Merger effect! Suven Pharma shares jump 15% in 2 days
Suven Pharmaceuticals on Saturday jumped another 5% to take the two-day gain to 15% on announcing a merger with Cohance Lifesciences, which will make the joint entity a leading integrated CDMO player in India and globally.
After the merger becomes effective, all shareholders of Cohance will be issued shares of Suven at the ratio of 11 shares of Suven for every 295 shares of Cohance, based on the swap ratio. The new shares of Suven will be traded on the NSE and BSE.
Advent entities shall own 66.7% and the public shareholders will hold 33.3% of the combined entity. The overall transaction is expected to conclude over the next 12-15 months subject to receipt of all relevant shareholder and regulatory approvals.
«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 among 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,» Suven said.
The merged platform will comprise three distinct business units – Pharma CDMO, Spec Chem CDMO, and API+ (inclusive of formulations).
«The anticipated synergy benefits from our merger with Cohance are substantial. On the revenue front, the limited customer overlap will help with cross-selling opportunities, leveraging Cohance's capabilities to reach Suven customers and vice versa, e.g. leverage ADC platform and lifecycle management of key molecules for Suven
