Bangalore-based Indian drugmaker Biocon drew some brickbats from analysts after third-quarter earnings were released because of disappointing progress in sales of biopharma products, prompting management to go into details about plans to grow the business.
Syngene International, the custom research arm of India's Biocon, said it will build a $100 million facility in the country's Mangaluru Special Economic Zone to make ingredients for pharmaceuticals and chemicals for the agricultural sector.
As with most corporate chiefs, Biocon's normally would be pleased with India's proposal to lower the nation's corporate tax rate to 25% from 30%. But, if it means eliminating tax exemptions for investments in research and development, Biocon is opposed.
India's Syngene, the recently IPO'd CRO division of Biocon, kept up its years-long run of growth with a 28% revenue boost in the second quarter of its fiscal year.
India's Biocon has moved to buy a manufacturing plant from Acacia Lifesciences, the firm said in an announcement to the Mumbai stock exchange, taking over the domestic maker of active pharmaceutical ingredients and advanced intermediates this month.
India's Alkem Laboratories is said by the Economic Times to be close to an initial public offering of INR150 billion, or nearly $300 million. The company has a U.S. subsidiary that indirectly found fairly recent trouble with the U.S. FDA.
India's Biocon easily reached the top end of its offer range for an initial public offering of shares in CRO Syngene, a source said, adding that recent reports of troubles at other Indian companies in the sector had no impact on demand.
Repeated quality violations by Indian drug manufacturing and contract research firms are casting a long shadow on the country's hopes to be a key global supplier of medicines and services. And they come at a particularly acute time for Biocon, which opens an initial public offering for its Syngene unit next week.
Indian drugmaker Biocon is on the road to taking its in-house CRO public, and the company's founder said she's considering making the company an entirely independent operation.
India's Foreign Investment Promotion Board sharply hiked the foreign investment limit allowed for an upcoming initial public offering of shares in Syngene International, the CRO unit of Bangalore-based Biocon, setting the stage for a capital market entry expected in July.