Syngene Acquires Biologics Manufacturing Facility from Stelis Biopharma

The transaction became effective on December 1, 2023, with an initial payment of INR 395 Cr. The remaining amount, will be disbursed in December 2023 upon the completion of certain post-closing actions by Stelis Biopharma Ltd.

Syngene International, a Bengaluru-based biopharmaceutical company, has acquired a multi-modal biologics manufacturing facility from Stelis Biopharma Ltd, a Bengaluru-based pharmaceutical company.

The acquisition, known as 'Unit 3,' was finalised at a revised gross value of INR 617 Cr, following adjustments from the initially stated INR 702 Cr. 

This revision accounts for the retention of specific equipment not currently installed in the facility by Stelis Biopharma Ltd.

The acquired facility is set to augment Syngene's capabilities with an additional 20,000 litres of installed biologics drug substance manufacturing capacity. 

Notably, it includes a commercial-scale, high-speed fill-finish unit, a crucial component for drug product manufacturing.

The transaction became effective on December 1, 2023, with an initial payment of INR 395 Cr. The remaining amount, subject to final adjustments, will be disbursed in December 2023 upon the completion of certain post-closing actions by Stelis Biopharma Ltd.

Founded in 1993, Syngene International operates as an integrated research, development, and manufacturing services company, catering to global pharmaceuticals, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors. 

With over 6000 scientists, the company claims to be a reliable partner for expedited and cost-effective solutions.

It is interesting to note here that, Syngene International has been expanding its presence, notably in Genome Valley, Hyderabad, with a total investment of INR 788 Cr. 

The facility, spanning 17.5 acres, features state-of-the-art R&D labs and manufacturing facilities.

In a parallel development, Blackstone, a New York-based investment firm, has entered the Indian healthcare sector through its private equity funds. The firm acquired a majority shareholding in CARE Hospitals from Evercare, a platform of TPG RISE funds.

As part of this broader transaction, CARE Hospitals has inked an agreement to acquire a majority stake in KIMSHEALTH. True North, previously holding a significant stake in KIMSHEALTH India, has completely divested its interest as part of this transaction.