 "Jonathan Hunt, CEO & Managing Director, Syngene")
Syngene International, a publicly listed subsidiary of Biocon, is strategically focusing on the growth of its contract development and manufacturing vertical, driven by an expansion in its manufacturing capacity. The company anticipates that this segment will contribute 50 per cent of its overall turnover within the next two to three years.
Currently, approximately 40 per cent of Syngene’s revenues originate from contract development and manufacturing, while the remaining 60 per cent is generated from research services.
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Jonathan Hunt, managing director and chief executive officer of Syngene International, revealed that about eight years ago, during the time of Syngene’s initial public offering, research services accounted for 80 per cent of the company’s revenues, with contract development and manufacturing contributing only 20 per cent.
Over the years, Syngene has made continuous investments to expand its manufacturing capacity, leading to a shift in revenue streams. Notably, the recent acquisition of the vaccine manufacturing facility of Stelis Biopharma in Bengaluru is expected to save Syngene approximately $15 million in capital expenditure during 2023-24. The transaction is slated to conclude by October, after which Syngene intends to invest Rs 100 crore to repurpose the facility for monoclonal antibody production.
The facility will add 20,000 litres of installed biologic drug substance manufacturing capacity, with scope for further expansion, and a high-speed, commercial-scale fill-finish unit.
Following the completion of a programme of facility upgrades and re-validation, the Stelis facility is expected to be operational in 2024.
The acquisition has accelerated Syngene’s growth plans, effectively replacing organic growth strategies for the next two to three years.
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Hunt expressed enthusiasm about the Stelis facility, highlighting its large reactors suitable for advanced cell and gene therapy products.
“It is a good facility,” he said, noting the significant momentum witnessed in its contract development and manufacturing services vertical over the past 18 months.
In terms of other developments, Syngene’s small molecule manufacturing received regulatory approval from the US Food and Drug Administration for its commercial manufacturing facility in Mangaluru.
In discovery services, the company’s Hyderabad campus added a centralised compound management facility to serve as a central storage location for all compounds synthesised by Syngene.
Looking ahead, Syngene acquired 17 acres of land in Genome Valley, Hyderabad, to accommodate future growth and expects to procure requisite statutory clearances and commence construction in 2024.
Hunt projected mid-teens revenue growth in 2023-24, with margins likely to reach approximately 30 per cent by the year-end. Currently serving 450 active clients, Syngene is continuously expanding its 6,000-strong team of scientists.
“We add around 1,000 people annually and directly employ approximately 7,000 individuals,” he added.
