Wednesday, July 20 2005 15:50 Hrs (IST) - World Time -

New Delhi: Biocon Limited today (July 20, 2005) reported 20 per cent decline in net profit for the quarter-ended June2005 as compared to the corresponding period last year.

The net profit stood at Rs 39 crore while the consolidated sales were at Rs 174 crore and matched sales revenues of Q1 FY-2005 as well as the previous quarter, the company said in a statement.

The decline in profit after tax is mainly attributable to higher tax charge in the current quarter due to a significant portion of export sales being routed through domestic channels and reduced treasury income of Rs 2 crores commensurate with the deployment of IPO funds in the expansion program, it said.

Commenting on the results, Biocon Chairman and Managing Director Kiran Mazumdar-Shaw said the pricing pressure in the European markets have affected the company's percentage margins this quarter.

"The outlook for the year ahead remains positive. The new growth drivers viz Insulin, immune suppressants and branded formulations are building the bio-pharmaceuticals business in a more robust manner and reducing the dependence on Statins," she said.

"New research contracts both at Syngene and Clinigene will deliver additional growth. The new capacities that will come on stream in the latter half of this fiscal will also contribute to overall growth," Shaw said.

The company said its contract research services from Syngene and Clinigene registered a 35 percent growth over Q1 FY-2005 and matched the previous quarter, although it did not disclose any figures.

Syngene has signed up new contracts this quarter, which will generate additional revenues in the forthcoming quarters, it said.

Biocon said the recently announced strategic partnership with SCIREX, a US-based CRO, is also expected to generate additional business for Clinigene this fiscal.

Shaw said the company made considerable progress in discovery-led research programs in Diabetes and Oncology.

"These are expected to develop into large global opportunities in the next 2-3 years. It is therefore important in this context to evaluate Biocon's business prospects with a longer term perspective rather than a quarterly review," she said.

Biocon's new facilities are set to address US Patent expirations of Prava and Simvastatin in mid-2006 which will open up significant opportunities for the company starting Q4 FY 2006, it said.

The company also said its Pichia based Recombinant Human Insulin is poised to address large global opportunities.

Insugen is under registration in over 20 countries in Europe, Middle East, Latin America and Asia, it said, adding the company expected to obtain a data on post marketing surveillance by the end of this fiscal.

Biocon said its discovery led research programs are making good progress.

The company said it has started pre clinical studies for its oral insulin molecule IN 105 and is on track to file an Investigational New Drug Application (INDA) with USFDA by the year end.

Biomab., an anti EGFR antibody is in the final stages of Phase II clinical trials and expects to file for fast track approval in India by the year end, it said.