Syngene International finalizes Rs 617cr acquisition of biologics facility from Stelis Biopharma
Syngene International has announced the conclusion of its acquisition of a multi-modal biologics manufacturing facility, known as ‘Unit 3’, from Stelis Biopharma Ltd. The deal was finalized at a revised gross value of Rs 617 crores, adjusted from the initial value of Rs 702 crores.
Revised Deal Terms Reflect Equipment Retention
The reduction in the gross value of the acquisition reflects Stelis Biopharma Ltd’s decision to retain certain equipment not currently installed in the facility. The revised terms ensure a more tailored fit for Syngene’s manufacturing needs.
Enhanced Manufacturing Capabilities for Syngene
With this acquisition, Syngene adds a significant 20,000 liters of biologics drug substance manufacturing capacity. Additionally, the facility includes a commercial-scale, high-speed, fill-finish unit, which is an essential component for drug product manufacturing.
Financial Details and Acquisition Timeline
The Unit was acquired effectively on 1st December 2023 for a payment of Rs 395 crores. The remaining balance, subject to final adjustments, will be paid in December 2023 upon the completion of certain post-closing actions by Stelis Biopharma Ltd.
Syngene’s Growth in the Biotech Sector
This acquisition marks a significant expansion for Syngene International in the biotech industry, enhancing its capabilities in biologics manufacturing. The addition of this facility positions Syngene for further growth and development in the pharmaceutical and healthcare sectors.