Syngene to acquire Stelis Biopharma’s biologics manufacturing facility in Bangalore
Pharma manufacturing services company Syngene International has unveiled plans to acquire Unit 3 biologics manufacturing facility located in Bangalore, India from Stelis Biopharma Limited (SBL).
The agreement will result in an additional 20,000 liters of installed biologics drug substance manufacturing capacity for Syngene, with the possibility of doubling this figure in the future. The facility also incorporates a commercial scale, high-speed, fill-finish unit, crucial for drug product manufacturing.
To secure Unit 3, Syngene will make a slump sale payment of INR 702 crores ($86 million). The transaction, already approved by the respective Boards of Directors of both companies, will be settled in cash subject to closing adjustments.
Completion of the transaction is anticipated within 90 days, pending the acquisition of the necessary lender and regulatory approvals.
The Bangalore facility, originally constructed to manufacture Covid-19 vaccines, is now set to produce monoclonal antibodies. Syngene has committed to investing up to INR 100 crores ($12 million) for the facility’s repurposing and revalidation.
Jonathan Hunt — Syngene Managing Director and CEO said: “This acquisition strengthens our growing position as a leading biologics contract development and manufacturing service provider and adds drug substance capacity and a drug product capability years earlier than our internal capex program.”
He added that outsourcing to an experienced partner like Syngene offers a reliable way for sectors ranging from large pharma to emerging biotech companies to bring high-quality products to market. The upgraded and re-validated facility is expected to become operational in 2024.
The facility accommodates both drug substance and drug product with an installed capacity of 10 bioreactors of 2000L along with associated infrastructure and utilities. Additionally, the facility houses 10 extra uninstalled bioreactors for potential future expansion and two high-speed fill-finish lines.