Suven Pharmaceuticals on Saturday hit an upper circuit of 5% to Rs 724.55, taking the two-day gain to 14.59% on announcing a merger with Cohance Lifesciences.
On 29 February 2024, Suven Pharmaceuticals and Cohance Lifesciences announced a proposed scheme of amalgamation for the merger of Cohance with Suven.
Suven poised to become a leading integrated Contract Development & Manufacturing Organisation (CDMO) player in India and globally; will have multiple engines of growth that will help drive stability in financial performance and growth, stated the company.
Cohance's ADC platform addition further strengthens the companys position in the high growth CDMO segment, it added.
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.
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The overall transaction is expected to conclude over next 12-15 months, subject to receipt of all relevant shareholder and regulatory approvals.
Explaining the rationale, the company said that the merger would establish its position as a diversified CDMO and API leader in India, transcending its current revenue base. The merged entity is expected to be amongst leading integrated CDMO players in India. With an expanded capacity to approximately 2,650 kL and a significantly broadened customer base, scale and synergy benefits are substantial, it added.
The merged platform will comprise three distinct business units Pharma CDMO, Spec Chem CDMO, and API+ (inclusive of formulations).
Annaswamy Vaidheesh, executive chairman of Suven said, This is a transformative step in Suvens journey of growth and building a respected integrated CDMO player. We are extremely excited about the benefits of combined scale, capabilities, complementary customer base and best practices that will further help enhance our leadership position in India and globally.
Suven Pharmaceuticals is in the business of Contract Development & Manufacturing Organisation (CDMO), catering to the needs of global pharma industry.
The pharmaceutical company reported 56.60% decline in consolidated net profit to Rs 46.75 crore on 37.86% fall in revenue from operations to Rs 219.82 crore in Q3 FY24 over Q3 FY23.
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