Syngene gets FIPB approval with foreign investment limit to 44%

Syngene International, one of the leading India-based Contract Research Organisation (CRO) and a subsidiary of Biocon Ltd, has received the Foreign Investment Promotion Board (FIPB) approval for raising the foreign investment to 44 per cent from the earlier approved 10 per cent by way of its Initial Public Offering (IPO).

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.”

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 per cent equity stake in Syngene.

Syngene reported revenues of Rs. 7,077 million for FY 2013-14 and Rs. 6,175 million for 9 month ended December 31, 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 per cent, 70.5 per cent and 30.6 per cent, 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 per cent from 103 in FY 2012 to 195 as on December 31, 2014.

Biocon Foundation wins ‘WHO –India Public Health Champion Award 2015’

Biocon's CSR arm, Biocon Foundation has received ‘WHO-India Public Health Champion Award 2015’ for its initiatives in the area of public health. Biocon Foundation has been recognized for its integrated healthcare initiatives through which it is constantly engaged in improving the quality of life of several thousand communities in India.

The ‘Public Health Champion Award 2015’ is a new  initiative by World Health Organization-India. The awards were presented at a national consultation held to commemorate the World Health Day 2015. Rani Desai, head of Biocon Foundation, received the award from Dr Nata Menabde, WHO representative to India, at a function held in New Delhi.



Expressing her delight at receiving the award, Rani Desai, head, Biocon Foundation said, “ The Foundation has been recognized for its innovative healthcare models of preventive and primary health services through which we are engaged in creating a sustainable health ecosystem. Through our primary health clinics we aim to enable access to affordable healthcare to rural and urban marginalized communities.”

Biocon purchases GE Capital's stake in Syngene for Rs.215.38 crore

Drug maker Biocon has entered into an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation, to purchase the latter’s stake in Biocon research services subsidiary, Syngene International for Rs.215.38 crore.

GE Capital has 7.69 per cent stake in Syngene of Biocon according to the information shared with the stock exchange.

It was in November 2012, that Biocon signed an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation, to make a primary equity investment of Rs.125 crore in Syngene. GE received a 7.69 per cent equity share in Syngene. The investment from GE Capital saw Syngene’s Post Money Equity Valuation to be Rs.1,625 crore.

Syngene has been a pioneer in the contract research in India and is also recognised as the largest in Asia. It is engaged in integrated drug discovery and development services with a focus on medicinal chemistry, biology, in vivo pharmacology and toxicology. It has a total scientific strength of 1,500 to support the research and development programmes of global pharma, biotech and nutrition companies.

Further reduce drug prices

Biocon chairperson and managing director Kiran Mazumdar Shaw today raised concerns that the new government's intention to bring down prices of essential drugs by 25-40 per cent could deter manufacturing of such medicines by companies.

After taking charge, Fertilizer and Chemicals Minister Ananth Kumar had stated that he would talk to pharmaceutical companies and try to bring down prices of essential drugs by 25-40 per cent.

"Minister Ananth Kumar's mandate to further reduce drug prices can potentially deter quality drug makers from manufacturing essential drugs," Shaw said on the micro blogging site Twitter.

Biopharma - India Market

Industry experts are confident that there is no way for US to ignore India now. There is expertise, cost advantage and comprehension about biologics production which has led global pharma majors partner with many companies here, they point out.
For instance, till five years ago most biosimilar developing firms were contracting development of cell lines to USA and UK. Recently, however, this trend has changed with certain Indian firms, such as Reliance Lifesciences, Cipla and Biocon being able to develop cell lines in-house.

 

While the US depends on China and South East Asia for outsourcing, there is a clear sign that despite the Euro crisis, several companies are coming up in the European Union for the production of biosimilars and are looking at India. The European Medicines Agency guidelines are already in place for biosimilars and vaccines for Indian companies to initiate the process.
The demand for biosimilars is likely to increase as Indians are becoming more affluent and healthcare insurance coverage widens. Moreover, considering the cost advantages that India can provide, the country has a great potential for future growth in the biosimilars market.

The high cost of biologics has contributed to the increasing and unsustainable overall health expenses throughout the world. In the US, 43% of the drug budget for Medicare Part B is consumed by 6 biologic drugs. This immense burden has led many countries to develop a regulatory framework which can approve biosimilars to provide entry of low cost alternatives to originator drugs, according to Dr. Reddy’s Biologics Devpt Centre.

Biotech - Bengaluru

Biotechnology has proved to be one of the fastest growing sectors in India and is expected to play a key role in shaping the country’s  rapidly developing economy. The sector has been looking at  combating life threatening diseases, reduce  energy crisis and food scarcity which are among the serious  challenges globally.  These  issues which were  also hindering the growth of the country have led the biotech sector to advance its research and development capabilities and bring to the fore novel solutions like newer drugs and  advanced technologies to handle shortage of  fuel and food.

The sector which offers employment to 100, 000 people , has the potential to increase it to six to seven times in the coming years. It is optimally poised to deliver higher growth and introduce new products in 2013 which is seen as a year of immense possibilities.

Karnataka plays a crucial role in the biotech success story of India. The state accounts for over 50 per cent of the 300 biotech companies in India. It has also chipped in 50 per cent of the Rs.28,500 crore ($5 billion) generated by Indian biotech in 2012-13 contributed by the vaccines, diagnostics, drug delivery devices, biosimilars and bio fuels.

Of the 390 R&D companies in Bengaluru, biotech industry forms an integral part of the innovation. This importance to technology and the rising eminence of Bengaluru through the 13th edition of Bangalore India Bio cannot be ignored, said  principal secretary, department of information technology, biotechnology and science & technology, government of Karnataka.


Karnataka has created safe good biotechnology practices which could be shared with other states and also become a brand ambassador for the country. At this platform, the three -day event will see an  expression of  diverse views which could be converted into proposals to the union and state governments .We need to advocate good research, manufacturing and marketing practices  which is the foundation of economic prosperity and growth, said Kiran Mazumdar-Shaw, chairperson Vision Group on Biotechnology, government of Karnataka, Executive Committee member-Association of Biotechnology Led Entrepreneurs (ABLE) and CMD Biocon Limited.