Syngene to Boost Biologic Manufacturing with 36.5M USD Acquisition

India’s Syngene International, a leading contract research, development, and manufacturing organization (CRDMO), made a strategic global move through its 36.5 million USD purchase of its inaugural United States biologic manufacturing facility. The facility resides in Baltimore Maryland under ownership from Emergent BioSolutions subsidiary Emergent Manufacturing Operations Baltimore. Syngene plans to finalize the transaction during March 2025 to reach a major strategic goal for expanding its position in the world's largest biotech market.

The Baltimore-Bayview operation near premier biotech locations in Northeast USA expects to begin serving clients with projects by the midpoint of 2025. An acquisition driven by industry trends in India seeks to reduce dependence on China by developing manufacturing capacities in additional areas. Through this deal Syngene will obtain substantial biologics manufacturing capacity growth by increasing its single-use bioreactor capabilities from 20,000 liters to 50,000 liters which will strengthen its large molecule development offering.

The partnership between Emergent BioSolutions and Syngene allows the seller to guarantee manufacturing services and capacity use at the facility. The plant stopped operations in 2022 when Emergent BioSolutions closed it down as part of its budget reduction strategy during a funding shortage that affected its smaller pharmaceutical clients. The plant experienced quality problems with vaccine production for Johnson & Johnson throughout the COVID-19 pandemic. The US Food and Drug Administration approved the facility in 2023 to demonstrate its achievement of regulatory requirements.

Syngene’s Chief Financial Officer Deepak Jain predicted that operational costs will temporarily reduce operating margins after the acquisition. The company views this acquisition as a significant long-term strategic move despite initial operations costs. A Boston Consulting Group report predicts that India's CRDMO industry covering Syngene as a major participant will expand seven times to 22-25 billion USD by 2035 due to expanding worldwide needs for biopharma outsourcing services. Through this acquisition Syngene establishes itself to take advantage of future market expansion in addition to strengthening its focus on global network development and innovation initiatives.