Syngene International, the contract research arm of Biocon has expanded the scope of its research and development (R&D) efforts with Baxter Health Corporation. This development comes on the heels of Syngene entering into a pact with British drug company GSK.
As part of the expansion, Syngene will set up additional infrastructure at the dedicated Baxter Global Research Center (BGRC) as well as increase the size of its scientific team working on Baxter projects. Syngene and Baxter originally established the Baxter Global Research Center, a dedicated R&D centre in 2013. This was expanded and the scope of R&D also got extended until 2024.
Why is this important
Since the last month or so, Syngene has been inking a slew of partnerships for its drug discovery services. A month back, Syngene inked a pact with GSK to focus on accelerating the discovery of new drug candidates using Syngene’s discovery services platforms. It was a similar deal, where Syngene would set up a team which would set up a customised discovery research laboratory to support projects across several therapeutic areas.
It has a smiliar partnership with Zumutor Biologics, an emerging immuno-oncology company. Also, Syngene presently operates dedicated R&D Centers for Bristol-Myers Squibb, Amgen and Herbalife, in addition to Baxter.
Stock to be impacted
Syngene has had a positive impact on its parent Biocon, and at the March-ended quarter, registered a revenue growth of 45 per cent to ₹409 crore, aided by a strong performance of its chemical development vertical and traction in discovery services.
Biocon (CMP 565, M. Cap 33,939 crores, 23.2 FY21 P/E)