Board recommends 100% dividend and 1:1 bonus issue
Profit up 13% at Rs. 225 crore
Splits Cardio-Diabetes group
BANGALORE: Biocon is set to acquire a majority stake in a German pharma company, AxiCorp.
According to the Chairman and Managing Director of Biocon, Kiran Mazumdar Shaw, the deal is likely to be sealed by the end of this month.
Giving details of the acquisition at a press conference here on Tuesday, Ms. Shaw said that Biocon would acquire a 70 per cent controlling stake in AxiCorp for a consideration of €30 million (about Rs. 177.75 crore). “This will enable the marketing and distribution of a range of pharmaceuticals, including generics, biosimilars, biologicals and innovative pharmaceuticals, in Germany and Europe,” she said.
AxiCorp has a market share of 7 per cent in the range of products it manufactures in the European pharma market. Ms. Shaw said the “acquisition was good value for us”.
Outlining the financial results for 2007-08, Ms. Shaw said the company had posted Rs. 225 crore as profit (before exceptional items) compared to Rs. 200 crore in 2006-07, registering a growth of 13 per cent. The company’s revenues rose 10 per cent, from Rs. 990 crore to Rs. 1,090 crore. She said the “profit growth has been maintained despite the divestment of the enzymes business and currency appreciation”. The net profit zoomed from Rs. 200 crore to Rs. 464 crore.
Income from biopharmaceuticals amounted to Rs. 832 crore in 2007-08, growing by 12 per cent over the previous year. The company’s board has recommended 100 per cent dividend and issue of bonus share in a ratio of 1:1.
During the fiscal, Ms. Shaw said, Biocon had commenced Phase-II clinical trials for a new product for Type-II diabetes. The company has also split its Cardio-Diabetes group by launching a standalone Cardiology division. This division will focus on brand building for its niche product Statix and other cardiology-related products.