Hyderabad: Advent International Integrated contract development and manufacturing organisation (CDMO)-backed Suven Pharmaceuticals Ltd on Saturday said it has received approval from both the stock exchanges – National Stock Exchange (NSE).nse) and Bombay Stock Exchange (BSE) — its proposed Fusion with Cohen's Lifesciences,
The company said that a joint application has also been filed before the National Company Law Tribunal (NCLT) for the merger by Hyderabad-based Suven Pharmaceutical and Cohen's Lifesciences. The company said that the expected timeline for completion of the merger process is around 12-15 months.
The combined entity will emerge as an integrated CDMO company with strong development and manufacturing capabilities and will operate across three core segments – pharma CDMO, agrochemicals CDMO and active pharmaceutical ingredient (API) manufacturing, it said.
Suven said the merged platform will have best-in-class financial metrics with over 37% EBITDA margins, over 30% RoCE, strong cash flow generation, with the potential to drive around 10% incremental EBITDA from various revenue and cost synergy initiatives over the next 2-4 years.
While global private equity (PE) equity player Advent currently holds 50.1% stake Suven Pharma and the Cohens will hold a 100% stake, with Advent holding a 66.7% stake in the combined entity after the merger.
At the combined platform level, the Company is looking to double its business over the next five years and further drive growth through M&A opportunities over the same time period.
Cohen’s is a CDMO and merchant API platform with global leadership in certain low-medium volume molecules as well as unique capabilities as an antibody drug conjugates (ADC) platform, it said. The CDMO segment contributed nearly 42% to Cohen’s gross profit in FY24.
The company said that a joint application has also been filed before the National Company Law Tribunal (NCLT) for the merger by Hyderabad-based Suven Pharmaceutical and Cohen's Lifesciences. The company said that the expected timeline for completion of the merger process is around 12-15 months.
The combined entity will emerge as an integrated CDMO company with strong development and manufacturing capabilities and will operate across three core segments – pharma CDMO, agrochemicals CDMO and active pharmaceutical ingredient (API) manufacturing, it said.
Suven said the merged platform will have best-in-class financial metrics with over 37% EBITDA margins, over 30% RoCE, strong cash flow generation, with the potential to drive around 10% incremental EBITDA from various revenue and cost synergy initiatives over the next 2-4 years.
While global private equity (PE) equity player Advent currently holds 50.1% stake Suven Pharma and the Cohens will hold a 100% stake, with Advent holding a 66.7% stake in the combined entity after the merger.
At the combined platform level, the Company is looking to double its business over the next five years and further drive growth through M&A opportunities over the same time period.
Cohen’s is a CDMO and merchant API platform with global leadership in certain low-medium volume molecules as well as unique capabilities as an antibody drug conjugates (ADC) platform, it said. The CDMO segment contributed nearly 42% to Cohen’s gross profit in FY24.