Syngene International Ltd (NSE: SYNGENE) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Nandini Agarwal — Deputy General Manager, Investor Relations
Peter Bains — Managing Director and CEO
Deepak Jain — Chief Financial Officer
Analysts:
Kunal Dhamesha — Analyst
Shyam Srinivasan — Analyst
Alankar Garude — Analyst
Chirag Dagli — Analyst
Neha Manpuria — Analyst
Manoj Bahety — Analyst
Pankaj Murarka — Analyst
Kunal Randeria — Analyst
Presentation:
operator
Ladies and Gentlemen, Good day and welcome to Syngen International’s third quarter and nine months FY 2026 financial results conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this call is being recorded.
I now hand the conference over to Ms. Nandini Agarwal. Thank you and over to you.
Nandini Agarwal — Deputy General Manager, Investor Relations
Thank you and good afternoon to everyone.
Thank you for joining us on this call to discuss Sunjin’s third quarter and nine months results for financial year 2026 to discuss the financial and business performance for the period we have on this call today, Mr. Peter Baines, Syngene’s Managing Director and CEO and Mr. Deepak Jain, our CFO. After the opening remarks, Peter and Deepak will be happy to answer any questions you may have. Before we begin, I would like to caution that comments made during this conference call today will contain certain forward looking statements and must be viewed in relation to the risk pertaining to the business.
The safe harbor clause indicated in the investor presentation also applies to this conference call. The replay of this call will be available for the next few days and the transcript will be made available.
With this. I would now turn the call to our Managing Director and CEO Mr. Peter Bates.
Peter Bains — Managing Director and CEO
Thank you Nandini. Good afternoon everybody and thank you for joining us. In today’s call.
I will begin with a brief overview and commentary of our key financials for the quarter and for the first nine months of the financial year before I move on to our operational and strategic highlights. I will then hand over to Deepak who will provide a more detailed breakdown of the financials. Let me start by addressing the numbers. For the first quarter, revenue from operations declined 3% year on year to 917 pools. Operating EBITDA for the quarter stood at 209 crores with a margin of 23% while profit after tax before exceptional items was 73.
On a nine month basis, revenue from operations increased 3% year on year to 2,702 crore. Operating EBITDA for the period was 615 full with a margin of 23% while Profit After Tax before exceptional items stood at 227. I would now like to discuss the key underlying dynamics that have shaped this performance delivery profile. The key variable impacting our third quarter performance has been the ongoing impact related to a single commercial stage product from our largest Large molecule Biologics customer. We have mentioned this impact to you previously during our interactions this evening. Outside this singular matter, our underlying business performance has shown steady progress which I will now outline.
As you know, Syngene operates across two business segments, Research services and contract development and manufacturing services and this includes both large and small molecules. Across both these segments, our underlying growth has remained steady. During the quarter, our research services business continued to secure new customers and contracts across chemistry, bio, biology, translational and clinical research platforms. In our CDMO business, we are seeing increased capacity utilization in both small molecules and large molecules as we attract new customers. Let me now draw your attention to some of the quarter’s business highlights. Firstly, I am delighted to advise of the extension of our relationship with Bristol Myers Squibb which remains our largest and we are now supporting Bristol Myers with over 700 scientists in Bangalore and our longest standing partnership now extending more than 25 years, we have extended our collaboration with BMS through to 2035 providing both partners with a strategic 10 year horizon to further develop and expand this unique long standing collaboration.
Consistent with our strategy, we are continuing to invest in strengthening our scientific capabilities and manufacturing technologies in areas that improve our ability to grow our business and to support our customers with differentiated services. During the quarter we expanded our advanced chemistry capabilities at Hyderabad with new catalytic screening and flow chemistry laboratories. These facilities allow multiple reaction conditions to be evaluated parallel improving speed, efficiency and scalability. We also commissioned a new commercial scale facility for liquid filled hard gelatin capsules, significantly enhancing our oral solid dosage plaquef. With this facility we are now better equipped to support complex oral formulations that are becoming increasingly common in modern drug pipelines.
At our Bayview Biologics facility in the United States, process and equipment validation are now complete and hiring is underway to support operations as planned. In summary and notwithstanding the single product impact I have described, our differentiated scientific capabilities, long standing client relationships and diversified business model across research services and CDMO continue to provide resilience, balance and growth. These strengths combined with disciplined investments in technology, AI and new capabilities and capacity position us well to strengthen our service proposition to our wide and growing customer base.
