Suven Pharmaceuticals acquires controlling stake in NJ Bio for USD 64.4 million

Hyderabad: Suven Pharmaceuticals Limited, a leading CDMO specialising in innovative drug modalities, has acquired a 56 per cent controlling stake in NJ Bio Inc., an ADC-focused CRDMO based in Princeton, for USD 64.4 million.

The investment includes Rs 49.4 million to buy out minority shareholders and a USD 15 million primary equity infusion for facility expansion, a company statement said on Saturday.

Founded by Dr Naresh Jain, NJ Bio has delivered over 500 projects to 150+ clients, earning multiple World ADC Awards. Its state-of-the-art 80,000 sq. ft. R&D and manufacturing facility strengthens Suven’s presence in the U.S. and complements its operations in India.

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The acquisition positions Suven as a key player in the USD 2.7 billion ADC outsourcing market, projected to grow at over 25 per cent annually. NJ Bio’s expertise in payload chemistry, bioconjugation, and ADC-specific analytics aligns with Suven’s vision of becoming a global leader in emerging drug modalities.

Dr Jain will continue to lead NJ Bio, supported by its experienced team. The deal is expected to close by December 2024, accelerating Suven’s growth in the ADC/XDC segment. NJ Bio is projected to generate USD 32 million in revenue for CY2024, reflecting a 70 per cent CAGR since 2021.

Suven’s Executive Chairman, Vivek Sharma, said, “This partnership enhances our capabilities in ADCs, a critical and growing modality that has already transformed the lives of over 100,000 patients.”

Dr Jain expressed optimism about the collaboration, stating that the combined strengths of NJ Bio and Suven would solidify their position as a global leader in advanced drug modalities.