Latest news with #Syngene
Mint
19-05-2025
- Business
- Mint
How Donald Trump's executive order on drug prices could hit Indian research companies
Indian pharma companies that provide research services could take a hit from US President Donald Trump's executive order on cutting prices of prescription drugs, analysts told Mint. The order, which calls for a policy under which the US would pay the 'most-favoured-nation' price – essentially the lowest price that other comparable countries pay for certain drugs – is expected to hit innovator companies rather than those that make cheap generic drugs. Innovators will look at ways to reduce costs, so the amount they spend on research may drop, the analysts said. 'If you look at a contract research organisations… they would be impacted first. Because if you're cutting the prices by nearly 30 to 80% for innovators, there's less incentive for them to put in most of the capex on these high-end products," said Tausif Shaikh, lead pharma analyst at BNP Paribas. Contract research organisations (CROs) offer research services to pharmaceutical and biotech companies looking to outsource parts of their clinical trials and development. Also read: Trump's drug price crackdown, like his trade war, could be more bark than bite 'Such an executive order could dramatically reshape the US pharmaceutical industry and severely impact the US biotech sector," analysts at JM Financial Institutional Securities said in a note on 12 May. 'CRO revenues are likely to decline as R&D spending is expected to drop immediately," they noted. Funding for biotechs in the US has already been uneven for the past few years, and Trump's cuts targeted at the National Institute of Health (NIH) have further raised concerns. Muted guidance Companies such as Syngene and Piramal Pharma, which offer research and on-patent discovery services, have already guided for muted single-digit growth in these businesses for FY26. Deepak Jain, CFO, Syngene, told investors in a post-earnings call on 24 April, 'We expect FY26 to be a transient year with uncertain short-term macro environment building in the recovery of biotech funding, big pharma restructuring and tempering of urgency on the Biosecure Act… Our underlying business growth remains strong, with revenue growth in the early teens, driven by performance across research and CDMO (contract development and manufacturing organisation) businesses." Also read: This Indian pharma company is immune to Trump's new policy. Here's why Piramal Pharma expects muted growth for its CDMO business in FY26 – despite an increase in requests for proposals (RFPs) as well as good growth in its innovation-related on-patent work – on account of prolonged decision-making timelines from customers. However, the firm expects a quick recovery in FY27, chairperson Nandini Piramal told Mint in a post-earnings interview last week. Will manufacturers benefit? India's CDMO sector has been one to watch, as it expects huge growth with companies looking to diversify supply chains beyond China. According to a BCG report, the market is expected to double from $7 billion to $14 billion by 2028, accounting for 4-5% of the global market. CDMOs, which offer manufacturing services, may not see a sizable immediate impact from the executive order, JM Financial analysts noted. 'In fact, they could benefit from incremental orders as companies look to reduce costs…Major US pharma companies aiming to cut manufacturing costs won't be able to shift production to the US. Instead, they would have to rely more heavily on CDMO players to manage costs," they said. 'It remains to be seen how Trump's administration plans to achieve these conflicting objectives during its tenure," the analysts added. 'Too early to speculate' Industry executives are keeping a cautious eye on the developments but believe it is too early to speculate. 'We don't know how this is going to pan out for the innovators to reduce costs," said Swapnil Shah, managing director of Senores Pharmaceuticals, which has a CDMO presence in the US. 'Once that is in place, maybe we can comment on [this]... if they would like to reduce that cost and depend on third-party players to work for them," Shah said. Also read | Mint Explainer: Why Indian pharma is spooked by Trump's latest drug policy While there is a possibility that CDMOs will see some incremental benefits in the future, this isn't likely in the near term, Shaikh said. 'At this point of time, it seems very unlikely that innovators would look for [CDMOs] to manufacture their existing set of products," Shaikh said, adding that it takes 12-18 months to shift manufacturing. 'It could be the case that if they have some new launches in their pipeline, they could go to CMOs," Shaikh added. There is also scepticism over whether Trump's order will go through, and how it will be implemented. A report by Associated Press on 12 May noted that the order would likely only affect certain drugs covered by Medicare and given in an office, in which case its impact would be very limited. Trump's to implement a similar order for select drugs during his previous term was blocked.
