Syngene expands global footprint with US biologics manufacturing facility acquisition

Syngene International Limited, a leading contract research, development, and manufacturing organization (CRDMO), has acquired its first biologics manufacturing facility in the United States. The newly acquired site in Baltimore, Maryland, which previously belonged to Emergent Manufacturing Operations Baltimore, LLC, a subsidiary of Emergent BioSolutions Inc., strengthens Syngene’s global presence and enhances its capabilities in monoclonal antibody (mAbs) production.

The acquisition, made through Syngene USA Inc., a wholly owned subsidiary, adds multiple manufacturing lines to Syngene’s biologics portfolio. With this expansion, the company’s total single-use bioreactor capacity increases to 50,000L, reinforcing its service offerings across human and animal health markets. The site will support end-to-end biologics services, including cell line development, process optimization, and commercial-scale production.

Strategic Move to Strengthen Biologics Manufacturing in the US

The acquisition underscores Syngene’s commitment to expanding in the United States, one of the world’s fastest-growing biologics markets. The facility is expected to drive pharmaceutical innovation, enhance supply chain resilience, and contribute to local economic growth through job creation and increased investment in the region.

Peter Bains, CEO Designate of Syngene International Ltd., stated that the company’s investment positions it as a flexible and competitive solution provider for global pharma and biotech firms. He noted that with biologics R&D capabilities in both India and the US, Syngene is well-positioned to meet the rising demand for biologics manufacturing.

Alex Del Priore, Senior Vice President of Development & Manufacturing Services, emphasized that the Baltimore facility acquisition is a response to increasing client demand, particularly from the US market. He highlighted the site’s role in supporting animal health companies seeking USDA approvals and its ability to provide commercial-scale production for global clients.

Financial and Operational Impact of the Acquisition

The total investment in the US manufacturing facility is estimated at $50 million, including an acquisition cost of $36.5 million and additional expenses to operationalize the site. Syngene has stated that the deal will be fully financed through internal accruals and cash reserves, ensuring that the company maintains a low debt profile and strong financial stability post-acquisition.

According to Deepak Jain, Chief Financial Officer of Syngene International Ltd., the company expects an asset turnover ratio of 1x within five years, with EBIT margins aligning with corporate averages by FY30. He noted that while short-term operating margins may see slight dilution, the acquisition aligns with Syngene’s long-term growth strategy.

Expanding Capabilities to Meet Growing Market Demand

The upgraded Baltimore biologics facility is expected to become operational in the second half of 2025. Strategically located near key biotech hubs in the northeastern US, the site will cater to both domestic and international clients, particularly innovative mAb developers looking for US-based manufacturing solutions.

As part of the acquisition agreement, Emergent BioSolutions retains the right to secure future manufacturing capacity from the facility. This arrangement highlights the offtake potential of the site, particularly for US-based pharmaceutical companies seeking onshore biologics production.

Additionally, the acquisition will enhance Syngene’s support for the animal health sector, where US-based facilities are often a key client requirement. The company anticipates strong demand from global biopharma firms seeking end-to-end biologics solutions across multiple geographies.

Syngene’s Growing Global Footprint in Biopharma

With four biologics manufacturing facilities across India and North America, Syngene is positioned as a key player in global large molecule discovery and development. The company’s comprehensive offerings include clinical and commercial supply solutions, reinforcing its commitment to advancing pharmaceutical and biotech innovation.

The move also reflects the increasing collaboration between Indian and US-based biopharmaceutical industries, fostering economic growth and strengthening global healthcare infrastructure. By expanding its biologics capabilities in the US, Syngene is reinforcing its role as a strategic partner for international biotech firms.

Market Sentiment and Stock Performance

Syngene International Ltd. (BSE: 539268, NSE: SYNGENE) has seen positive investor sentiment following the announcement. While the acquisition is not expected to impact the company’s FY24-25 financial guidance, analysts note that the long-term benefits could drive higher revenue growth and strengthen Syngene’s market position in biologics manufacturing.

Syngene’s Baltimore facility acquisition marks a significant step in its global expansion strategy, reinforcing its capabilities in biologics development and manufacturing. With a growing presence in the US and Indian biopharma markets, the company is poised to cater to increasing demand for monoclonal antibodies and large-molecule biologics. As the facility ramps up production, Syngene is expected to play a crucial role in advancing pharmaceutical innovation while strengthening biologics supply chain resilience.