Syngene – A giant in the making?

- By MJK Investments
Analyst: Aman .M
 What is CRO, CDMO, CMO & CRAMS?

•Innovator company outsources some of their key functions to a third party for either research of a
molecule, developing the drug or manufacturing API/Formulation. Players providing outsourcing services to
Innovator companies are referred to as CRO, CDMO, CMO or CRAMS Player.

To keep things simple:

 CRO - Outsourcing of Research.
 CDMO - Outsourcing of Development + Manufacturing.
 CMO - Outsourcing of Manufacturing.

CRAMS - Outsourcing of Research + Development + Manufacturing

 Drug Development Process

 For developing a Drug/molecule, a Pharma company needs to go through multiple steps, starting from
discovery to final commercialization.

 Companies spend millions of dollar to develop a drug, despite this there is no surety of success of the
molecule.

 On an average it takes 12-15 years to commercialize a drug.

Very Low chances of getting Success!
 Probability of Success for each phase
Probability of Success
85%

63%
58%

31%

10%

Phase 1 to Phase 2 Phase 2 to Phase 3 Phase 3 to NDA/BLA NDA/BLA to Approval Phase 1 to Approval Source: Company

Phase 1: These trials are the first tests of the drugs involving human participants. In this, the drug is usually tested on 80-100
healthy volunteers to determine the safety of the drug.
Phase 2: Here 100-250 people who are suffering from the disease are given the drug. But, the transition rate from Phase 2 to
phase 3 is 30.7%, which is the lowest of all the 4 phases of the process.
Phase 3: Here 1000-5000 volunteers who are not in a good condition are given the drug. It is done to confirm the
effectiveness of od the drug in the human body.
After the molecule has passed the third stage. A new drug application (NDA) or a Biological License Application (BLA) is
submitted to the regulator and here the chances of success are at 85.3%.
 Why there is a need for a CRO or CRAMS?

For example: Currently Pfizer is working on some molecule which is in Phase 3 of clinical trials.

If the company is successful in Phase 3

Scenario 1
trials, then it can move on the next step of
regulatory approvals.

What if Pfizer is not to able to clear Phase 3

Now, Pfizer wants to bet big on this molecule. So it will trials, due to some adverse reaction on the
Scenario 2
patients!!
set up a production facility for its manufacturing and
have taken debt to build that facility.

What will Pfizer do with the manufacturing So, to avoid such events, innovators are
facility which it has set up to manufacture the increasingly outsourcing their
drug? discovery, development and manufacturing
It will be of no use now and the company having process to developing countries like India, China
built it by raising debt will incur significant etc.
interest burden.
 Scientist = moat?

Lowest Cost of Scientist Surge in Biotech Funding

Cost per scientist p.a. (In $ terms)

2,40,000 “Strong Venture Capital funding for biotech's has

supported healthy growth in development of
1,00,000 contract manufacturers. Biotech companies are
60,000
outsourcing more than 70% of their development
and manufacturing services to external partners.”
India China Western CRO

Source: Syngene Concall Source: Lonza Annual report

 How does any innovator starts with a CDMO or CRAMS?

Initially Pfizer will start with outsourcing of research/drug discovery under a Fee for service (FFS) model, where
R&D is outsourced and CRO takes a fee for specified service.

Now, after some years of outsourcing research and gaining confidence on Syngene capability, Pfizer would enter
into a Full Time Equivalent contract which is typically a long term contract.

Slowly and steadily as time passes, the relationship b/w Pfizer gets stronger and finally Pfizer would outsource
the whole range of activity from discovery to manufacturing.

 Company, typically bills based on number of scientists

FFS Model  FFS contract are short term in nature FTE Model deployed
 Flexible, on-demand resources with targeted skill sets.
 The CRO provides the client a dedicated team and
 Effective way to managed fluctuating demand, ad-hoc
infrastructure according to clients needs at fixed rate.
requests or uncertain quantity of work.
 Syngene provides dedicated team of scientists
exclusively for the client.
 Typical contract duration is 3 years or more.
Global Leaders in Crams
 Key Terms to understand Syngene Business
 Chemical drug (Small molecule): It is like a tablet or medicine in some other dosage form which we consume directly. For example
“paracetamol”.

 Biologic drug (Large molecule): It is more like a vaccine. In biologic, a living organism is inserted in your body in the form of a virus
which will remind your immune system how to fight with the disease. For example insulin is the oldest biologic drug.

