Syngene International Limited has informed the Exchange about Investor Presentation
Ref: Syn/CS/SE/IP/2024-25/Mar/06
March 12, 2025
To, The Manager, BSE Limited Corporate Relationship Department Dalal Street, Mumbai – 400 001 Scrip Code: 539268
Dear Sir/Madam,
Sub: Investor Presentation.
Syngene International Limited Biocon SEZ, Biocon Park, Plot No. 2 & 3, Bommasandra Industrial Area, IV Phase, Jigani Link Road, Bengaluru 560099, Karnataka, India. T +91 80 6891 8000 F +91 80 6891 8808 CIN: L85110KA1993PLC014937 www.syngeneintl.com
To, The Manager, National Stock Exchange of India Limited Corporate Communication Department Bandra (EAST), Mumbai – 400 051 Scrip Symbol: SYNGENE
In continuation of our earlier intimation vide reference no. Ref: Syn/CS/SE/Reg 30/2024-25/Mar/02 dated March 7, 2025 and in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the presentation shared with the Investors and Analysts at the meeting held today i.e. March 12, 2025.
Kindly note that no additional information has been disclosed to Analysts or Investors other than the information presented earlier and already available in public domain.
The above-mentioned Investor Presentation will also be available on the website of the Company www.syngeneintl.com.
This is for your information and records.
Thanking You, Yours faithfully, For SYNGENE INTERNATIONAL LIMITED
___________________ Priyadarshini Mahapatra Head Legal, Company Secretary & Compliance Officer
Enclosed: Investor Presentation.
Investor Meet
12 March 2025
Safe harbour
Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements.
Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, business outlook of our clientele and their research and development efforts, our ability to successfully implement our strategy, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition, changes in political conditions in India and changes in the foreign exchange control regulations in India.
Neither the Company, nor its directors and any of the affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
Putting Science to Work
2
A Decade of Growth: Strengthening Infrastructure, Capabilities and Partnerships
Expanding capacity
Building capabilities for future
Building partnerships
(in Million sq. ft.)
2.2
(#)
8,146
0.9
3,526
(#)
250+
400+
March’16 FY16
March’24 FY24
FY16 March’16
FY24 March’24
FY16 March’16
FY24 March’24
More than doubled infrastructure that is qualified to meet international standards
~3x employees from FY16 comprising talented scientists
Over 50% increase in active clients
14 out of top 20 pharma companies are clients
• Expanded laboratory capacity in Bangalore
• Expanded Integrated Drug Discovery platform
• Expanded partnership with big pharma companies
and Hyderabad
• Expanded to Mangalore for commercial API
manufacturing
• Acquired land in Hyderabad for long term
growth in research business
• Enhanced Biologics capacity & capabilities
• Acquired multi-modal biologics facility from
Stelis Biopharma Ltd
•
Increasing contribution from emerging biotech companies in research services with share of total revenue increasing from 10% in FY21 to 16% in FY24 from US emerging biotech
• Expanded into commercial manufacturing in
Biologics with Zoetis
Putting Science to Work
3
Strategic investments have pivoted Syngene to growth while maintaining business economics over uncertain times and positioning for further future growth
Continued investment for future growth
Sustained revenue growth around mid teens
Maintained EBITDA margin in high 20s
Cumulative Gross Block Rs Mn
50,239
Revenue from Operations Rs Mn
Δ +Rs 7,612 Mn
Δ +Rs 13,043 Mn
CAGR – 15%
CAGR – 17%
Operating EBITDA Margins
34,599
16,607
FY18
FY21
FY24
21,843
4.0
34,886
5.4
33%
29%
31%
31%
29%
29%
Revenue (INR mn)
Revenue per employee^ (INR mn)
Operating Ebitda
EBITDA excl. Export incentives
FY21
FY24
FY18
FY21
FY24
14,231
3.4
FY18
Sustained growth in PAT*
Profit After Tax Rs Mn
5,186
Consistency in operating cash flow growth
Operating cash flow before capex investments Rs Mn
Strong Balance Sheet with sustained net cash position despite continued investments
10,421
Net Cash Rs Mn
9,353
3,054
3,821
7,012
4,462
6,475
3,200
FY18
FY21
FY24
FY18
FY21
FY24
31/03/2018
31/03/2021
31/03/2024
* before exceptional items
^ includes permanent employees only
Putting Science to Work
CRDMO – A multi billion-dollar market opportunity
Global CRDMO market ($ bn) is large and growing
CRDMO market continues to outgrow the underlying pharma market* and offers opportunity for continued growth and value creation
Subdued growth in next 2 years @6% followed by higher growth in later years
8% p.a.
6% p.a.
7% p.a.
~320
~300
~280
~250
~260
~230
~200
~210
~170
~180
~160
~130
~140
2018 25 Source: Evaluate Pharma, Frost and Sullivan, Expert interviews
19
20
22
24
23
21
26
27
28
29
2030
CRDMO market has exciting opportunities ahead with key tailwinds
Implications for CRDMO industry (medium to long term)
1
2
3
4
5
Drug pipeline growing at a healthy 8% CAGR
Biotech funding back to pre-Covid levels (2024 funding at 1.4X of that in 2019), however volatility continues, leading to “cautious recovery” in Biotech spending
Pharma players facing margin pressure with e.g., drugs going off-patent in next 4 years, policies such as Inflation reduction Act (IRA) compressing the revenue cycle resulting in increased outsourcing
Geopolitical shifts, growing China+1 sentiment, expected to drive redistribution1 of outsourcing across geographies, although extent and pace remains uncertain
India gearing to upgrade its innovation ecosystem e.g., $600 Mn of Govt funding announced, 12 Biotech parks being set up)
* Pharma market is expected to grow at ~6% CAGR between 2023-30
5
Putting Science to Work
Continue the journey of creating a future-fit Syngene | Unpacking three pillars of the evolving business
Business
Well positioned to capture the market opportunity..
