10 Dec , 2024 By : Debdeep Gupta
A block deal involving Rs 706 crore shares of Contract Development Manufacturing Organisation (CDMO) player Syngene International took place on the exchanges on December 10, with promoter Biocon being the likely seller. As much as 82.2 lakh shares, making up a 2 percent stake in Syngene changed hands at an average price of Rs 858.5 apiece, reflecting an over 1 percent discount from Monday's closing price.
Shares of Syngene reacted positively to the stake sale and rose over 3 percent. At 09.19 am, shares of Syngene International were trading at Rs 897.05 on the NSE.
While Moneycontrol could not immediately identify the parties involved in the transaction, CNBC-TV18 had reported that Kiran Mazumdar-led Biocon was eyeing to offload a 2 percent stake in Syngene in a bid to earn Rs 660 crore from the sale.
The block deal will also trigger a 60-day lock-in period before Biocon can execute any further stake sales, the report stated. Biocon is part of Syngene's promoter group and owns a 54.45 percent stake in the CDMO company as per its latest shareholding data.
Shares of Syngene International reeled under selling pressure in the previous session, plummeting nearly 6 percent, in line with the selloff seen across CDMO stocks after the uncertainty over the passage of the US Biosecure Act soured sentiment.
The Biosecure Act's exclusion from a key defense bill signals a potential softening of the US stance on Chinese biotech. Since the defense bill was the most viable route for the Act's approval in 2024, its failure to pass this year could have a sentimentally negative impact on Indian CDMO players.
The US Biosecure Act sought to restrict US life sciences companies from partnering with select Chinese biotech firms within eight years, aiming to prevent potential misuse of US genomic data by the Chinese government and military. Its passage was anticipated to redirect a wave of CDMO contracts to Indian firms, as US innovators explored shifting supply chains away from China.
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