Syngene Acquires Stelis Biopharma Plant for Rs 702 Crore
In a significant development, Syngene International, a contract manufacturing services firm, has recently announced its acquisition of a manufacturing unit from Stelis Biopharma. The deal, valued at INR 702 crore, entails Syngene purchasing Unit 3, a biologics manufacturing facility based in Bengaluru.
Originally established for the production of Covid-19 vaccines, the facility will now be repurposed for the manufacturing of monoclonal antibodies. Syngene plans to invest an additional INR 100 crore to revamp and validate the unit. Following the completion of the transaction, the site will contribute 20,000 liters of biologics drug substance manufacturing capacity to Syngene’s operations.
Furthermore, the site possesses the potential for future expansion, with an additional 20,000 liters of biologics drug substance manufacturing capacity. Syngene will acquire Unit 3 through a slump sale, with a gross value of INR 702 crore. The consideration for the transaction will be settled in cash, subject to closing adjustments.
Both companies boards have independently approved the acquisition, which is expected to be finalized within 90 days, pending customary conditions such as obtaining necessary lender and regulatory approvals.
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Syngene’s Managing Director and CEO, Jonathan Hunt, emphasized the significance of this acquisition. He stated, “This acquisition strengthens our growing position as a leading biologics contract development and manufacturing service provider and adds drug substance capacity and a drug product capability years earlier than our internal capex program.”
The company aims to commence operations at the facility in 2024, subsequent to a series of facility upgrades and re-validation processes.
About Syngene:
Syngene International Ltd. is a company that provides comprehensive research, development, and manufacturing services to various industries, including pharmaceuticals, biotechnology, nutrition, animal health, consumer goods, and specialty chemicals, on a global scale.
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