Suven Pharma to acquire majority stake in US-based NJ Bio

Suven Pharmaceuticals announced that it has signed definitive agreements to acquire a 56% equity stake in NJ Bio, Inc.

The $64.4 million deal includes both primary equity infusion and secondary acquisition. As part of the deal, Suven Pharma will invest $15 million in primary equity to accelerate NJ Bio's growth initiatives.

The transaction includes acquiring 9.3 lakh common equity shares from existing shareholders of NJ Bio and subscribing to 2.8 lakh newly issued common equity shares.

The definitive documents grant Suven a call option to purchase the remaining shares of NJ Bio and a put option for NJ Bio's shareholders to sell their shares to Suven, both exercisable after five years. If exercised, Suven could acquire 100% of NJ Bio's equity.

NJ Bio is a Contract Research, Development, and Manufacturing Organization (CRDMO) based in Princeton, New Jersey, specializing in antibody-drug conjugates (ADCs) and other advanced drug conjugates (XDCs), which are key segments in targeted therapeutics.

Following the acquisition, NJ Bio will become a subsidiary of Suven Pharma, with its two subsidiaries, NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC, becoming step-down subsidiaries.

Suven Pharmaceuticals is in the business of Contract Development & Manufacturing Organisation (CDMO), catering to the needs of the global pharma industry.

The drug maker?s consolidated net profit increased 3.34% to Rs 82.21 crore on 11.54% rise in revenue from operations to Rs 257.72 crore in Q2 FY25 over Q2 FY24.

Shares of Suven Pharmaceuticals rose 0.78% to close at Rs 1,305.30 on Friday, 6 December 2024.

Powered by Capital Market - Live News