Suven Pharma, Cohance Lifesciences to merge to bolster CDMO business
Cohance Lifesciences Ltd on Thursday signed a definitive agreement to merge their businesses, which will further strengthen the former’s position in the contract development and manufacturing organisation (CDMO) space.
Promoter of Suven Pharma, Advent International, had said last year that it would merge the two businesses post the buyout of its significant stake in Suven Pharma.
Under the merger, shareholders of Cohance will be issued 11 shares of Suven Pharma for every 295 shares held by the former. The new shares of Suven will be traded on the NSE and BSE.
Advent entities will own 66.7% and the public shareholders will hold 33.3% of the combined entity.
The merger is expected to conclude over the next 12-15 months subject to receipt of all relevant shareholder and regulatory approvals.
Cohance is a leading CDMO and Merchant API platform with global leadership in select low-mid volume molecules and unique capabilities in the form of its antibody-drug conjugates (ADC) platform. Their CDMO segment has grown at a healthy CAGR of 30% over FY20-23 and contributes 44% to its gross profits during the nine months ended December.
The merger will help Suven become a diversified CDMO and API leader in India, transcending its 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 company said in a release.
The merged platform will
