India's richest woman enjoys healthy returns
Biocon Ltd, a drugmaker controlled by India's richest woman, said yesterday its nine-month profit rose 15 percent on increased demand for products and contract research services.
Net profit rose to 1.6 billion rupees ($40.7 million) in the nine months ended December, from 1.39 billion rupees a year earlier, said the Bangalore-based firm, which plans to sell shares in its contract research arm.
The profit, reported in a statement that did not provide a quarterly breakup, excluded a one-time gain from the sale of Biocon's enzymes business last year to Novozymes of Denmark, which agreed to pay $115 million.
"We have sustained both revenue and profit growth post the divestment of our enzymes business," said Biocon founder Kiran Mazumdar-Shaw, who has been ranked India's richest woman by Forbes magazine.
"Despite the risk of possible recession in the US and a depreciating dollar, we remain optimistic about delivering continued growth," she added.
Mazumdar-Shaw said Biocon plans to sell shares in its unit Syngene, which does clinical research for other drugmakers, in the fiscal year starting April.
The company is also buying a stake in a US-based biotech startup, IATRICa.
Revenue rose to 8.11 billion rupees in the first three quarters of the fiscal year, from 7.10 billion rupees a year earlier, said Biocon. It did not provide a quarterly analysis of profit and revenue.
Indian biotechnology firms like Biocon use micro-organisms such as bacteria or biological substances like enzymes to make drugs and synthetic hormones.
Demand for products, including drugs used to treat diabetes, cancer and kidney ailments, and research services helped Biocon combat a steep appreciation in the value of the rupee, which dented export revenue.
The rupee appreciated more than 12 percent against the dollar last year.
Income from the sale of pharmaceutical products was the biggest contributor to nine-month revenue, rising to 6.12 billion rupees from 5.41 billion rupees a year earlier.
Biocon was founded in 1978 by Mazumdar-Shaw, India's first woman brewmaster, with 10,000 rupees of capital as a maker of industrial enzymes, which are used to speed up chemical reactions.
AFP
(China Daily 01/18/2008 page17)
