The biopharma segment recorded revenues of 436 Crs in Q1FY15.
The biopharma business was impacted this quarter by various external factors including the ongoing geo-political conflicts in the MENA region, affecting the growth of this business. We believe this is a temporary phasing issue as the underlying demand remains robust. We hope that stability in the region will restore business momentum. We are working towards mitigating the impact of these regional instabilities on our business performance.
This quarter we filed our first ANDAs, targeting the US generics market. This effort is part of our communicated strategy to move up the pharma value chain to enter finished dosages with generic formulations. We continue working towards further optimization of our product portfolio in the small molecules vertical, with a clear focus on profitable growth.
We remain on track to initiate global phase III trials for our biosimilar glargine. Our upcoming insulin facility in Malaysia continues to progress well and we expect the plant to be commissioned, as per plan in the second half of this fiscal.
The branded formulations recorded revenues of 111 Crs in Q1 FY15. The vertical grew at 10% YoY, in line with the industry. This quarter, we have reorganized certain divisions within this vertical. The reorganization largely focuses around the cardiology and diabetes divisions to drive synergies around key anchor brands and optimization of product portfolios with a focus on profitability.
The initial set of trials for our oral insulin molecule, IN-105, are on track. We continue to engage with potential partners to out-licensing discussions for our novel anti-CD6 molecule, Itolizumab.
The research services segment grew by 12% YoY in Q1 FY15, recording revenues of 172 Crs. This quarter witnessed the extension of our research collaboration with Bristol Myers Squibb, for 5 years. This extension of our longest standing collaboration, validates our integrated drug discovery model and reiterates our commitment towards quality, world class research.
Commenting on this performance, Peter Bains, Director Syngene International, said, "We have made a steady start to the new fiscal, and will build upon this performance during the course of the year. We have been investing in capacity expansions, some of which will come into play in the latter half of FY15. The new capacities will help us expand our order book and build growth momentum. A key milestone this quarter was the extension of our partnership with Bristol Myers Squibb until the year 2020."
Mr. Siddharth Mittal, President - Finance has been appointed as Chief Financial Officer of Biocon Limited effective August 01, 2014. He joined Biocon in May 2013 and takes over from Mr. Murali Krishnan, who retires after more than 30 years of distinguished service with the organization.
Siddharth is a Chartered Accountant (India) and a CPA (US) and has more than 15 years of global and diversified experience. Prior to joining Biocon, he was Vice President-Finance and Corporate Controller with a leading US based multinational Information Technology Company based in Bangalore.
Commenting on the quarterly performance and highlights, Chairman and Managing Director, Kiran Mazumdar-Shaw stated, "Our revenue growth this quarter has been muted. Our business performance reflects the challenges that we are temporarily facing in some of our key markets especially in the Middle East. We are working towards diversifying our regional dependencies to diminish the impact of such externalities. However, we have sustained our operating margins and profits despite increase in costs. Our business profitability has remained intact indicating the benefits of portfolio optimization. Our development pipeline across biosimilars and novel candidates continues to progress well. We remain committed towards improving our performance in the coming quarters".
(c) 2014 GlobalData Provided by SyndiGate Media Inc. (Syndigate.info).