Biocon (BIOCON) Q4 06/07 earnings summary

Executive summary

• FY07 consolidated revenue rose 25% to Rs 9,895m; EBITDA increased 23% to Rs 2,873m and PAT after minority interest rose 15% to Rs 2,003m.

• Growth reflected stronger operations, licensing income and commissioning of Biocon Park, alongside expansion into branded therapeutics and research services.

Financial highlights

• Consolidated revenue was Rs 9,895m vs Rs 7,932m; expenditure was Rs 7,022m vs Rs 5,593m.

• Consolidated EBITDA was Rs 2,873m vs Rs 2,340m; PBT was Rs 2,110m vs Rs 2,025m; PAT after minority interest was Rs 2,003m vs Rs 1,740m.

• Consolidated basic EPS was Rs 20.72 vs Rs 18.20; standalone basic EPS was Rs 16.38 vs Rs 13.97.

• Standalone total income increased 24.5% to Rs 8,631m; net profit rose 18.6% to Rs 1,584m.

Outlook and guidance

• INSUGEN licensing agreements cover the US and certain Asian markets; EU registration and applications across Asia, Latin America and Africa progressed, with insulin capacity expansion expected to commission in FY08.

• IN-105 completed Phase I; Phase II in India was expected later in 2007, with European Phase I planned toward end-2008.

• T1h completed Phase I and a Phase II dose-ranging study was expected to start in 2007; BVX-10 Phase I was expected in Q1 2009 and BVX-20 Phase I in India in Q3 2008.

• Patent expiries for MMF and tacrolimus in 2008–2012, biosimilars and insulin supply partnerships were identified as growth opportunities.