BIOCON Biotech Company Q3 Results

For Q3 ended 31st Dec 2008, its consolidated net sales were up 83% at Rs 436.19 crore. German firm AxiCorp GmbH, in which Biocon acquired a 71% stake last April, contributed Rs.280 crore to topline. Its OPM was at 22% versus 25% on a YoY.
It then posted a forex loss of Rs 45.80 crore. This means, in the first nine months of the year, Biocon has lost Rs106 crore on account of this MTM provisioning and cancellation of certain longer-term forward cover. It reported a net profit of Rs 28.20 crore in Q3FY09, while it had a net profit of Rs 291.82 crore in Q3FY08, a fall of massive 90%.
Biocon’s flagship product in the pipeline, oral insulin IN105, will soon enter phase III trial, for which the company has recruited 264 patients. The company hopes to launch the drug for type II diabetes next year.
With pressure on margins continuing despite increase in topline, the share price may take a further beating and may correct to two digits, given the fact that it is barely above Rs.100 right now. thanks