Syngene MD and CEO Jonathan Hunt expects US Biotech segments recovery by Q4 after having cut company's FY24 guidance

livemint.com:

Syngene Q2 results: Syngene International has cut its FY24 growth guidance to mid-teens on a constant currency basis compared to earlier guidance of high-teen growth. The share price of Syngene corrected more than 7%. The challenges are posed in the Discovery Sciences segment.

While global demand growth in the segment remained generally healthy, the US based biotech segment is showing signs of slowed growth year-on-year as companies adjust to a new funding environment. Syngene’s MD and CEO said that he expects Us based Biotech segment's growth will bottom out in the third quarter and is likely to see a recovery by the Fourth quarter. The high interest rate environment has led to the slowdown.

The funds are being diverted to other avenues and companies are adjusting to a new funding environment. The situation however is expected to normalise by the fourth quarter Syngene's Hunt, however, does not expect any impact on the margins and though Syngene's constant currency growth during the financial year has been reduced to mid-teens, Hunt expects the the Ebitda margins to remain at 30% levels in FY24. Ebitda stands for earnings before interest tax depreciation and amortisation.

Also Read- Tata Elxsi stock surges 3.35% after Q2FY24 earnings The company's September Quarter Ebitda margins stood at 29.6% . Its reported Ebitda at ₹276 crore during Q2 marked a growth of 19% year-on-year. The first half and second quarter FY24 has seen strong performance particularly led by our Development and Manufacturing Services segments said Syngene's Hunt.