Reported EBITDA improved by 22% to Rs 232 crore in Q2 FY23 from Rs 190 crore in Q2 FY22. EBITDA margin was 29.6% in Q2 FY23 as against 30.5% in Q2 FY22.

Profit before tax in Q2 FY23 stood at Rs 130 crore, up by 58% from Rs 82 crore recorded in Q2 FY22.

Syngene said that the second quarter results reflect positive performances across all divisions. Discovery Services experienced sustained demand and Development Services benefitted from repeat orders by existing clients, especially in areas of drug substance development and clinical supplies.

In Manufacturing Services, as part of the long-term biologics manufacturing agreement signed with Zoetis in the first quarter, the company completed the process performance qualification batches at a commercial scale. The commercial manufacturing of the drug substance for Librela is likely to begin in the fourth quarter of FY23, subject to successful completion of the required audits. Librela is a first-of-its-kind injectable monoclonal antibody used for the alleviation of pain associated with osteoarthritis in dogs.

Underlying performance for the first half, excluding the impact of remdesivir in the previous year, was strong and reflects a return to normal operations in global markets.

After a decade of partnering with Zoetis, the company signed a long-term biologics manufacturing agreement in July 2022 which adds to Syngene's well-established research partnerships with BMS and Amgen. The agreement will leverage recent investments in biologics infrastructure and is expected to be transformational for the Manufacturing Services division in the years to come. The agreement has the potential to be worth up to $500 million over the next 10 years.

Jonathan Hunt, managing director and chief executive officer, Syngene International, said, "The quarter saw positive performances across all divisions. Our research divisions: Discovery Services, including Synvent, our integrated drug discovery platform, and the Dedicated Centres showed sustained growth. Discovery Chemistry in particular saw buoyant customer demand.

Growth in Development Services was led by existing clients renewing contracts and setting up collaborations on additional projects.”

Sibaji Biswas, chief financial officer, Syngene International, added: “Forward planning with suppliers prevented supply chain disruption and, despite the rising global inflation, cost discipline helped us maintain EBITDA margins at similar levels as last year.

Overall, we are seeing healthy signs of growth in the market for contract research, development and manufacturing services and we continue to invest in infrastructure and capability development to meet these opportunities.”

Syngene International is an integrated research, development and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods and specialty chemical sectors.