Shares of Biocon research arm soars as it reports 23% rise in its revenue

Syngene International reported a 5.5% rise in consolidated net profit to INR 109.70 crore in Q3 FY23 as against INR104 crore posted in Q3 FY22. Revenue from operations jumped 22.5% to INR 785.90 crore in the quarter ended 31 December 2022 as compared to INR 641.40 crore recorded in Q3 FY22.

Profit before tax stood at INR 139.90 crore in Q3 FY23, up 9% from INR 128.40 crore reported in the same period last year. Reported EBITDA increased by 15% to INR 248 crore in Q3 FY23 as against INR 216 crore posted in Q3 FY22. EBITDA margin reduced to 30.9% as compared to 33.1% registered in the corresponding quarter a year ago.

Syngene said that the third quarter results reflect positive performances across all divisions. The firm’s research divisions, discovery services and the dedicated centres, delivered solid results. Development Services benefitted from repeat orders from existing clients and a growing number of collaborations with emerging biopharma companies.

In Manufacturing Services, the company successfully completed the US Food and Drug Administration (US FDA), European Medicines Agency (EMA) and Medicines and Healthcare products Regulatory Agency (MHRA) regulatory audits for its biologics manufacturing facility. With the Good Manufacturing Practice (cGMP) certifications from the regulatory agencies in place, the company is on track to execute manufacturing of drug substance at a commercial scale and progress its Biologics manufacturing services growth strategy.

Jonathan Hunt, managing director and chief executive officer of Syngene International, said, We continue to see good demand in the main client markets of US and Europe which – combined with strong execution and forward planning – has helped us deliver solid revenue growth in the third quarter. Based on our strong performance to date, we are confident of meeting the upgraded annual revenue growth guidance of high teens.

Sibaji Biswas, chief financial officer of Syngene International, said, Overall financial performance for the nine months ending 31 December 2022 was in line with our upgraded guidance and, with strong underlying revenue growth and stable margin delivery, we are on track to achieve our guidance for the year. In line with the global trend, we are also facing inflationary pressures, but we have been largely successful in navigating such issues to date and we remain confident about the positive future potential for our business.

Syngene International is an integrated research, development and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods and specialty chemical sectors.