 Anti Body Drug Conjugates: For e.g. A challenge of cancer treatment is to doing the best to ensure that benefits the medicine brings
outweighs the burden of side effects. Consider chemotherapy, it’s a powerful treatment that kills cancer cells but there are side-effect
too, like hair loss as it does not differentiates b/w cancer cells and healthy ones.
Now ADC, work more in a targeted manner and attack only the infected cancer cells and not healthy ones.
 Where is Syngene Placed?
Integrated Business Model

Discovery Development Manufacturing Dedicated

Services Services Services Services

• Early stage • Activities from • Manufacturing • These centers

research. pre-clinical to Services for are dedicated
• Target clinical trials. small and large research
identification. molecules. houses built
according to
client needs.

CRO
CRO CMO

CDMO

Syngene is the only company in India which is vertically integrated from CRO to CRAMS all under one roof.
 Syngene - History

Started its first Completed

Initiated expansion of
Dedicated R&D
operations as Mangalore API
center with Bristol-
CRO. plant.
Myers Squibb.

2001 2016

1993 2007 2020

Forayed into Chemical Syngene listed

Development with a on BSE.
dedicated
manufacturing facility.
 Syngene in 2002 vs 2020
2002 2020

< 50 clients

Clients
 Revenue breakup

43% 40% 37% 37%

35%

23% 26% 33% 32%

33%

33% 31% 25% 30% 31%

2016 2017 2018 2019 2020

Dedicated R&D Revenue Contribution Discovery Services Development and Manufacturing

Revenue Bifurcation Client Concentration

4% 3%
5%

20%
4% 12%

73% 76%

USA India RoW US Europe Japan India RoW

1.Dedicated R&D Centers
Dedicated Research Centers - Symbol of Strong Relationships
Syngene and BMS has BMS tied up with Syngene In 2014, the contract was In 2019, the contract was
been associated since in 2009 extended till 2020 extended till 2026.
1998
400 Scientists & 2,00,000 sq.ft. 550 Scientists & 2,50,000 sq.ft.
laboratory laboratory

In 2018, Baxter
Baxter tied up with
extended contract till
Syngene in 2013
2024.
100 Scientists & 70,000 sq.ft. 200 Scientists & 70,000 sq.ft.
laboratory laboratory

Amgen tied up with In 2017, Amgen extended

Syngene in 2016 the contract till 2024.

100 Scientists & 25,000 sq.ft. 170 Scientists & 60,000 sq.ft.
laboratory laboratory

Herbalife tied up with 8 Scientists & 3200 sq.ft.

Syngene in 2017 laboratory

Abbott Center represented

Abbott tied up with The contract got expired
just 1% of total Revenue.
Syngene in 2012 in 2017.
 Dedicated R&D Revenue
700 0.6
548 624
54%
600 0.5 Dedicated R&D Revenue Contribution
33%
500 0.4 31% 30% 31%

400 365 372 356 0.3 25%

300 0.2
14%
200 0.1
2%
100 -4% 0

0 -0.1
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Dedicated R&D revenue (in Rs crores) Growth YoY

 Under this arrangement client is buying the whole thing infrastructure, management, people and the capability.
 The arrangement under Dedicated R&D is majorly Full Time Equivalent (FTE).
 The contracts are majorly for a period of 5 years or more.
 Tie-ups with global Pharma leaders gives a sense of consistency in revenue at least till 2023.
 2. Discovery Services- From target to a Drug Candidate

Discovery covers the process from target identification to target validation to lead generation and lead optimization. The
focus at this stage is to narrow down thousands of compounds to a few hundred, promising possibilities for further R&D.

“Discovery services offers a class of ‘value added biological services’ which work to extract more client dollars per small
molecule.” Source: Syngene Annual Report

Discovery Services
How is Syngene undertaking Discovering Process:
Solution Provided: Conducts
early-stage research, from • Discovery Chemistry.
target identification to
delivery of drug candidates • Discovery Biology.
for further development
• Bio-Informatics.
Collaboration Model:
Primarily FTE engagements.
 Discovery Services- “A CRO function”
Syngene has been continuously adding capacities and bringing new technologies to strengthen its discovery
process, thereby making it more reliable and go to partner for global MNC.

In 2017, Syngene established one research center in Bangalore. In

Research Centers in Bengaluru and Hyderabad
2020, new R&D center was established in Hyderabad.
As, lot of data is produced while selecting a target compound, analyzing of
Acquired Bioinformatics company
that data becomes important, so for that it acquired Strand Lifesciences in
2017 to support its Data management.

