On March 10, Syngene International, an Indian contract research firm, announced the acquisition of its first biologics facility in the United States. The facility, located in Baltimore, was purchased from Emergent Manufacturing Operations Baltimore, a division of Emergent BioSolutions, for $36.5 million.
This acquisition is part of a broader industry strategy in India to reduce reliance on China by strengthening capabilities in other regions. The Baltimore-Bayview facility is strategically positioned near major biotech hubs in the Northeast U.S. and is anticipated to be fully operational for client projects by the latter half of 2025.
As per the agreement, Emergent will maintain rights to access manufacturing services and capacity at the site through a collaboration with Syngene. The facility had been shut down last year as part of Emergent’s cost-cutting measures and its shift away from contract manufacturing, prompted by financial challenges that led smaller biotech firms to scale back research investments.
During the pandemic, the facility encountered quality control challenges while producing Johnson & Johnson’s COVID-19 vaccine. However, it was cleared by the U.S. Food and Drug Administration last year and now meets all necessary regulatory standards.
Also Read: L’Oréal Appoints New Chief Digital Officer, Aniket Basu
The acquisition, set to be finalised by March 2025, will significantly expand Syngene’s bioreactor capacity from 20,000 liters to 50,000 liters. This will enhance the company’s large molecule discovery, development, and manufacturing services.
“In the near term, we anticipate a slight dip in operating margins due to the costs associated with this facility,” stated Deepak Jain, Syngene’s Chief Financial Officer.
