2015-16

The result: Eight of the top-10 global pharmaceutical companies are engaging with Syngene today for their
research requirements.

New Developments: Expanding its R&D laboratory space, Added new services in stability, analytical & bio-
analytical services as well as viral testing, Invested in new platforms like Small Interfering Ribonucleic Acid
(SiRNA) and Antibody-Drug Conjugates (ADCs).

Human Resources: Our ~2500 research scientists (more than 90% with Doctorate or Master Degrees)

Dedicated R&D Centers: Our dedicated R&D Centres involve long-term strategic collaborations usually five
years or longer and entail setting up dedicated customized infrastructure with a dedicated team of scientists.
We currently have dedicated centres for Bristol-Myers Squibb, Abbott Nutrition and Baxter International.

Discovery Services: The discovery services vertical consists of multiple client engagements across discovery
chemistry and discovery biology based service offerings. It entails an in-depth understanding of discovery
chemistry and discovery biology pertaining to small and large molecules.

Development and Manufacturing Services: The development and manufacturing segment encompasses the
services, which support a molecule once it moves beyond in-vivo testing to preclinical studies and clinical
development. It also includes manufacturing of molecules for clinical supplies and commercialization.

Capital Expenditure: We earmarked a capex of USD 200 mn to be invested over the next two to three years.

Mangalore Manufacturing Facility: We will invest USD 100 mn in the upcoming commercial scale
manufacturing facility taking shape at Mangalore. This facility is spread across 40 acres in the Mangalore SEZ.
It will manufacture API and Intermediates; non-pharma novel molecules including advanced intermediates,
agro chemicals and performance / speciality chemicals meant for supplies in various scales.

We are currently in the process of obtaining necessary permits and regulatory approvals to commence
building and this facility is expected to be operational by FY19.

Syngene Research Centre: The 200,000 sq. ft.center will be a versatile state of- the-art research facility that
will support integrated discovery programs in chemistry and biology. The first phase comprising 50,000 sq. ft.
is scheduled for commissioning in Q1 FY2016-17.
Formulation Centre: Our upcoming Formulation Centre, taking shape at Bangalore, will have capabilities to
manufacture solid oral dosage forms (tablets, Pellets/Capsules/Granules/Powders/NDDS), parenteral dosage
forms (Liquids/Lyophilisation) as well as liquid orals and semisolids (Solution/Suspension/ Emulsion, Cream/
Ointment/Gel). The facility includes a development lab, cGMP manufacturing facilities, analytical and
development stability labs. The first phase of the Centre is scheduled to commence operations by H2 FY 2016-
17.

Biologics Manufacturing Facility: Large molecule development has tremendous growth potential in the
coming years. In order to access this potential, we are in the process of expanding our large molecule (or
Biologics) manufacturing capacity by establishing a new unit in Bangalore. This will deliver a five-fold increase
in the existing capacity and will be equipped with cutting-edge technology including single-use bio reactors.
This project is progressing well and is in the final phase of commissioning. We expect the facility to be
operational by H1 FY2017-18.

First of kind Development: Our upcoming Oligonucleotide and Viral Testing Centre will be the first of these
kind of facilities to be set up in India and will significantly expand Syngene’s capabilities.

IT Infrastructure: Syngene is the first CRO in India to implement SAP ERP that provides a comprehensive
transactional backbone with an enterprise wide software foundation to enable operational excellence and
innovation.

CRO Industry: Global R&D spending in 2015 is estimated at $139 billion, of which more than 50% could have
potentially been outsourced to the CRO industry.

The global CRO market for discovery services was estimated to be US$14.7 billion in 2014 and is expected to
reach US$22.7 billion by 2018, reflecting a CAGR of 11.5% (2014-2018), according to the IQ4I Report. The
global CRO market for development services was estimated to be US$28.8 billion in 2014 and is expected to
reach US$44.6 billion in 2018, reflecting a CAGR (2014–2018) of 11.6%, according to the Frost & Sullivan
Report.

Manufacturing: Syngene has world-class infrastructure with more than 9, 00,000 sq. ft. of laboratory and
manufacturing space.

