According to a Biocon statement GE Capital – the financial services unit of US conglomerate General Electric – has paid $23m for an 8 per cent stake in Bangalore, India based Syngene.
GE’s investment in Syngene – which values the formulation development and chemistry services firm at around $300m – comes as the Indian services firm prepares to list on an as yet unspecified financial market.
Biocon MD Kiran Mazumdar-Shaw said: “GE Capital’s investment in Syngene, Biocon’s subsidiary, is a validation of our research services business model which has delivered consistent value to our partners as well as other stakeholders."
Mazumdar-Shaw also said the investment is “a validation of our research services business model [and]…This takes us closer to our commitment of taking Syngene through an IPO at the most opportune time.”
Syngene director Peter Bains,was similarly positive, suggesting the additional funds “will enable Syngene to expand its integrated discovery and development services platform and harness the global outsourcing opportunity to foster high value strategic partnerships with leading pharma and biotech companies.
“Besides fueling our future growth, this investment also endorses the quality of innovation at Syngene and the role played by its scientific team in accelerating innovation and productivity of its global customers.”
The investment follows just a few months after GE Healthcare – another unit of General Electric bought genomic services CRO, SeqWright, as part of an effort to build in the personalised medicines space.
Before that the firm – in 2010 – GE acquired biomarkers services and technology firm Clarient to expand its diagnostic imaging business into cancer diagnostics and characterisation.