Syngene International tanks 4% on revenue guidance cut as US funding slows

Shares of Syngene International Limited plunged over 4 percent to Rs 744 in morning trade on October 18 after the drug maker trimmed its revenue guidance to a mid-teen level in the second half of the year.

The cut in the forecast comes amid a slowdown in US biotech funding. “We now expect the revenue to grow at mid-teens on a constant currency basis,” the company said in an exchange filing on October 17.

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In the quarter ended September, the company reported a 14.22 percent increase in consolidated net profit at Rs 116.5 crore against Rs 102 crore a year ago.

Syngene’s revenue from operations stood at Rs 910.1 crore for the current fiscal quarter, compared to Rs 768.1 crore in the corresponding period of the previous year. Additionally, the company’s total expenses increased to Rs 773.6 crore, up from Rs 653.5 crore in the same period a year ago.

Syngene International Managing Director and CEO Jonathan Hunt said the company posted strong results for the second quarter and first half of the ongoing financial year, particularly in its development and manufacturing services. “In development services, we also added a new non-GMP capability centre to meet market demand for agile, cost-efficient, early phase development and scale-up services,” he said.

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