March 10 (Reuters) - India's Syngene International on

Monday said it has acquired its first biologics facility in the

United States from Emergent Manufacturing Operations Baltimore,

a unit of Emergent BioSolutions ( EBS ), for about $50 million.

The contract research firm's acquisition of the facility

aligns with broader industry efforts to reduce dependence on

China by expanding capabilities in other regions.

The facility, which the contract research firm said is

strategically located near key biotech hubs in the Northeast

U.S., is expected to be operational for client projects from the

second half of 2025.

This acquisition, expected to close in March 2025, will

boost Syngene's total single-use bioreactor capacity to 50,000

liters from 20,000 liters, enhancing its capabilities in large

molecule discovery, development and manufacturing services.

"In the short term, we expect minor dilution of operating

margins as a result of costs to be incurred in this facility,"

Deepak Jain, Syngene International's chief financial officer,

said.

India's contract research development and manufacturing

organisation sector has the potential to grow seven-fold to $22

billion-$25 billion by 2035, according to a report by Boston

Consulting Group.