Expected to enhance global innovator flexibility with biologics drug substance facility in Baltimore
Syngene International, a global contract research, development, and manufacturing organisation (CRDMO), announced the acquisition of its first biologics site in the US – fitted with multiple monoclonal antibody (mAbs) manufacturing lines.
The state-of-the-art biologics facility, acquired by Syngene USA, a wholly owned subsidiary of Syngene, from Emergent Manufacturing Operations Baltimore, (a subsidiary of Emergent BioSolutions), will expand Syngene’s growing global biologics footprint to better serve its customers across both human and animal health market segments.
The new site will increase Syngene’s total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services. Additionally, it will provide Syngene’s customers with continuity of supply from its four development and manufacturing facilities located in India and North America, offering services ranging from cell line development, process optimisation and both clinical and commercial supply.
Syngene’s investment in its first facility in the US marks a strategic commitment to the US market, with significant benefits for the local economy and the broader life sciences industry. The facility is expected to create jobs, stimulate local economic activity, and strengthen domestic biologics manufacturing capabilities, while also contributing to pharmaceutical innovation and supply chain resilience.
The investment highlights the potential for deeper economic collaboration between India and the US, fostering sustained economic growth and advancing the shared goal of bolstering critical healthcare infrastructure.
Peter Bains, CEO Designate, Syngene International, said, “With one of the largest biologics R&D teams and commercial scale manufacturing capabilities in both India and the US, we now offer a compelling and flexible solution for global pharma and biotech customers. 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.”
Alex Del Priore, Senior Vice President – Development & Manufacturing Services, Syngene International, said, “This facility is a significant milestone for Syngene and comes in response to growing client demand in the US, the fastest-growing biologics market. It strengthens our offering for animal health clients looking for USDA approval for their products. Most importantly, it increases the options we can offer our global customers, providing commercial-scale biologics manufacturing capabilities across our global network and will be underpinned by existing key client projects.”
“The investment will be synergistic with expected additional process development work that will be executed in India while manufacturing can be done in the US. The investment will be fully funded through internal accruals and cash. The company will continue to maintain a robust balance sheet, a low debt profile, and a comfortable safety margin for debt covenants after this investment. As we ramp up utilisation, we expect asset turnover to grow to 1x in less than 5 years, with EBIT margins expected to be in line with the company average from FY30 and positively contribute to the bottom line. The acquisition will not materially impact the current financial guidance given for fiscal year 2024 - 2025. In the short term, we expect minor dilution of operating margins as a result of costs to be incurred in this facility,” added Deepak Jain, CFO, Syngene International.
