Syngene International Ltd.

Takeda's narrowed focus on oncology, Sun Pharma's proposed acquisition of Checkpoint Therapeutics and Ono's antisense oligonucleotide deal with Ionis made our news this week. Takeda is sharpening its oncology focus amid an R&D revamp. Sun Pharma will acquire Checkpoint Therapeutics and an FDA-approved PD-L1 inhibitor. Japan's Ono Pharmaceutical bought an antisense oligonucleotide from Ionis Pharmaceuticals. Plus more.1. 'I don't feel we lost momentum': Takeda’s oncology execs sharpen focus after restructuringTakeda likely won’t do any cell therapy development deals in the near future, even though it’s still advancing an allogeneic gamma delta T-cell therapy in acute myeloid leukemia. Takeda’s oncology leaders Teresa Bitetti and P.K. Morrow, M.D., explained the company’s cancer drug strategy in an interview. In addition, the Japanese pharma is not counting out China as a source for partnering despite geopolitical risks. 2. On the heels of FDA nod for cancer drug, Sun Pharma buys Checkpoint Therapeutics for up to $416MSun Pharma has agreed to buy Checkpoint Therapeutics for $355 million upfront, plus a contingent value right that could bring the deal value to about $416 million. The acquisition bolsters Sun’s oncology-dermatology franchise with Unloxcyt, a PD-L1 inhibitor recently approved by the FDA for advanced cutaneous squamous cell carcinoma.3. Ono pays $280M upfront for Ionis' antisense oligonucleotide for rare blood cancerOno Pharmaceutical is paying $280 million upfront to acquire Ionis Pharmaceuticals’ antisense oligonucleotide sapablursen. The drug is designed to reduce the production of the TMPRSS6 protein and is currently in a phase 2 trial for the rare blood condition of polycythemia vera. The pact includes up to $660 million in potential milestones.4. J&J, Legend to invest $150M in Belgium cell therapy facility as new Carvykti rival loomsLegend Biotech and its partner Johnson & Johnson will invest $150 million to expand their so-called Tech Lane cell therapy facility in Belgium. The plant is slated to begin clinical production of Carvykti in a few weeks. The partners are further expanding manufacturing capacity even as Gilead Sciences and Arcellx’s rival BCMA CAR-T anito-cel is expected to enter the market in 2026.5. Illumina aims to cut $100M in costs following China import banAs China bans Illumina’s importation of DNA sequencers in retaliation to new U.S. tariffs, the company is looking to cut $100 million in expenses this year. Last year, Illumina counted about 7% of its sales, or about $300 million, from China. The cost reduction “includes optimizing stock-based compensation and non-labor spending and accelerating certain productivity measures,” Illumina said.6. Insilico Medicine raises $110M for new trials and robotic helping handsHong Kong-based Insilico Medicine has raised $110 million to advance its artificial-intelligence-powered drug design platforms. The series E round, led by Value Partners, will help refine Insilico’s AI models as well as support pivotal clinical trials of the company’s lead drug candidate, rentosertib (ISM001-055), in idiopathic pulmonary fibrosis.7. Frazier arms Callio with $187M series A to fly Hummingbird's HER2 dual payload ADC to clinicSingapore’s Hummingbird Bioscience has created a new company together with its investor Frazier Life Sciences and a few other venture capital funds. The new firm, called Callio Therapeutics, has launched with a $187 million series A and a phase 1-ready HER2-targeted dual-payload antibody-drug conjugate licensed from Hummingbird.Other News of Note:8. Daiichi taps Nosis to deliver RNA therapies beyond the liver9. Harbour BioMed launches new obesity biotech on mission to preserve muscle mass10. Kelun's TROP2 ADC picks up another approval in China11. Indian contractor Syngene throws down $37M for Emergent's Baltimore biologics plant12. Nasdaq stock market plans move to 24-hour trading in US13. Samsung backs Alzheimer’s blood test developer C2N Diagnostics with $10M14. Astellas, Yaskawa cement deal for robotic cell therapy production joint venture15. Otsuka debuts new kid-friendly resources about Alzheimer's to ease burden on 'sandwich generation' caregivers

