Syngene cuts guidance as key product loss weighs on growth
Peter Bains, chief executive and managing director of contract pharmaceutical research and manufacturing firm Syngene International Ltd, said he cut its full-year revenue forecast from mid-single-digit growth to negative 2-3% as stock-outs of a single biologic product weighed on its growth for the second consecutive quarter. Mint in an interview Friday.
“In light of the impact we’re seeing on this single large molecule, we’ll be adjusting our guidance on revenue, where we previously had guidance in the mid-single digits, and that will now go 2-3% negative,” he said.
“This single product was the largest commercial product in our manufacturing platform and its impact has been significant and is evident in our results this quarter as well as in the quarters earlier in the year,” Bains said, adding that apart from this product, our core business has delivered steady growth.
Syngene released its third-quarter financials on January 22, with revenue and profit estimates missing. Revenue from operations fell 3 percent year-on-year ₹917 crore in 3QFY26, while EBITDA fell 26% ₹225 crore, margins fell to 24% from 31% a year ago. Profit after tax (PAT) before exceptional items fell 44% ₹73 crore.
A. Bloomberg Survey among four brokerage firms puts revenue at steady ₹980 crore and PAT ₹99 crore.
Revenue up 3% annually for the nine months ending December 2025 ₹2,702 crore, but EBITDA down 12% ₹664 crore and PAT down 22%. ₹227 crore.
Other lines of business offer partial balancing
Bains said the company expects the impact of the single molecule to continue in coming quarters, but hopes to partially offset that with growth in the rest of the platform.
The research and discovery services business accounted for approximately two-thirds of total sales, while the contract development and manufacturing (CDMO) business accounted for the remainder.
Research services secured new programs during the quarter, with one of the key highlights being the extension through 2035 of its long-standing partnership with Bristol Myers Squibb for joint development in discovery, development, manufacturing and clinical research.
The company also continued to invest in advanced manufacturing and chemistry capabilities by commissioning a commercial-scale capsule facility at its Hyderabad facility and expanding its catalytic and flow chemistry laboratories, while focusing on strengthening its integrated CRDMO platform.
The company is investing in developing capabilities in methods such as antibody-drug conjugates (ADCs) and peptides, where the industry is seeing increasing interest. Apart from this, Syngene is also investing in a technology called PROTACs (proteolysis-targeted chimeras) and disruptors, a dual-target therapy for previously “incurable” diseases.
“This is a very exciting area of development where we see long-term opportunity as science reveals new avenues for interventional medicines,” Bains said.
Syngene’s shares closed down 8.88% on the National Stock Exchange on Friday. ₹540.
