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Syngene reports second quarter result

by Our Corresspondent - Oct 21, 2021
Syngene reports second quarter result, News, KonexioNetwork.com

Mumbai : Syngene International Limited today announced its second quarter results for FY22. The Company reported quarterly revenue from operations growth of 17% year-on-year to Rs. 6,102 Mn; profit after tax for the quarter, before the exceptional item, increased by 9% year-on-year to Rs. 920 Mn.  

Commenting on the results, Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, "The second quarter was characterized by positive performances in all divisions. In Discovery Services, we saw excellent client demand, particularly within the emerging biopharma segment, as well as further expansion of our relationships with existing clients and our long-term partners in the dedicated research centers.

During the quarter, we continued to manufacture remdesivir for COVID-19, under a voluntary licensing agreement from Gilead. 

The quarter also saw continued investment in new technologies and the successful implementation of several digitization and automation projects across our operations. These investments play an important role in enhancing productivity, reducing the impact of human error and improving quality systems across our business.

We are pleased to have delivered a strong performance in the first half of the year. Careful management of costs, coupled with a robust business continuity plan, enabled us to continue to build capability and capacity to meet the growing requirements of our clients. 

Notwithstanding the continuing uncertainty of the pandemic, we believe that we are well-positioned to deliver our guidance of mid-teens revenue growth for the full year.” 

Business updates

The second quarter results reflect positive performances from all divisions. In Discovery Services, there was positive demand for newer services like Protein Degradation Technology (PROTACS) and peptide synthesis, complemented by key client markets in the US and Europe beginning the process of returning to normal operations.  

Development Services also experienced a positive uptick in enquiries as clients restarted activities following a lull during the pandemic due to the impact of the virus on trial viability. 

In biologics manufacturing, against a backdrop of the expansion of microbial manufacturing and capacity building in mammalian manufacturing, the Company also saw its client base expand during the quarter. Manufacturing of small molecules at Mangalore remains on track to achieve USFDA approval within two years.

Key appointments

As previously announced, Alex Del Priore joined the company in July and is a member of the Executive Committee. Alex will provide strategic direction for growth of the manufacturing services business, leveraging the Company’s discovery and development strengths to build an effective end-to-end offering. He is responsible for the growth of the API business from the new facility in Mangalore as well as the development of the Biologics operations. 

Dr Alan Collis also joined in July as the leader of the SynVent team. SynVent is the Company’s platform for integrated discovery and early development which delivers strategies built in collaboration with clients to advance novel molecules into clinical trials. 

In September, Dr Sridevi Khambhampaty joined the Manufacturing Services organization to lead the Biopharmaceutical Development team. Sridevi will oversee the development operations for various projects including mAbs, recombinant proteins and therapeutic virus vaccines, from early phase to commercialization. She will also drive the novel drug delivery systems of next-generation biologics.