GE Capital, the investment arm of General Electric, has picked up a 7.69% stake for Rs 125 crore in Syngene, a subsidiary of Biocon. The deal values the biotech company’s subsidiary at about Rs 1,624 crore. Syngene, a contract research organization, is into drug discovery and development services. Its client list includes Bristol-Myers Squibb, Abbott, Endo Pharma and DuPont.
“This stake investment is not just a financial investment. GE has leading edge expertise in lifescience technologies and we believe that through this investment Syngene has the opportunity to engage with different parts of the GE organization,” said Kiran Mazumdar Shaw, CMD, Biocon. She added that the investment would take Biocon closer to its commitment of taking Syngene through an IPO.
Peter Bains, director in Syngene, said GE Capital’s investment would “enable the company to expand its integrated discovery and development services platform and help foster strategic partnerships with leading global pharma and biotech companies”. Syngene has over 1,500 scientists and reported revenues of Rs 400 crore in 2011-12. In the second half of this financial year, the company had revenues of Rs 250 crore.
News source: TimesofIndia