Thank you. A nd I will now hand over to Deepak.
Deepak Jain — Chief Financial Officer
Thank you Peter. Very good afternoon to everyone. Let me begin by discussing the third quarter performance and then I will cover nine months performance and finally the guidance before I count, before I close my commentary. First looking at revenue. Revenue from operations for the third quarter was 917 crores, a 3% year on year decline in reported terms and down 7% in constant currency. Let me elaborate on the numbers. This quarter saw steady performance in the research business led by volume improvement and discovery services. Revenue headwinds in CDMO continue to be the driving force by ongoing impact related to single commercial product from our largest large molecule biologics customer.
Now let me turn to costs. Raw material costs is at 25% of revenue in this quarter similar to the same in the last quarter. We expect full year raw material cost to be around 25%. Staff costs increased by about 8% year on year in line with the annual increase and the investments in Tamil. Other direct costs primarily comprising of power utility expenses increased 2% year on year due to the new facilities at bayview in the US and the biologics facility in Bangalore. Other expenses increased by 5% year on year due to general business expenses and automation and digital initiatives accompanied our hedge loss of 23.3 crores against a hedge gain of 1.7 exposed in the same quarter of the previous year.
Due to difference between average and spot hedge rates, revenue for the quarter was hedged around 86.9. However the average spot rate during the quarter was around 86.4. 89.4 sorry. The movement in revenue costs, revenue and cost resulted in operating EBITDA of 209 crores with a margin of 23% in the quarter versus 30% in the last. Depreciation has increased in line with our plans and primarily due to addition in capacity at biologics manufacturing and manufacturing sites in Bangalore which became operational this year. EBITDA from operations was 95 crores with margins of 10%. Reported interest expense declined by 4% as borrowing reduced in Q3 FY26 compared to the same quarter last year.
Other income declined by 16% compared to Q3 last year primarily due to one off related to interest on income taxes received last year which was not there in the current year. As you will know, the Government of India has recently notified the four labor codes consolidating the 29 existing labor laws. This resulted in an exceptional item of 58 crores net of tax due to impact of change in gratuity liability under the Labor Code. Overall profit after tax but before exceptional Items stood at 73 crores down 44% year on year. Reported debt was 15 crores down 89% year and year.
The normalized effective tax rate for the quarter was 22.8% as compared to 22.2% similar quarter last year. We expect the effective tax rate for the full year to be around in the range of 21% to 23%. In terms of capex, we continue to invest in building capabilities technologies that enable us to become an integrated solution provider for our clients. During the third quarter we invested a total capex of around $9 million. Around 50% was invested in research services primarily across capability builds including DMPK biology, ADC labs and contractual obligations in dedicated centers along with regular capex expansion.
Nearly 35% of the capex in the CDMO business including for a new commercial scale facility for liquid filled hard gelatin capsules, integration of baby facility and the modification of unit 3 remaining capex was spent on digitization, automation and towards common infrastructure. We continue to maintain a strong balance sheet optimating CAPEX spends for the quarter. We have a net cash balance of 902 crores as of 31st December 2025. Turning to the nine month performance reported revenue from operations increased by 3% year on year. Raw material cost was down by 3% driven by revenue mix and staff costs increased by 12%.
Our direct costs, primarily comprising of power utilities increased by 3% and other operating costs increased by 11%. As we continue to invest into export expansion of our facilities and capabilities including automation digitization that I spoke of earlier, operating EBITDA margin stood at 23% for the nine months of FY26 compared to 27% last year. Ad before exception item was down 22% year on year to 227 crores. Finally, let me turn now to the guidance for the year. With the ongoing single product impact in our large molecules business, we are revising our guidance. We expect to close the full year with a decline in revenue in the range of 3% to 5% with operating EBITDA margin in the range of 22 to 23%. Our capex is estimated to be around 45 million by the end of the year.
With that, let’s open it up for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from the line of Kunal Dhomesha from Macquarie. Please go ahead.
Kunal Dhamesha
Hi, thank you for the opportunity. The first question on the impact from the biologic product announced in this quarter and seen some impact in previous quarters as well. But as the year goes by you know, how do we expect the impact of this in quarter four and how are we kind of getting from the FY20 perspective? Demand comes back here. Are there other drivers which basically help us grow from within our CMO business? And also if you could provide a broad split between the CRO and CMO business this quarter, that would be helpful. Thank you.
