Rs 465 Crore Bet on the Future: Big Pharma’s Massive US Expansion in the Works!
Strategic investment to strengthen global presence and enhance biologics manufacturing capabilities.
Syngene International Limited has announced an additional investment of up to USD 56 million in its wholly owned subsidiary, Syngene USA Inc (SUSA). The investment will be made in one or more tranches and will help strengthen the company’s presence in the US market.
Purpose of Investment
The funds will be used to finance the acquisition of a biologics facility from Emergent Manufacturing Operations Baltimore, LLC. Additionally, the investment will support general corporate expenses and day-to-day operations.
Details of Syngene USA Inc
Syngene USA Inc, incorporated in August 2017 in Delaware, serves as Syngene’s strategic arm for expanding operations in the US. The company provides marketing services for its Contract Research, Development, and Manufacturing Organization (CRDMO) business. In FY 2023-24, SUSA reported a turnover of USD 7.33 million.
Financial Arrangement and Timeline
The investment will be made through cash consideration, ensuring that Syngene retains full ownership of SUSA. The transaction is expected to be completed by March 31, 2026, subject to mutual agreement between the parties.
No Related Party Transaction
As the transaction is between Syngene and its wholly owned subsidiary, it does not fall under related party transactions. The promoter group does not have any financial interest in SUSA.
Syngene’s Financial Performance
For Q3 FY 2025, Syngene reported a revenue of Rs 944 crore, reflecting an 11 per cent year-on-year growth. Operating EBITDA rose by 23 per cent to Rs 284 crore, with a margin of 30.1 per cent. Profit after tax stood at Rs 131 crore, marking an 18 per cent year-on-year increase.
Industry Trends and Growth Strategy
Syngene continues to benefit from stabilization in US biotech funding and the “China Plus One” strategy, which is leading to collaborations with mid and large pharma companies. The company is also investing in digital initiatives and expanding its biologics manufacturing capabilities.
Conclusion
This strategic investment aligns with Syngene’s long-term growth plans and enhances its capability in the biologics segment. With a strong financial position and stable client relationships, Syngene aims to strengthen its foothold in the global contract research and manufacturing sector.
Disclaimer: The article is for informational purposes only and not investment advice.