Syngene International, one of the leading India-based Contract Research Organisation (CRO) and a subsidiary of Biocon Ltd, has received the Foreign Investment Promotion Board (FIPB) approval for raising the foreign investment to 44 per cent from the earlier approved 10 per cent by way of its Initial Public Offering (IPO).
Commenting on the development, Peter Bains, chief executive officer, Syngene International, said, “We are happy to receive the FIPB approval to increase the foreign investment limit in our company. Syngene supports the global pharmaceutical, biotech and life science industries; this approval will enable us to look to broaden our global investor base.”
The IPO is an offer for sale (OFS) by Biocon of a part of its shareholding in Syngene. The Biocon Group presently holds 83.6 per cent equity stake in Syngene.
Syngene reported revenues of Rs. 7,077 million for FY 2013-14 and Rs. 6,175 million for 9 month ended December 31, 2014. For the three fiscal years ended March 31, 2014, its total revenue, restated profit and EBITDA grew at compounded annual growth rates (CAGR) of 29.9 per cent, 70.5 per cent and 30.6 per cent, respectively. Its flexible business models, expertise in managing large integrated collaborations and world-class infrastructure has not only helped it renew and expand its existing client collaborations but also in attracting new clients. Syngene’s client base increased 90 per cent from 103 in FY 2012 to 195 as on December 31, 2014.
It has long term multi-disciplinary partnerships with three of the world’s leading global healthcare organisations, Bristol-Myers Squibb Co. (BMS), Abbott Laboratories (Singapore) Pte. Ltd. and Baxter International Inc. and has set up dedicated R&D Centres for each of them. The dedicated R&D Centre of BMS is its largest R&D presence in Asia with more than 400 scientists.
On January 12, 2015, Biocon Research Limited (a wholly owned subsidiary of Biocon) transferred a 10 per cent stake in Syngene to IVF Trustee Company Private Limited for a consideration of Rs. 3,800 million.
The Equity Shares are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited.
The company 900,000 sq. ft. of laboratory and manufacturing facilities situated in Bengaluru with a has a team of 2,000 scientists.