India's Biocon easily reached the top end of its offer range for an initial public offering of shares in CRO Syngene, a source said, adding that recent reports of troubles at other Indian companies in the sector had no impact on demand.
Repeated quality violations by Indian drug manufacturing and contract research firms are casting a long shadow on the country's hopes to be a key global supplier of medicines and services. And they come at a particularly acute time for Biocon, which opens an initial public offering for its Syngene unit next week.
Indian drugmaker Biocon is on the road to taking its in-house CRO public, and the company's founder said she's considering making the company an entirely independent operation.
India's Foreign Investment Promotion Board sharply hiked the foreign investment limit allowed for an upcoming initial public offering of shares in Syngene International, the CRO unit of Bangalore-based Biocon, setting the stage for a capital market entry expected in July.
Biocon, India's pre-eminent biotech company, is planning to spin out its in-house CRO in an Indian IPO, a move that shines a light on the country's evolving industry.
A contract research organization's initial public offering in India will be closely watched not only for signs of demand but also as to whether the local market may look anew at its broad biomedical sector.
Biocon plans to list its Syngene International research subsidiary on the India stock market by launching a $160 million initial public offering. With money in Syngene's pockets, Biocon then plans to sell 10% of its holdings to raise about $95 million for its own research.
Indian biotech giant Biocon is planning to take Syngene, its in-house CRO, public in an IPO on the local exchange.
Many of the largest pharmaceutical firms operating in India are contemplating becoming "paper tigers," existing there only on paper, with facilities moved to other countries. Regulatory delays get the blame.
Biocon has discussed the need to sell off 10% to 15% of the company's research services arm Syngene through an initial public offering to raise needed cash for research as well as to pay for production expansion. Now the Indian company has notified investors that Syngene will build a new active pharmaceutical ingredient plant in Mangalore.