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Business Standard
08-05-2025
- Business
- Business Standard
Biocon Q4FY25 results: Consolidated net profit rises 153% to ₹344 crore
Bengaluru-based biopharma major Biocon on Thursday reported a 153 per cent year-on-year (YoY) rise in consolidated net profit to ₹344 crore for the fourth quarter of FY25, compared to ₹ 136 crore in Q4 FY24. The company's profit before tax (PBT) stood at ₹487 crore, up 53 per cent YoY. The Board has also approved a plan to raise up to ₹4,500 crore through various modes, including qualified institutional placement, rights issue, or other permissible routes. The growth was attributed to robust performance across the company's generics, biologics, and research services businesses. Biocon's total consolidated revenue for Q4 FY25 was ₹4,454 crore, up from ₹ 3,966 crore in Q4 FY24. EBITDA stood at ₹1,115 crore, marking a 16 per cent rise, with a maintained margin of 25 per cent. For the full financial year FY25, revenue from operations grew 9 per cent to ₹11,537.8 crore, compared to ₹ 10,588 crore in FY24. However, net profit for the year declined marginally by 0.9 per cent to ₹1,013.3 crore from ₹1,022.5 crore. The generics business, which includes active pharmaceutical ingredients (APIs) and generic formulations, posted a 46 per cent YoY revenue increase to ₹1,048 crore. Syngene, Biocon's research arm, recorded an 11 per cent growth in revenue to ₹1,018 crore. Biocon Biologics, the company's biosimilars segment, reported 9 per cent revenue growth to ₹2,463 crore. 'The launch of Liraglutide in the UK marked our entry into the GLP-1 therapy segment. Our biosimilars continue to build global market share, with four biosimilars generating over $200 million in FY25. This quarter also saw Syngene expand its biologics manufacturing footprint through the acquisition of a US facility,' said Kiran Mazumdar-Shaw, Chairperson, Biocon Group. Siddharth Mittal, CEO and Managing Director of Biocon, attributed the generics division's growth to new launches such as Lenalidomide and Dasatinib in the US, supported by moderate growth in APIs. 'We are focused on strategically expanding our differentiated GLP-1 portfolio into new markets, positioning us for long-term growth. We also expect a recovery in the API business in FY26, aided by cost improvements, operational efficiencies, and new capacity additions,' he said. Shreehas Tambe, CEO and Managing Director of Biocon Biologics, said performance was driven by market share gains in the US and key tender wins in emerging markets. 'We are well positioned to launch five new products in the next 12–18 months and expand patient access,' he added. Peter Bains, CEO and Managing Director of Syngene International, noted that Q4 revenue grew 11 per cent YoY and 8 per cent sequentially, crossing ₹1,000 crore in quarterly revenue for the first time. 'While global market dynamics remain uncertain, the positive momentum that drove Syngene's growth in the latter half of FY25 is expected to continue into FY26,' he said. The Board has recommended a final dividend of ₹0.50 per share (10 per cent of face value) for the financial year ended 31 March 2025. Biocon also secured 12 regulatory approvals and made several filings for biosimilars including bUstekinumab, bDenosumab, and bAflibercept across multiple countries, aiming to expand patient access globally. The Q4 results were announced after market hours. Biocon shares closed 3 per cent lower at ₹334.60 apiece on Thursday.
Business Upturn
08-05-2025
- Business
- Business Upturn
Biocon Q4FY25 results: Net profit jumps 153% YoY to Rs 344 crore; revenue rises 12% to Rs 4,454 crore
By News Desk Published on May 8, 2025, 19:50 IST Biocon Limited reported a strong financial performance for the quarter and financial year ended March 31, 2025. For Q4FY25, consolidated revenue came in at Rs 4,454 crore, marking a 12% year-on-year (YoY) increase. On a like-for-like basis, the revenue grew 15% YoY after adjusting for revenues from Branded Formulations India (BFI). EBITDA rose 16% YoY to Rs 1,115 crore with an EBITDA margin of 25%. Core EBITDA, excluding R&D and other adjustments, came in at Rs 1,363 crore with a margin of 31%. The company posted a net profit of Rs 344 crore in Q4FY25, a significant 153% YoY jump. On a like-for-like basis, the net profit rose 162% YoY. Profit before tax (PBT) surged 53% YoY to Rs 487 crore. Segmental performance Generics : Revenue rose 46% YoY to Rs 1,048 crore, driven by strong contributions from Lenalidomide and Dasatinib launches in the U.S. : Revenue rose 46% YoY to Rs 1,048 crore, driven by strong contributions from Lenalidomide and Dasatinib launches in the U.S. Biosimilars : Revenue increased 4% YoY to Rs 2,463 crore. On an adjusted basis, it rose 9% YoY. : Revenue increased 4% YoY to Rs 2,463 crore. On an adjusted basis, it rose 9% YoY. Research Services (Syngene): Revenue climbed 11% YoY to Rs 1,018 crore. Full-year FY25 highlights For the full year, Biocon reported: Total revenue : Rs 16,470 crore, up 5% YoY (8% like-for-like) : Rs 16,470 crore, up 5% YoY (8% like-for-like) EBITDA : Rs 4,374 crore, up 5% YoY : Rs 4,374 crore, up 5% YoY Net profit: Rs 1,013 crore, down 1% YoY; however, like-for-like net profit increased 30% Dividend and capital plans The Board recommended a final dividend of Rs 0.50 per share. Additionally, it approved raising up to Rs 4,500 crore through various financial instruments for debt repayment and strategic investments. Strategic developments Biocon Biologics launched its fifth biosimilar, Yesintek (bUstekinumab), in the U.S. and Germany, and secured a U.S. market entry for Yesafili (bAflibercept). The company also partnered with Civica Inc. to increase access to insulins. Syngene crossed Rs 1,000 crore in quarterly revenue for the first time and acquired a biologics manufacturing facility in the U.S., expanding its CDMO capabilities. Biocon has also initiated an evaluation of a potential merger between Biocon Limited and Biocon Biologics. Sustainability Biocon and Biocon Biologics were both included in the S&P Global Sustainability Yearbook 2025, with Biocon ranked among the top 5% in the Biotechnology sector. News desk at
