Syngene lines up $200 million capex to boost manufacturing
New Delhi : Biocon's contract research arm Syngene International has lined up $200 million (around Rs 1,342 crore) capex to bolster its manufacturing capabilities over the next three years.
The company plans to invest $100 million (around Rs 665.27 crore) in a greenfield facility at Mangalore, the first phase of which would be operationalised by financial year 2018-19.
Besides, it has also earmarked another $100 million to create additional infrastructure at its existing facility at Bangalore.
"We have acquired a site at Mangalore. We plan to come up with a manufacturing base there in line with long term strategy of the company. The unit, when functional, would support our existing Bangalore complex," Syngene International Ltd CEO Jonathan Hunt told reporters during a conference call.
The first phase of the facility is expected to be completed by 2018-19, he added.
Syngene offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology and toxicology.
The company had reported a 28.32 per cent rise in standalone net profit to Rs 59.8 crore for the quarter ended on June 30, 2016.
When asked about the product pipeline, Hunt said the company has a "healthy high single digit" product pipeline which is in various stages of development."
In 2015-16, Syngene serviced 256 clients including 8 of the top 10 global pharma companies.
Shares of Syngene International were trading 0.65 per cent up at Rs 430.55 apiece on BSE.