Syngene Intl acquires its first U.S. biologics manufacturing facility

Syngene International acquired its first biologics manufacturing site in the United States at $36.5 million, a major expansion in the global biologics sector.

The facility in Baltimore, Maryland, was bought by Syngene USA Inc, the wholly owned subsidiary of Syngene, from Emergent Manufacturing Operations Baltimore, LLC. The state-of-the-art site provides several mAb manufacturing lines along with an increase in Syngene's unipolar bioreactors of 50, 000 L.

While the factory will supplement-level Syngene's crystalline possibilities, It is expected to start receiving clients sometime in the second half of 2025. Of the entire investment in the U.S., $50 million is meant for acquisition and operational upgrades, which is supposed to close in March 2025, subject to customary conditions.

Emergent BioSolutions still holds the rights to secure manufacturing capacity from the facility onwards. The site in Baltimore is central to the many biotech hubs nearby and will attract both U.S. and international mAb developers seeking onshore production. And that means it would easily cater to today's burgeoning animal health segment, as a key client requirement.

Peter Bains, CEO Designate of Syngene International expects that the strengthened capacity will help address the increasing client demand across the globe. Syngene wants to promote deeper economic links between India and the U.S. with the creation of jobs and greater pharmaceutical innovation.

Syngene reported a consolidated net profit of Rs 131.1 crore for the Q3 FY25, up 17.58% YoY, and revenue was also up by 10.57%, to Rs 943.7 crore. On BSE, the company's stock gained by 0.29%, closing at Rs 680.

"The investment will be synergistic with expected additional process development work that will be executed in India while manufacturing can be done in the US. The investment will be fully funded through internal accruals and cash. The company will continue to maintain a robust balance sheet, a low debt profile, and a comfortable safety margin for debt covenants post this investment. As we ramp up utilization, we expect asset turnover to grow to 1x in less than 5 years, with EBIT margins expected to be in line with the company average from FY30 and positively contribute to the bottom line. The acquisition will not materially impact the current financial guidance given for fiscal year 20242025. In the short term, we expect a minor dilution of operating margins as a result of costs to be incurred in this facility", said Deepak Jain, CFO, Syngene International.