Syngene International to acquire Unit 3 biologics manufacturing facility from Stelis Biopharma

Syngene International Ltd. | Business Support | Miscellaneous | BSE: 539268 | NSE: SYNGENE

05 Jul 2023 Evaluate

Syngene International is all set to acquire Unit 3 biologics manufacturing facility in Bangalore, India, from Stelis Biopharma (SBL). The companies have entered into a binding term sheet and, on completion of the transaction; the site will add 20,000 liters of installed biologics drug substance manufacturing capacity for Syngene. The site has the potential for future expansion up to a further 20,000 liters of biologics drug substance manufacturing capacity. It also includes a commercial scale, high speed, fill-finish unit – an essential capability for drug product manufacturing.

Syngene will acquire Unit 3 on a slump sale basis for a gross value of Rs 702 crore ($86 Million). Subject to closing adjustments, the consideration for the transaction will be settled in cash. The transaction has been approved independently by the respective Boards of Directors of both the companies. The transaction is expected to close within 90 days, subject to customary conditions, including receiving the required lender and regulatory approvals. The facility, which was initially built to manufacture Covid 19 vaccines, is now being repurposed to manufacture monoclonal antibodies and Syngene will further invest up to Rs 100 crore ($12 Million) to repurpose and revalidate the facility.

Syngene International is India’s largest Contract Research Services Organization providing integrated discovery and development services for novel molecules across multiple platforms including small molecules, large molecules, Antibody-Drug Conjugates and Oligonucleotides.