Wednesday, January 18 2006 13:48 Hrs (IST) - World Time -

Bangalore: Biotech major Biocon Limited today (Jan 18,2006)reported a net profit of Rs 44 crore for the third quarter ended December 2005, down from Rs 50 crore posted in the corresponding period last year.

The nine months-ended (FY06) net profit was Rs 126 crore as against Rs 155 crore last year, a statement from the Bangalore-headquartered company said.

Biocon's nine months performance (FY06) continued in line with expectation with revenues touching Rs 578 crore, it said.

Consolidated sales grew by seven per cent over the same period in the previous year. However operating profits (EBITDA) fell by seven per cent. The profit after tax margins were at 22 per cent, it added.

"The operating results continued to be challenged by difficult pricing environment in the Erupean Stetins market. However, the US market for generic Stetins offered a respite in 2006-07", the statement said.

The performance highlights of nine-months of the FY06, included research services and insulin and other pharmaceutical products performing strongly. Biocon's discovery led dibaetes and Oncology research programmes were making good progress, it added.

Commenting on the results, Kiran Mazumdar-Shaw, Chairman and Manging Director, Biocon Limited, said, "I am pleased that we continue to deliver healthy profits at a time when we are investing in our discovery-led research programmes".

"Operating (EBITDA) margins of 30 per cent demonstrates the quality and spread of our various business. We are excited over the progress being made on the research and development front as we believe that we are creating powerful innovation platforms for our future", Shaw said.

The company was now building domain knowledge in both oncology and diabetes which were the focal points of the company's discovery led research programmes. The research, combined with manufacturing expertise reinforced Biocon's integrated bio-pharmaceutical model, she added.