In 2015-16, we also successfully completed three USFDA inspections without any major observations.
 2016-17

New Capabilities Developed: Introduced viral testing services by setting up a dedicated viral testing facility,
which will augment company’s biologics capabilities.

Strengthened biology service capabilities by adding new services like Next Generation Sequencing Technology
Platform for genomics, transcriptomics and microbiomics work.

Introduced bioinformatics services by acquiring the systems biology and pharma bioinformatics services of
Strand Lifesciences, reinforcing its position as a ‘One-Stop’ solution provider.

Commissioned first phase of Syngene Research Center spread across 50,000 sq. ft.

Abbott Nutrition extended its ongoing collaboration with Syngene for one year

R&D Center: The Company had 293 clients and built two new dedicated R&D centers in FY2016-17.

Biologics Market: Biologics, or large molecules, is one of the fastest growing segment globally. It is estimated
that by 2020, biologics will generate USD 290 billion in revenue and will make up for 27% of the
pharmaceutical market.

Dedicated R&D Center: During FY2016-17, we built two new dedicated R&D Centers – the Syngene – Amgen
R&D Center (SARC) for Amgen Inc. and the Herbalife Nutrition R&D Center for Herbalife Nutrition. SARC will
have a dedicated team of more than 100 highly qualified scientists, working in close association with Amgen
researchers around the world on discovery and development of innovative medicines.

The Herbalife Nutrition R&D Center is Herbalife’s first nutrition R&D Center in India and will help Herbalife
Nutrition develop and formulate world-class nutrition products for Indian consumers. The facility also houses a
separate Good Manufacturing Practices (GMP) formulations lab to support product testing, sampling and end-
product development.

Discovery Services: The fire incident during the year caused extensive damage to the Discovery Chemistry
infrastructure and decelerated its overall growth.

Development and Manufacturing Services:The Development and Manufacturing services vertical supports the
journey of a molecule through the preclinical studies, clinical development, formulation development, stability
studies and manufacturing for clinical supplies as well as commercialization. The growth in development and
manufacturing services during the year was driven by a strong performance in the chemical development
segment. Syngene commissioned a pilot facility for Oligonucleotide in SiRNA area. We also developed particle
engineering capability to enhance late-stage development capabilities.

Value-addition: Syngene has plans to expand its services into new areas like Next Generation Sequencing,
Translational R&D, Predictive Toxicology and Preemptive Target Validation Services. This acquisition will
support Syngene aggregate the right bioinformatics capabilities for delivering these new services. Syngene
commissioned a state-of-the art Viral Testing Facility in FY2016-17. The facility will provide niche services to
support the viral testing requirements of the pharmaceutical and biotechnology sectors.

Viral Testing: Viral testing is an integral part of dossier submissions (safety assurance) to regulatory
authorities. This comprises the conduct of clinical trials and marketing authorizations. The testing is
mandatory for all biopharmaceutical products (novel and bio-similars produced on mammalian expression
systems).

Formulation Facility: Syngene commissioned the first phase of a new formulation manufacturing facility
during FY2016-17. The facility has capabilities to support formulation development, clinical manufacturing and
small volume niche technology product manufacturing services for its clients.

Mangalore Manufacturing Facility: Syngene is investing USD 100 million in its upcoming commercial scale
manufacturing facility in the Mangalore SEZ. The plant will manufacture API and Intermediates.

Biologics Manufacturing Facility: order to strengthen its biologics manufacturing capabilities, it is setting up a
new facility in Bangalore. The facility will have three single use bioreactors each having a capacity of 2000L. It
will also have two upstream suites that will enable parallel operations and one downstream train with post-
viral segregation. The facility is expected to be commissioned by mid-FY18.

Bio Informatics: According to a Bio spectrum Report, the global informatics market is expected to grow from
around USD 10 Bn in 2013 to around USD 30 Bn by 2020 at a 15% CAGR. In line with the market opportunity,
during September 2016, Syngene made inroads into the bioinformatics and data analytics capabilities with the
acquisition of Strand Life Sciences assets related to systems biology and pharmaceuticals services practice.

