1. Syngene International – Company Overview
- Revenues grew at ~16% CAGR in FY16-20 to Rs. 2012 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos, and continuous endeavor to move up the value chain.
- Eight of the top 10 global pharma companies have been availing services for the last five years. It has a pool of 4240 scientists. The client base has grown from 256 to 362 over FY16-20.
3. Segmental Growth of Syngene International Year on Year from past 3 years
CRAMS and R&D growth, Biologics is also in line for growth traction sequentially Revenue increased 13% YoY to INR17.5b (in-line) in FY20, mainly led by strong growth in Biologics (+31% YoY, 34% of sales) and Small Molecules (+16% YoY, 31% of sales).
Research Services (30% of sales) grew 11% YoY to INR5.2b.
However, Branded Formulations (9% of sales) de-grew by 26% YoY.
4. Rapid Increase in Revenue – Trend over the Years
Growth was driven by an increase in sales from existing clients and the acquisition of new clients
Engage, expand and extend the strategy to extend client relationship over a longer period of time
Growth in the total number of clients
Increase in average revenue from the largest clients
Increase in the number of services offered to clients
5. Increase in Number of Clients
8. Mangalore Facility
• Construction is now completed
• It is in the validation phase
9. Scientist Count
Scientist strength addition: the company has typically added between 450 to 500 people on an annual basis over the last five years.
Now in FY20, the company added about 240 to 250 people. Syngene International still has a large room to grow in terms of scientists.
10. R&D Centres – Growth Engines
To maintain the structural balance and improve profitability, they are inclined to outsource a substantial part of the R&D work.
Similarly, the innovative/virtual companies that are extensively working on new products and which may not have the required capital/manpower also tend to outsource a substantial part of their R&D.
Track record in acceptance of Recent Approvals
● Now one of Syngene’s strengths is their strong track record of regulatory compliance and over the course of the last year, they have cleared audits not only by their clients but also by regulators from across the globe and that includes the US FDA, the European EMEA, Japanese PMDA, and others.
● Collaborations and partnerships to deliver numerous clinical candidates. Delivery history for integrated CMC programs towards FIH and beyond. The company has recently been approved for selling oral formulations in Russian markets.
● It successfully cleared USFDA inspection of the small molecule bioanalytical laboratory within the clinical development service line with no observations. Syngene International commissioned the first phase of a new research facility in Bengaluru that will house discovery biology, QC microbiology, and other research capabilities.
● Syngene International undertaking manufacturing of innovator drug APIs. It increases its revenue base, and also helps it offer bundled and diversified services to its customers.
● Syngene International remains aggressive on the CAPEX front (~US$463 million already spent & another ~US$87 million earmarked by FY21), attributable to order book visibility.
● With elite client additions like Amgen, Zoetis, Herbalife, GSK, etc, and multiple year extension of BMS and Baxter contracts, the company remains well poised to capture opportunities in the global CRO space.
Cover Image: Pharma Tutor