sadam in Hyderabad; Editing by Shounak Dasgupta)
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