Peter Bains
Kunal. Let me address the questions in Deepak may want to add something. Let me deal with the second one first. And that is the split between our research services and CDMO about 2/3 research services, 1/3 CDMO this quarter. That’s a slight adjustment reflecting the single product impact that we’re having. But that’s the balance that we have turning to this single biologic product. You know where we have been advising of the impact through this year, obviously we expect to see this impact continue and play itself out in the next quarters in the coming quarters. And the impact that we’re now experiencing has now been included clearly in the full year guidance. It’s not, it would be inappropriate for me to comment in any detail on the product itself with our collaboration partner. So I think that is fine far as we can guide at this point.
Kunal Dhamesha
So sorry, I just missed in between. You expect the impact to continue in the next year or are we just guiding for the next quarter as of now?
Peter Bains
Well, we expect, we expect the impact to continue in the coming quarters and then you know, it will play itself out through a coming through the coming quarters.
Kunal Dhamesha
Okay. And then any offsets that we see which can help us with the growth in the CDMO business in terms of the pipeline project?
Peter Bains
Yes, yes. Kunal and I touched on it in my opening remarks and I’m happy to expand if we strip out the impact of this single product and look at what is happening across and what is encouraging is that growth is across our division. So we take the impact out of our manufacturing platform. We are seeing increased capacity utilization both in small molecules and enlarged molecules. And we’re seeing that translate in the quarter into some growth in our research services. As we look at that across chemistry, biology, translational science and clinical, we’re also seeing growth. Now our focus is very clear to look to accelerate that growth in order to compensate for the singular issue that we’re facing with our largest large molecule customer.
And that will be the focus going forward. And our growth can be broad based. And I think this is a strength of Syngene’s model in that it has diverse capabilities across a wide range here. So looking for growth and filling up pipeline and Capacity in small molecules and large molecules and looking to accelerate the growth that we’re seeing in our research services. So very clearly that is the focal point of management going forward.
Kunal Dhamesha
Sure. And second question for Deepak. Of the 70 crore impact on the new labor code, how much of this impact we expect to see continuing in the future quarters?
Deepak Jain
You’re talking about the exceptional item.
Kunal Dhamesha
Yes, exceptional item, yeah.
Deepak Jain
So Kunal, the way it is, as you know, the labor code just got introduced. The institute has given us a guidance of, you know, taking that provision into play. The notifications are still coming out. We are looking and keeping ourselves close to it as it progresses, as it evolves. We will get to update our financials accordingly. It’s early days, but we’ve taken places. The best judgment what we have right now.
Kunal Dhamesha
Sure. Thank you. And all the best. Thank you.
operator
Thank you. Next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead.
Shyam Srinivasan
Hi. Just. Thank you for taking my question. Just the first one on the revenue splits between CRO, cdmo, if you could give us the broad percentages and also the year ago and maybe some qualitative color around. I’m assuming CRO is growing. So just some qualitative color on what’s driving that growth.
Deepak Jain
Sure. So we had 2/3. 1/3 is what Peter had called out earlier as well. That that’s the split that we have. It’s broadly the same as what we had last year as well. It was around 65, 35. So we’re kind of holding almost similar. The point, Shyam, is the fact that because of that one product impact, you know, we’ve seen a change in a bit of the business mix. But if we were to look at or strip that out, as Peter was mentioning earlier, the underlying business continues to grow and continues to grow in a steady progress. So to that extent, you know, the baseline and foundation seems strong.
Shyam Srinivasan
Deepak will be helpful because it’s. If I use how do we strip that or is there a double digit growth? Because very difficult. Right. Since you’re not sharing what that call out is.
Deepak Jain
Sure. Look, I understand that champ. So the way I would call it out is it’s high single digit, low double digits. Is that I would keep it in the ballpark.
Shyam Srinivasan
Special opportunity X. The special opportunity you’re calling out, the growth in CC terms is what, s orry?
Deepak Jain
If I was to exclude the one off product. Right. That that is impacting and giving us the headwinds. The rest of the business is growing in high single digits, low double digits in in constant currency terms.
Shyam Srinivasan
Okay, okay, that’s helpful. And, and, and you don’t want to give some color around CRO versus CDMO there. Excluding that business which has grown faster, slower.
Deepak Jain
Excluding CDMO business, excluding cdm.
Shyam Srinivasan
Including the fund. No, no, Deepak, excluding that one off. I’m just saying if you can splice the CDM also. How has the CDMO business done?
