Latest news with #Syngene
Mint
5 days ago
- Business
- Mint
Syngene International share price gains 2% despite weak Indian stock markets: Should you buy or sell the stock?
Stock Market Today: Syngene International gained more than 2% in the intraday trades on Friday despite weak Indian stock markets. Should you buy or sell? Syngene International had reported Q1 results on Wednesday. The Q1 performance marked a decent start to the new financial year 2026. The adjusted reported net profit at ₹ 87 crore increased 59% year-on-year compared to ₹ 54 crore in the year-ago quarter (excluding the exceptional item of ₹ 21 crore (net of tax) in Q1 FY25 relating to the final settlement from an insurance claim). The revenue from operations was up 11% year-on-year to Rs. 875 crore, while the reported EBITDA was up by 19% year-on-year, with the reported EBITDA margin at 25%. Peter Bains, Managing Director and CEO of Syngene International, said that he expects the momentum to continue and expects to meet the annual guidance. The primary driver of this momentum was the continued conversion of pilot programs into longer-term contracts within the Research Services division, as per Bains. In our Biologics manufacturing division, the Unit III facility in Bengaluru has received the USFDA clearance, while the Bayview facility in the U.S. is expected to commence operations in the second half of FY26. While Bains said that he remains mindful of ongoing macroeconomic factors, we maintain a confident outlook. The company, being primarily into services, may see a lesser impact of proposed tariffs. Jefferies India Pvt Ltd, after Q1 results, has said that Syngene's 1QFY26 earnings beat their estimates as inventory adjustment is set to kick in from the second or third quarter. The start of the US biologics facility in the second half, as per Jefferies, is to keep margins under check. Further management as per Jefferies has reiterated FY26 guidance despite the strong Q1, indicating near-term headwinds. Further In the past few quarters, Syngene has made senior hires at overseas pharma hubs to strengthen its business development efforts; however, Jefferies expects benefits to be realized only from FY27/28. After a sharp 37.5% decline over 103 days, Syngene has been consolidating in a tight box for the past 66 sessions, signaling a pause before its next move. The current session is showing strong momentum and could be a precursor to a breakout, said ANSHUL JAIN, Head of Research at LAKSHMISHREE A sustained move above 690 will confirm the breakout and likely lead to a sharp bounce. The immediate target lies near the 50% Fibonacci retracement level of the previous fall, placed around 775. Traders should watch for volume confirmation to ride the breakout with conviction, said Jain Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
7 days ago
- Business
- Business Standard
Syngene Q1 PAT up 59% to ₹87 crore, operational revenue rises 11%
Biocon arm Syngene International's consolidated net profit rose to Rs 87 crore, up 59 per cent year-on-year (Y-o-Y) in the first quarter of the financial year 2026 (Q1 FY26) ended June 30, according to a company statement. Revenue from operations grew 11 per cent Y-o-Y to Rs 875 crore. The performance was driven by continued conversion of pilot programmes into long-term contracts within the Research Services business. The Q1 FY25 profit after tax (PAT) excludes an exceptional item of Rs 21 crore (net of tax) relating to a final settlement from an insurance claim. The reported revenue stood at Rs 892 crore in Q1 FY26, up 10 per cent. The company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at Rs 224 crore—a 19 per cent increase—driven by revenue growth and cost optimisation. The EBITDA margin stood at 25 per cent. Bains added that Syngene continues to strengthen and expand its scientific platform capabilities, including the launch of a state-of-the-art, dedicated peptide laboratory, while remaining mindful of ongoing macroeconomic factors. Syngene has appointed Chethan Yogesh as the secretary and compliance officer of the company with effect from July 23. Yogesh was previously associated with technology firms including Wipro and IBM. The company also completed a USFDA GCP inspection of its Human Pharmacology Unit with no observations and received a favourable Voluntary Action Indicated (VAI) outcome for its Biologics facility. Syngene noted that over 20 client and regulatory audits in Q1 FY26 reinforced its global quality standards. Deepak Jain, chief financial officer, Syngene International Limited, said: 'The current quarter's PAT includes a tax benefit arising from transfer of gratuity funds to the Employee Gratuity Trust. We continue to maintain a robust balance sheet enabling us to invest in technology and capabilities to strengthen our customer offerings. While keeping a close watch on market trends, we remain on course to deliver in line with our stated guidance for the year.' Syngene announced its results after market close on Wednesday. During the session, the company's shares were up 0.50 per cent at Rs 679.65 apiece on the BSE.