New Processes like Anti Body Drug The investment in new platforms like Anti Body Drug Conjugates and
conjugates, Oligonucleotide Oligonucleotide, brings Syngene at par with global CRO’s.

Appointed Dr. Kenneth Brar as a SVP to overlook Discovery Services. He has

Strengthened the Discovery Services team more than 30 years of experience in this field.

Collaboration with Deerfield Management In 2020, Syngene tied up Deerfield Management company. Deerfield plays
company for 5 years a critical role in early stage therapeutics. This collaboration would further
enhance the discovery capabilities of Syngene.
 Discovery Services Revenue
700 644 0.6
602 Discovery Services Revenue Contribution
600 50% 0.5
500 470
0.4 33% 33% 32%
400
312 28%
0.3 26%
300 255 23%
23%
0.2
200

100 7% 0.1

0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Discovery Services Growth YoY

 The company has been continuously focusing on Discovery services and this is visible in the contribution which has
increased from 23% to 32%.
 With the recent developments, the scope of services in the Discovery space has increased which has made Syngene
more capable of delivering solutions to clients.
 Development Services
Development Services

Solution: Encompasses
activities from pre-clinical to
clinical trials including drug
substance development and
associated services to
demonstrate the
safety, tolerability and efficacy
of the selected drug candidate

Collaboration Model: Largely

Fee for- Service (FFS)
engagements.

Key Activities Include:

1. Drug Substance Development (process R&D and optimization).
2. Drug Product Development (pre formulation and formulation
development).
3. Allied Services (stability services, Viral testing, Bio analytical).
 Manufacturing Services
Manufacturing Services

Solution: Manufacturing
Services for small and
Large molecules, including
clinical supplies and
registration batches as well
as commercial volumes
through a new, state of the
art API manufacturing
facility.

Collaboration Model:
Customized engagement
models.
 Development and Manufacturing Services
800 744 0.4
35% 675
700
0.3
600 569
476 19% 0.2 Development and Manufacturing Revenue Contribution
500
420
400 0.1
10%
300 43% 40%
0 37% 37%
35%
200
-12% -0.1
100

0 -0.2
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Development and Manufacturing Growth YoY

With the expansion into the following spaces Syngene is well placed to provide the full range of services right
from discovery to manufacturing:
1. Viral Testing Facility.
2. Biologics Manufacturing Facility.
3. Mangalore API Plant.
 Lets try to Understand Managements Strategy

1. Platform Integration 2. Getting Future Ready 3. Follow the Molecule

Syngene is rapidly expanding Syngene is gradually

Syngene is pursuing
horizontally across the entire expanding its capabilities in
collaborations with client
drug discovery chain. Biologics/Large
which would span right from
Therefore, we can say Molecules, which is going to
discovery to large scale
Syngene is building a be huge opportunity.
manufacturing, which would
platform where clients can Company has established its
lead to Syngene extracting
plug and play different manufacturing and research
more dollars per client.
services. facility in Biologics.
 Biologics the next Big Thing?
The pharmaceutical industry has seen the emergence of the biologics blockbuster in the past ten years. In 2018, only two of
the top ten largest selling drugs were small molecules and biologics drove 80% of sales. (Source Syngene AR)

Lonza Pharma and Biotech one of the biggest

CRAMS player, is continuously focusing Biologics.

(Source Lonza AR)

Wuxi Apptec, Asia’s largest CRO player has

increased its focus on biologics over the years and it
is betting on same for the growth in coming years.

Catalent, one of the largest Contract Manufacturers

is doubling its biologics capacity given the huge
growth runway.
(Source Catalent Website)
 Can confirm world is moving towards Biologics?

(Source: Catalent JP Morgan Health Presentation)

 How is Syngene slowly moving towards Biologics?
1. Biologics
Syngene has already built a 3*2000 L bioreactors, the facility was commissioned in 2018.

Manufacturing Plant
Company established Viral testing facility in 2016 and was the first company in India to do so.
2. Viral Testing Facility Viral testing is an integral part of submissions (safety assurance) to regulatory authorities. This comprises the
conduct of clinical trials and marketing authorizations. The testing is mandatory for all biopharmaceutical
products.

3. Tie-ups • Amgen is recognized as one of the leaders in Biotechnology. Company tied up with Amgen in 2017.
• Tie up with Canadian Biotech company to develop few antibodies, again shows how these collaborations is
helping Syngene to strengthen its Biologic Journey.