Deepak Jain
So I’m only able to give you right now, Shyam, the growth as a total business. The growth split by CDMO and CRO. I’m not at the position to say that right now.
Shyam Srinivasan
Got it. Helpful. And second question, just on the guidance. I presume this is a constant currency guidance. Right. Sorry if I’m may have missed that. The 3 to 5% decline now.
Deepak Jain
Yes.
Shyam Srinivasan
Right. Okay. So it still implies a pretty weak 4Q I would imagine. I don’t know how do we use the rupee conversion there. But it still would mean. My guess, my guess, sequential decline in quarter four. Which is not typically how it pans out historically.
Peter Bains
You know. Sorry Shyam.
Shyam Srinivasan
So I was completing deeper. I don’t know. Yeah.
Peter Bains
Shyam, we will expect the single product impact to continue in Q4 and we will be looking to offset that with the growth that we’re seeing in the rest of the business which is characterized.
Shyam Srinivasan
Got it. And just lastly again maybe since we don’t know the percentages exactly when I just punched in the 2 3rd, 1 3rd for CRO. Even CRO has shown weakness like flattish kind of growth. Yoy. So you know, I thought the narrative was CRO is improving, biotech funding improving. So just some qualitative around what, what is happening to the discovery business?
Deepak Jain
So the entire research services business that we spoke of. Right. Is growing year on year. Right. So I probably do not understand the modeling that you have. Maybe we should have a look at that. But the point remains is my research services is growing and doing well. Our investments in chemistry, biology, translation are putting us on a good steady growth path.
Shyam Srinivasan
Okay, thank you. Thank you. And all the best.
Deepak Jain
Thanks.
operator
Thank you. Take our next question from the line of Alankar Garuderi from Kotak Institutional Equities. Please go ahead.
Alankar Garude
Hi. Thank you for the opportunity and good afternoon everyone. So first question. When we had our second quarter call in November, you had mentioned mid single digit top line growth guidance and constant currency terms. And now you’re talking about a 3 to 5% decline. So just trying to understand. I mean in the last few months the funding environment has actually improved. So what exactly has driven this sharp change in the guidance for FY26.
Deepak Jain
So Anantash, as I said, you know, there’s not much of a change in the way we had our view to the business beyond that one single product. The base business and the underlying growth that we spoke about continues to remain robust. It is more than expected impact that we’re getting from the one single large molecule product that’s actually having an adverse impact into what we had guided and therefore needing for us to make that change in guidance.
Alankar Garude
So were we expecting, Deepak, any sales from this molecule in the second half which are not going to come by in 3, I mean which were not there in 3Q and will not come in fourth quarter?
Deepak Jain
We were expecting a certain quantum of volumes to come into us from the product, but it’s been slower than what we expected.
Alankar Garude
Got it. And just one clarification on that. When Peter was answering the earlier question regarding this product, I think we missed out a few things. So can you please help repeat that? I think Peter said expect impact to continue in the coming quarters. Did I hear that correctly?
Peter Bains
Yes, you heard that correctly. I mean we’ve now captured that in the year end guidance. We do expect the impact of this single product to play out in the coming quarters.
Alankar Garude
Quarters. Okay, got it. The second question is, can you comment on both the two underutilized facilities in terms of, in terms of what kind of traction you are seeing, what kind of discussions you are having, both Mangalore as Well as Unit 3 and also for the U.S. facility, is it on track to operationalize in the fourth quarter?
Peter Bains
Yes, like I’ll take that one. So in Mangalore, the small molecules facility, you know, we are seeing capacity utilization increase and translate into, into growth this quarter our pipeline is building and the ongoing products can progress there and if they progress, they can scale as well. So we’re encouraged by the steps that we’ve taken translating into this improvement in capacity utilization and growth. And obviously a management focus here will be to strengthen that. And we’re working hard, hard to build, you know, to build that pipeline and accelerate utilization in the Bangalore large molecules. Again, you know, we are seeing growth, capacity utilization is improving and again we’re looking to strengthen and accelerate that.
You know, we have installed a start of our CAPEX programs, a sterile fill finish line there that strengthens our service offering that we now move, you know, from drug substance into drug product and that will enhance our offering there. So looking to build on the early traction that we’re seeing and accelerate that. With regard to Bayview, as I said in my opening Remarks, you know, the qualification of equipment and the facility is now complete. We’re finishing with the team in order to prepare, you know, to begin operations in that, you know, in the coming months, quarter or so. So clear focus on strengthening the growth that we’re seeing by building the pipeline and advancing the assets that we have in play now.
