Suven Pharmaceuticals Ltd, established in 1989, is a prominent Indian pharmaceutical company specialising in Contract Research and Manufacturing Services (CRAMS) and Active Pharmaceutical Ingredients (APIs). The company has carved a niche for itself in drug discovery and development, primarily serving global pharmaceutical and biotechnology enterprises.
Suven Pharmaceuticals has announced its agreement to acquire a 56% equity stake in NJ Bio, Inc. The $64.4 million transaction encompasses both a primary equity infusion and a secondary acquisition. As part of this agreement, Suven Pharma will invest $15 million in primary equity to bolster NJ Bio’s growth strategies.
The deal involves the purchase of 9,30,000 common equity shares from existing NJ Bio shareholders, alongside a subscription for 2,80,000 newly issued common equity shares.
Suven has the opportunity to acquire 100% of NJ Bio’s equity after a period of five years. The official agreements provide Suven with a call option to buy the remaining shares of NJ Bio, along with a put option for the shareholders of NJ Bio to sell their shares to Suven, both of which can be exercised after five years. If these options are utilised, Suven would complete the acquisition of all of NJ Bio’s equity.
NJ Bio operates as a Contract Research, Development, and Manufacturing Organisation (CRDMO) located in Princeton, New Jersey. The firm focuses on antibody-drug conjugates (ADCs) and other advanced drug conjugates (XDCs), which are crucial components of targeted therapeutics.
Upon the completion of the acquisition, NJ Bio will function as a subsidiary of Suven Pharma, with its two subsidiaries, NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC, becoming step-down subsidiaries.
The consolidated net profit for the drugmaker rose by 3.34% to ₹82.21 crore, alongside an 11.54% increase in revenue from operations, reaching ₹257.72 crore in Q2 FY25 compared to Q2 FY24.
The share price of Suven Pharmaceuticals Ltd. was trading at ₹1,296.05 per share on the NSE at 11:28 am today, with the peak trading price being ₹1,342.00. The share price is approaching its 52-week high of ₹1,360.00.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 9, 2024, 2:07 PM IST
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