The facility, which was initially built to manufacture Covid-19 vaccines, is now being repurposed to manufacture monoclonal antibodies.
Syngene said it plans to further invest up to Rs 100 crore to repurpose and revalidate the facility. On completion of the transaction, the site will add 20,000 litres of installed biologics drug substance manufacturing capacity for Syngene, the company said.
The site has the potential for future expansion up to a further 20,000 litres of biologics drug substance manufacturing capacity, it added.
Syngene said it will acquire Unit 3 on a slump sale basis for a gross value of Rs 702 crore. Subject to closing adjustments, the consideration for the transaction will be settled in cash, the company said.
The transaction, which has been approved independently by the boards of both companies, is expected to close within 90 days, subject to customary conditions, including receiving the required lender and regulatory approvals, it added.
"This acquisition strengthens our growing position as a leading biologics contract development and manufacturing service provider and adds drug substance capacity and a drug product capability years earlier than our internal capex programme," Syngene Managing Director and CEO Jonathan Hunt noted.
The company expects the facility to be operational in 2024, following completion of a programme of facility upgrades and re-validation, he added.