The proposed merger between Suven Pharmaceuticals and Cohance Lifesciences will be effective from May 1, 2025. Suven Pharmaceuticals said that it will be disclosing the information on the shareholding details on May 8.
Expanding reach of the CDMO vertical
The merger of Suven Pharmaceuticals and Cohance aims to create a diversified CDMO platform to expand the three key business verticals, antibody drug conjugates, small molecules and oligonucleotides.
After the merger, the combined entity would be capable of delivering end-to-end solutions to global pharmaceutical companies. In FY24, both companies posted a combined revenue of Rs 2392 crore.
The National Company Law Tribunal approved the merger between the two companies on March 27. Advent International, a private equity company, controls both companies.
Evolving business dynamics: Suvem Pharma, Cohance Lifesciences
Suven Pharmaceuticals is one of the most significant global contract development and manufacturing organisations (CDMO) in India. Advent International acquired a controlling stake of 50.1 percent in Suveen Pharmaceuticals in September 2023.
Cohance Lifesciences is a brand launched by Advent International in November 2022 to manage its active pharmaceutical ingredients (API) and CDMO business. Other API and CDMO companies managed under Cohance are RA Chem Pharma, ZCL Chemicals and Avra Laboratories. Advent International acquired all these companies.
In a previous statement, Prashad Raju, MD of Suven Pharma, said that they have plans for aggressive expansion for the merged entity and to generate a revenue of Rs 6000 crore by FY29.
At present, India has only a 2.7 percent share in the global contract development and manufacturing organisation (CDMO) market. The merger between Suven Pharma and Cohance Lifesciences is a part of Advent International’s strategy to capitalise on the opportunity of expansion in the API and CDMO market.