Syngene Next Giant Player for CDMO - Q4FY21 Result Update

Syngene Q4FY21 and Full Year FY21 - Result Update 

Twitter Handle: @shuchi_nahar

Syngene International Limited on 28^th April 2021 announced its Q4FY21 and full-year results. The Company reported quarterly revenue from operations of Rs. 659 Cr and Rs. 2,184 Cr for the full year. Underlying revenue from operations (excluding export incentives) for the quarter grew 13% compared with the same period last year and by 12% for the full year. Profit after tax (before exceptional gain) for the quarter increased by 15% year-on-year to Rs. 138 Cr, and by 4% to Rs. 382 Cr for the full year.

Revenue Growth over the Years

1. Growth driven by an increase in sales from existing clients and acquisition of new clients 

2. Engage, expand and extend the strategy to extend client relationship over a longer period of time 

3. Growth in the total number of clients 

4. Increase in average revenue from largest clients 

5. Increase in number of services offered to clients

The highlight of the quarter was the extension of our long-standing partnership with Bristol Myers Squibb (BMS) until 2030. This renewal underlines the value we deliver as BMS's largest R&D hub outside the US. Under the new agreement, the company will increase the number of scientists working on BMS projects and expand our scope of work to cover new areas of science.

Syngene's more than 4700 scientists offer both skills and the capacity to deliver great science, robust data management, and IP security and quality manufacturing at speed.

Increase in Client Base and Scientist 

Conference Call Highlights:

Syngene's fourth-quarter growth was driven by steady performance across Discovery Services, Manufacturing Services, and the Dedicated Centers. During the quarter, the Company crossed a significant milestone with the extension of the collaboration with BMS until 2030.

The BMS partnership dates from 1998 and a fully dedicated research center were set up in Bangalore in 2007. The new agreement includes an expansion in the breadth of drug discovery research, including chemistry, biology, drug metabolism, pharmacokinetics, and research focusing on translational medicine and pharmaceutical development.

During the year, the Company expanded its research facility in Hyderabad by adding capacity for an additional 90 scientists. It also commissioned a new microbial manufacturing facility during the year to reduce its dependency on external service providers.

In addition to serving the pharmaceuticals and biotechnology sectors, Syngene also strengthened its position in animal health and executed its first integrated project in this sector.

Developed effective reagents for use in diagnostic kits to fight the coronavirus, including the development of high-quality, mammalian-derived viral proteins. The company as of this month has started manufactured remdesivir for distribution in India and other countries under a voluntary license agreement with Gilead Inc.

Company has a strong pipeline of drugs with a significant increase in integrated drugs. Syngene is well structured to cater to the rising demand for outsourcing services in pharma. The company expects the full expansion to be live within a year. Capex plan is expected to be in the range of Rs. 750– 900 Cr (USD 100 – 120 mn) for the financial year.

Here is the summary made for a quick and better understanding of the Result update for full-year FY21 and Q4FY21 from Syngene  Conference Call and Investor Presentation. 

To read a detailed analysis of the company: https://myweekendspot.blogspot.com/2020/10/syngene-next-giant-player-for-cdmo.html

Twitter Handle: @shuchi_nahar

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