Biocon is plotting an IPO for Syngene, its in-house CRO, and GE ($GE) is jumping in early, paying $23 million for a 7.7% stake in the CRO.
Biocon director Kiran Mazumdar-Shaw told Dow Jones that the GE investment values Syngene at $300 million, setting the table for a big splash when the CRO goes public some time next fiscal year. Biocon is holding back on the IPO until global markets get a bit more stable, she said.
Syngene has a long track record of high-profile partnerships, including deals with Abbott Laboratories ($ABT) and Bristol-Myers Squibb ($BMY). The capital infusion from GE could lead to another big-name contract, Mazumdar-Shaw said, as the CRO could pair with the conglomerate's healthcare arm, which makes medical devices and imaging agents but has recently expanded into drug discovery and manufacturing.
Syngene reported sales of about $73 million in the last fiscal year and revenue around $45.8 million in the 6 months that ended Sept. 30, The Times of India reports.
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