Alankar Garude
And this one final question, if I may, a slightly hypothetical question given that you mentioned about this impact continuing in the key product for the next few quarters, our original Bangalore biologics facility also would be relatively underutilized. So when it comes to having discussions regarding both unit three as well as the original Bangalore facility, I mean, is there any preference which you have or clients have when it comes to starting new projects among either of these two facilities?
Peter Bains
So my answer to that question would be that a part of the reason in acquiring the US Facility was to give us flexibility. We wanted to put a foothold in the United States as a strategic market opportunity and retain our position here in Bangalore. And this gives us flexibility to talk to our customers about the versatility that might suit what they want to do. So we’ll definitely look to leverage that flexibility and versatility going forward.
Alankar Garude
Okay, sir, that’s it from my side. Thank you.
operator
Thank you. Next question is from the line of Chirag Dagli from DSP Mutual Fund. Please go ahead.
Chirag Dagli
Thank you for the opportunity. This single product, where are we in FY26 on a run rate basis versus a more normalized number? You did indicate at the time of signing of this contract that this was a cumulative $500 million ten year contract. I’m just assuming 50 million was a more normalized run rate for this one in FY26, where are we versus that normalized run rate for that product?
Deepak Jain
So thanks for the question. If you look at what we’ve spoken about this product, when we contracted on this product, it was a 10 year program with the potential to get to $500 million. We also did call out that in the first few years we were able to deliver better off than a typical average. And that was driven largely by the fact that it’s a new product that will need to go into the market, the pipelines on distribution will need to be filled up, etc. Now, once that happened, from the beginning of the year, we’ve been speaking about the fact that we are seeing now an inventory correction. But more importantly, if you look at the public announcements on the product, it’s also talking about a product issue as well. And therefore we do not know how it’s Panning out. I would not want to comment beyond whatever is there in the public domain. They are a listed company, they will come across, they will come out with their own use to it. But beyond that, the way we look at it is we are seeing headwinds coming in for our supply of the product to them. And right now we see that coming for a few more quarters.
Chirag Dagli
Has a wallet share in that product, remained stable for that product for the client.
Peter Bains
I mean it’s not our position to comment on the client. You know, our collaborating partner here, obviously we are talking to them. Let me be a little bit clearer. The product is labrella and our partner is the latest. What I would do is point you in the direction of their website for information on what they’re doing.
Chirag Dagli
Understood. And just on the follow on product or incremental products on that partnership, any color around that?
Peter Bains
I mean we have an open dialogue and an ongoing dialogue with our collaborator there and are exploring other opportunities and we’ll update on that as we progress and join discussions.
Chirag Dagli
Understood. And just a bit on the environment for our services business. I understand this is a lot dependent on the funding environment. Just how are you seeing that environment as we get into this calendar year?
Peter Bains
Sure. I think, and we touched on this in the last quarter that there were some signs that the venture capital funding into biotech, which has had pretty, pretty long winter, was beginning to fall. I think what we see is that trend continuing and I think there’s some signals that that’s accelerating a little bit and that’s obviously an encouraging sign. And Syngene has a strong exposure to biotech companies and that would be welcome if that continues. And that will feed into, into biotechnology companies and provide further opportunities for Syngene to collaborate to support. So I think we’re of course watching this but you know, and at present I think we see an improving trend in that regard.
Chirag Dagli
Thank you, sir.
operator
Thank you. We’ll take our next question from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Yeah, thanks for taking my question. If I were to strip out this, you know, this product, this special product, how should I think about growth for fiscal 27 for the rest of the business? Should we assume the high single digit, low double digit growth that you mentioned, constant currency accelerating to more like mid teens, high teens, would that be a fair assumption?
Deepak Jain
We typically guide towards only the years and we can right now for this year, somewhere around in April, May, time horizon is when we come and give a guidance for the coming year. And that’s the time we will speak more detail around the guidance for the coming year. It won’t be right for me to right now give any commentary or color on the guidance for FY27.
Neha Manpuria
Is there any color that we can give on probably trends improving in the rest of the business to Give confidence on 27 growth, if not formal guidance? I understand that you’d probably prefer to give that after 4th quarter either what we are seeing probably in CRO or the CDMO business to give us confidence that things could improve going into FY27 for the rest of the business.
