HYDERABAD: Advent International backed integrated contract development and manufacturing organization (CDMO) Suven Pharmaceuticals Limited on Saturday said it has received approval from both the stock exchanges — National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) — for its proposed merger with Cohance Lifesciences.
A joint application by the Hyderabad-based Suven Pharmaceutical and Cohance Lifesciences has also been filed before the National Company Law Tribunal (NCLT) for the merger, the company said, adding that the expected timelines for the completion of the merger process were around 12-15 months.
The combined entity will emerge as an integrated CDMO player with robust development and manufacturing capabilities and will operate three main verticals — pharma CDMO, agrochemicals CDMO, and active pharmaceutical ingredient (API) manufacturing, it said.
The merged platform will have best-in-class financial metrics with over 37% EBITDA margins, over 30% RoCE, sturdy cash flow generation with a potential to drive around 10% of incremental EBITDA from various revenue and cost synergy initiatives over the next 2-4 years, Suven said.
While global private equity (PE) equity player Advent currently owns 50.1% stake in Suven Pharma and 100% in Cohance, post the merger Advent will own 66.7 % stake in the combined entity.
At a combined platform level, the company is eyeing organically doubling the business over the next five years and adding further growth traction from merger & acquisition opportunities over a similar time frame.
Cohance is a CDMO and merchant API platform with global leadership in certain low-mid volume molecules as well as unique capabilities in the form of its antibody drug conjugates (ADC) platform, it said. The CDMO segment contributed about 42% to Cohance’s gross profits in FY24.
A joint application by the Hyderabad-based Suven Pharmaceutical and Cohance Lifesciences has also been filed before the National Company Law Tribunal (NCLT) for the merger, the company said, adding that the expected timelines for the completion of the merger process were around 12-15 months.
The combined entity will emerge as an integrated CDMO player with robust development and manufacturing capabilities and will operate three main verticals — pharma CDMO, agrochemicals CDMO, and active pharmaceutical ingredient (API) manufacturing, it said.
The merged platform will have best-in-class financial metrics with over 37% EBITDA margins, over 30% RoCE, sturdy cash flow generation with a potential to drive around 10% of incremental EBITDA from various revenue and cost synergy initiatives over the next 2-4 years, Suven said.
While global private equity (PE) equity player Advent currently owns 50.1% stake in Suven Pharma and 100% in Cohance, post the merger Advent will own 66.7 % stake in the combined entity.
At a combined platform level, the company is eyeing organically doubling the business over the next five years and adding further growth traction from merger & acquisition opportunities over a similar time frame.
Cohance is a CDMO and merchant API platform with global leadership in certain low-mid volume molecules as well as unique capabilities in the form of its antibody drug conjugates (ADC) platform, it said. The CDMO segment contributed about 42% to Cohance’s gross profits in FY24.