Employee: 3053 Research scientists (more than 90% with Doctorate or Master Degrees). Our total employee
strength was 3492 of which 3053 were scientists across multiple disciplines.
IT Infrastructure: A strong computing and communication infrastructure, with all relevant informatics
modules, was implemented at all the new facilities and dedicated centers commissioned during FY2016-17.
The IT team also implemented the Xybion Pristina solution for complete automation of drug safety research
and vivarium management. A robust Data Loss Prevention (DLP) system to prevent unauthorized sharing of
information and Advanced threat protection (ATP) system to provide security against sophisticated malware
or hacking based attacks targeting sensitive data was also integrated into the network for increased security.

Remuneration: The total managerial remuneration for the Financial Year 2016-17 was ` 113.85 million as
against ` 78.77 million during the previous year. The remuneration to managerial personnel involves the mix of
fixed, variable pay and stock options reflecting short and long term performance objective derived from the
Company’s goal.

Manufacturing Facility: Commissioned Phase I of new Formulation facility. The facility, spread across 17,000
sq. ft. space, is capable of manufacturing clinical supplies as well as commercial supplies of small volume niche
technology products and complies with regulatory requirements of the USFDA, EMA and other authorities.

2017-18

Clients: 316 Global clients across multiple sectors, 400+ Patents filed by our clients with the support of our
scientists in the last five years

Employee: 3,540 Qualified scientists (>85% Doctorate or Master’s degree holders)

Collaborations: One of the most significant highlights of the year was the signing of a strategic, multiyear
collaboration with GlaxoSmithKline (GSK). This collaboration will focus on new drug discovery projects using
Syngene’s discovery services platforms. Discovery research has traditionally been one of Syngene’s core
strengths and this collaboration in many way underlines Syngene’s position as one of the most innovative,
capable and cost effective providers of discovery research services.

Our development and manufacturing collaboration with Zoetis, a global leader in animal health, further
strengthened our presence in the animal health sector enabling us to use our scientific expertise in developing
superior products for the betterment and welfare of the animals. The collaboration entails research and
development of monoclonal antibodies and provides for commercial scale manufacturing.

During the year we also entered into a multi-year manufacturing agreement with a Japanese specialty
company to manufacture a novel chemical entity for commercial launch in the Japanese market.

Biologics: Globally biologics are gaining traction and it is estimated that by 2020 about 1/3rd of the global
pharmaceutical industry revenue will be contributed by biologics. We commissioned our new Biologics
Manufacturing Plant and this has significantly boosted our biologics manufacturing capacity. This state of- the-
art mammalian manufacturing facility is designed to manufacture clinical as well as commercial scale batches
for global markets.

During the year, we also signed a services, manufacturing and supply contract with Zoetis, the largest global
animal health company that envisages commercial manufacturing in the future.

Mangalore Facility: The construction activities at our upcoming commercial scale API manufacturing facility in
Mangalore commenced and the facility is scheduled to be operational by FY20. This is one of our larger
strategic investments and when complete will significantly strengthen Syngene position in the “drug discovery
to manufacture” value chain.

Manufacturing Facility: In a significant regulatory achievement, our manufacturing facility in Bangalore

received PMDA accreditation. This is a significant achievement as the PMDA is considered by many to be
among the most stringent regulatory bodies in the world. This accreditation will help us boost our presence in
the Japanese market.

Subsidiary: During the year we also set up our first international subsidiary, in the USA, bringing us closer to
our US and North American clients.

Financial Performance:We managed to accelerate revenue growth through the year and reported a strong
overall performance for the full year with revenue growth of 17%, taking total revenue from Rs. 12,716 Mn in
FY17 to Rs. 14,849 Mn in FY18. Performance was well balanced across the main business verticals. Through
the year we maintained a healthy profit margin, though it was marginally lower than the previous year. This is
largely due to two factors; the decreasing non-operational benefit coming from interest income, as well as
strategic investments made in strengthening our business development activities and increased investments
in regulatory compliance and safety.
Dedicated R&D Centers: Our Dedicated R&D Centres particularly had a very good year, with the expansion
and extension of our strategic collaborations with Bristol- Myers Squibb and Amgen.

