Syngene International, an India-based Contract Research Organisation and a subsidiary of Biocon Ltd, announced that it has received the Foreign Investment Promotion Board (“FIPB”) approval for raising the foreign investment to 44% from the earlier approved 10% by way of its Initial Public Offering (“IPO”).
The IPO is an offer for sale (“OFS”) by Biocon of a part of its shareholding in Syngene. The Biocon Group presently holds 83.6% equity stake in Syngene.
Commenting on the development, Peter Bains, Chief Executive Officer, Syngene International, said, “We are happy to receive the FIPB approval to increase the foreign investment limit in our company. Syngene supports the global pharmaceutical, biotech and life science industries; this approval will enable us to look to broaden our global investor base.”
Syngene reported revenues of Rs 7,077 million for FY 2013-14 and Rs 6175 million for 9 month ended 31st December 2014. For the three fiscal years ended March 31, 2014, its total revenue, restated profit and EBITDA grew at compounded annual growth rates (“CAGR”) of 29.9%, 70.5% and 30.6%, respectively.
Its flexible business models, expertise in managing large integrated collaborations and world-class infrastructure has not only helped it renew and expand its existing client collaborations but also in attracting new clients. Syngene’s client base increased 90% from 103 in FY 2012 to 195 as on 31st December 2014.
It has long term multi-disciplinary partnerships with three of the world’s leading global healthcare organisations, Bristol-Myers Squibb Co. (“BMS”), Abbott Laboratories (Singapore) Pte. Ltd. and Baxter International Inc. and has set up dedicated R&D Centres for each of them. The dedicated R&D Centre of BMS is its largest R&D presence in Asia with more than 400 scientists.
On January 12, 2015, Biocon Research Limited (a wholly owned subsidiary of Biocon) transferred a 10% stake in Syngene to IVF Trustee Company Private Limited for a consideration of Rs. 3,800 million.