Contract research and manufacturing services company Syngene International Ltd. said that it expects to clock in revenues in high single digits to low double digits for FY 25.
“We expect revenue growth in fiscal year 2025 to be in the range of high single digits to low double digits with momentum building up during the year,” said Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited in a press statement after the March quarter results.
“We expect the EBITDA margin to be similar to the level delivered in fiscal year 2024 and PAT growth in single digits,” he added.
Syngene International reported a net profit of Rs 188.6 crore in the quarter ended March 31, 2024. It reported a fall in revenue of eight percent on a year-on-year basis to Rs 916.9 crore and flat EBITDA of Rs 333 crore.
He noted that despite the fourth-quarter performance falling short of expectations, the underlying factor—diminished demand for research and development services in the US biotech sector due to challenging funding conditions—is widely acknowledged and exhibiting early signs of improvement.
“I’m encouraged by the recent step-up in new funding into US biotech and expect this to drive a recovery in demand for research and development services translating into revenue growth in the latter part of the year,” Hunt said.
He emphasised the positive long-term outlook for the sector and expressed confidence in Syngene's sustained performance.
In manufacturing services, Syngene successfully concluded the acquisition of a biologics manufacturing facility from Stelis Biopharma in FY 24. The ongoing repurposing efforts are progressing as planned, with qualification and facility modifications anticipated to be completed by the second half of 2024, the company added.
Additionally, the company continued to invest in its fully integrated therapeutic discovery and development platform, SynVent, spanning various therapeutic areas such as oncology, gene therapy, central nervous system (CNS), and pain management for both human and animal health applications. Syngene's artificial intelligence-driven programs continued to advance, with Syn.AI's capabilities expanded to enhance target identification and validation for effective disease treatment, the company said.
Furthermore, the company operationalised a new capability for purifying and separating chiral compounds and Highly Potent Active Pharmaceutical Ingredients (HPAPIs) in the quarter. HPAPIs, crucial in treating serious diseases like cancer, require precise dosing, and Syngene's in-house purification and separation services streamline the process, offering clients a comprehensive solution from initial synthesis to final purification.
Also read: Syngene International March quarter net profit up 6% to Rs 189 crore, revenue down 8%
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