Indian CRDMO Syngene International expects the sale to close later this month and anticipates that the Baltimore plant will be ready to accept client projects starting in the second half of 2025. As Emergent BioSolutions continues to pawn off manufacturing real estate in its pivot from production specialist to full-time drug developer, Indian CRDMO Syngene International is capitalizing on the situation by locking down its first U.S. biologics facility.Syngene is paying $36.5 million to acquire Emergent's shuttered biologics facility in the Bayview neighborhood of Baltimore, the Indian drugmaker said (PDF) Monday. Syngene ultimately plans to invest around $50 million in the site, acquisition cost included, according to the press release.The Emergent site in question—which is equipped with multiple monoclonal antibody (mAb) manufacturing lines—is slated to boost Syngene’s total single-use bioreactor capacity to 50,000 liters for large molecule discovery, development and production services, the company said.Syngene said it expects the sale to close later this month and anticipates that the Bayview plant will be ready to accept client projects starting in the second half of 2025. The company figures the facility will get the most mileage out of U.S. mAb developers seeking local production, plus antibody innovators from abroad looking to set up manufacturing options in the U.S.Under the deal, Emergent also has the option to secure manufacturing capacity from the facility in the future.“This facility is a significant milestone for Syngene and comes in response to growing client demand in the United States, the fastest-growing biologics market,” Alex Del Priore, Syngene’s senior vice president of development and manufacturing services, said in a statement.The facility purchase will also be “synergistic with expected additional process development work that will be executed in India while manufacturing can be done in the U.S.,” Syngene’s finance chief, Deepak Jain, added. Emergent decided to close its Bayview facility last year as recently appointed CEO Joseph Papa embarked upon a downsizing initiative that included hundreds of job cuts and also claimed a separate drug product site in Rockville, Maryland. The Bayview facility gained notoriety several years back when it was found to be at the center of a cross-contamination controversy during the COVID-19 pandemic that ultimately forced Emergent to discard hundreds of millions of COVID vaccine doses. Emergent performed maintenance at the plant following the controversy, and the Bayview facility received a clean bill of health when the FDA granted the site a “No Action Indicated” classification last March. The NAI tag means the FDA found the Bayview facility to be in an acceptable state of compliance with U.S. manufacturing standards.The sale of the Bayview plant leaves Emergent with production facilities in Lansing, Michigan, and Winnipeg, Canada, which the company says are sufficient to support large-scale projects. Given that the Bayview facility is currently shuttered, it's not clear whether any Emergent staff are set to join Syngene's team following the close of the purchase. Syngene noted in its acquisition announcement that it does expect the deal to create new jobs moving forward.As it stands, Syngene’s manufacturing footprint is primarily concentrated in India, where the CRDMO operates production plants in the cities of Bengaluru and Mangaluru in the southern state of Karnataka. Through those facilities, the company helps supply clinical- and commercial-stage drug substances plus advanced intermediates, regulatory starting materials and certain generic drug ingredients, according to Syngene’s website.The company’s Indian operations also include a dedicated highly potent active pharmaceutical ingredient manufacturing facility designed to handle cytotoxic and cytostatic compounds. Emergent, for its part, is now in the "turnaround phase" of its reorganization effort, which initially focused on a move away from the CDMO game in favor of its core medical countermeasures and Narcan businesses, the company's CEO said in a Monday statement. As part of that plan, Emergent in June sold a separate fill-finish drug product facility in Baltimore to Taiwanese CDMO Bora Pharmaceuticals for $30 million. 

Syngene International Limited ('Syngene'), a global contract research, development, and manufacturing organization (CRDMO), today announced the acquisition of its first biologics site in the USA - fitted with multiple monoclonal antibody (mAbs) manufacturing lines.

The state-of-the-art biologics facility, acquired by Syngene USA Inc., a wholly owned subsidiary of Syngene, from Emergent Manufacturing Operations Baltimore, LLC (a subsidiary of Emergent BioSolutions Inc.), will expand Syngene's growing global biologics footprint to better serve its customers across both human and animal health market segments. The new site will increase Syngene's total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services. Additionally, it will provide Syngene's customers with continuity of supply from its four development and manufacturing facilities located in India and North America, offering services ranging from cell line development, process optimization and both clinical and commercial supply.

Syngene's investment in its first facility in the United States marks a strategic commitment to the US market, with significant benefits for the local economy and the broader life sciences industry. The facility is expected to create jobs, stimulate local economic activity, and strengthen domestic biologics manufacturing capabilities, while also contributing to pharmaceutical innovation and supply chain resilience. This investment highlights the potential for deeper economic collaboration between India and the United States, fostering sustained economic growth and advancing the shared goal of bolstering critical healthcare infrastructure.

Peter Bains, CEO Designate, Syngene International Ltd., said, "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. This investment will enable Syngene to cater to growing client requirements in an expanding market. It will also provide clients, access to collective service capability of multiple geographic sites, scientists and experience."

Alex Del Priore, Senior Vice President - Development & Manufacturing Services, Syngene International Ltd., said, "This facility is a significant milestone for Syngene and comes in response to growing client demand in the United States, the fastest-growing biologics market. It strengthens our offering for animal health clients looking for USDA approval for their products. Most importantly, it increases the options we can offer our global customers, providing commercial-scale biologics manufacturing capabilities across our global network and will be underpinned by existing key client projects."

"The investment will be synergistic with expected additional process development work that will be executed in India while manufacturing can be done in the US. The investment will be fully funded through internal accruals and cash. The Company will continue to maintain a robust balance sheet, a low debt profile, and a comfortable safety margin for debt covenants post this investment. As we ramp up utilization, we expect asset turnover to grow to 1x in less than 5 years, with EBIT margins expected to be in line with the Company average from FY30 and positively contribute to bottom line. The acquisition will not materially impact the current financial guidance given for fiscal year 2024 - 2025. In the short term, we expect minor dilution of operating margins as a result of costs to be incurred in this facility," added Deepak Jain, CFO, Syngene International Ltd.

Overall investment in the US facility is estimated around US$50 million, including the cost of acquisition (US$36.5 million) and expenses to make the facility operational. The sale is expected to close in March 2025, subject to the satisfaction of customary closing conditions. The upgraded Baltimore facility is strategically located near key biotech hubs in the Northeast of the US and will be available for client projects from second half of 2025. Syngene anticipates the site will see demand from innovative US mAb developers requiring direct access for 'onshore' production, as well as international innovators that want a US based manufacturing option and complements the capabilities and capacity available across its facilities in Bengaluru. As part of the agreement, Emergent itself has the right to secure manufacturing capacity from the facility in the future, representing offtake potential from US-based innovators. It will also support the growing animal health segment in which a US site is often a key client requirement.

Shares of Syngene International Limited was last trading in BSE at Rs. 678.00 as compared to the previous close of Rs. 679.50. The total number of shares traded during the day was 5855 in over 423 trades.

The stock hit an intraday high of Rs. 689.50 and intraday low of 670.45. The net turnover during the day was Rs. 3962031.00.