Business Standard
24-04-2025
- Business
- Business Standard
Syngene slides on tepid results and toned-down forecast
Syngene International dropped 12.83% to Rs 653.85 after its lacklustre Q4 performance and a cautious FY26 outlook spooked investors. On a consolidated basis, net profit of Syngene International declined 2.81% to Rs 183.30 crore while net sales rose 11.03% to Rs 1018 crore in Q4 March 2025 over Q4 March 2024. Reported EBITDA rose 9% year-on-year to Rs 363 crore in Q4 March 2025. EBITDA margin (%) stood at 35% in Q4FY25, lower than 35.7% in Q4FY24. For the full year, net profit declined 2.71% to Rs 496.20 crore while net sales rose 4.41% to Rs 3642.40 crore in the year ended March 2025 over the year ended March 2024. Reported EBITDA rose 1% year-on-year to Rs 1,114 crore in FY25. EBITDA margin (%) stood at 30% in FY25, lower than 30.9% in FY24. In its outlook for FY26, the Syngene management anticipates the reported revenue growth will likely be in the mid-single digits. They also foresee the EBITDA margin moderating from current levels to the mid-twenties and a year-on-year decline in profit after tax. Commenting on the results, Peter Bains, managing director and CEO, Syngene International, said, "Looking at the year ahead, while the wider global market dynamics remain uncertain, we expect the business momentum to continue with pipeline build in both small and large molecules, supported by new pilot programs and conversion of existing pilots in discovery services. On an underlying basis for fiscal year 2026, we expect revenue growth in the early teens reflecting a broad-based growth across research, development and manufacturing services. Adjusted for inventory balancing in large molecule commercial manufacturing at client level, the reported revenue growth is likely to be at mid-single digit." Deepak Jain, chief financial officer, Syngene International, said, "Looking ahead into the next financial year, we expect the momentum to continue, with reported revenue growth at the mid-single digit level. As we bring the new biologics manufacturing facilities into operations, the additional operating costs and depreciation will impact margins. With this, we expect EBITDA margin to moderate from current levels to the mid-twenties and year-on-year decline in profit after tax." The company's board recommended a final dividend of Re 1.25 per equity share for the financial year 2024-25. 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.
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Business Standard
24-04-2025
- Business
- Business Standard
Syngene International tumbles 10% as Q4 profit slips; key highlights here
Shares of Syngene International plunged over 10 per cent in Thursday's intraday session after the company reported a 3 per cent year-on-year (Y-o-Y) decline in net profit for the fourth quarter of the financial year 2025. Syngene's stock fell as much as 10 per cent during the day to ₹674.25 per share, the worst intraday loss atleast in over five years, according to Bloomberg data. The stock trimmed losses to trade 8.8 per cent lower at ₹683 apiece, compared to a 0.23 per cent decline in Nifty50 as of 9:40 AM. The company's shares snapped their two-day gains on Thursday, after recovering over 15 per cent from its lows of 652, which it hit earlier this month. The stock has fallen 20 per cent this year, compared to a 2.6 per cent advance in the benchmark Nifty50. The company has a total market capitalisation of ₹27,499.3 crore, according to BSE data. Syngene International Q4 Results breakdown The healthcare company's net profit narrowed by 3 per cent Y-o-Y in the fourth quarter of the financial year 2025, while revenue from operations grew by 11 per cent to ₹1,018 crore as compared to the same period last year. The reported revenue stood at ₹1,037 crore. The company's Ebitda (earnings before interest, taxes, depreciation, and amortisation) stood at ₹363 crore, a 9 per cent increase. The Ebitda margin stood at 35 per cent. Syngene International management commentry The subdued first half was impacted by a sector-wide downturn in US biotech funding, while the second half of the year showed signs of recovery, according to Peter Bains, managing director and chief executive officer of Syngene International. Looking ahead, he expressed cautious optimism, citing sustained business momentum driven by a growing pipeline in both small and large molecules. This will be supported by new pilot programmes and the conversion of existing pilots within discovery services. The highlight of the quarter was the acquisition of a state-of-the-art biologics manufacturing facility in the US, strengthening Syngene's position in the fast-growing biologics CDMO sector and providing a strategic foothold in the US market, according to Bains. "Our biologics CDMO business witnessed robust growth supported by commercial manufacturing alongside new development projects. High conversion of pilot projects into full programmes in discovery services supported the growth in our research division."
