Syngene receives $131 million from Singapore’s GIC

• ByStartupStory     |    February 3, 2023

GIC, Singapore’s sovereign wealth, fund invested Rs 1,075.2 crore (approximately $131 million) in drug research company Syngene International Ltd in a block deal on Wednesday. 

The Singapore government invested Rs 884.75 crore and the Monetary Authority of Singapore invested Rs 190.44 crore in the pharma firm as part of the deal. Morgan Stanley also invested approximately Rs 58 crore in the company. 

Other participants include Goldman Sachs, Abu Dhabi Investment Authority, Canada’s second-largest pension fund manager, Caisse de dépôt et placement du Québec (CDPQ), and others. Goldman Sachs contributed Rs 16.8 crore, Abu Dhabi Investment Authority contributed Rs 35 crore, and CDPQ contributed approximately Rs 6.2 crore.

According to data available on the Bombay Stock Exchange, Biocon, which previously owned 64.56% of the company, sold stakes worth Rs 2240 crore in the publicly-traded Syngene, reducing its stake by 9.96% through open market operations.

The sale comes about two months after Biocon Biologics, Biocon’s biosimilars manufacturing arm, announced the completion of its $3 billion acquisition of Viatris’ global biosimilars business. Syngene, a contract research organization, provides a comprehensive suite of integrated, end-to-end discovery and development services for novel molecular entities in industries such as biotechnology, agrochemicals, consumer health, animal health, cosmetics, and nutrition. 

Biocon, a well-known name in the pharmaceutical industry, manufactures medicines and other pharmaceutical products used in the treatment of chronic diseases such as diabetes, cancer, and autoimmune. 

GIC first invested in Syngene during its initial public offering (IPO) in 2015, when it made a strong market debut. GIC contributed Rs 25 crore, while funds managed by Goldman Sachs, Morgan Stanley, and Deutsche Bank, as well as other foreign portfolio investors and a few domestic mutual funds, contributed another Rs 125 crore. During the quarter, Syngene reported revenue from operations of Rs 786 crore, a 23% increase year on year.

According to an exchange filing, Biocon currently owns approximately 54.60% of Syngene following the acquisition.

Follow Startup Story