Hyderabad-based Suven Pharmaceuticals has entered into definitive agreements to acquire a 56% equity stake in NJ Bio, Inc., a Contract Research, Development, and Manufacturing Organization (CRDMO) headquartered in Princeton, New Jersey. The $64.4 million transaction comprises a mix of primary equity infusion and secondary share acquisition.
Key Details of the Acquisition
- Primary Investment: Suven will invest $15 million in primary equity to support NJ Bio’s growth initiatives.
- Secondary Acquisition: The deal involves buying 9.3 lakh common equity shares from existing shareholders and subscribing to 2.8 lakh newly issued shares.
- Future Ownership Options: Suven has secured call and put options to acquire the remaining shares after five years, potentially taking its stake to 100%.
NJ Bio is a company that specializes in next-generation drug conjugates such as antibody-drug conjugates and other targeted therapies, thus positioning Suven to scale up its biopharma innovation footprint further.
Post-acquisition, NJ Bio would be a subsidiary of Suven Pharma, and its Indian arm, NJBIO India Pharmaceutical Private Limited, and US-based NJ Biotherapeutics, LLC, would be classified as step-down subsidiaries.
Suven Pharma’s Performance and Market Reaction
In Q2 FY25, Suven Pharma recorded:
- Net Sales: ₹236.1 crore, a 5% year-on-year increase.
- Net Profit: ₹76.3 crore, up by 2.2% from ₹74.7 crore last year.
Despite the acquisition news, Suven Pharma’s stock closed 0.4% lower on December 6 at ₹1,291.45.
This strategic acquisition aligns with Suven’s goal of strengthening its position in the global pharmaceutical sector, particularly in advanced drug research and development.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
