Syngene Posts Strong Revenue Growth in Q1 FY19
Shalini | Myequity news | Date : 26-07-2018 07:30:00 IST
Syngene International Limited, an internationally reputed custom research and manufacturing organization, today announced financial resultsfor Q1 FY19. The Company posted quarterly revenue of Rs.425 Cr, an increase of 38%from the year-ago quarter.
Mr. Jonathan Hunt, CEO of SyngeneInternational Limited, said: “We are encouraged by a good start to the year, with revenueup 38% to Rs. 425 Cr from Rs. 308 Cr this time last year. The quarter saw goodperformances within Biologics Manufacturing, Discovery Services and ChemicalDevelopment Services as well as a benefit from improved FX rates.
The extension of our strategic relationship with Baxter Healthcare until 2024, will seefurther expansion of the scope of services we deliver to them and will require setting up ofadditional infrastructure within the Baxter Global Research Centre (BGRC).
The GSK collaboration is now operational, with a dedicated team of scientists fromSyngene working with GSK’s global R&D team, focused on accelerating drug discoveryusing Syngene discovery services platforms.
We were pleased to see yet another positive outcome from the recent USFDA inspectionof our formulation, stability and quality control units. Also, in the quarter were-commissioned Phase I of our S2 unit. This brings on line 35000 sq. ft. of lab space tosupport future growth.
Looking ahead, we are on-track and making good progress to achieve our plan for theyear.”
Quarterly Financial Highlights (All numbers in INR Cr except Margins)
| ||Q1 FY19 ||Q1 FY18||YoY Change (%) |
|Revenue ||425 ||308 ||38 |
|EBITDA ||128 ||113 ||13|
|EBITDA Margin (%) ||30 ||37 || |
|PAT ||66 ||62 ||6 |
|PAT Margin (%) ||16 ||20 || |
Q1 FY19 performance was primarily driven by good growth in Biologics Manufacturing,Discovery Services and Chemical Development Services.
Baxter Healthcare extended their existing multiyear agreement with Syngene, to expandits ongoing collaboration for Baxter Global Research Centre (BGRC) until 2024. This willsee an expansion in the scope of engagement as well as the setting up of newinfrastructure in BGRC. The dedicated R&D Centre supports Baxter’s global researchteams in the discovery and development of medical products and devices, with a focus onproduct and analytical development and preclinical evaluation in parenteral nutrition andrenal therapy.
During the quarter, Syngene made significant progress in making the GSK collaborationoperational, where a dedicated team of Syngene scientists continue to work closely withGSK’s global R&D teams in accelerating drug discovery using Syngene’s discoveryservices platforms. Other Updates
Syngene commissioned Phase I of its upgraded S2 facility, which brings online 35000 sq.ft. of space. When fully commissioned, S2 will add 1,65,000 sq. ft. laboratory space tosupport future growth. In a significant regulatory development, Syngene successfully cleared a USFDA inspection of its formulation, stability and quality control units. This isSyngene’s seventh successful USFDA inspection over the last four years. About Syngene International Ltd:
Syngene International Ltd., aninnovation focused global discovery, development and manufacturing organizationprovides integrated services to the pharmaceutical, biotechnology, nutrition, animal health,consumer goods and specialty chemicals industries across the world. Syngene’s clienteleinclude market leaders such as Bristol-Myers Squibb, Baxter, Amgen, GSK, Zoetis, MerckKGaA and Herbalife.
Syngene International Ltd closed 1.10% down at Rs 590.00