Shares of Syngene International extended gains to the second session, surging as much as 4 percent on December 11. This comes a day after the company's promoter--biotech firm Biocon, sold a 1.19 percent stake in the CDMO player through a bulk deal.
Biocon offloaded 80 lakh shares in Syngene International for an average price of Rs 857.68. though a bulk deal on December 10, raising Rs 686.14 crore from the stake sale. The Kiran Mazumdar-led Biocon held a 54.45 percent stake in Syngene International as of the company's latest shareholding data.
However, the stake sale also triggered a 60-day lock-in period, prohibiting Biocon from paring any further stake in the drugmaker during that period.
At 12.58 pm, shares of Syngene International were trading at Rs 911.55 on the NSE. Strong trading volumes in the counter also helped the upmove. As many as 14 lakh shares changed hands so far, already surpassing the one-month daily traded average of 13 lakh shares.
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In recent times, shares of Syngene had witnessed selling pressure amid delays in the passage of the US Biosecure Act, a key trigger that would have fast-tracked the China+1 theme among US drug innovators.
The Biosecure Act was kept out of a key defence bill, signaling a potential softening of the US stance on Chinese biotech. Since the defence bill was the most viable route for the Act's approval in 2024, its failure to pass this year is likely to adversely impact sentiment for Indian CDMO players.
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