Syngene International Ltd. announced the acquisition of Unit 3 biologics manufacturing facility in Bangalore, India, from Stelis Biopharma Limited (SBL). The companies have entered into a binding term sheet and, on completion of the transaction, the site will add 20,000 liters of installed biologics drug substance manufacturing capacity for Syngene. The site has the potential for future expansion up to a further 20,000 liters of biologics drug substance Manufacturing capacity.

It also includes a commercial scale, high speed, fill-finish unit - an essential capability for drug product manufacturing. Syngene will acquire Unit 3 on a slump sale basis for a gross value of INR 7,020 million (USD86 million). Subject to closing adjustments, the consideration for the transaction will be settled in cash.

The transaction has been approved independently by the respective Boards of Directors of both the companies. The transaction is expected to close within 90 days, subject to customary conditions, including receiving the required lender and regulatory approvals. The facility, which was initially built to manufacture Covid 19 vaccines, is now being repurposed to manufacture monoclonal antibodies and Syngene will further invest up to INR 1000 million to repurpose and revalidate the facility.

The facility covers both drug substance and drug product with installed capacity of 10 bioreactors of 2000L along with associated infrastructure and utilities. The facility also includes 10 additional uninstalled bioreactors - providing the potential for future expansion - and two high speed fill-finish lines.