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Syngene International Limited, the contract research unit of Biocon, has reported a dip of 19 per cent year-on-year (Y-o-Y) in profit after tax (PAT) from ₹93.4 crore to ₹75.7 crore in the first quarter that ended June 30, 2024.
The revenue from operations declined by 2 per cent Y-o-Y to ₹790 crore as compared to ₹808 crore in Q1FY24. The earnings before interest, tax, depreciation and amortization (EBITDA) dropped 20 per cent YoY to ₹188 crore from ₹235 crore.
The first-quarter results were mostly unchanged, said Jonathan Hunt, Managing Director and Chief Executive Officer of Syngene International. He attributed the dip in performance to the reduced funding over the past two years which has affected the industry.
He further added, “The value of US biotech funding has seen a marked improvement in the first half of 2024. It will take a while for this funding to flow through into outsourcing activities and Syngene is in a strong position to capture a significant share of the upturn in biotech spending in the months ahead.”
The company reported that the dedicated centres and biologics manufacturing services have shown steady growth. The introduction of protein production platform reduced development timelines by months for a variety of biologics - including monoclonal antibodies, biosimilars, antibody-drug conjugates and other recombinant proteins - gaining time for clients and enabling medicines to reach patients more quickly.
The repurposing of the biologics manufacturing facility acquired from Stelis Biopharma is expected to be completed in the second half of FY25.
Once operational, the facility will triple Syngene’s biologics manufacturing capacity and add a high-speed, high-volume fill-finish line. The quarter has also marked the start of several pilot projects for pharma clients exploring outsourcing options beyond China for larger scale collaborations.
The regulatory filing approved Manja Boerman as an independent Non-Executive Director effective June 4, 2024, subject to shareholders’ approval at the ensuing Annual General Meeting. She is currently the CEO of Prothya Biosolutions BV and has held senior roles at Catalent, Aesica, Patheon, DSM Biologics, Kiadis Pharma and Regenesance.
Shares of Syngene International Ltd rose 0.57 per cent to ₹751.15 at 10.34 am on BSE.
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