The share of Biocon Ltd. skyrocketed by 8.53 per cent on the NSE (National Stock Exchange) after the US FDA categorised the 'Biocon Biologics’ Biocon Park Site in Bengaluru as 'Voluntary Action Initiated' (VAI).
The biocon's share went on to touch the day-high level of Rs 349.45 per share on the Indian Stock Exchanges after the stock hit the opening bell at Rs 329.00 per share on the NSE (National Stock Exchange).
The share was trading around Rs 348.70 per share on the Indian bourses, with a surge of 8.53 per cent amounting to a Rs 27.40 per share on the NSE (National Stock Exchanges).
What is VAI classification?
The US FDA (Food and Drug Administration) inspects a pharmaceutical manufacturing facility before classifying it as a VAI. Even though the FDA discovered a few issues during the inspection, they are not significant enough to call for official enforcement action.
The company is expected to voluntarily address these minor issues so that product approvals or other regulatory processes can proceed without any obstacles.
Biocon's revenue and Q2 FY25
Biocon's revenue hit new heights, and the company reported a 3.7 per cent topline growth. However, the company reported a net loss of Rs 16 crore during the July-September quarter, which is very different from the Rs 125.6 crore profit that was recorded in the same quarter of the previous fiscal year. Biocon's revenue represented a quarterly growth of 4.59 per cent compared to the prior quarter.
Q2 FY25 operating expenses
Although the company's operating income decreased 11.21 per cent year over year, it increased 18.02 per cent from the previous quarter. Q2 earnings per share (EPS) plunged into negative territory, which stood at Rs -0.27 per share, a sharp decline of 122.06 per cent from the previous year.
However, selling, general, and administrative expenses increased by 4.53 per cent on a quarterly basis and by a noteworthy 26.86 per cent on an annual basis, indicating that the company is struggling with growing costs.
