Merger and Acquisition

Syngene to Acquire Stelis Biopharma’s Manufacturing Unit in $88 Million Deal

• ByStartupStory     |    July 6, 2023

Syngene International Ltd, a drug research company backed by Singapore sovereign wealth fund GIC, has announced its acquisition of Stelis Biopharma’s manufacturing unit in Bengaluru for INR 702 crore (approximately $88 million) in cash.

Syngene has entered into an agreement with Stelis Biopharma, a biopharmaceutical company, to acquire its Unit 3, a biologics manufacturing facility, as stated in a press release on Wednesday.

Jonathan Hunt, Chief Executive and Managing Director of Syngene, expressed his thoughts on the acquisition, stating, “This acquisition strengthens our growing position as a leading biologics contract development and manufacturing service provider and adds drug substance capacity and a drug product capability years earlier than our internal capex program.”

The transaction comes approximately five months after GIC invested INR 1,075.2 crore (around $131 million) in Syngene through a block deal.

The acquisition has received approval from the boards of both companies and is expected to be completed within 90 days, subject to customary conditions and obtaining necessary approvals from lenders and regulatory authorities, according to the statement.

Syngene plans to invest up to INR 100 crore in repurposing and revalidating the facility. Following the completion of the transaction, the site will contribute an additional 20,000 litres of biologics drug substance manufacturing capacity to Syngene. Moreover, the site has the potential for future expansion, allowing for an additional 20,000 litres of biologics drug substance manufacturing capacity.

The facility is projected to become operational in 2024, following an extensive program of facility upgrades and re-validation, as stated by Syngene.

In the fiscal year ending March 31, 2023, Syngene reported a 23% increase in revenue from operations, amounting to INR 3,193 crore, compared to INR 2,604 crore the previous year. The company’s profit after tax, excluding exceptional items, also grew by 10% to INR 464 crore.

With the acquisition of Stelis Biopharma’s manufacturing unit, Syngene aims to further enhance its position as a leading player in biologics contract development and manufacturing services, expanding its capabilities and reinforcing its commitment to delivering innovative solutions to the pharmaceutical industry.

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