Syngene works with 16 of the top 20 pharma companies across the globe
Bangalore February 6, 2014: – As Biocon holds back the public listing of its research services arm, Syngene, the company is strengthening the division by aggressively pursuing global majors to build a larger, attractive clientele and a bigger workforce.
“Its about the right timing. We want some more stability in the Indian political system before we go in for a listing,” said Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biocon.
Syngene International Ltd, a subsidiary of Biocon, tied up withBaxter International Inc, a US-based pharmaceutical company to jointly establish a research centre within the Syngene premises in Bangalore.
A team of over 100 multidisciplinary scientists will be based at this dedicated centre in Bangalore and work closely with Baxter scientists on a range of R&D activities centered on product and analytical development and pre-clinical evaluation in parenteral nutrition and renal therapy.
While the monetary value of the partnership was not disclosed, Syngene said it has invested “significantly” to set up the infrastructure for the contract with Baxter, while the US company has also contributed some funds.
Syngene, which works with 16 of the top 20 pharmaceutical companies across the globe is also pursuing negotiations with others on that list to offshore their research and development to the company in India. The company currently hires about 2000 key research scientists and about 300 support scientists.
Research projects at Syngene that see a positive outcome often see the contractors approach parent Biocon for the development of the product as well, a company official said.
The official also said the company stands to benefit from global pharmaceutical majors streamlining their operations.
“Companies like Astrazeneca have cut their staff here and closed or cut on their R&D operations due to their own budget constraints. But these companies have to carry on their R&D and thats when they come to a company like Syngene,” said Manoj Nerurkar, Chief Operating Officer at Syngene.
“That helps us expand, because we can not only hire the people they lay off but also become their laboratory.” “We already work with companies who have cut down their own (in-house) research activities,” Nerurkar says.
Syngene had been growing at over 30 per cent during our early years and have crossed $100 million in revenue, he said. Biocon’s CMD Mazumdar-Shaw had earlier said the company had put off the listing of Syngene until it got a more satisfactory valuation for the research services arm.
