Syngene reports revenue from operations up 8% in the first quarter

The Company raises the annual revenue guidance from mid-teens to high teens.

Syngene International Limited announced its first quarter results for FY23. The Company reported quarterly revenue from operations up 8% year-on-year to Rs. 644 Cr; profit after tax for the quarter declined by 4% year-on-year to Rs 74 Cr.

The first quarter results were against a strong quarter last year due to sales of COVID treatment, Remdesivir. Excluding the impact of Remdesivir, the underlying revenue from operations growth in the quarter was around 30% year-on-year. 

Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “A recent highlight was the signing of a 10-year agreement with Zoetis. The new agreement initially focuses on the commercial manufacturing of Librela®, a first-of-its-kind injectable monoclonal antibody used to alleviate pain associated with osteoarthritis in dogs. This is a major strategic step for our biologics business and gives us a pathway towards FDA and EMA regulatory approvals anticipated later this year. 

These first quarter results aligned with our expectations and reflect solid performance across all our business divisions. The contribution from the Development and Manufacturing Services divisions drove the growth momentum against a low base in the previous year. The Dedicated Centers and Discovery Services divisions delivered continued growth.  

The decline in profit in the quarter compared to the same period last year was as expected given the strong sales of Remdesivir the previous year when India was in the midst of the second wave of the pandemic. No sales of Remdesivir were recorded in the first quarter this year.”

“Revenue guidance for the year has been raised from mid-teens to high teens to account for two factors: a significant change in the Rupee/US dollar exchange rate, which helps the top line as most of our client contracts are dollar-denominated and the recent agreement with Zoetis, which will start to benefit revenue in the second half of the year and build gradually in future years.” added, Sibaji Biswas, Chief Financial Officer, Syngene International Limited.

Syngene’s first quarter revenue reflects solid performance across all its business divisions. The Development and Manufacturing Services divisions delivered strong growth in the quarter. The Dedicated Centres and Discovery Services divisions continued growing, supported by a healthy demand environment. 

The Company signed a long-term agreement with Zoetis to commercialize the drug substance for Librela®, a first-of-its-kind injectable monoclonal antibody to alleviate pain associated with osteoarthritis in dogs. The deal, initially centered on Librela®, paves the way for developing and manufacturing other molecules in the coming years and is expected to be worth up to US$ 500 Mn over ten years, subject to regulatory approvals and market demand. The multi-year agreement marks an inflection point for the Development and Manufacturing Services divisions.

The Company continued to invest in infrastructure: a kilo lab was established for polymer and specialty materials in the Development Services division. The facility will shorten the development timelines for clients who look for customizable and flexible systems to expedite formulation and process development services. Additionally, as part of the phase three expansion in Hyderabad, a lab was commissioned in the newly constructed Innopolis building with over 150 scientists and analysts dedicated to PROTACs. PROTAC is part of Syngene’s novel drug discovery strategy for clients involved in treatment for cancer. This targeted protein degradation technology offers therapeutic interventions not achievable with existing drug discovery approaches.  

About Syngene
Syngene International Ltd. (BSE: 539268, NSE: SYNGENE, ISIN: INE398R01022) is integrated research, development, and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors. Syngene’s more than 5200 scientists offer both skills and the capacity to deliver excellent science, robust data management and IP security, and quality manufacturing at speed to improve time-to-market and lower the cost of innovation. With a combination of dedicated research facilities for Amgen, Baxter, and Bristol-Myers Squibb and 2 Mn sq. ft of specialist discovery, development, and manufacturing facilities, Syngene works with biotech companies pursuing leading-edge science as well as multinationals, including GSK, Zoetis, and Merck KGaA.
This article was shared with Prittle Prattle News as a Press Release.
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