Syngene International Limited (‘Syngene’), a leading global contract research, development, and manufacturing organization (CRDMO), has announced the acquisition of its first biologics manufacturing site in the United States. The facility, located in Baltimore, is equipped with multiple monoclonal antibody (mAbs) manufacturing lines and will enhance Syngene’s global footprint in the biologics sector.
The state-of-the-art facility was acquired by Syngene USA Inc., a wholly-owned subsidiary of Syngene, from Emergent Manufacturing Operations Baltimore, LLC, a subsidiary of Emergent BioSolutions Inc. This strategic investment significantly expands Syngene’s capabilities in both human and animal health markets by increasing its total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services.
Strategic Importance of the Acquisition
The acquisition reinforces Syngene’s commitment to the US market, offering its global clientele enhanced supply chain flexibility. With this new facility, Syngene can ensure uninterrupted supply from its four development and manufacturing centres across India and North America. The expanded capabilities cover the entire spectrum of biologics services, from cell line development to process optimization and commercial-scale manufacturing.
Furthermore, the investment is expected to boost the local economy by creating jobs and strengthening domestic biologics manufacturing infrastructure. The facility will contribute to pharmaceutical innovation, enhance supply chain resilience, and foster deeper economic collaboration between India and the United States.
Leadership Perspective
Peter Bains, CEO Designate of Syngene International Ltd., highlighted the significance of this investment, stating, “With one of the largest biologics R&D teams and commercial-scale manufacturing capabilities in both India and the USA, Syngene offers a compelling and flexible solution for global pharma and biotech customers. This investment will enable us to meet growing client demands in an expanding market while leveraging our global service capabilities.”
Alex Del Priore, Senior Vice President – Development & Manufacturing Services at Syngene, added, “This facility is a milestone for Syngene and directly responds to increasing client demand in the United States, the fastest-growing biologics market. It also strengthens our capabilities for animal health clients seeking USDA approvals and expands commercial-scale biologics manufacturing options within our global network.”
Financial and Operational Impact
Syngene has committed approximately USD50 million for the US facility, including the acquisition cost of USD36.5 million and additional expenses for operational readiness. The investment will be funded entirely through internal accruals and cash reserves, ensuring a strong balance sheet with minimal debt impact.
According to Deepak Jain, CFO of Syngene International Ltd., “We expect asset turnover to reach 1x in less than five years, with EBIT margins aligning with company averages by FY30, contributing positively to the bottom line. While there may be minor short-term dilution of operating margins due to initial costs, the acquisition will not materially impact the financial guidance for FY 2024-25.”
Future Prospects and Market Expansion
The Baltimore facility is strategically located near major biotech hubs in northeastern US and is expected to be fully operational by the second half of 2025. It will cater to growing demand from US-based mAb developers seeking local production and international innovators looking for a US-based manufacturing alternative. Additionally, the site will serve the expanding animal health segment, where a US presence is often a critical requirement for clients.
As part of the agreement, Emergent BioSolutions retains the right to secure manufacturing capacity in the facility, indicating potential offtake from US-based innovators. The acquisition complements Syngene’s existing capabilities in Bengaluru and aligns with its long-term growth strategy in the biologics space.
The transaction is expected to close in March 2025, subject to customary closing conditions.
