Syngene Acquires First US Biologics Facility from Emergent for $36.5 Mn

The newly acquired Baltimore-Bayview facility is strategically located near key biotech hubs in the US Northeast. Syngene expects the facility to be operational for client projects starting in the second half of 2025.

India's Syngene International has announced the acquisition of its first biologics facility in the United States from Emergent Manufacturing Operations Baltimore, a unit of Emergent BioSolutions, for $36.5 million.

The acquisition marks a strategic move to strengthen Syngene's presence in the US and enhance its biologics manufacturing capacity.

The newly acquired Baltimore-Bayview facility is strategically located near key biotech hubs in the US Northeast. Syngene expects the facility to be operational for client projects starting in the second half of 2025.

This acquisition will increase Syngene's total single-use bioreactor capacity from 20,000 liters to 50,000 liters, enhancing its large molecule discovery, development, and manufacturing services.

Partnership with Emergent & Compliance Assurance

Emergent will retain the right to secure manufacturing services and capacity at the facility in collaboration with Syngene as part of the agreement.

Emergent had shut down the plant last year as part of a cost-cutting strategy to shift away from contract manufacturing. The closure followed quality issues during the production of Johnson & Johnson's COVID-19 vaccine.

However, the facility was cleared by the US (FDA) last year and is now compliant with the required guidelines.

"In the short term, we expect minor dilution of operating margins due to costs incurred in this facility," said Deepak Jain, Syngene's Chief Financial Officer.

The acquisition aligns with broader efforts by India's life sciences industry to reduce dependence on China by expanding capabilities in other regions.

According to a report by Boston Consulting Group, India's contract research, development, and manufacturing organization (CRDMO) sector has the potential to grow sevenfold to $22 billion—$25 billion by 2035.

Syngene's U.S. expansion positions it to capitalize on this growing market and strengthen its global footprint in biologics manufacturing.

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