Suven Pharmaceuticals Limited has announced an exciting move to strengthen its portfolio in the Contract Research, Development, and Manufacturing Organization (CRDMO) sector by acquiring a 56% equity stake in NJ Bio, Inc. The acquisition, valued at USD 64.4 million, will be executed through a combination of secondary share acquisition and primary equity infusion. This move, executed on December 7, 2024, allows Suven to expand its capabilities in the antibody-drug conjugates (ADC) and XDC therapy markets.

NJ Bio, Inc., a leading player in the ADC and XDC therapeutic spaces, is headquartered in Princeton, New Jersey. The company offers end-to-end services in payload-linker synthesis, bioconjugation, and analytical services, providing custom solutions for clients involved in drug discovery and development. The company has shown impressive growth, with revenues increasing from USD 6.5 million in 2021 to USD 21.6 million in 2023.

The acquisition includes both the secondary acquisition of shares from existing NJ Bio shareholders and a primary subscription of new equity shares issued by the company. Following this transaction, Suven Pharmaceuticals will hold 56% of the equity share capital of NJ Bio, marking the beginning of a new chapter in its business expansion. Post-acquisition, NJ Bio will become a subsidiary of Suven, with two wholly owned subsidiaries—NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC—also becoming step-down subsidiaries under Suven’s control.

The Proposed Transaction has strategic importance for Suven, as it seeks to leverage NJ Bio’s expertise in the ADC and XDC domains, two areas that are experiencing rapid growth in the pharmaceutical industry. This acquisition aligns with Suven’s focus on enhancing its CRDMO services, which provide significant opportunities in the highly specialized pharmaceutical market.

In addition to the immediate 56% acquisition, the terms of the deal include a call option for Suven to acquire the remaining shares from NJ Bio’s other shareholders after five years, while the remaining shareholders will also have a put option to sell their shares to Suven, potentially giving the company 100% ownership in the future.

This strategic investment is expected to bring substantial value to Suven Pharmaceuticals and position the company for further growth in the global pharmaceutical market. The deal is set to be completed before the end of December 2024, subject to the completion of customary closing conditions.

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