Biocon posted a flat set of numbers for Q2FY15. The company’s consolidated net profit came in flat (YoY) at Rs.102 crore as against expectations of at least 10% rise. Its net sales was also flat, rising by a meagre 2% at Rs.750 crore. Ditto for EBITDA, which came in lackluster at Rs.188 crore. The reason for these flat numbers was that its core business, biopharma showed a muted performance due to capacity constraints and geo-political challenges in Middle East, reduced offtake of specialty API, and capacity constraints, affecting the growth of this business. The outlook for the biopharma business remains challenging for the remaining part of this fiscal.

Its partner, Mylan initiated multicenter phase III trials for our insulin glargine in the United States. Two trials, both for 24 weeks, comprising a total of 1100 patients (500 type-1 diabetes mellitus patients & 600 type-2 diabetes mellitus patients) are expected to be completed by June 2016. The Malaysia insulin facility remains on track to be commissioned in H2 FY15. Research Services delivered a sequential revenue growth of 11% in Q2 FY15. Branded Formulations and Research Services businesses are expected to drive growth in the immediate future.