Syngene Acquires First US Biologics Facility from Emergent BioSolutions

• Syngene International Ltd. has acquired its first US biologics facility from Emergent BioSolutions Inc. in a deal valued at $50 million.

• The Baltimore site expands Syngene’s global single-use bioreactor capacity to 50,000L and will support both human and animal health markets.

Syngene International Ltd. has announced the acquisition of its first biologics facility in the United States, marking a strategic expansion in its global footprint. The facility, purchased from Emergent Manufacturing Operations Baltimore, LLC, a subsidiary of Emergent BioSolutions Inc., will enhance Syngene’s monoclonal antibody (mAb) manufacturing capabilities. The acquisition, valued at $50 million, includes $36.5 million for the purchase and additional expenses to make the site operational.

The Baltimore-based facility, expected to be available for client projects from the second half of 2025, will increase Syngene’s single-use bioreactor capacity to 50,000L. It will support the company’s growing contract development and manufacturing (CDMO) services across both human and animal health sectors. With this expansion, Syngene aims to provide a seamless supply chain between its facilities in India and North America, offering services from cell line development to commercial-scale manufacturing.

Peter Bains, CEO Designate of Syngene, highlighted the strategic importance of the investment: “With one of the largest biologics R&D teams and commercial-scale manufacturing capabilities in both India and the USA, we now offer a compelling and flexible solution for global pharma and biotech customers.” The facility is also expected to generate new employment opportunities and stimulate local economic activity in the US biotechnology sector.

Alex Del Priore, Senior Vice President – Development & Manufacturing Services at Syngene, remarked that acquiring this facility represents a major step forward for the company. He highlighted that it directly responds to increasing client demand in the United States, the fastest-growing biologics market. Additionally, the site will reinforce Syngene’s ability to support animal health clients requiring USDA approval and provide expanded manufacturing options for its global customer base.

The investment is entirely financed through internal accruals and cash, ensuring Syngene maintains its strong financial position. Deepak Jain, CFO of Syngene International Ltd., explained that the investment complements additional process development work planned in India, while manufacturing operations will take place in the US. He emphasized that Syngene will sustain a robust balance sheet with minimal debt impact and expects asset turnover to reach 1x within five years. By FY30, EBIT margins are projected to align with the company’s overall average, positively contributing to profitability. While there may be slight short-term pressure on operating margins due to initial costs, the long-term financial impact is expected to be favorable.

The transaction is set to close by March 2025, pending customary approvals. Syngene anticipates that the investment will be fully funded through internal accruals and cash, ensuring financial stability while scaling operations. As part of the agreement, Emergent retains the right to secure future manufacturing capacity from the site, highlighting potential offtake from US-based innovators.