Syngene International draws up $102 million spending programme
Leading contract research & manufacturing organisation Syngene International Ltd said it will invest USD 102 million to build new infrastructure and developing new capabilities.
"We have committed a total spend of USD 102 million against ongoing USD 200 million capex programme. This includes USD 72 million for expansion of facilities in Bangaluru and another USD 30 million towards the commercial manufacturing API facility in Mangalore. The site in Mangalore is being mobilised and we expect to start construction shortly," Syngene International chief financial officer M B Chinappa said at a recent earnings conference call.
The company is making an investment within biologics manufacturing and within clinical development. The new biologics manufacturing plants is in its final stage of fitment, testing and is scheduled to be operational during the next quarter, Syngene International chief executive officer Jonathan Hunt said.
"We see Biologics being one of the long-term strategic growth drivers in the company. It is estimated that by 2020 biologics will make up close to 30 per cent of the total pharma market revenue globally and close to half of the research pipeline for the industry.
"The facility will have three single use bioreactors, each with the capacity of 2,000 litres as well as upstream and downstream suites. During the quarter, we also strengthened our clinical development business by expanding our bioequivalence study capabilities by setting up of an additional 76 - bed Human Pharmacology Unit here in Bangalore."
The company's Human Pharmacology Unit (HPU) serves to conduct phase-I and bioequivalence studies in human volunteers.
The second quarter also saw a setting up of Syngene's first international subsidiary, Syngene Inc, in the US.
With the expanding business and also the high concentration of our clients in the US, the company felt it is beneficial to have a local presence there and which will really facilitate easy access and easy interaction with teams, Hunt added.
During the second quarter of FY2017-18, its revenue grew by 10 per cent to Rs 352 crore. This was the second consecutive quarter the company recorded accelerating revenue growth after the negative growth of 6 per cent two quarters ago.
"This is in line with our expectations and we look forward to building upon this momentum during the second half of this fiscal year," Hunt said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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