Syngene acquires first U.S. biologics site for US$ 36.5 Mn

Syngene International, a leading Indian contract research firm, has strengthened its global presence with the acquisition of its first biologics facility in the United States. Announced on Monday, the company confirmed the purchase of the facility from Emergent Manufacturing Operations Baltimore, a subsidiary of Emergent BioSolutions, for $36.5 million.

India’s Syngene International has taken a significant step in expanding its global footprint with the acquisition of its first biologics facility in the United States. The contract research firm announced on Monday that it has purchased the facility from Emergent Manufacturing Operations Baltimore, a unit of Emergent BioSolutions, for $36.5 million.

This acquisition aligns with broader industry trends aimed at reducing dependence on China by strengthening capabilities in other key regions. The facility is strategically located near major biotech hubs in the Northeast U.S., positioning Syngene for greater engagement with international clients. It is expected to be fully operational for client projects by the second half of 2025, following the deal’s anticipated closure in March 2025.

With this acquisition, Syngene will significantly enhance its biologics manufacturing capabilities, increasing its total single-use bioreactor capacity from 20,000 liters to 50,000 liters. This expansion will bolster its expertise in large molecule discovery, development, and manufacturing services, further strengthening its position in the global biopharmaceutical industry.

Deepak Jain, Syngene International’s Chief Financial Officer, acknowledged the short-term financial impact of the acquisition. “In the short term, we expect minor dilution of operating margins as a result of costs to be incurred in this facility,” he noted. However, the long-term benefits are expected to outweigh these initial costs, reinforcing Syngene’s growth trajectory.

The acquisition comes at a time when India’s contract research development and manufacturing organization (CRDMO) sector is poised for significant expansion. According to a report by Boston Consulting Group, the sector has the potential to grow seven-fold, reaching a valuation of US$ 22 billion to US$ 25 billion by 2035. Syngene’s investment in the U.S. market positions it well to capitalize on this projected growth and cater to increasing global demand for biologics manufacturing services.

By establishing a presence in the U.S., Syngene not only strengthens its manufacturing capabilities but also enhances its accessibility to key clients in the biopharmaceutical industry. This move underscores its commitment to global expansion and technological advancement, reinforcing its role as a leading player in the contract research and development space.