Biocon, a leading biopharmaceuticals major from Bangalore, has suffered setback during the second quarter ended September 2008 and its consolidated net profit after exceptional items declined sharply by 53.6 per cent to Rs 25.02 crore from Rs 53.95 crore in the corresponding period of last year.

The company provided Rs 25.45 crore for exceptional item Mark to Market (M&M) during the quarter under review as against nil in the last period. Its net sales increased by 57.5 per cent to Rs 439.30 crore from Rs 280.91 crore. The EPS worked out to Rs 2.61 as against Rs 5.58 in the last period. The consolidated results includes its wholly owned subsidiaries Syngene and Clinigene and its 51 per cent joint venture company, Biocon Biopharmaceuticals.

For the first half ended September 2008, Biocon's income, including AxiCorp figures, increased by 28.4 per cent to Rs 706.2 crore from Rs 549.8 crore in the similar period of last year. However, its net profit declined sharply by 62.5 per cent to Rs 40 crore from Rs 106.8 crore basically due to the provision of M&M provision of Rs 60 crore during the first half as against nil in the last period. The company recorded consolidated net sales and net profit of Rs 1054 crore and Rs 463.9 core respectively during the full year ended March 2008.

Commenting on the results, Kiran Mazumdar-Shaw, chairman and managing director, said, "Biocon's first half of 2008-09 performance has shown resilience despite being impacted by Rupee volatility which has seen us make a Mark to Market provision of Rs 60 crore. At a time when global businesses are challenged with an economic downturn, we believer that our strong financial base gives us a significant advantage. Q2 FY'09 has seen us deliver the highest ever revenues across all divisions. Our API business has registered a 21 per cent YoY growth bolstered by 36 per cent growth in our retail branded formulations. Syngene has had a particularly strong quarter delivering its best ever sales and operating profit."

"Clinigene continues to carve a niche for itself in the CRO segment where India is emerging as an important global destination for clinical development. We are making excellent progress on the research front with our Oral Insulin IN105 programme, set to enter phase-III clinical trials and our Anti-CD6 Monoclonal antibody nearing the completion phase for patient enrolment. We remain confident of delivering a good performance for the year," Mazumdar-Shaw added.

Biocon filed 11 new patents in Q2 bringing the total tally to 892 filed and 166 granted patents. Its licensing income in first half was moderate at Rs 3 crore. This is expected to increase significantly in current half of 2008-09.