Syngene acquires first US facility from Emergent Manufacturing

Syngene International, the contract research wing of Biocon Group, has acquired its first manufacturing facility in the US from Emergent Manufacturing Operations Baltimore. The pharma player has invested around $50 million, including the cost of acquisition, i.e., $36.5 million, and expenses to make the facility operational.

The sale is expected to close in March 2025, subject to the satisfaction of customary closing conditions, said the company in its statement.

The new site will increase Syngene’s total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services.

“This investment will enable Syngene to cater to growing client requirements in an expanding market. It will also provide clients, access to collective service capability of multiple geographic sites, scientists and experience,” said Peter Bains, CEO Designate, Syngene International Ltd.

The facility is expected to create jobs, stimulate local economic activity, and strengthen domestic biologics manufacturing capabilities, while also contributing to pharmaceutical innovation and supply chain resilience, he added.

“The acquisition offers options for our global customers, providing commercial-scale biologics manufacturing capabilities across our global network and will be underpinned by existing key client projects,” noted Alex Del Priore, Senior Vice President – Development & Manufacturing Services, Syngene International Ltd.

Deepak Jain, CFO of Syngene International Ltd, said, “This investment, funded through internal accruals and cash, aligns with our process development plans in India while manufacturing will take place in the US. We will maintain a strong balance sheet, low debt, and financial flexibility. As utilization ramps up, we expect asset turnover to reach 1x within five years, with EBIT margins aligning with the company average from FY30, positively impacting our bottom line.”

The shares of the company closed at ₹677.15, down by 0.35 on the BSE.