Upgrading acquired Stelis unit to triple Syngene's biologics capacity by H2

The company plans to expand research and manufacturing facilities, allocates Rs 500 cr capex for FY25

This report has been updated

Biocon subsidiary Syngene International’s acquisition of Unit 3, a biologics manufacturing facility, from Stelis Biopharma is expected to boost its biologics production capacity three times , a senior company official said. Originally a vaccine production facility, Unit 3 is being repurposed to manufacture monoclonal antibodies.

Syngene acquired the multi-modal biologics manufacturing facility from Stelis Biopharma Ltd on July 4, 2023, for Rs 702 crore, and completed the deal around December 2023. 

“Initially a vaccine production facility, it's been adapted meticulously over the past five to six months to meet the stringent requirements for antibody production. This strategic move will be instrumental in expanding our operational capabilities and significantly boosting our overall capacity, paving the way for substantial growth opportunities in the coming months,” Sibaji Biswas, chief financial officer and executive director, Syngene International, told Business Standard.

The acquisition of Unit 3 from Stelis Biopharma has substantially enhanced Syngene's manufacturing capabilities.

"This strategic acquisition is pivotal in expanding our operational capacity and positions us for significant growth opportunities in the upcoming years. The modification programme is progressing smoothly and according to plan, with the facility slated to commence operations in the second half of FY25, effectively tripling Syngene's biologics capacity," Biswas said.

“Syngene has also introduced a new platform for rapid and improved protein production at the site. This platform integrates a cell line and transposon-based system, in-licensed from ExcellGene, a Swiss biotech services firm, with our proprietary processes,” he said, adding that this innovative combination is set to shorten development timelines and “increase the reliability and efficiency of the production process, offering considerable advantages to our clients".

The company is strategically enhancing its investment in key areas to leverage the growing interest in India. 

"For FY25, we have allocated a capital expenditure of Rs 500 crores, approximately $60 million, consistent with our expenditure in previous years," Biswas said. 

The company plans to expand research and manufacturing facilities, including a new campus in Hyderabad. Research expansion is ongoing in Hyderabad and Bengaluru. Investments are focused on monoclonal activity, new therapy areas, technology platforms, and digitisation, automation, and capital improvements to boost productivity and efficiency across operations.

Emphasising the China-Plus-One strategy, the biotech firm highlighted India's emergence as a prime contender due to its talent, infrastructure, and capabilities. But it added that India needs collaboration for a seamless transition.

Syngene is also focusing on hiring talent to support its growth plans. Highlighting the hiring plan for the upcoming quarters, Biswas stated that its strategy aligns with business expansion. The projected 12 per cent topline growth will drive corresponding employment increases. 

“We take pride in housing the nation's largest assembly of high-caliber scientists, boasting numerous PhD and Master's holders in Science. Through robust training initiatives and talent cultivation platforms, we foresee our workforce expanding in tandem with our organisational growth. Syngene stands as an unrivaled career destination within the life sciences sector, offering unparalleled opportunities for research, development, and manufacturing,” Biswas added.

Syngene reported a PAT before exceptional items of Rs 189 crore in the fourth quarter ended in March, a 6 per cent increase from the previous year's same quarter. Revenue from operation in Q4 FY24 dipped 8 per cent to Rs 917 crore. According to the company, the performance was affected by reduced demand for research and development services in the US biotech sector due to a challenging funding environment.