Syngene International Limited encountered a sharp decline in its shares, plummeting over 6.85% to Rs 726 in morning trade on October 18. This drastic drop followed the company’s decision to revise its revenue outlook to a mid-teen level for the second half of the year, attributed to the current slowdown in US biotech funding.
The revised guidance, disclosed in an exchange filing on October 17, indicated a mid-teens growth in revenue on a constant currency basis. Despite this revision, the company reported a 14.22% increase in consolidated net profit for the quarter ending September, reaching Rs 116.5 crore compared to Rs 102 crore in the previous year.
Syngene International’s Managing Director and CEO, Jonathan Hunt, acknowledged the strong performance in the second quarter and the first half of the fiscal year. He specifically noted the success in development and manufacturing services, emphasizing the addition of a new non-GMP capability center. This expansion aimed to meet the market demand for agile, cost-effective, early-phase development, and scale-up services.