Syngene and Bristol-Myers Squibb further consolidated this partnership by expanding the scope as well as
extending the duration of the collaboration. As part of the expansion, Syngene will set up a new dedicated
facility, spanning 25,000 sq ft. of laboratory and office space for Bristol- Myers Squibb. This facility will house
an additional team of 75 scientists, who will work exclusively in support of Bristol-Myers Squibb.

Capital Expenditure: During FY18, we made USD 55 Mn of capital investment to further increase existing
capacities as well as strengthen scientific capabilities in line with the client requirement.

Our USD 200 Mn multi-year capex expansion plan is progressing as per plan. We committed USD 108 Mn as on
March 31st, 2018, which includes USD 75 Mn towards the expansion of our facilities in Bangalore. This
includes a research center, formulation facility and biologics manufacturing plant. As part of the USD 108 Mn
investment commitment during the year, we also earmarked USD 33 Mn for the commercial scale
intermediate and API manufacturing facility coming up at Mangalore, Karnataka. In line with our initial plans,
we expect this facility to be operational in FY20.

We have also planned an additional investment of USD 100 Mn, spread over the next 3-4 years, to further
support our future growth strategies.

Export Incentive: Under the Foreign Trade Policy 2015, the incentives applicable on specified export services
have been extended to SEZ units. During the year, the Company recorded an export incentive income of Rs.
738 Mn, covering for the period April 2015 till March 2018.

Integrated Service Provider: As an integrated service provider, we offer our clients multiple opportunities to
engage with us, ranging from a single service to a cluster of services across multiple scientific disciplines and
domains. Single-service engagements (component play) are typically short-term collaborations, focusing
primarily on cost arbitrage.

Syngene set up Syngene Amgen Research and Development Centre (SARC), the dedicated R&D center for
Amgen, in September 2016, with an initial team of around 100 Syngene scientists. With the expansion in the
scope of the collaboration, around 185 Syngene scientists will now work closely with Amgen’s global scientific
team, on a wider range of discovery and development projects. The size of SARC will also double from the
initial 25,000 sq. ft. to 50,000 sq. ft. with the setting up of additional facilities.
We have also initiated an integrated drug discovery programme with Thera Vance Biopharma for
immunological disorders and solved the crystal structure of an Antigen- Antibody complex to support Bio
therapeutic discovery efforts for a client, the first of its kind for Syngene. Additionally, we have entered into a
partnership with Zumutor Biologics to access their proprietary naïve human phage/yeast display library to add
to our antibody discovery platforms.

Strategic Collaborations: During FY18, we entered into a multi-year manufacturing agreement with a Japanese
specialty company to manufacture a novel chemical entity for commercial launch in the Japanese market.

Merck KGaA – collaboration extended till 2019; Merck and Syngene have been working jointly on various
discovery research projects in the area of Protein Technology, Molecular Biology, Cell Science, Antibody
Discovery and ADC since 1999.

Zoetis – strengthening of Syngene’s non-life sciences business and its presence in the animal health sector.

Financial Performance: During FY18, revenues grew by 17% to Rs. 14,849 Mn compared to Rs. 12,716 Mn in
the previous financial year. This growth was driven by robust performances across all business verticals and
was complemented by treasury gains. FY18 revenue includes an export incentive scheme benefit of Rs. 470
Mn from the previous years realised during the current year.

Syngene’s top 10 clients contribute approximately 65% of its revenue.

IT: The Laboratory Information Management System (LIMS) has totally transformed laboratories into modern
centres of excellence. Implementation of LIMS has helped us significantly reduce human error and enhance
quality compliance and data integrity.

Cleared Inspection: During FY18, Syngene successfully cleared inspection of the Pharmaceutical and Medical
Devices Agency (PMDA) inspection, considered one of the most stringent regulatory authorities globally.
During FY18, a Form 483 was issued by the US FD for the small molecule Human Pharmacology Unit (HPU)
laboratory. The Company has filed its responses to the regulator and expects the Form 483 to be withdrawn.

Subsidiary: During FY18, the Company incorporated a wholly-owned subsidiary, Syngene US Inc., to have a
firm foothold in the US market and allow easy access to its clients based in that region.

