Suven Pharma picks up controlling stake in NJ Bio for ₹535 Crore

9 Dec 2024 , 07:23 AM

Suven Pharmaceuticals Limited has purchased a 56% controlling position in NJ Bio Inc, a US-based Contract Research and Development Manufacturing Organization (CRDMO) that specializes in antibody-drug conjugates (ADC) and other developing modalities. 

Suven’s investment of ₹535 Crore improves its position as a technology-driven CDMO and significantly expands its footprint in the high-growth ADC sector, the firm said.

Suven is now a prominent player in the ADC outsourcing market, estimated to be worth $2.7 billion (approx. ₹22,815 Crore) and growing at a rate of over 25% yearly. 

NJ Bio is a company based in Princeton, New Jersey. It has served over 150 clients and accomplished more than 500 projects since its start. The company expects to generate $32 million (approx. ₹270 Crore) in sales by 2024, representing a 70% CAGR growth from 2021.

Suven invested ₹411 Crore in minority interest acquisition and ₹124 Crore in primary equity to expand NJ Bio’s 80,000 square foot facility in Princeton. The arrangement contains a call/put option that allows Suven to buy the remaining stake after five years.

Suven Pharma’s addressable market will grow from ₹1,600 Crore to ₹11,600 Crore after the purchase, which is slated to finalize by December 2024.

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