..with key strategic levers in place
..focusing on near term actions
..and mid to long term drivers to accelerate growth
• 30+ years of scientific
excellence with assuring quality track record and world class infrastructure
• 400+ clients with 14 out of top 20 pharma companies are clients
• One Stop shop for Integrated small molecule offering across the value chain
State-of-the-art small molecule commercial manufacturing facilities with approvals from key regulators
Research Services (CRO) Early-stage discovery and pre- clinical research
Small molecule CDMO
Large molecule CDMO
•
•
•
To lead capabilities and capacity in India's CRO sector to accelerate global biopharma research
Engaging with biopharma companies on converting pilot projects to long-term contracts and grow these partnerships
•
•
•
Enhance execution, productivity, and cost efficiency to maintain competitiveness across service lines
Strengthen capabilities in new modalities including ADC, Peptide, C>
Scale Integrated Drug Discovery partnerships
Leveraging CMC expertise and commercial manufacturing to deliver integrated, end-to-end development and manufacturing solutions
Expand early-stage pipeline with a focus on mid/small biotech, while striving to add late-stage programs from big pharma
Largest Indian player in Human and Animal Health with rich clientele
Fully integrated custom biomanufacturer with global foot print
Becoming a leading partner by delivering the fastest route to clinical trials and lowest COGS ($/g) at global standards
•
•
Focus on animal health and human health driving early- stage programs
Expand late-stage commercial manufacturing pipeline
• Build a global asset network
• Drive greater scale in commercial manufacturing for
the next phase of growth
•
•
•
•
Expand into adjacent modalities (Peptide, Oligos)
Tap into increased addressable market with the addition of US based manufacturing facility
Expand portfolio with capability investments (ADC and drug product)
Leverage digitization investments to enhance productivity and quality
Putting Science to Work
6
Our focus is to enhance capabilities to meet evolving needs of customer base
•
•
Explore adjacent growth modalities including ADCs, Oligos, Peptides, C> Continue to expand the breadth of our existing capabilities across modalities
•
•
Establish & expand global footprint to cater to our growing customer base Recent addition of biologics facility in the US is first step in global expansion
Global footprint
•
•
Continue to focus on initiatives to attract and retain talent across all the functions Focussed on growth and wellbeing of employees through various initiatives including “My Future Plan”
7
Focus on new modalities
Attract and retain Talent
•
Increase productivity, streamline operations, reduce downtime, and foster a leaner business model that helps keep low cost to serve driven through digitization, automation and scalable systems
Productivity, efficiency and scalability
Develop ecosystem
•
Syngene is spearheading the effort in building local ecosystem through Innovative Pharmaceutical Services Organization (IPSO) which aims to position India as a global pharmaceutical innovation hub
Putting Science to Work7
Acquisition of Bayview site secures access to the US market, supported by strong customer interest
Access to US Market
High level of Customer Interest
Timing & Competition
• US Biologics market growing at 10-12% CAGR, •
of which 70% of human health customers remain in the US 50% of Animal Health customers require a US location (USDA)
•
• Multiple clients have expressed interest in
•
•
•
Syngene’s US expansion, including Emergent Prospective anchor clients anticipated in both the Animal and Human Health sectors
Time to market faster than alternatives – Build, Partner or future acquisition Strategic entry accelerates growth and ensures long-term value creation
Growing Market (USD Bn)
22
9
3
10
2024
LATAM & ME
Europe
APAC
NA
17
2029
Source: Frost & Sullivan, Figures in USD Bn
Emergent’s Bayview site in US
Overall investment of US$50Mn including acquisition cost of US$36.5Mn
•
•
Focus on both human health and animal health
Synergistic with expected additional process development work to be executed from India
• Margin dilution in initial
years as utilization ramps up
Putting Science to Work
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Summary
Market opportunity remains strong and attractive
CRDMO market is expected to reach $320 bn by 2030, with key tailwinds including China+1, IRA, increased
outsourcing by pharma companies.
Syngene is well positioned
Capitalizing from a position of strength, Syngene is well positioned to increase its market share with a 30 year track
record of delivering innovative science, quality and value to its expanding global customer base
Continue the journey of creating future fit Syngene
Syngene will continue to invest to enhance capabilities and capacities to serve the future needs of customers and
patients
Putting Science to Work
9
For more details
Visit our website www.syngeneintl.com
https://twitter.com/SyngeneIntl
https://www.linkedin.com/company/syngene-international-limited
https://www.facebook.com/syngeneintl/
https://www.youtube.com/channel/UCIC4WSA1k5YAC531gMLkbIQ
IR Contact: Krishnan G/ Nandini Agarwal + 91 9819992927/+91 7838382527 investor@syngeneintl.com krishnan.g@syngeneintl.com Nandini.agarwal@syngeneintl.com
Media Contact: Shotorupa Ghosh +91 8450977080 shotorupa.ghosh@syngeneintl.com
Putting Science to Work
10