4. Personnel's • Jonathan Hunt, current CEO has over 25 years experience in Bio pharma. He was designated as CEO in 2016
• Dr Jayshree Aiyar was hired in 2016 as a Head of Biology.
Q2 2020 Concall
 Solid Client Base
Year Collaborations
400 90%
360
350 79% 71%
69% 72% 70% 316
331 80% 2017 Tie up with Canadian Biotech firm
293 70%
300
256 65%
250 221
69% 68% 67% 60% 2018 Discovery Project with GSK
183 186 50%
200
40% 2018 Development & Manufacturing project with
150 115 30% Zoetis
100 20%
50 10% 2018 Multi year contract with Japanese spec Chem
0 0% company
2012 2013 2014 2015 2016 2017 2018 2019 2020
2018 French Biotech company
Clients Top 10 Customers Revenue concentration
2019 R&D partner for Artelo Biosciences
2019 Zumutor Biologics
2020 Extended Collaboration with Merck

 8 Collaborations with top 10 pharmaceutical companies.

 Good partnerships/relationships with 15 out of the top 25 Biologics companies.
Client Base Across Different Therapies
 Revenue from Operations
2500 35%

32% 1826 2128

30% 29% 2012 30%
2000 29% 28%
27%
25%

22% 23%
1500 1423
20%
1201 19%
1107
15%
1000 860
700
550 10% 10%

417 8%
500
264 322 6% 5%

0 0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

Sales Growth YoY

• The dip in revenue growth in 2017, was due to the fire that broke out at one of the company’s facility which
represented 20% of total revenues.

• Over the last 10 years revenue has grown at a Cagr of 23% and 14% over the last 5 years.
 Gross Profitability
1200 0.4
1008 0.35
1000 34% 33% 920
31% 829 0.3
800 28%
665 25% 0.25

547 571
600 0.2
19%
419 16%
353 0.15
400
276 11%
207 10% 0.1
200 154
4% 0.05

0 0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

Core Gross Profit Growth YoY

Core Gross Profit Margin

48% 50% 50% 50% 49% 49% 48% 47% 46% 47%
45%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

**Core Gross Profit = Revenue – Cogs - Employee Cost

 Employees- The Core Asset
6000 88%
87% 4946
5000 88% 4619 87%
87% 4200
4138 3540
86%
4000 84% 3492
2967 3053 86% 3996 85%
3000 2666 2600 85%
2227 84%
2000
83%
1000 82%

0 81%
2015 2016 2017 2018 2019 2020

Employees Scientists Scientists/Employees

Employee Cost as a % of Sales

Revenue per Scientist (in Rs Lakhs) 28%
25% 25% 26% 26% 25%
24% 22% 22% 23% 23%
43 46 48
39 39 40

2015 2016 2017 2018 2019 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
 Operating Profitability
700 643 50% CAGR 10 yr: 23%
47% 602 45%
600 535 CAGR 5 yr: 11%
32% 40%
500 35% 37% 35%
32% 30% 385 390
380 30%
400
25% 281 25%
300 20%
18% 214
200 139 164 15%
105 13%
84 10%
100 7%
1% 1% 5%
0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

EBITDA Growth YoY

“The dip in growth in 2017 and 2018 is

EBITDA Margins mainly because of fire event that occurred
32% 33% 33% 33% 34% 32%
30% 31% 27% 29% 30% 30% in 2017 and also because of increase in
employee cost by 4-5% over the 2 years”.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM
 Net Profitability
450 412 50%
400 CAGR 10 yr: 28% 363 40%
CAGR 5 yr: 9% 37% 38% 331
350 34% 305
31% 287 30%
300 24%
241 20%
250 19%
200 0% 0% 175 10%
150 -8% 134
98 8% 0%
100 73 6%
50 31 28 -12% -10%

0 -20%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

PAT Growth YoY

Depreciation as a % of Sales
13%
11%
9% 9% 10% 9% 9%
PAT Margins
24%
20% 22% 21% 20%
18% 19% 18%
17% 17% 2015 2016 2017 2018 2019 2020 TTM
12%
9%

“The net profit is expected to remain subdued for

sometime, mainly because the newly commissioned
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM Mangalore facility is not yet operational, so a heavy
deprecation charge is leading to weigh heavily on
net profit growth too”.
 Growth Backed by continuous expansion over verticals
2016 In 2016, company earmarked $200 million capex program across verticals, which was to be spent across 3-4 years
• Research Center of 2,00,000 sq.ft
• New Formulation Center
• Biologics Manufacturing Facility
• New capabilities in areas like Anti Body Drug Conjugates, Oligonucleotides and Virology Testing Services.