India Gazette
27-06-2025
- Business
- India Gazette
Indian CRDMOs benefiting from diversification by global pharmaceutical companies: Jefferies
New Delhi [India], June 27 (ANI): Indian CRDMOs (Contract Research and Development and Manufacturing Organizations) are seeing growing interest from global pharmaceutical companies, according to a recent report by Jefferies. The report highlighted that Big Pharma companies are increasingly diversifying their manufacturing and research operations geographically, and Indian companies with expertise in small molecule development are well placed to benefit. It said 'Big Pharma is diversifying geographically, benefiting Indian CRDMOs with small molecule expertise'. The report highlighted some major pharma companies (Including Piramal Pharma, Syngene, Laurus Labs, Cohance, Gland Pharma). The report said that these companies highlighted that many of the ongoing projects are still in the clinical stages, so growth may be uneven. There is also a rising demand for antibody-drug conjugate (ADC)-related CDMO services, and Indian companies are exploring opportunities in that space. The report also mentioned that GLP-1, a class of diabetes and obesity drugs, could become an important growth driver for generic CMOs from 2026. Piramal Pharma is targeting 13-15 per cent CAGR in sales over the next 4-5 years in its India consumer health and complex hospital generics businesses. While the company expects subdued sales from its largest CDMO product in FY26 due to destocking, overall segment revenue is likely to remain flat due to better utilisation at overseas facilities and a recovery expected in FY27. Syngene's growth in FY26 is expected to be in the mid-single digits, mainly due to destocking of Librela, its largest product. The company expects growth to pick up to low double digits after that. Its new management, led by Peter Bains, is focusing on growth and acquiring US biologics capacities. However, the overseas unit will have lower margins and may take time to break even. Laurus is currently handling seven active projects from global pharma clients, which account for 50-60 per cent of its new projects in the past two years. About 70-80 per cent of the company's CDMO division sales come from commercial molecules. Many of the ongoing projects involve breakthrough therapies that typically have lower failure rates. The company has invested Rs 4 billion in animal health and Rs 1.5 billion in AgChem, with another Rs 1 billion planned for animal health. It aims to achieve peak sales of 1.5 times the capex from these investments by FY28-29. Cohance is recovering from the impact of destocking that affected its AgChem and SpecChem business over the past 18 months. The company is planning to launch a new product in the third quarter of FY26 and bring in new customers in the division. Gland Pharma is expanding its GLP-1 cartridge fill-finish capacity from 40 million to 140 million units by the end of next year. The company's new bulk line will be flexible for use across both GLP-1 and insulin products. The report outlined that while near-term growth may be uneven due to destocking, most companies expect a strong rebound and long-term momentum. (ANI)
India Gazette
25-06-2025
- Business
- India Gazette
China+1 strategy gains momentum in pharma, but full monetisation still 2-3 years away: Goldman Sachs
New Delhi [India], June 25 (ANI): Indian pharmaceutical and biotech sectors have started witnessing tangible benefits from the global shift away from China, as early signs of the China+1 strategy materialising emerge, according to a recent Goldman Sachs report. Some pharmaceutical and biotech companies report that they have started witnessing the conversion of earlier enquiries and Requests for Quotations (RFQs) into pilot projects and small contracts. The 'China Plus One' strategy is a business technique in which corporations diversify their manufacturing and supply chains by expanding into countries other than China while still keeping a presence in China. The report was prepared based on the outcome of the '2nd annual India CRO/CDMO trip' event in Bangalore and Hyderabad. The credit rating firm, in its equity report, added that Indian companies witnessed a major uptick in RFQs from global clients looking to diversify supply chains away from China. While these developments indicate progress, the report also noted that large-scale financial gains from these shifts will take time, possibly a three- to five-years. 'After seeing a significant influx of enquiries/ RFQs over the past 1-1.5 years, management of some companies like Syngene, Neuland, Divi's, etc. have now started highlighting instances of conversion of RFQs to pilot projects/contracts, although large financial benefits will still take time to materialise,' the report added. The report further added, 'We expect the geographic supply chain diversification theme to play out over a 3-5 year period, if not more.' The report also speaks about BIOSECURE Act of the United States, an evolving policy which directs to reduce American dependence on Chinese biotech suppliers. 'While investor discussion around the BIOSECURE Act is relatively light as there have been limited updates on this topic, most corporates acknowledged that their clients are actively building strategies to reduce their dependence on China,' Goldman Sachs added in the report. Interestingly, the report observes that this trend is being led by large pharmaceutical and biotech companies, which are more willing and able to bear the switching costs involved. Contrary to the big players, smaller companies, in the US and Europe, are still hesitant due to funding constraints and the capital-intensive nature of moving suppliers. While there is little immediate investor focus on the act due to limited updates, corporates across the sector confirmed that their clients are proactively preparing for a post-China sourcing strategy. (ANI)
Mint
25-06-2025
- Business
- Mint
China 1 strategy gains momentum in pharma, but full monetisation still 2-3 years away: Goldman Sachs
New Delhi [India], : Indian pharmaceutical and biotech sectors have started witnessing tangible benefits from the global shift away from China, as early signs of the China 1 strategy materialising emerge, according to a recent Goldman Sachs report. Some pharmaceutical and biotech companies report that they have started witnessing the conversion of earlier enquiries and Requests for Quotations into pilot projects and small contracts. The 'China Plus One' strategy is a business technique in which corporations diversify their manufacturing and supply chains by expanding into countries other than China while still keeping a presence in China. The report was prepared based on the outcome of the '2nd annual India CRO/CDMO trip' event in Bengaluru and Hyderabad. The credit rating firm, in its equity report, added that Indian companies witnessed a major uptick in RFQs from global clients looking to diversify supply chains away from China. While these developments indicate progress, the report also noted that large-scale financial gains from these shifts will take time, possibly a three- to five-years. "After seeing a significant influx of enquiries/ RFQs over the past 1-1.5 years, management of some companies like Syngene, Neuland, Divi's, etc. have now started highlighting instances of conversion of RFQs to pilot projects/contracts, although large financial benefits will still take time to materialise," the report added. The report further added, "We expect the geographic supply chain diversification theme to play out over a 3-5 year period, if not more." The report also speaks about BIOSECURE Act of the United States, an evolving policy which directs to reduce American dependence on Chinese biotech suppliers. "While investor discussion around the BIOSECURE Act is relatively light as there have been limited updates on this topic, most corporates acknowledged that their clients are actively building strategies to reduce their dependence on China," Goldman Sachs added in the report. Interestingly, the report observes that this trend is being led by large pharmaceutical and biotech companies, which are more willing and able to bear the switching costs involved. Contrary to the big players, smaller companies, in the US and Europe, are still hesitant due to funding constraints and the capital-intensive nature of moving suppliers. While there is little immediate investor focus on the act due to limited updates, corporates across the sector confirmed that their clients are proactively preparing for a post-China sourcing strategy.