CRO Market: The global CR market value for drug discovery and development stood at US 32 Bn in 2017 and is
expected to reach US 45 Bn by 2022.
 2018-19

Clients: 62 Long-term client (collaboration extending over 5 years or more). 331 Clients.

Dedicated R&D Center: The Baxter Global R&D Centre was set up in 2013, and the renewal of this
collaboration reaffirms the confidence they have in our services. Our ongoing collaboration with Merck KGaA
was also extended during the year.

Partnership with Govt of India: Syngene takes great pride in being selected by the Government of India to
partner with them in their goal to make the country a global hub for biotech research. Under this partnership,
we established the first National Centre for Advanced Protein Studies (CAPS) at our Bengaluru facility. Funded
by the Biotechnology Industry Research Assistance Council (BIRAC), the Centre will work on strengthening
innovation in research.

New Personnel’s: The role of Senior Vice President – Discovery Services was created to strengthen Syngene
ability to meet evolving client requirements. Dr. Kenneth Barr, a Ph.D. from the Massachusetts Institute of
Technology, has been appointed in this role. With more than two decades of experience in the areas of drug
discovery in small molecules, Dr. Barr will help to further integrate our core strength of discovery services
across our R&D value chain.

We also appointed Mr. Alok Mehrotra, M.Tech – Chemical Technology, with over 25 years of industry
experience, as Chief Quality Officer Mr. Mehrotra will be responsible for Syngene quality and compliance
functions and will lead initiatives to ensure we maintain our strong track record in this area.

Financial Performance: The total revenue for the year increased from Rs. 14,849 Mn in FY18 to Rs. 19,007 Mn
in FY19, recording growth of 28%. Growth was driven by improved performance across all business units, led
by Discovery Services and Dedicated Centres. EBITDA stood at Rs. 6,119 Mn in FY19, compared to Rs. 5,266
Mn in FY18, recording a 16% growth. PAT increased by 9% to Rs. 3,316 Mn compared to Rs. 3,054 Mn in FY18,
however, EBITDA and PAT declined moderately as a percentage of revenue. The decline in EBITDA margin was
largely due to higher material costs and investments in safety and business development activities. Profit
margins (PAT) were lower due to the unwinding of the SEZ tax holiday benefits in some parts of the business.

Capital Expenditure: During FY19, we invested a total of Rs. 5,909 Mn (USD 85 Mn) towards ongoing capex
programmes, taking our total investment in fixed assets to around Rs. 24,447 Mn (USD 350 Mn). We plan to
continue investment in capex over the next two years and expect to take our total asset base to Rs. 38,500 Mn
(USD 550 Mn) by the end of FY21. This will include an investment of around Rs. 5,250 Mn (USD 75 Mn) at our
upcoming API manufacturing facility at Mangalore.

CRO Market: As per the Grand View Research Report, the global healthcare CRO market was valued at USD
32.9 Bn in 2017 and is expected to reach USD 54.6 Bn by 2025, growing at a CAGR of 6.66% between 2018 and
2025.

Dedicated Research Centers:First, we expanded and extended our agreement with Baxter Healthcare
Corporation. Second, the extension of collaborations with BMS and Amgen achieved in FY18 brought in
additional revenues. The collaboration for Baxter Global Research Centre (BGRC) has been renewed up to
2024. As per the renewed contract, a new laboratory infrastructure was commissioned for Baxter.

Discovery Biology: Infrastructure commitments have been made, including expanding our vivarium
capabilities and expanding biology into a new 50,000 sq. ft. facility. In terms of process improvements, we
have established a centralized cell-banking system and initiated centralized inventory management and
tracking systems. Our strategic tie-up earlier in the year with Zumutor Biologics to access their antibody
engineering expertise, provides our scientists with new tools to solve complex problems in bio therapeutic
drug discovery.

Discovery Services: We established new partnerships with three large pharmaceutical companies in the areas
of antibody discovery, protein production and DMPK services, and high throughput assays on protein
degradation technologies with a mid-size pharmaceutical player. Our existing FTE collaborations with major
pharmaceutical players also expanded during the year. Merck KGaA extended their collaboration up to 2022.
We have a two-decade-long relationship with Merck KGaA.

