Pharma giant, Biocon on Tuesday divested 5.4% stake in its research subsidiary, Syngene International, in a wholesale deal. Syngene stake sale slightly higher 1,220 crores. While the promoter sold a part of its shares in Syngene, ICICI Prudential Mutual Fund, on the other hand, bought shares of higher value. 158 crore in the company. Syngene shares were under pressure during the trading session and have fallen more than 3% on the day.
As per the wholesale transaction data on BSE, biocon Sold at 21,789,164 equity shares of Syngene 560.04 per equity share. transaction is over 1,220.28 crores.
On the other hand, ICICI Prudential MF buys 2,828,510 equity shares in Syngene 560 per. The transaction came in approx. 158.4 crores.
As on June 30, 2022, as per the shareholding pattern, promoter Biocon held 28,09,74,772 equity shares or 69.99% stake in Syngene.
Syngene shares closed on BSE below 565 13.75 or 2.38%. Shares had touched intraday lows 559 each – resulting in a drop of about 3.4% on the day.
The company’s market valuation is currently 22,681.05 crores.
Should you invest in Syngene International stocks?
In Q1FY23, Syngene reported a net profit of 4% less than 74 crores 77 crore in the first quarter of the last financial year. its revenue from operations was Up 8% from 644 cr 595 crore in Q1FY22. EBITDA up 6% year over year 188 crore in Q1FY23, however, the EBITDA margin declined to 28.5% from 29.2% in Q1FY22. First quarter results were up against a strong quarter last year due to sales of the COVID treatment, Remdesivir. Excluding the impact of remdesivir, underlying revenue from operating growth in the quarter was up approximately 30% year-over-year.
Post Q1FY23, analysts Siddhant Khandekar, Raunak Thakur and Kush Mehta at ICICI Direct said in their note, “Keep buy as the recent Zoetis agreement provides confirmation in Syngene’s capabilities from clinical scale to commercial scale manufacturing.” could be an inflection point for the innovator to grow.”
Analysts set target prices 710 on Syngene.
The key triggers for future performance in Syngene shares as analysts note are regulatory approvals from regulated markets for Mangalore facility (FY24) and Librella manufacturing for Zoetis (H2FY23); The many-year extension of Amgen, BMS, Baxter contracts makes it well-positioned to capitalize on growing opportunities globally; the potential of SynVent, Syngene’s Integrated Drug Discovery (IDD) platform to expand business from existing customers and attract new customers; and expanding the biopharma manufacturing business by commissioning the cGMP Microbial Facility and expanding the Mammalian Cell Manufacturing Facility.
Syngene is an integrated research, development and manufacturing organization that provides scientific services – from initial discovery to commercial supply.
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