Syngene International Ltd share Price Today

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

• 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

In line sales with beat on margins.

• Revenues grew 31.2% YoY to ₹ 994.4 crore

• EBITDA grew 27.2% YoY to ₹ 318.3 crore whereas margins declined 101 bps YoY to 32%

• Net profit during the quarter grew 20.9% YoY to ₹ 178.7 crore

Pharmaceuticals company Syngene International announced Q2FY24 & H1FY24 results:

Financial Results:
- Revenue from operations for Q2FY24 increased by 18.5% to Rs 910 crore.
- PAT (before exceptional items) for Q2FY24 increased by 20% to Rs 122 crore.
- For H1FY24, revenue from operations increased by 22% to Rs 1,718 crore.
- PAT (before exceptional items) for H1FY24 increased by 23% to Rs 215 crore.

Business Updates:
- Development and Manufacturing Services performed strongly during the quarter.
- Syngene added a new non-GMP capability center to meet market demand for early-phase development and scale-up services.
- In Manufacturing, good progress was made on the biologics partnership with Zoetis.
- A state-of-the-art Quality Control laboratory was commissioned to support biologics operations.
- The acquisition of a multi-modal facility from Stelis Biopharma Ltd is progressing.
- Dedicated Centers and Discovery Services made steady contributions to growth.
- The US-based biotech segment showed signs of slowed growth.

Commenting on the quarter, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International, said, “I am pleased to report a strong set of results for the second quarter and first half of the financial year, particularly in our Development and Manufacturing Services. In Development Services, we also added a new non-GMP capability center to meet market demand for agile, cost-efficient, early-phase development and scale-up services. In Manufacturing, we made good progress on our long-term biologics partnership with Zoetis, as well as commissioning a state-of-the-art, digitally-enabled Quality Control laboratory to support our growing biologics operations. The acquisition of a multi-modal facility from Stelis Biopharma Ltd, announced last quarter, is progressing.

Within research services, our Dedicated Centers made a steady contribution to growth and in Discovery Services, while global demand remained generally healthy, we saw the US-based biotech segment showing signs of slowed growth year-on-year as companies adjust to a new funding environment.

Long-term sector fundamentals remain strong and we expect continued growth but at a lower level in the second half of the year, this short-term slowing in the US biotech segment is reflected in our latest outlook.

Overall, we reported a strong first half to the year and I am pleased with the good progress made on our strategic priorities in both our research services and our development and manufacturing divisions.”

Result PDF