We also signed an agreement with Artelo Biosciences, Inc. to be their discovery and development partner for
novel oncology drugs.

The collaboration with GSK, signed in FY18, was made operational during the year. As part of this agreement,
our dedicated team of scientists are working with GSK’s global R&D team in accelerating drug discovery, using
Syngene Discovery Services platforms.

This business unit grew impressively during the year, led by contract renewals, expansion of existing full time
equivalent (FTE) collaborations as well as new client wins.
Development and Manufacturing Services: We successfully partnered our client in conceptualizing and
developing pediatric sprinkles dosage form for their programme. The client has file a formulations patent for
this dosage form. We also achieved completion of development and clinical supplies manufacturing of a drug
product for a client and obtained (MHRA) approval for Investigational Medicinal Product Dossier (IMPD) filed.
First-in-human (FIH) study has been initiated.

A significant milestone was winning our first client order in Australia for end to-end development and
manufacturing of a novel monoclonal antibody (mab), thus expanding our business footprint in Asia-Pacific.

CRO Market: The global CRO market for drug discovery is forecast to grow at a CAGR of 7.37% between 2018
and 2025 and to reach an expected value of USD 6.8 Bn per year.

2019-20

Clients: Our active client base increased to more than 360 from 331 in the previous year; 25% of whom have a
customer relationship extending beyond 5 years.

New additions to Team: Services portfolio. Building on this strategy, earlier this year, we appointed Dr Jan-
Olav Henck to the executive team in the position of Senior Vice-President, Development Services. With more
than two decades of experience in drug development for both large and small molecules, Dr Henck will be
responsible for the integration of our Development Services portfolio to mirror the approach of Discovery
Services.

Several other important appointments have strengthened our management team. Dr Mahesh Bhalgat, a Ph.D.
in medicinal chemistry with extensive experience in biotechnology, GMP manufacturing and biologics, was
appointed Chief OperatingOfficer; Mr. Sibaji Biswas, an experienced finance professional, became Chief
Financial Officer; and Ms. Vinita Shrivastava, having over two decades of experience in HR, was appointed
Chief Human Resource Officer. These appointments have already made an impact in FY20 and I look forward
to further building on this progress in the coming year.

Financial Performance:During FY20, the Dedicated Centres constituted 31% of sales, Discovery constituted
32%, and the rest came from Development Services and Manufacturing. In FY19, the Dedicated Centres
constituted 32% of sales. Discovery constituted 29%, and the rest was from Development Services and
Manufacturing.
Capex: During FY20, we invested a total of Rs. 7,560 Mn (USD 108 Mn) in ongoing capex programmes. Of the
total capex, 40% was in the commercial API manufacturing facility, 26% in Discovery Services, 11% in a
Biologics manufacturing facility and 23% in the Dedicated Centres and Development Services. We are on track
to take our total asset base to USD 550 Mn by the end of FY21.

Biologics Market: The pharmaceutical industry has seen the emergence of the biologics blockbuster in the past
ten years. In 2018, only two of the top ten largest selling drugs were small molecules and biologics drove 80%
of sales. Looking ahead, as biologics lose their patent protection, biosimilar are taking their place.

Drug Discovery: During the year, we executed eight integrated drug discovery (IDD) projects across both small
and large molecules.

New Research Center: A new, state-of-the-art research and development facility was opened in Genome
Valley at Hyderabad. The completed firs phase comprises 50,000 sq. ft. of laboratory space and can house
around 150 scientists. Regarded as the ‘Pharma Hub of India’, Genome Valley offers a wealth of experienced
talent for our innovation efforts.

Animal Health Focus: Responding to the growing demand, we set up a new GMP-compliant dedicated facility
for the development of animal health products equipped to deliver clinical supplies including registration
batches.

Injectables for small and large molecules: We are broadening our competencies beyond API manufacturing
with a new fill-finish facility for injectables for clinical batches covering both small and large molecules. The
pilot phase is currently underway.