Viral Testing Facility &

2017 Oligonucleotides facilities established.
Target to reach $550 mn asset base by end of 2021.

New Biologics Manufacturing set up in

2018
Bangalore.

2019 Commissioned the Research Center

Commissioned Phase 1 of new
2020
research center in Hyderabad.

2020 Commissioned Mangalore API plant.

 Continuous Capex - “Getting Future Ready”
Net Block (in Rs Crores)
Fixed Asset Turnover
1.9 2.0
1877 1947 1.8 1.7
1.4 1.5 1.5
1.1 1.2
1337
0.8 0.8
1030
810
503 580
402 388 383 381 394
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M 2021

630 677
540
446
398
300 308 226 323 306
286
231 230 220
139 129 134 113 168 137
104 81 95 111 109 77
13 19

2010 2011 2012 2013 2014 2015

-91
2016 2017 2018 2019 2020
-15 -5 -2
-34
CFO FCF Capex

Q1 2020 concall
 Working Capital Management
2.4 2.2
2.3 2.6 2.0 3.6 4.3 3.6
2.8 2.3
8.0 7.6 8.1 11.6 15.1
9.4 8.3 9.2
6.7 7.8

9.0 10.2 9.2 8.2 6.3 6.3

6.1 6.1 6.0 5.5

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Debtors Turnover Inventory Turnover Payable Turnover

181 128 159 163

159 139 154 101 85 102
39 44 40 55 47 24
46 48 45 32
40 36 40 45 58 60 58 60 61 67

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Debtor Days Inventory Days Payable Days

Particulars 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Working Capital as a % of Sales 2% -6% -4% -23% -8% -8% -8% -6% -6% -5%
Cash Conversion Cycle (Days) -73 -56 -96 -78 -4 20 -4 -14 -52 -72
 Prudent Capital Sourcing

Sources of Funds (2010-20) Application of Funds (2010-20)

4%
20%
24%

3%
43% 2%
42%
7%

15%

22%

11% 6%

Increase in Working Capital Purchase of Fixed Asset

CFO Decrease in Working Capital Net Purchase of Investment Decrease in loans
Net Sale of Investments Increase in loans Interest paid Dividend paid

Others Others
 Return Ratios

Depressed due
to capex and
unutilized
capacity
32%
31%
25% 27%
25% 23%

17% 20% 19%

22%
26%

28% 26%
24% 23% 24% 24%
20% 18% 20%
17%
13%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ROE ROCE
 Valuation Ratios

66

52

38
36 35 35
32
29 29
27 27
24

18
13 13 14
12 11
9 8 9
7 6 5

2016 2017 2017 2019 2020 Current

P/E P/S EV/EBIT P/CFO

Wuxi Apptec Business Model
 Global Giants vs Syngene
Lonza & Wuxi Apptec Syngene

Both these giants uses Anti Body Drug Syngene, first company in India to develop Viral
Discovery Capabilities
Conjugates (ADC), Viral Test Facility, CAR-T testing facility. It also formed ADC and CAR-Ttherapy.
therapy for its operations.

Syngene is also along the same lines and has started

Lonza uses mammalian technology in Biologics
Biologics Capabilities with mammalian and single use bioreactors for its
and also single use bio-reactors to support its
manufacturing though it has just started but it seems
Biologics manufacturing.
it is on right track.

Talent Pool More than 80% of the employees are scientists More than 85% of the employees are scientists in
in Wuxi Apptec. Syngene.

Lonza is also establishing API facility for further Syngene has also established its API facility in
Future Plans
integrating its services. Mangalore for integrating its services.

