Source : INDIA TODAY NEWS
Shares of Biocon surged over 4% in early trade on Monday, following positive developments at its subsidiary Biocon Biologics’ Johor Bahru facility in Malaysia.
The United States Food and Drug Administration (USFDA) classified the facility as “Voluntary Action Indicated” (VAI), boosting investor sentiment.
Biocon’s share price climbed to an intraday high of Rs 377.50 per share in intraday trade on the Bombay Stock Exchange (BSE). As of 10:23 am, Biocon’s stock was trading at Rs 376.60 per share, up 4.34% on the BSE.
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In a statement, the company confirmed that the USFDA had conducted a comprehensive cGMP inspection of Biocon Biologics’ insulins facilities between September 15 and 27, 2024. The inspection included several biologics manufacturing units, including a Drug Substance unit, a Drug Product unit, a Medical Device Assembly unit, and multiple quality control laboratories and warehouses.
The VAI classification indicates that the issues identified do not warrant further regulatory action, providing relief to investors.
Despite this positive regulatory update, Biocon’s financial performance for the second quarter of FY25 revealed challenges.
The company reported a sharp 84.3% year-on-year decline in net profit, amounting to Rs 27.1 crore, compared to Rs 172.7 crore in the same quarter of the previous year. Profit before tax also fell 54.08% to Rs 98.4 crore, down from Rs 214.3 crore in Q2FY24.
Total revenue for the quarter marginally increased to Rs 3,623 crore from Rs 3,620.2 crore in Q2FY24. Earnings before interest and taxes (EBIT) stood at Rs 718 crore, reflecting a 20% margin. Revenue from the biosimilars segment grew 10.8%, reaching Rs 2,182 crore, up from Rs 1,969 crore in the previous year.
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SOURCE :- TIMES OF INDIA
