In a move to strengthen its foothold in biopharmaceuticals, Suven Pharmaceuticals has signed definitive agreements to acquire a 56 percent equity stake in NJ Bio, Inc. The $64.4 million deal combines primary equity infusion and secondary acquisition.
As part of the deal, Suven Pharma will infuse $15 million in primary equity to accelerate NJ Bio's growth initiatives.
The transaction includes acquiring 9.3 lakh common equity shares from existing shareholders of NJ Bio and subscribing to 2.8 lakh newly issued common equity shares.
Additionally, the definitive documents grant Suven a call option to buy the remaining shares of NJ Bio from its shareholders and give those shareholders a put option to sell their shares to Suven, both exercisable after five years. If either option is exercised, Suven could own 100 percent of NJ Bio's equity.
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NJ Bio is a Contract Research, Development, and Manufacturing Organization (CRDMO) based in Princeton, New Jersey, that specialises in antibody-drug conjugates (ADCs) and other advanced drug conjugates (XDCs), key segments in targeted therapeutics.
Following the acquisition, NJ Bio will become a subsidiary of Suven Pharma, with its two subsidiaries—NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC—becoming step-down subsidiaries.
Suven Pharma is a Hyderabad-based CDMO company that offers services to leading global pharmaceutical and fine chemical majors in their NCE development efforts.
In Q2FY25, Suven Pharma reported a 5 percent increase in net sales, reaching Rs 236.1 crore, compared to Rs 224.6 crore in September 2023. Net profit for the quarter rose by 2.2 percent to Rs 76.3 crore, up from Rs 74.7 crore in the same period last year.
On December 6, shares of the Rs 33,228.4 crore market-cap company closed 0.4 percent lower at Rs 1,291.45.
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