Syngene International Expands Global Reach with U.S. Biologics Facility Acquisition

Syngene International Expands Global Footprint with U.S. Biologics Facility Acquisition

Syngene International Ltd., India's leading contract research, development, and manufacturing organization (CRDMO), has announced the acquisition of its first biologics manufacturing facility in the United States. The facility, located in Baltimore, Maryland, was purchased from Emergent Manufacturing Operations Baltimore, a subsidiary of Emergent BioSolutions, for $36.5 million.

Strategic Expansion into U.S. Biotech Hub

This acquisition marks a significant milestone in Syngene's global expansion strategy. The Baltimore facility is strategically situated near key biotech hubs in the Northeast U.S., enhancing Syngene's ability to serve its clients in the region. The site is expected to be operational by the second half of 2025, contributing to Syngene's goal of reducing dependence on manufacturing facilities in China.

The acquisition will increase Syngene's single-use bioreactor capacity to 50,000 liters, up from 20,000 liters, bolstering its capabilities in large molecule discovery, development, and manufacturing services. Additionally, the facility's compliance with U.S. Food and Drug Administration (FDA) guidelines ensures that it meets the stringent regulatory standards required for biologics production.

Leadership Transition at Syngene

In a separate development, Syngene International announced a change in its leadership. Jonathan Hunt has stepped down from his role as Managing Director and CEO, as well as from the Board of Directors, to pursue other opportunities. Effective February 10, 2025, Peter Bains has been appointed as CEO Designate. Bains, who previously served as CEO of Syngene from June 2010 to March 2016, brings over three decades of experience in the biotech and pharmaceutical industry. His leadership is expected to steer Syngene through its next phase of growth and innovation.

Financial Performance and Outlook

In its latest financial results, Syngene reported a 1.64% increase in consolidated net profit to ₹111.5 crore for the third quarter ended December 2023. Revenue from operations during the quarter stood at ₹853.5 crore, up from ₹785.9 crore in the same period the previous year. The company anticipates full-year revenue growth at around double digits in constant currency, slightly revised from the earlier projection of mid-teens growth, due to a temporary slowdown in U.S. biotech funding.

Conclusion

Syngene International's acquisition of the U.S. biologics facility and leadership transition signify the company's commitment to expanding its global presence and enhancing its service offerings in the biopharmaceutical sector. With a strengthened leadership team and increased manufacturing capabilities, Syngene is poised to continue its growth trajectory in the competitive global market.