Biocon said it had raised USD 420 million of mezzanine financing to part finance the USD 650 million equity infusion into Biocon Biologics
Biotechnology major Biocon on Tuesday reported a consolidated net loss of Rs 21 crore for the third quarter ended December 31, 2022.
The company had reported a net profit of Rs 220 crore in the October-December period of previous fiscal. Total income increased to Rs 3,020 crore in the period under review as against Rs 2,222 crore in the year-ago period, Biocon Ltd said in a regulatory filing.
In a statement issued later, the company said its net profit (before exceptional items) stood at Rs 140 crore for the third quarter as against Rs 187 crore in the year-ago period. It listed exceptional items to the tune of Rs 271 crore, primarily pertaining to deal related expenses of Viatris transaction, in the third quarter.
The company also stated that the third quarter numbers include a forex loss of Rs 44 crore versus a gain of Rs 19 crore in the year-ago quarter. The profit was also impacted due to dilution of Biocon's stake in Biocon Biologics and Syngene, it said. Biocon said it had raised USD 420 million of mezzanine financing to part finance the USD 650 million equity infusion into Biocon Biologics.
The company said it has entered into a definitive agreement with Kotak Strategic Situations Fund for a structured funding up to Rs 1,200 crore. This funding together with a recently concluded stake sale in Syngene will help reduce net debt, it said. "Q3 FY23 has been an eventful quarter which saw the completion of the global acquisition of our partnered Biosimilars business from Viatris on Nov 29, 2022. We are now implementing country-wise integration of the business to maximize the value of the combined entity to propel growth,"
Biocon Executive Chairperson Kiran Mazumdar-Shaw stated.This quarter captures a fraction of the acquired business, but from Q4 FY23 onwards, the financials will recognise the entire biosimilars business. "Biocon's consolidated revenues for the quarter grew 36 per cent to Rs 3,020 crore on the back of robust performance across all its three businesses," Mazumdar-Shaw said.
The biggest contribution came from the biosimilars business, which reported a 54 per cent increase in revenues to Rs 1,507 crore.
Research Services revenues at Rs 786 crore and Generics business revenues at Rs 718 crore, grew 23 and 18 per cent respectively, she noted. "We expect to end FY23 on a strong note with healthy growth across businesses. Biocon Biologics is tracking towards exiting the year at a USD 1 billion trajectory, excluding vaccines," Mazumdar-Shaw said. Shares of the company on Tuesday ended 1.18 per cent down at Rs 234.90 apiece on the BSE.