Peter Bains
Sure. Neha, let me take that one. So as I think both Deepak and I we’ve commented in earlier questions, notwithstanding this single product impact, we are seeing growth across the wide range of the syngene model. So we’re seeing growth in manufacturing business, small molecules and large molecules and we’re seeing growth in the research. This is spanning chemistry, biology and biotherapeutics and translation and clinical science. BPAC’s given an indication of what that underlying growth looks like in high, single, low double digits. And of course that is the focus now is to accelerate that growth across all fronts and pick up on these encouraging signs of growth that we have and accelerate that and then we’ll be giving formal guidance for 2017 in our fourth quarter results. But we’re very focused on looking to build on and accelerate the growth that we’re seeing across the diverse service platforms that we have. It’s really a strength of Syngene that we have this diverse platform and of course we now have to push on that to compensate for the headwinds that we’re facing with this large single product.
Deepak Jain
If I may add, you know, we continue to invest in the business. Right? We continue to invest in capex. We’ve spoken about in the previous quarters as well and we continue to speak about in this quarter as well. Right. As we enhance our capabilities and capacities. You know, as and when the modalities and technology change, we continue to upgrade ourselves. So we continue to invest in the business, we continue have a strong balance sheet and the underlying business growth continues to remain strong.
Neha Manpuria
Thanks for that. Given the lumpiness of this asset and you invested in the Bangalore facility and now in the US facility, do we see anything in the pipeline that we have with our customers in terms of other large products that could probably reduce our dependence on this one product when it comes to revenue growth? Just reduce the dependence on on the volatility related to this product? Do you have any visibility on that coming through? Let’s say in the next 12 months. 18 months.
Peter Bains
Yes, that is very clearly a focus and our goal is to build the pipeline, translate that into capacity utilization across all our facilities, Bangalore and Beijing.
operator
Ladies and gentlemen, kindly thank you for staying on the line. So can you just repeat Neha’s answer please?
Peter Bains
Sorry, I think we may have misconnected there. Neha, if you’re there, could you repeat your question please?
operator
She’s not there. We can take, we’ll go to the next question. Okay, we’ll take a next question from the line of Manoj Bahati from Carnelian Asset Management. Please go ahead.
Manoj Bahety
Hi, good afternoon. Thanks for taking my question. So I have a couple of questions like first one is on especially on the cdmo, the way we have explained extended the capacity and done the capital allocation. So just wanted to understand what’s the plan for capacity ramp up. Is there urgency in terms of getting the capacity utilization also in place? Because when I compare peers who are in CDMO who have done the capacity addition, especially the way the opportunity is coming to India, we are seeing like significantly faster and much bigger numbers in terms of expectation of capacity utilization. And still like I’m not interested in exact numbers but in terms of the direction of the growth going forward, looking at the kind of capacity in India as well as in US where we are put in like next two, three years, are we seeing some meaningful upside or market leading growth on account of the capacity which we have put in?
Peter Bains
So Manoj, the answer is yes. I mean that’s very clearly, you know, a key priority. Has the performance in Mangalore met expectations as we discussed? Not yet, but that is what we’re working on. And as I said in my opening comments, you know, we are seeing some traction. We are seeing capacity utilization increase. That’s very encouraging. Of course we need to accelerate that. And that is what we’re working on. And we’re looking to strengthen the pipeline and the delivery and accelerate that utilization. And the same holds true for the Bangalore facility. Large molecules and again we are seeing now some early pickup in traction and utilization and growth.
And we’re going to build on that. And you know, obviously in Bayview we’re completing, you know, the formalities to get you know, that facility licensed and cleared. We’ve built the management team and we’re ongoing, you know, many dialogues to look at starting to fill that facility up. You will have also seen that we’ve appointed a new head of manufacturing, Dr. Rohdesh Kumar, who comes with an awful lot of experience both in large molecules and small molecules in Europe, in the United States and he’s relocated to here in Bangalore to lead and drive that in the next chapter of our CDMO platform. So we’re very focused on it. We’ve got early and encouraging signs and we’re strengthening the focus on accelerating that.
Manoj Bahety
Thanks for that response Peter. But still if I the way you mentioned that even if I take out this one off large product, you mentioned that there is a high single digit growth across the business which we believe that a larger portion of the group may be contributed by CRO and still CMO excluding this single large product. Still the growth visibility is not there and as investors we are not getting any direction in terms of the direction and magnitude of the growth also going forward. So help us getting at least some color on the direction and magnitude of the group going forward. That will be really answer.
