Biocon upbeat about branded formulations
Bangalore based biotechnology major, Biocon is optimistic about the branded formulations business, which recorded a strong growth of 37 percent in the half of the current fiscal year.
Kiran Mazumdar Shaw, chairman and managing director said "We recently launched a reusable insulin delivery device which will further propel sales in the branded formulations vertical."
She expects this segment to grow at the rate of 35 to 40 per cent a year to reach Rs. 500 crore in the next two fiscal years. The business in the segment is expected to be about Rs. 250-300 crore by the end of this fiscal.
Meanwhile, the company reported a fall of 4 percent in its quarterly profit mainly due to increases expenses on higher energy costs and wages. It said that its consolidated net profit fell to 857 million rupees in the second quarter of the financial year compared to 892.2 million in the year ago period.
The drop in profits was largely expected in the markets since the Bangalore-based firm sold its stake in its German arm Axicorp. The German unit had contributed 73 million rupees to the profit in the second quarter of the last year.
The energy costs to the company rose 14 percent to 226.8 million rupees, while wages paid increased by 34 percent to 778.3 million rupees, according to the company. The consolidated quarterly sales increased by 21 percent to 5.08 billion rupees backed by licensing and developing fees worth 365 million rupees.