Advent International buys more than 50 per cent stake for Rs 6300 crore in this pharma company. Do you own it?

Advent is expected to buy 51 per cent of the promoter’s stake in the company and launch an open offer for an additional 26 per cent

On Monday, shares of Suven Pharmaceuticals zoomed over 4.4 per cent to make an intraday high of Rs 520.35. The scrip witnessed a massive spike in volume by more than 4.62 times.   

The company released a press release on Monday, stating Advent International has entered into definitive agreement to acquire significant stake in the company and intends to explore the merger of  its portfolio company Cohance Lifesciences with Suven to build an end to end CDMO and merchant API player servicing the pharma and specialty chemical markets.  

Advent is expected to buy 51 per cent of the promoter’s stake in the company and launch an open offer for an additional 26 per cent. As per the details released by the company, Advent will offer around Rs 6350 crore, however, depending on the open offer, the final deal size is expected to cross Rs 8100 crore.  

Suven Pharma is in the business of Contract development & manufacturing organisation (CDMO), catering to the needs of global pharma industry. Suven’s services include custom synthesis, process R&D, scale up and contract manufacturing. As of March 31, Suven had filed 17 abbreviated new drug applications (ANDAs), of which it got approval for nine products and has launched eight of them. To step up its formulations business, Suven acquired Hyderabad-based Casper Pharma for Rs 155 crore in April 2022.  

At 2:53 pm, the shares of the company were trading 4.55 per cent down amid some profit booking and selling off in the pharmaceutical sector. Keep a close eye on this trending pharmaceutical company