Peter Bains
Sure. I mean I understand the question Manoj, I understand, you know that your expression of frustration at this point we can’t give any quantitative guidance on that. You know, when we come to the full year, you know, we’ll have a clearer picture. I can only emphasize that, you know we believe these 15 facilities will have high potential. The capacities are there, the capabilities and technologies are good under new leadership and with the amplified focus. Plus I think very clearly some of the early and encouraging signs that we’re seeing that I’ve discussed, we’re looking to accelerate that quite clearly to fill the capacities which have substantial potential to drive revenue going forward.
Manoj Bahety
Got it. Now my second question is on the CRO side like looking at the improving environment on the bio type funding. We were expecting that CRO will also start coming back to faster pace of the growth. But looking at your overall number, that thing is still not visible. Is there something which is still preventing at a macro level the faster pace of growth or we as an organization are growing slower with service our peak. How do you read this?
Peter Bains
So I think the macro environment is broadly favorable. I mean I think we’ve spoken about encouraging signs of return on venture capital into biotech the mid and long term the trends are continued outsourcing by big pharma of discovery services and I think Sinjin’s platform is well placed to capitalize on that and investments that we’ve made in chemistry that I spoke about, you know we looking to build out in biology, not just in discovery biology but leverage. You know what we think is you know, platform capabilities and differentiated platform capabilities in India on biotherapeutics and certainly in translational sciences and in clinical trials.
You know, we’re seeing again in both of those areas those encouraging early signs. And you know, one of those we touched on last quarter was the award of our first global, global clinical trial recruiting here in India and in the United States. And that continues to make progress. But there are timelines here. So in this quarter, you know, we’ve received the expert committee approvals to go forward and we’ll be now looking at site selection and patient recruitment. But these things do have a timeline before they can really accelerate. Again, our focus will be on leveraging the diverse capabilities that we have in chemistry and we spoke about those investments in biology and in translational clinical sciences and look to accelerate the growth that we have, which Deepaks advise underlying, you know, is in that high single digit, you know, low double digit. And of course that’s, you know, for us to build that, you know, and accelerate that further.
Manoj Bahety
Got it. And one last question I do have. So what’s the internal plan to mitigate the risk on this single large molecule? Like you have highlighted that earlier it was inventory correction which the customer was taking on. Also there are some product specific issues. So internally how we are preparing ourselves to mitigate the impact of this going forward. And secondly, how long the impact will be there on Syngene of this single large molecule? Can we expect that by fourth quarter it will be over or you believe that it will continue for, for next few quarters?
Peter Bains
So as I think we covered in some earlier questions in terms of how long do we see this impact lasting? We see this playing out over the next few quarters. You know, it’s clearly going to play into Q4 and it will play in, I think into the, you know, couple of quarters in 27 before it plays out. Now, you know how long and where it goes. That is not for us to comment on, as I said, I mean this is a product from, you know, a key collaborator of ours, Otis. And again, I would encourage you to look at their website, you know, and take guidance from them on how they see this product moving forward. In terms of.
Manoj Bahety
My question was how Syngene is planning to mitigate the impact of this.
Peter Bains
Sure, I’m coming to that, Manoj. I’m coming to that. So on the second question in terms of mitigation, I mean, it’s very clear that what Syngene is looking to do is to build a wide and diversified business across the platforms and build more large relationships. I mean, I think that this product was launched, it had very high success at launch and of course it’s run into the headwinds that it’s run into and that impact has significantly affected our numbers, as you can see, and reflects that exposure to a single large business. We’re working to diversify our business both across our platforms and in terms of building more large relationships so that exposure to these types of single product events would be minimized. And that is another focus of how we’re looking to build our business going forward.
Manoj Bahety
Thanks. Thanks for taking my questions.
operator
Thank you. We’ll take our next question from the line of Pankaj Murarka from Renaissance Investment Managers. Please go ahead.
Pankaj Murarka
Yeah. Hi. Good afternoon gentlemen. Peter, you answered some of my questions, but I still want one to get your take on it’s been now I presume it’s been about six or seven months since you’ve been back into the saddle. So did some of the existing state of affairs or state at which the business was when you assume charge, did it surprise you? Point number one? Point number two, while you outline the initiatives you’ve taken and you continue to make strategic investments keeping the long term interest in the business and since you’re not guiding for next year and as shareholders we want to take a slightly more medium term or a longer term view on the business, can you qualitatively comment when do you think the business will get back to growth trajectory on the aggregate basis? Because while I understand that some part of the business is growing, but still as shareholders we are not buying parts of business and I still not able to understand Deepak, your comment that when you’re saying the rest of the business is growing at high single digit, how do you call it, a strong growth, I’m still not able to connect that qualitative comment to the underlying growth in the business.
