Biocon reports 17% drop in net profit, Christiane Hamacher steps down as MD of Biocon Biologics

BENGALURU: Biocon reported a near 17% decline in net profit to Rs 169 crore during the quarter to December, while the company’s topline grew 7% to Rs 1879 crore.

During the October-December period last year, the biopharma company reported a net profit of Rs 203 crore on revenues of Rs. 1753 crore.

The company said its core operating margin stood at 31%.

“2020 has been one of the most challenging years for the world with an unprecedented pandemic impact on the global economy. We continue to face headwinds across operational, regulatory and commercial functions which have been deterrents to our planned market expansion. However, we expect normalization by next fiscal,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon.

She added that two recent investments amounting to $225 million would augur well for the company’s planned expansion.

“The two recent investments of $225 million in Biocon Biologics by Goldman Sachs and ADQ endorse the value creation of our biosimilars business. These investments augur well for our business and will enable us to invest in expanding our research and manufacturing capacities across segments. The recent launch of Tacrolimus capsules in the US, as well as approvals in Most of the World (MoW) markets for Insulin Aspart, Bevacizumab and Trastuzumab biosimilars will also pave the way for expanding our business in future,” said Mazumdar-Shaw.

The company’s Biosimilars business grew 11% to Rs. 769 crore during the period, while Generics business declined 3% to Rs. 561 crore.

Christiane Hamacher has stepped down as the managing director of Biocon Biologics, the biosimilar subsidiary of Biocon, and also ceased to be a member of the board of Biocon Biologics Limited, effective January 20, said the company.

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“This decision was taken due to professional differences with the Chairperson on strategic priorities and vision for the company. Her last working day as CEO would be February 28, 2021. Hamacher has played an important role in the growth of the business during the past couple of years with earnest business acumen. The company thanks her for her contributions and wishes her the best for her future endeavours,” said Biocon.

Arun Chandavarkar, member of the board of Biocon Biologics, has taken over as the managing director effective January 21 for a period of up to two years.



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