Biocon CRO revenues jump as B-MS deal ramps up
Syngene, a Biocon subsidiary, and Bristol-Myers Squibb (B-MS) have worked together since 1998 but the relationship has intensified in recent years. Revenue from B-MS supplements growth in demand for the discovery chemistry platform offered by Syngene.
“I am particularly pleased that much growth is coming from programmes where our clients are utilising several of Syngene’s discovery and development platforms together”, said Peter Bains, director of Syngene International.
Full year revenue at Syngene rose by 21 per cent, in part because of growth of the discovery and development collaboration with B-MS. Syngene is now providing 400 scientists to BMS in a dedicated facility.
Total fourth quarter contract research revenues increased 20 per cent year-on-year to Rs 89 crore ($20.0m). Full year sales were also up. In addition to Syngene sales, revenues from Clinigene, a clinical service provider, are included in this figure.
“Clinigene is continuing to evolve and adapt its capability platforms and service offerings against a background of continued macro market pressure as global research and development spends are being reduced”, said Biocon.
Adaptation is pushing Clinigene into more specialised niche areas, such as patient based early trials, bioavailability/bioequivalence (BA/BE) studies, and bioanalytical services. Clinigene views these niches as “new and differential revenue opportunities” with relatively high barriers to entry.
German exit
Biocon is to sell its 78 per cent stake in AxiCorp, a German drug distributor, to minority shareholders for about €40m. The stake was acquired in 2008 to help Biocon distribute biosimilars in Europe.
However, price cuts caused by German healthcare reforms have affected on AxiCorp. Revenues dipped six per cent in the fourth quarter, although there was growth in earlier quarters and full year figures.
Biocon will now rely on its global alliance with Pfizer, inked in October 2010, for commercialisation of biosimilar insulin in Germany.
