Suven Pharmaceuticals Soars 3% Amidst Merger Talks with Cohance Lifesciences

8 Feb 2024 , 03:37 PM

Suven Pharmaceuticals witnessed a 3% increase in shares on February 8, reportedly following the initiation of a merger process by global private equity firm Advent International with Cohance Lifesciences.

At the time of writing, Suven Pharma shares were up 2.14% at ₹634.50. The proposed merger aims to establish a leading end-to-end Contract Development and Manufacturing Organization (CDMO) and merchant Active Pharmaceutical Ingredients (API) firm serving the pharmaceutical and specialty chemical markets.

Suven Pharma, a listed CDMO, is set to merge with Cohance Lifesciences, an unlisted entity formed to integrate three former Advent-acquired companies—RA Chem Pharma, ZCL Chemicals, and Avra Laboratories—in the API and CDMO sector.

Advent International has enlisted Kotak Mahindra Capital and Citi as advisors for the merger process.

On December 26, 2022, Advent International announced its acquisition of a majority stake in Suven Pharmaceuticals from the Jasti family, the promoter group of Suven Pharmaceuticals, expressing intentions to explore a merger between Suven Pharmaceuticals and Cohance Lifesciences.

Suven Pharma shares have experienced a 30% increase in the past six months and a 29% increase in the last year.

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