In an interaction with Business Standard, the company said this comes at a time when the firm is facing headwinds due to inventory correction for Librela. The drug is a first-in-class monoclonal antibody used to treat osteoarthritis in dogs.
Due to this, Syngene saw its consolidated net profit dropping 89 per cent year-on-year (Y-o-Y) to Rs 15 crore. Revenue also fell by 3 per cent for the third quarter (Q3).
Jain added that the firm had already guided towards a decline in profits at the start of the financial year. It was not just due to headwinds coming from one product, but also the fact that Syngene has several manufacturing capacities which may become operational soon.
“During our guidance at the beginning of the year, we spoke about the fact that inventory correction will have an impact on our finances. Now, that is playing throughout the year, with this quarter showing a little steeper impact than what we had thought,” said Jain.
He added this inventory correction issue is expected to persist for the coming quarters beyond the current financial year.
“Outside this product, our base business has shown steady progress, with both research services and contract development and manufacturing organisation (CDMO) businesses witnessing anticipated growth,” he said.
“Our balance sheet provides financial flexibility for continued investments in enhancing our capabilities and capacities to better serve our clients,” Jain said in the post-results statement.
He added that Syngene is expecting its newly-acquired facility in Baltimore (the US) to become operational by the end of FY26.
 "Syngene International")