Suven Pharmaceuticals gains 3% on merger talks with Cohance Lifesciences

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Suven Pharmaceuticals shares traded 3 percent higher on February 8 after, as sources told Moneycontrol, global private equity player Advent International initiated a merger process between Suven Pharmaceuticals and Cohance Lifesciences.

The Suven Pharma shares were up 2.7 percent at Rs 638.05 at 11.34am on the National Stock Exchange.

"Through the merger, Advent seeks to create a top end-to-end contract development and manufacturing organisation (CDMO) and merchant active pharmaceuticals ingredients (API) firm which caters to the pharma and specialty chemical markets," one of the sources said.

Suven Pharma is a listed CDMO while Cohance Lifesciences is an unlisted company which was formed to create a new brand entity for three formerly Advent-acquired companies, RA Chem Pharma, ZCL Chemicals, and Avra Laboratories, in the API and CDMO space.

Advent International has chosen Kotak Mahindra Capital and Citi as advisors for the merger, said sources.

On December 26, 2022, Advent International had announced the acquisition of a majority stake in Suven Pharmaceuticals from the Jasti family, which is the promoter group of Suven Pharmaceuticals. The private equity firm had added that after the completion of the acquisition, it intends to explore the merger of Suven Pharmaceuticals and Cohance Lifesciences.

Suven Pharma shares have gained 30 percent in the last six months and 29 percent in the last one year.

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