To build new infrastructure and developing new capabilities
Leading contract research and manufacturing organisation Syngene International will invest $102 million to build new infrastructure and developing new capabilities.
“We have committed a total spend of $102 million against ongoing $200 million capex programme. This includes $72 million for expansion of facilities in Bengaluru and another $30 million towards the commercial manufacturing API facility in Mangalore. The site in Mangalore is being mobilised and we expect to start construction shortly,” MB Chinappa, Chief Financial Officer, Syngene International said recently.
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, Jonathan Hunt, CEO, Syngene International 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 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.