Biocon’s Syngene Plans IPO
Syngene International Ltd, a contract research organization and part of the India-based biotechnology company, Biocon Limited, plans to file for an initial public offering on the Bombay Stock Exchange. The Indian government’s Registrar of Companies has approved the company’s Red Herring Prospectus, for the IPO. A red herring prospectus contains information on a company's operations and prospects, but does not include key details of the issue such as its price and the number of shares offered. Biocon and its subsidiary, Biocon Research Limited, currently hold an 84.5% equity stake in Syngene, which has obtained necessary approvals from the Securities and Exchange Board of India and the Foreign Investment Promotion Board of India for the IPO.
The offer will be open from July 27, 2015 to July 29, 2015. The offer price has been fixed between 240 and 250 rupees ($3.8 to $3.9 million).
Syngene has 200 million equity shares outstanding, and the offer will constitute 11.0% of the post-offer paid-up equity share capital of Syngene, including a reservation of 2 million equity shares for subscription by Biocon shareholders. The net offer (the offer minus the Biocon shareholder reservation portion) will constitute 10% of the post-offer paid-up equity share capital of Syngene.
As of May 31, 2015, Syngene employed 2,000 scientists and had more than 900,000 square feet of laboratory and manufacturing facilities in Bangalore, India.
In 2014, Bristol-Myers Squibb Company and Syngene International,announced a five-year extension of their drug-discovery and development collaboration in India. Since 2007, Bristol-Myers Squibb has been working with Syngene and its corporate parent, Biocon Ltd., to develop integrated capabilities in medicinal and process chemistry, biology, biotechnology, biomarkers, drug metabolism and pharmacokinetics, analytical research, and pharmaceutical development at the Biocon Bristol-Myers Squibb Research Center (BBRC) in Bangalore. Bristol-Myers Squibb and Syngene jointly developed the BBRC at Biocon Park in Bangalore. Over the years, BBRC has become Bristol-Myers Squibb's largest research and development center outside the United States, housing more than 400 scientists.