Syngene Buys US Manufacturing Plant In $50 Million Deal

Syngene International Ltd. has announced the acquisition of its first manufacturing facility in the United States for an estimated investment of $50 million, marking a significant step towards expanding its global footprint.

The company said in a statement on Monday that Syngene USA Inc., its wholly owned subsidiary, has acquired the site from Emergent Manufacturing Operations Baltimore, LLC.

The deal, which includes an upfront acquisition cost of $36.5 million, will also involve additional spending to make the facility operational. The transaction is expected to be completed by March 2025, subject to customary closing conditions.

Syngene said the move will strengthen its ability to serve clients in both human and animal health sectors, expanding its presence in the world’s largest pharmaceutical market.

“This investment will enable Syngene to cater to growing client requirements in an expanding market. It will also provide clients, access to collective service capability of multiple geographic sites, scientists and experience,” said Peter Bains, CEO.

However, alongside this announcement, the company lowered its revenue growth forecast for the current financial year, citing a delay in demand recovery in January. Syngene now expects single-digit revenue growth and flat profits for fiscal 2025, down from its earlier guidance of high-single to low double-digit growth.

The company noted that while earnings before interest, tax, depreciation, and amortisation guidance remains unchanged, revenue momentum has been impacted by a delay of 8–12 weeks in market recovery, particularly in the US biotech funding environment.

The company Syngene reported an 18% year-on-year increase in net profit for the October–December quarter, but still fell short of analysts’ expectations. The company posted a consolidated profit of Rs 131 crore, up from Rs 112 crore a year earlier. Analysts tracked by Bloomberg had projected a profit of Rs 144 crore.

The slowdown in biotech funding and delayed market stabilisation have prompted Syngene to reassess its near-term outlook. Despite these headwinds, the company said it remains focused on its long-term growth strategy, which includes investments in capacity and capability expansion.

Syngene is also set to benefit from global supply chain diversification trends, including the ‘China Plus One’ strategy, and expects its third manufacturing unit (Unit 3), scheduled for completion in April, to contribute meaningfully to future growth.

(With text inputs from PTI.)