Syngene International Q1 Results FY2023, PAT at Rs. 74 crores

On 20th July 2022, Syngene International announced its quarterly results for the first quarter of FY2023

Q1FY23 Key Highlights:

- The company reported its revenue from operations at Rs. 644 crores with a growth of 8% YoY

- The EBITDA for Q1FY23 was at Rs. 188 crores seeing a growth of 6% YoY.

- Profit for the quarter was reported at Rs. 74 crores with a decline of 4% YoY.

- The EBITDA margin was at 28.5%.

Business Highlights:

- The Company signed a long-term agreement with Zoetis for the commercial manufacturing of the drug substance for Librela®, a first-of-its-kind injectable monoclonal antibody to alleviate pain associated with osteoarthritis in dogs. The agreement, initially centred on Librela®, paves the way for the development and manufacturing of other molecules in the coming years and is expected to be worth up to US$ 500 Million over 10 years, subject to regulatory approvals and market demand. The multi-year agreement marks an inflection point for the Development and Manufacturing Services divisions. 

- The Company continued to invest in infrastructure: a kilo lab was established for polymer and speciality materials in the Development Services division. The facility will shorten the development timelines for clients who look for customizable and flexible systems to expedite formulation and process development services. Additionally, as part of the phase three expansion in Hyderabad, a lab was commissioned in the newly constructed Innopolis building with over 150 scientists and analysts dedicated to PROTACs, a targeted protein degradation technology that offers therapeutic interventions not achievable with existing drug discovery approaches. PROTAC is part of Syngene’s novel drug discovery strategy for clients involved in treatment for cancer.  

Commenting on the results,  Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, "A recent highlight was the signing of a 10- year agreement with Zoetis. The new agreement initially focuses on the commercial manufacturing of Librela®, a first-of-its-kind injectable monoclonal antibody used for the alleviation of pain associated with osteoarthritis in dogs. This is a major strategic step for our biologics business and gives us a pathway towards FDA and EMA regulatory approvals anticipated later this year.  

These first quarter results were in line with our expectations and reflect strong underlying performance across all our business divisions. The contribution from the Development and Manufacturing Services divisions drove the growth momentum against a low base in the previous year. The Dedicated Centers and Discovery Services divisions delivered continued growth.

The decline in profit in the quarter compared to the same period last year was as expected given the strong sales of Remdesivir last year when India was in the midst of the second wave of the pandemic. No sales of Remdesivir were recorded in the first quarter this year.”