Biocon Ltd Faces Setback with Q2 Loss but Forecasts Bright Future

Biocon Ltd reported a Rs 16 crore net loss for the second quarter of 2024, attributed to higher taxes and geographical profit splits. Despite this, the company's biosimilars business showed strong market performance, with a promising outlook for growth and new launches in the upcoming quarters.

Biocon Ltd experienced a financial setback, reporting a consolidated net loss of Rs 16 crore for the second quarter ending September 30, 2024. This loss was mainly due to higher tax obligations influenced by the geographical division of profits, a turnaround from the Rs 126 crore profit recorded the previous year.

The company's operations generated Rs 3,590 crore in revenue during the September quarter, slightly up from Rs 3,462 crore in the same period last year, according to their issued statement. Notably, the firm's biosimilars sector showed robust performance, particularly in the US Oncology and Insulin markets, bolstering future financial prospects.

Looking ahead, Biocon foresees a positive trajectory with anticipated momentum in its discovery services and biomanufacturing CMO business, despite ongoing challenges in its generics division due to pricing and demand pressures. The company remains optimistic about its growth potential, expecting key new formulation launches to drive a turnaround.

(With inputs from agencies.)