Advent merges Cohance and Suven

livemint.com:

BSE. Advent entities shall own around 66.7% stake and the public shareholders will hold around 33% stake in the merged entity. This ratio is pre-ESOP dilution," the firms clarified in the release.

The overall transaction is expected to conclude over the next 12-15 months subject to receipt of all relevant shareholder and regulatory approvals. The merger further strengthens Suven’s position with niche capabilities and scale benefits, the joint release said. “The merger shall establish Suven’s position as a diversified CDMO and API leader in India, transcending our current revenue base.

The merged entity is expected to be amongst the leading integrated CDMO players in India. With an expanded capacity to ~2,650 kL and a significantly broadened customer base, scale and synergy benefits are substantial," the statement said. CDMO is short for contract development and manufacturing organization, and API stands for active pharmaceutical ingredient.

Cohance is a leading CDMO and merchant API platform having developed low-mid volume molecules as well as capabilities in the form of its antibody drug conjugates (ADC) platform. Cohance’s CDMO segment has grown annually at more than 30% on a compounded basis between FY20 and FY23, and contributes around 44% of its gross profits for nine months upto December 2023. “Our integrated CDMO model enables comprehensive molecule development and life cycle management for both pharmaceutical and specialty chemical partners," the statement said, adding: “Cohance’s addition, particularly its fast-growing ADC platform, reinforces our position as a leading CDMO platform." According to the company, the anticipated synergy benefits from the merger is substantial.