Shares of pharmaceutical company Suven Pharmaceuticals rallied as much as 5.65 per cent to hit an intraday high of Rs 705 per share on Friday. This comes after the firm’s announcement regarding the acquisition of Hyderabad-based CDMO firm Sapala Organics on Thursday during post-market hours.
In an exchange filing, Suven Pharmaceuticals said, “Suven Pharmaceuticals Limited has executed definitive agreements today, i.e. on June 13, 2024, for acquiring 100 per cent of equity shares (on a fully diluted basis) in Sapala Organics Private Limited.”
The proposed transaction, however, is subject to customary closing conditions, the company said.
“We are delighted to partner with Sapala and believe it is a strong strategic fit. We see massive potential given it’s a niche technology in the rapidly growing space. Nucleic acid based therapy targets diseases at a genetic level and has the potential to help patients immensely and cure previously incurable conditions. With this acquisition, we now have multiple differentiated technology platforms such as ADCs and Oligos amongst others. We will continue to invest both organically and inorganically to further build on these,” said Annaswamy Vaidheesh, Executive Chairman, Suven Pharmaceuticals.
Sapala Organics is a Hyderabad based CDMO focused on Oligo drugs and nucleic acid building blocks including Phosphoramidites & Nucleosides, drug delivery compounds (including GalNAc), Pseudouridine, amongst others.
Sapala Organics has shown impressive financial performance, boasting revenues exceeding Rs 67 crore and adjusted Ebitda margins exceeding 45 per cent for the fiscal year 2023-24.
“We have built Sapala as a unique CDMO player in the oligonucleotides value chain, largely thanks to the highly capable team that I have had the privilege of leading. Sapala has earned the trust of its customers over the last two decades by consistently taking up challenging projects, developing and scaling up highly complex technologies. A strategic partner like Suven, with its wider reach and resources will help to take Sapala to the next level while providing significant growth and development opportunities for Sapala’s employees as well. We at Sapala are excited with the possibilities that this partnership brings. I also look forward to working with the larger team at Suven for their Japan market initiatives and hope to contribute to the platform’s success in that market,” said P Yella Reddy, founder of Sapala.
Suven is India’s leading innovator focused, integrated pharma & specialty chemical CDMO company that has grown over 16 per cent compound annual growth rate (CAGR) over last 10 years and has more than 40 per cent Ebitda margins.
It specialises in custom synthesis, process R&D, scale up and contract manufacturing of intermediates, APIs and formulations. Notably, approximately 90 per cent of Suven’s business is conducted with innovators, reflecting its reputation for excellence and reliability.
It has a strong pipeline of Phase 3 and late Phase 2 molecules with more than 100 active projects.
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