Syngene Q1 PAT increases 33% yoy to Rs77cr; Stock under pressure

The company’s revenue from operations for the first quarter ended June 30, 2021, was up 41% yoy to Rs594.5cr.

Jul 22, 2021 11:07 IST India Infoline News Service

Syngene
Syngene International Limited on Tuesday announced its first-quarter results for FY22. The Company reported quarterly revenue from operations growth of 41% yoy to Rs594.5cr from Rs421.6cr in Q1FY21. Profit after tax (PAT) for the quarter increased by 33% yoy to Rs77.3cr from Rs58cr in Q1FY21.

Syngene’s first-quarter performance reflects growth across all its business divisions as the company continued to operate at normal levels. The growth in the Dedicated R&D Center business is due in part to the expansion of the Bristol Myers Squibb R&D center.

The company said in a filing on Tuesday that revenue performance in the first quarter was also boosted by the manufacturing of Remdesivir to fulfill the high demand for the drug from Indian healthcare providers.

During the quarter, the biologics business signed a five-year agreement with IAVI, a USAbased, non-profit, scientific research organization, to develop and manufacture three recombinant, monoclonal antibodies (mAbs) for HIV. The mAbs will be used for phase I and II human clinical studies. Under the agreement, Syngene will provide an integrated solution including clone selection, analytical methods development, manufacturing process development, scale-up and cGMP manufacturing of drug substance, viral clearance studies, cGMP manufacturing of drug product and stability studies.

Syngene scientists continued to work on the coronavirus and have generated several variants of the SARS-CoV2 spike S1 protein including the Alpha and Beta variants. These variants are used to determine the efficacy of different vaccines to cross-protect people from these strains.

At around 11.56 am, Syngene International Ltd was trading at Rs641.70 per piece down Rs11.10 or 1.70% from its previous closing of Rs652.80 per piece on the BSE.

"We made a strong start to the financial year. Besides continuing progress across all our business divisions, growth for the quarter was strongly boosted by the manufacturing of COVID-19 treatment, Remdesivir, as we increased production to meet the needs of the second wave of COVID-19 in India. We also made headway with the expansion of our dedicated R&D center for Bristol Myers Squibb following the contract extension announced last quarter,” Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said.

“As India faced a second wave of the pandemic, our safety protocols continued to provide a sustainable work environment enabling our staff to operate at normal levels and keep client projects on track. During the quarter, following government guidance, we were proud to be able to offer vaccinations to our staff and their families as an additional level of protection. Overall, first quarter performance was in line with our expectations and puts us on track to meet our full year growth guidance in the coming quarters,” Hunt added.

Related Story

Open Free Demat Account (Rs699)