Biocon (BIOCON) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated revenue rose 17% to INR 28,137 million; EBITDA increased 24% and PAT rose 25% to INR 3,675 million, led by biopharmaceutical growth and branded formulations.

• Growth strategy centered on expanding branded medicines, advancing biosimilar and novel-drug pipelines, and using global research and commercialization partnerships.

• Standalone PAT increased 85% to INR 4,592 million, boosted by intra-group intangible transfers that are eliminated on consolidation.

Financial highlights

• Consolidated FY11 revenue was INR 28,136.6 million versus INR 24,048.4 million; PAT was INR 3,675.2 million versus INR 2,932.4 million.

• Consolidated profit before tax was INR 4,471.7 million; basic EPS was INR 18.79 versus INR 15.08.

• Standalone net sales grew 17% to INR 13,250.7 million; licensing and development fees increased 490% to INR 2,065.0 million.

• Domestic branded formulations grew 36%; consolidated biopharmaceutical sales gained from statins, immunosuppressants and insulin.

Outlook and guidance

• Domestic branded formulations targeted to exceed 25% of total revenue through product launches and stronger market presence.

• Insulin biosimilar commercialization expected to address emerging markets first, followed by the US and Europe; European recombinant insulin trials were underway.

• Malaysian insulin manufacturing facility planned with first-phase investment of RM 500 million (~US$161 million), with operations targeted for 2015.

• Insulin devices were expected to roll out in H2 2011; management expected them to support market-share gains.