So, I would appreciate, since you’re not quantifying or giving guidance if you could clarify on some of these qualitative comments and comments and some question quality comments on the questions I’m asking.
Peter Bains
Sure. Thank you. Thank you. So let me address the first part of your question about how I’m seeing the business having come back into it. I think the first thing to say is, you know, the extent of the single product headwind has been a one off and was not expected at the time of launch. The launch was successful. So it has happened and we obviously have to deal with it and how we’re dealing with it is obviously looking to accelerate the growth in the rest of the business which I’ve sort of characterized in the near term.
Now looking at a midterm perspective that you draw on, I think Prospects are very good. I think the market is looking as if very clear market opportunities. We see the trend in outsourcing of R and D continuing. I mean it. And that provides the sort of basic framework for us as a contract service provider in R and D. And we also see the trend in manufacturing outsourcing continue. Of course, geopolitics is shifting some of the balances there, particularly in the United States and in large molecules. Strategic acquisition of the Bayview site will play into that opportunity.
Syngene’s capabilities I think remain fundamentally very, very strong. I mean I think our research services and our capability offerings and our differentiated service propositions in chemistry are very strong and in biology are very strong. And now including biotherapeutics where I think we’re highly differentiated in and in translational clinical sciences, I think this is a rising tide in India with a very large patient population pool. And I think it’s tremendous opportunity for Syngene to strengthen its position in translational sciences and to strengthen its position in clinical trials. And we’re seeing the early signs of very positive traction there.
So we’ve got to get over this, the issue that we’re dealing with with this single product, like I said, I think that will play out in the next few quarters. The underlying business, you know, is sound and the growth rates as Deepaks described and obviously we want to accelerate those and get them higher and that’s what we’re looking to build. And we’ll give guidance on 27 at the end of this fiscal year. Give some range there but I’m optimistic. Thank you. I think Syngene is well placed, needs to get over this single product issue that’s dragging us down and we need to accelerate on the other elements of what is a very strong and diverse platform.
Syngene is a long standing company. It’s built some of the most remarkable relationships in the industry. We touched on one in the fall, the Bristol Myers relationship. And we will look to be building more diverse businesses and across the board we’ll of course be looking to build bigger and longer term relationships so that our business is more robust against single point explosions which we’re facing today.
operator
Pankaj sir.
Pankaj Murarka
Thank you.
operator
Does that answer your question?
Pankaj Murarka
Yeah, it does. Thank you.
operator
We’ll take a last question from the line of Kunal Randaria from Access Capital. Please go ahead.
Kunal Randeria
Hi, good afternoon. Thanks for the opportunity. So your customer of this one mask product has got approvals for a new molecule in various geographies in the last few months. So do you expect to partner them in supplying this product because it’s for the same indication for the same, you know, for the dog injection and so on. So would you be a partnering them?
Peter Bains
We’re working with our collaborating partner on that. Let me update you at the full year position. We have a very good channel dialogue with our collaboration partners exploring a number of opportunities and we are very.
Kunal Randeria
I understand but in case let’s say these deals do 55, then do you think this can compensate for the loss of the current product?
Peter Bains
I think that’s very hard to say, you know, and directional this product, you know, Deepak described the high level contours of expectation there of this product over 10 years on the 50 million per year and obviously the early bullish success pushed those numbers higher, which has meant that, you know, in addressing the challenges there, obviously the gap that we have faced with is high and that is the single biggest issue that we’re dealing with. I can’t comment as to say whether anything else is going to make that all up in one go, but we are very, very focused, as I described, on doubling down, strengthening and accelerating, encouraging early signs that we’re seeing in small molecules, large molecules and across our discovery service to build that more diverse and broader business mix so that we have a very, very strong position. That’s where we are.
Kunal Randeria
Sure. Thank you and all the best.
Peter Bains
Thank you, Gil.
operator
Thank you. Ladies and gentlemen, as that was the last question for today, you can get in touch with singhjeen team for any further questions. On behalf of Syngen International, that concludes this conference, thank you for joining us. And you may now disconnect your lines.