New Delhi: A drug research company, Syngene International Ltd, backed by Singapore sovereign wealth fund GIC, is set to acquire Stelis Biopharma’s manufacturing unit in Bengaluru for Rs 702 crore (around $88 million) in cash. Syngene has signed a pact with the biopharmaceutical company to snap up its Unit 3, a biologics manufacturing unit, it said on Wednesday.
“This acquisition strengthens our growing position as a leading biologics contract development and manufacturing service provider and adds drug substance capacity and a drug product capability years earlier than our internal capex program,” said Jonathan Hunt, Syngene’s chief executive and managing director.
The agreement was made about five months after GIC made a block deal investment of Rs 1075.2 crore (about $131 million) in syngene. The transaction has received approval from the boards of both companies and is anticipated to be completed within 90 days, contingent upon meeting customary conditions. The statement added that this includes obtaining the necessary approvals from lenders and regulatory authorities.
Syngene said it would invest up to Rs 100 crore in repurposing and revalidating the facility. Following the sale, the facility will give Syngene an additional 20000 litres of capability for producing biological medicinal substances. The facility is also capable of future development, with room for an additional 20000 litres of biologics medicinal material production. Syngene anticipates the facility will be operational in 2024, following a comprehensive program of upgrades and re-validation.
Syngene revenue from operations for the fiscal year ended March 31, 2023, increased 23% to Rs 3,193 crore from Rs 2,604 crore the year before. Its profit after tax, grew 10% to Rs 464 crore excluding exceptional items.
