Suven Pharmaceuticals and Cohance Lifesciences Merge to Enhance CDMO Offerings

The planned merger between Suven Pharmaceuticals and Cohance Lifesciences is set to take effect on May 1, 2025. In an official announcement, Suven indicated that detailed shareholding information will be made available on May 8. This strategic partnership aims to strengthen their position in the contract development and manufacturing organization (CDMO) sector.

A Strategic Move in the CDMO Landscape

The union of Suven and Cohance is designed to create a robust and diverse CDMO platform, focusing on three pivotal business segments: antibody drug conjugates, small molecules, and oligonucleotides.

• End-to-End Solutions: The merger will enable the newly formed entity to provide comprehensive solutions tailored for global pharmaceutical firms.
• Financial Performance: In the fiscal year 2024, the two companies collectively reported a revenue of ₹2392 crore.

The merger received the green light from the National Company Law Tribunal on March 27. Notably, both companies are under the umbrella of Advent International, a private equity firm.

Insights into the Companies Involved

Suven Pharmaceuticals stands as a leading player in India’s CDMO sector. In September 2023, Advent International gained a controlling interest of 50.1% in Suven.

Cohance Lifesciences, established in November 2022, is designed to oversee Advent’s active pharmaceutical ingredients (API) and CDMO operations. This includes managing other companies like RA Chem Pharma, ZCL Chemicals, and Avra Laboratories, all under the Cohance portfolio.

Future Vision and Market Potential

Prashad Raju, Managing Director of Suven Pharmaceuticals, previously outlined ambitious growth targets, aiming for the merged entity to achieve ₹6000 crore in revenue by FY2029. Currently, India holds a mere 2.7% share of the global CDMO market, highlighting a significant opportunity for expansion.

This merger is not just a business consolidation; it’s part of Advent International’s broader strategy to leverage growth opportunities in the API and CDMO sectors, positioning the new entity to capture a larger slice of the market.

In conclusion, the collaboration between Suven Pharmaceuticals and Cohance Lifesciences marks a significant shift in the CDMO landscape, promising enhanced capabilities and ambitious growth in the coming years.