Syngene Q3 profit up 31% to Rs58.8 crore
Profit notched up on a 23% increase in revenue to `280.4 crore from `227.6 crore
Hyderabad: Syngene International Ltd, the contract research services arm of India’s biggest biopharmaceutical firm Biocon Ltd, on Thursday announced a 31% increase in net profit for the quarter ended 31 December, led by sustained momentum across its key verticals including dedicated centres, discovery services as well as development and manufacturing services.
Profit rose to ₹ 58.8 crore in the fiscal third quarter, from ₹ 44.8 crore in the year-ago period. The profit was notched up on a 23% increase in revenue to ₹ 280.4 crore from ₹ 227.6 crore.
Syngene said it cleared a US Food and Drug Administration audit of its clinical development facility in Benguluru during the third quarter.
Syngene has now successfully cleared five audits by the US regulator in the space of the last 30 months, the company said.
Syngene said it will be pumping around $200 million on capital expenditure over the next three-and-a-half to four years as part of a broader plan to evolve from a contract research organisation into a contract research and manufacturing services company with commercial-scale production capabilities.
The company is investing around $100 million on setting up a new unit in Mengaluru over the next three to four years to support large-scale manufacturing requirements of its clientele. The remaining will go into investments in a new research centre, a formulation centre and a large molecules manufacturing unit at its Bengaluru facility.
“Phase 1 of our new research centre is nearing completion, and will add significant capacities underpinning future growth," said Peter Bains, executive director and chief executive officer, in a statement.
“We continue to enhance and expand our service offerings to align with growing client requirements," he said.
Bains said the company is on track to achieve its $250 million sales target by FY18.
Phase 1 of the research centre comprises of 50,000 sq. feet of lab space, scheduled to be commissioned in Q1 FY17, the company said.
When fully commissioned, this centre will be a 200,000 sq. ft versatile, state-of-the-art research facility and will support integrated discovery programmes in chemistry and biology, the company added.
In the year ended March 2015, Syngene had 221 clients, including 8 of the top 10 global pharma companies.
As of 30 September, Biocon held a 74.55% stake in Syngene.
Shares of Syngene gained 2.17% to close at ₹ 367.60 on BSE, while the benchmark Sensex declined 0.41% to 23962.21 points.
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