Although Wuxii and Lonza are very large as compared to Syngene, but Syngene is also doing the same things which these
companies have done. So, therefore we can say that Syngene is on the right track with capacity and technology in place.
 Peer Comparison
Revenue (USD mn) EBITDA Margins
5638 36%
5092 34%
32% 32%
4667 29% 29%
4347 26%27% 27%28%
4057 26% 25% 26%
22% 24%

2529
1845
1186 1395
871
167 185 219 263 267

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Wuxi Apptech Lonza Syngene Wuxi Apptech Lonza Syngene

Revenue Growth YoY 2017 2018 2019 2020

Net Profit Margins
Wuxi Apptech 36% 18% 32% 37%
24% 24%
Lonza 15% 21% -23% 17% 22% 22%
19%20%
Syngene 11% 18% 20% 2% 18% 18%
16% 16%16%
14%15%
10%
7%

2016 2017 2018 2019 2020

Wuxi Apptech Lonza Syngene

 Peer Comparison
Capital Expenditure (USD mn)
Revenue per Employee (in USD)
1007
782
4,00,494
3,66,699 431 537 464
348 326 363
3,19,264 138 209
3,07,860 44 45 55 84 84
2,81,032

2016 2017 2018 2019 2020

88,126 78,680 84,851 96,380 Wuxi Apptech Lonza Syngene

75,002 56,939
56,286 52,978 52,924 53,983

Capex as a % of Net Block

2016 2017 2018 2019 2020 45%
36% 37%
32% 29%
Wuxi Apptech Lonza Syngene
36% 37% 29%
30% 31%
25%
17% 20%
15% 13%

2016 2017 2018 2019 2020

Wuxi Apptech Lonza Syngene

Return on Equity
26% 24%
18%
20% 19% 19% 18% 20% P/E
16% 127
13% 12%11%
11% 11%10% 107
73 65 58
38 40 49
35 38 27
21
2016 2017 2018 2019 2020
2018 2019 2020 Current
Wuxi Apptech Lonza Syngene
Wuxii Apptec Syngene Lonza
 Management Team
Leadership Team Designation Description

Kiran Mazumdar Shaw

Chairman Chairperson of Biocon Limited, 45 years of experience in the field of biotechnology.

Prior to joining Syngene in January 2015, he worked with Astrazeneca. He has more than 25 years
Jonathan Hunt MD & CEO of extensive experience in the global biopharmaceuticals industry.

Held various positions across companies like Pfizer, Amgen and has experience of more than 20
Mahesh Bhalgat COO years.

SVP-Disovery Joined Syngene in 2019, prior to that he has worked with Merck, Abbott and has experience of
Dr. Kenetth Brar services more than 30 years.

SVP-Developmental
Dr. Jan-Olav Henck Services Prior to joining Syngene he has worked with Bayer and has experience of more than 13 years.
 What makes Syngene special?

Only Integrated Player in India right from CRO to CDMO all under one head.

Business with high entry barriers.

Continuous innovation in the processes and the early mover advantage (one of the early mover to enter
Biologics space in India).

Business built on strong relationships with top pharma companies associated for a long period of time.

Strong talent pool, with majority of the employees being scientists.

Robust capex program in place to support next leg of growth.

 Revenue drivers for the coming years
1. Mangalore API Plant to commence 2. Foray into Biologics 3. Dedicated R&D Centers
manufacturing from FY22 and produce
API and advance intermediates.

4. Foray into Animal

health, and building plant
for the same
 Porter Five Forces Analysis
Threat of new entrants Threat of substitutes

Low: Threat of New entrants is very Moderate: As, the company has proved

low, because company operates in a its capabilities, but large pharma

niche space, and has established strong companies can outsource their research

relations with pharma companies to other companies too.

Competitive rivalry

Moderate: There is moderate threat of

competition, because of the global
giants, although for any molecule
Bargaining power of outsourced there are only 2-3 suppliers Bargaining power of
suppliers selected for that product. customers
Low: The company does not have much Low: If the customers entering a contract
of the raw material dependency, and it then there is some commitment, if it has
has higher bargaining power which is entered into a FTE contract then
reflected in the payable days. irrespective of any thing, the customer is
required to pay under stated agreement.
Wuxi Apptec Investor Presentation 2020
 Syngene - A small fish in a big ocean!

Why we are saying that Syngene is a small fish in a big ocean?

Biologics segment has huge

growth potential, as we saw in Syngene is also on the
Continuous capex by global
Catalent (around 50% of footsteps of global CRAMS
CRAMS like
revenues i.e USD 2.5 billion player with technology at par
Wuxii, Lonza, Catalent etc.
would come from biologics by with global players.
2024).

When we look at the likes of Wuxi Apptec, it is around 10 times the size of Syngene and is still growing at high double digit
continuously. On the other hand Syngene is also on the right track as compared to global peers and the growth journey has just
started. Looking at the huge opportunity in the CRO segment, Syngene could be a major beneficiary of the growth in Biologics
industry.