The state-of-the-art facility, located in Baltimore, Maryland, was acquired by Syngene USA Inc., a wholly owned subsidiary of Syngene, from Emergent Manufacturing Operations Baltimore, LLC, a subsidiary of Emergent BioSolutions Inc.

The newly acquired site is equipped with multiple monoclonal antibody (mAb) manufacturing lines and will increase Syngene's single-use bioreactor capacity to 50,000L, enhancing its ability to support large molecule discovery, development, and manufacturing services. The facility will play a crucial role in Syngene's global operations, providing continuity of supply alongside the company's existing facilities in India and North America.

With the acquisition, Syngene strengthens its ability to serve both human and animal health market segments, offering a range of services, including cell line development, process optimization, and clinical and commercial supply. This expansion highlights Syngene's strategic commitment to the U.S. market and aims to foster deeper economic ties between India and the United States, benefiting both countries' life sciences sectors.

The total investment in the U.S. facility is estimated at $50 million, including the acquisition cost of $36.5 million and expenses related to making the site operational. The acquisition is expected to close in March 2025, pending customary closing conditions. The upgraded Baltimore facility, strategically located near key biotech hubs in the Northeast, is anticipated to be operational for client projects by the second half of 2025.

The firm anticipates the site will see demand from innovative U.S. mAb developers requiring direct access for onshore production, as well as international innovators who want a U.S.-based manufacturing option. This complements the capabilities and capacity available across its facilities in Bengaluru. As part of the agreement, Emergent BioSolutions itself has the right to secure manufacturing capacity from the facility in the future, representing offtake potential from U.S.-based innovators. It will also support the growing animal health segment, in which a U.S. site is often a key client requirement.

The company said that investment in its first facility in the United States marks a strategic commitment to the U.S. market, with significant benefits for the local economy and the broader life sciences industry. The facility is expected to create jobs, stimulate local economic activity, and strengthen domestic biologic manufacturing capabilities while also contributing to pharmaceutical innovation and supply chain resilience. This investment highlights the potential for deeper economic collaboration between India and the United States, fostering sustained economic growth and advancing the shared goal of bolstering critical healthcare infrastructure.

Peter Bains, CEO Designate, Syngene International, said, 'With one of the largest biologics R&D teams and commercial scale manufacturing capabilities in both India and the USA, we now offer a compelling and flexible solution for global pharma and biotech customers. This investment will enable Syngene to cater to growing client requirements in an expanding market. It will also provide clients access to the collective service capability of multiple geographic sites, scientists and experience.'

Alex Del Priore, Senior Vice President ' Development & Manufacturing Services, Syngene International, said, 'This facility is a significant milestone for Syngene and comes in response to growing client demand in the United States, the fastest-growing biologics market. It strengthens our offering for animal health clients looking for USDA approval for their products. Most importantly, it increases the options we can offer our global customers, providing commercial-scale biologic manufacturing capabilities across our global network and will be underpinned by existing key client projects.'

Deepak Jain, CFO, Syngene International, said, 'The investment will be synergistic with expected additional process development work that will be executed in India while manufacturing can be done in the US. The investment will be fully funded through internal accruals and cash. The company will continue to maintain a robust balance sheet, a low debt profile, and a comfortable safety margin for debt covenants post this investment. As we ramp up utilization, we expect asset turnover to grow to 1x in less than 5 years, with EBIT margins expected to be in line with the company average from FY30 and positively contribute to the bottom line. The acquisition will not materially impact the current financial guidance given for fiscal year 2024'2025. In the short term, we expect a minor dilution of operating margins as a result of costs to be incurred in this facility.'

Syngene International is an integrated research, development, and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors.

The company reported 17.58% increase in consolidated net profit to Rs 131.1 crore in Q3 FY25 as compared with Rs 111.5 crore in Q3 FY24. Revenue from operations jumped 10.57% YoY to Rs 943.7 crore in Q3 FY25.

The counter rose 0.29% to Rs 680 on the BSE.

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