Biocon’s research services arm Syngene International is now India's largest contract research organization in the country and the second in Asia after the China-based WuXi AppTec in terms of retaining existing and bagging new businesses for FY 2013. Currently Syngene caters to 90 life sciences customers including 16 of the top 20 global pharma companies.
Syngene clocked robust revenues of Rs.557 crore registering a 36 per cent growth year-on-year for the fiscal 2012-13. The FY 2013 was milestone with the research services revenue crossing $100 million which reflects traction from the investments made so far across multiple platforms. Now we feel it is the right time to access the capital markets. However, we are not going to the market to just raise money but to but to unlock value of Syngene, said Kiran Mazumdar-Shaw, chairman –managing director, Biocon Limited at the FY 2013 corporate results press briefing.
The research services arm which has around 8 per cent GE Capital equity stake, gave Syngene a post money valuation of Rs.1,625 crore. It also received a capital investment of $120 million (Rs.648 crore) to embark on capital expansions in terms of major infrastructure and scientific personnel expansion.
The facility expansion will be in the Biocon Park which already houses BMS Biocon Research Centre and the Abbott Nutrition and R&D Centre.
“The strategy to expand has been to broaden our discovery and development capabilities in small molecules and biologics. This enables us to offer more integrated and value-added services to our customers. Now the growth garnered reflects a strong mix of retained and expanded clientele along with addition of new important customers across all out major platforms. The extensive nature of our scientific platforms has empowered us to look beyond mere pharma and biologicals but to serve leading companies in the nutritional, consumer health, agrochemical, food science and electronics sectors,” said Peter Bains, director, Syngene International.
“Therefore the current order book and growth momentum indicated that we are moving in the right director. From the present scientific strength of over 1,500 scientists in the research services space, Syngene is also looking to hire another 200 personnel, he added.
Biocon too has set its sight to achieve $700 million revenues in 2015 and set a $1 billion for 2018. The market share will come in form biologicals, biosimilars and branded formulations catering the Emerging Markets. It will also launch Alzumab for psoriasis a novel anto CD6 biological. Further it is targeting to file DMFs for its 20 ANDAs in the pipeline in US which would also generate the required revenues. Over and above the small molecules or active pharmaceutical ingredients like Fidaxomicin and finished dosage forms will spur further revenues . The focus will also be on brand building and market expansion, said Shaw.