Syngene share price declines more than 7% as company cuts its growth guidance

livemint.com:

Syngene International Ltd saw its stock price slide more than 7% in the morning trades on Monday post the company cut its growth guidance for FY24 looking at the challenges ahead. investor confidence has remained strong in the company’s growth prospects which had led Syngene's share prices rise almost 40% in the last year. The cut in growth guidance thereby was bound to impact investor sentiments.

As per the updated guidance the revenue growth for the full year is now pegged at mid-teens on a constant currency basis compared to earlier guidance of high-teen growth. The company’s cut in guidance pertains to challenges posed in the Discovery Sciences segment. In the Discovery Services, while global demand remained generally healthy, the US based biotech segment is showing signs of slowed growth year-on-year and the companies are adjusting to a new funding environment.

Also read- Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 18 “Long-term sector fundamentals remain strong, and we expect continued growth but at a lower level in the second half of the year, this short-term slowing in the US biotech segment is reflected in our latest outlook", said Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, in a statement. The company’s reported revenue from operations for the quarter ending September’2023 grew 18.5% year-on-year to ₹910 crores. In constant currency terms the revenue growth was at 15%.