Syngene International is making headlines as it has just bought a new biologics facility in the United States from Emergent Manufacturing for $36.5 million. This is an important step for Syngene because this new site will help them expand their bioreactor capacity to 50,000 liters. This means they can do more work on developing and manufacturing large molecules, which are important for medicine.
The acquisition will also help Syngene keep delivering supplies smoothly from their four facilities in India and North America. They offer many services like cell line development and process optimization.
Emergent, which had to close this facility last year to save costs, still has rights to use the facility alongside Syngene. Although the facility had some quality issues during the pandemic, it has been cleared by the U.S. Food and Drug Administration (FDA) and is now fully compliant with rules.
This deal is expected to be finalized by March 2025, and it will double Syngene’s bioreactor capacity from 20,000 liters, boosting their capabilities in large molecule work. However, Syngene’s CFO, Deepak Jain, mentioned that it might slightly lower profit margins in the short term because of the expenses linked to the new facility.
Share prices for Syngene fell by 1.96% and lagged behind their rivals over the past year. However, they have seen a positive return of 20.02% over the last three years. According to Trendlyne data, Syngene’s performance over the past year has not impressed compared to their sector, industry, Sensex, and Nifty50.
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