Suven Pharma Acquires Controlling Interest in US-Based NJ Bio

Suven Pharmaceuticals Limited has made a strategic investment by acquiring a 56% controlling stake in NJ Bio Inc, a US-based Contract Research and Development Manufacturing Organisation (CRDMO). NJ Bio specializes in antibody-drug conjugates (ADC) and other cutting-edge modalities, making this acquisition a key step in Suven’s efforts to strengthen its global footprint.

The ADC outsourcing market, currently valued at $2.7 billion (₹22,815 crore), is projected to grow at over 25% annually, offering significant growth potential for Suven.

Strengthening Suven's Technology-Driven CDMO Capabilities

The ₹535 crore investment enhances Suven's position as a technology-driven CDMO. This acquisition underscores Suven’s focus on advanced pharmaceutical manufacturing and research capabilities. By entering the high-growth ADC market, Suven is poised to leverage NJ Bio’s expertise to cater to a broader client base.

NJ Bio: A Leader in ADC Development

Headquartered in Princeton, New Jersey, NJ Bio has established itself as a reliable partner in the CRDMO sector. Since its inception, the company has worked with over 150 clients and successfully completed more than 500 projects. NJ Bio’s projected revenue for 2024 stands at $32 million (₹270 crore), reflecting an impressive 70% compound annual growth rate (CAGR) since 2021.

Details of the Investment

As part of the acquisition, Suven invested:

• ₹411 crore to buy shares from minority stakeholders.

• ₹124 crore in primary equity, earmarked for capacity expansion at NJ Bio.

The funds will support the growth of NJ Bio’s state-of-the-art 80,000 square foot facility in Princeton, which is central to its operational excellence.

Future Growth Potential

The transaction also includes a call/put option, enabling Suven to purchase the remaining stake in NJ Bio after five years. This flexibility allows Suven to fully consolidate its position in NJ Bio as the ADC market continues to expand.

Expanding Addressable Market

The acquisition is expected to significantly broaden Suven Pharma's addressable market. By entering the ADC outsourcing market, Suven's total addressable market will grow from ₹1,600 crore to ₹11,600 crore, opening up new revenue streams and growth opportunities.

Completion Timeline

The transaction is expected to close by December 2024, marking the beginning of a new chapter for Suven in the high-growth ADC sector.