Syngene International is all set to acquire the Unit 3 biologics manufacturing facility in Bangalore, India, from Stelis Biopharma (SBL), a subsidiary of Strides Pharma. The companies have entered into a binding term sheet and, on completion of the transaction; the site will add 20,000 litres of installed biologics drug substance manufacturing capacity for Syngene. The site has the potential for future expansion up to a further 20,000 litres of biologics drug substance manufacturing capacity. It also includes a commercial scale, high speed, fill-finish unit – an essential capability for drug product manufacturing.
Syngene will acquire Unit 3 on a slump sale basis for a gross value of Rs 702 crore ($86 Million). Subject to closing adjustments, the consideration for the transaction will be settled in cash. The transaction has been approved independently by the respective Boards of Directors of both companies. The transaction is expected to close within 90 days, subject to customary conditions, including receiving the required lender and regulatory approvals. The facility, which was initially built to manufacture Covid 19 vaccines, is now being repurposed to manufacture monoclonal antibodies and Syngene will further invest up to Rs 100 crore ($12 Million) to repurpose and revalidate the facility.
Syngene International is India’s largest Contract Research Services Organisation providing integrated discovery and development services for novel molecules across multiple platforms including small molecules, large molecules, Antibody-Drug Conjugates and Oligonucleotides.
At 1 pm, the shares of Syngene International were trading at Rs 759.50, up by 2.32% from its previous closing of Rs 742.25 on the BSE.
Today, the stock opened at Rs 747.05 and has touched a high and low of Rs 760.45 and Rs 740.30 respectively.
The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high of Rs 782.70 and Rs 535.50, respectively.
Last one week high and low of the scrip stood at Rs 775 and Rs 738.05 respectively. The current market cap of the company is Rs 30,533.04 crore.
The promoters holding in the company stood at 54.88%, while Institutions and Non-Institutions held 34.02% and 11.10%, respectively.