Syngene is a contract research, development and manufacturing organisation catering mainly to global innovator pharma\chemical companies offering integrated scientific services from early discovery to commercial supply.
Syngene serves these players, which outsource some or substantial part of their business in the product development life cycle and operates via full time equipment (FTE) and fee for services (FFS) models
Revenue breakup: Discovery services: FTE engagements with high renewability; Dedicated services: Long-term strategic alliances that last usually five years or more, Development and manufacturing: FFS engagements, which increase in volume/scale over time
Syngene reported upbeat numbers led by Development Services.
Pharmaceuticals company Syngene International announced Q1FY24 results:
Acquisition of biologics manufacturing facility in Bangalore to complete by the end of Q3FY24.
US FDA approval for API manufacturing plant in Mangalore received.
Acquisition of land in Hyderabad to support long-term growth in research services
Q1FY24 revenue was up 26% YoY to Rs 832 crore
Profit after tax for the quarter increased 26% YoY to Rs 93 crore.
Commenting on the first quarter, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “First quarter performance was strong, led by Development and Manufacturing Services and well supported by our research divisions: Discovery Services and the Dedicated Centers.
Earlier this month we announced our intention to acquire a site offering additional biologics manufacturing capacity close to our existing Bangalore campus. With 20,000 liters of installed biologics capacity - and scope for further expansion – the site strengthens our position as a leading biologics contract development and manufacturing service provider.
Also during the quarter, we were pleased to receive US FDA approval for our API facility in Mangalore. This approval reflects the robust quality standards applied in all our operations and represents an important building block for our small molecule commercial manufacturing strategy.
Finally, we completed the acquisition of development land in Hyderabad to support the long-term growth ambitions of our Research Services division.
Together, these actions show meaningful progress on our strategy to become a global leader in both research services (CRO) and manufacturing services (CDMO) and give us the capacity we need for the next stage of growth.”
Sibaji Biswas, Chief Financial Officer, Syngene International added, “We are pleased to report a solid start to the year. The financial performance is in line with the revenue growth guidance for the year on a constant currency basis. At 25%, EBITDA growth reflects better operating leverage as we gain scale in development and manufacturing services.
We made investments in growing our portfolios in biologics manufacturing and discovery services. Despite these investments, the Company will continue to maintain a strong balance sheet and a low debt profile.”
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Oct 04, 2023 03:53 PM, the market cap of Syngene International Ltd stood at ₹ 31,825.52.