Page 52 - CW E-Magazine (Oct-Nov-2023)

Happenings

Strides Pharma to spin off Sigachi’s existing portfolio of excipi- Cabinet clears Advent’s
contract development unit ents and will provide one stop solution acquisition of Suven
for customer’s API & non-API needs,” Pharma for Rs. 9,589-crore
a company statement informed.
Strides Pharma Science said it will
spin off its contract development and Sigachi said the acquisition will The Cabinet Committee on Eco-
manufacturing organisation (CDMO) help to enhance its capabilities in de- nomic Affairs headed by Prime Min-
and soft gelatine business into a new veloping and supplying a diverse range ister Narendra Modi has approved the
entity, which would list in the next 12- of APIs, catering to a wide spectrum of FDI proposal for foreign investment of
16 months. therapeutic areas, including cardiovas- up to Rs. 9,589-crore in Suven Pharma-
cular, anti-diabetic, anti-infective, anti- ceuticals by private equity firm Advent
The new company, known as “One- viral, and central nervous system medi- International through its Cyprus based
Source”, will have more than 1,200 cations, among others. The company Berhyanda Ltd.
employees and is expected to deliver envisions becoming a key player in
revenue between $180-mn to $200-mn the API market by leveraging its R&D Advent International has entered
capabilities, manufacturing infrastruc- into a definitive agreement in Decem-
ture, and focus on quality. ber last year to acquire a 50.1% stake

Syngene to acquire Stelis
Biopharma’s Bengaluru
plant

Contract manufacturing services
in fiscal 2025. It is also targeting earn- firm, Syngene International, has inked
ings before interest, taxes, depreciation a pact to buy a manufacturing unit from
and amortisation, or EBITDA margin Stelis Biopharma for Rs. 702-crore on
of nearly 30%, which is expected to im- a slump-sale basis. The company has
prove to over 35% from FY26 onwards. entered into a binding term sheet with
Stelis to acquire its Bengaluru-based
Shareholders of Strides would hold Unit 3 biologics manufacturing unit, in Hyderabad-based Suven Pharma-
44% value in OneSource and will re- Syngene said in a statement on July 4. ceuticals, a listed contract research and
ceive one share of OneSource for every manufacturing services (CRAMS) firm
two shares held in Strides. The facility, which was initially promoted by Mr. Venkat Jasti and his
built to manufacture Covid-19 vac- family members for Rs. 6,313-crore,
Sigachi enters API cines, is now being repurposed to man- paying Rs. 495 per share. Advent will
business with majority ufacture monoclonal antibodies. Syn- also launch an open offer for an addi-
tional 26% of the company.
stake in Trimax Bio gene said it plans to further invest up to
Rs. 100-crore to repurpose and revali-
Sciences date the facility. On completion of the The government in a statement said
transaction, the site will add 20,000-li- the aggregate foreign investment may
Sigachi Industries Ltd., the Hyder- tres of biologics drug substance manu- increase up to 90.1% in Suven Pharma-
abad-based pharma excipient special- facturing capacity for Syngene, the ceuticals.
ist, is expanding into the API business company said, thought the site has the
with the acquisition of a majority stake potential for future expansion up to a As per the extant FDI Policy, 100%
(80%) of in API maker, Trimax Bio Sci- further 20,000-litres of biologics drug foreign investment is allowed under
ences, located in Raichur, Karnataka. substance manufacturing capacity. automatic route in greenfield pharma-
ceutical projects. In brownfield phar-
“With a well-established track re- The company expects the facility maceutical projects, FDI up to 74% are
cord of excellence in research, develop- to be operational in 2024, following allowed under the automatic route and
ment, and manufacturing, the acquired completion of facility upgrades and re- government approval is required for in-
API unit will synergise seamlessly with validation. vestment beyond 74%.

48 Chemical Weekly October / November 2023