Syngene International Sees 4% Stock Decline as Revenue Outlook Dips Due to Slower US Funding

Syngene International Limited witnessed a sharp 4% drop in its stock price, which fell to Rs 744 during morning trading on October 18. This decline followed the company’s revision of its revenue forecast to a mid-teen range for the second half of the year.

The adjustment in guidance is a response to the recent deceleration in US biotech funding. In an official exchange filing made on October 17, the company stated, “We are now anticipating revenue growth in the mid-teens on a constant currency basis.”

For the quarter ending in September, Syngene International reported a 14.22% increase in its consolidated net profit, reaching Rs 116.5 crore compared to Rs 102 crore the previous year.

During the current fiscal quarter, the company’s revenue from operations amounted to Rs 910.1 crore, surpassing the Rs 768.1 crore achieved in the corresponding period of the previous year. Concurrently, total expenses increased to Rs 773.6 crore, up from Rs 653.5 crore during the same period in the previous year.

Jonathan Hunt, the Managing Director and CEO of Syngene International, noted that the company delivered robust results for the second quarter and the first half of the ongoing financial year, particularly in the realm of development and manufacturing services. He stated, “In our development services, we have also introduced a new non-GMP capability center to meet the growing demand for agile, cost-effective, early-phase development, and scale-up services.”

In light of the recent developments, the company is navigating changes in the biotech funding landscape while remaining committed to its core business activities.