Suven, Cohance aim to double combined biz revenue to Rs 6,000 cr by FY29

New Delhi: Merger-bound Suven Pharmaceuticals and Cohance Lifesciences aim to more than double their combined revenue to around Rs 6,000 crore by FY29 by undertaking both organic and inorganic growth routes, a top company official said.

The entities reported a combined revenue of Rs 2,392 crore in FY24.

The merged entity aims to put in place an aggressive plan to more than double revenue to Rs 6,000 crore by FY29 through both organic and inorganic growth routes, Suven Pharma Managing Director Prasada Raju said.

The merger between Suven and Cohance has received approval from both NSE & BSE.

As directed by National Company Law Tribunal (NCLT), the shareholders meeting of both Suven Pharmaceuticals and Cohance Lifesciences amalgamation will be held on November 28, 2024.

Once finalised and approved, the combined entity will focus on three core growth drivers: pharma CDMO, specialty chemicals CDMO, and active pharmaceutical ingredients (APIs).

"Together, we're building a powerhouse poised to drive innovation and expand our CDMO services, positioning us as a strategic partner for global pharmaceutical innovators," Raju said.

The merger positions the new entity to leverage rising global demand for dependable CDMO services, as pharmaceutical companies worldwide adjust supply chains in response to stringent regulations like the US Biosecure Act.

Currently, India holds a 2.7 per cent share of the global CDMO market, and Suven-Cohance aims to capitalise on this opportunity by expanding international contracts and advancing a strong pipeline of Phase-3 molecules.

With 13 Phase-3 intermediate projects in progress, the company anticipates benefiting from India's projected growth in global CDMO share to 5-7 per cent over the next four to five years, Suven Pharma said.

Suven's existing pharma CDMO platform includes 10 commercial products and more than 100 projects in its pipeline.

The merged entity has reported market-leading EBITDA margins of 36 per cent and the combined platform will more than double the capacity driving higher output efficiencies.

"The merger reinforces leadership in the low volume high-value API segment, where our backward integration and cost advantages make us a top global player in several molecules. By uniting our strengths we are well-positioned to meet evolving pharmaceutical needs with enhanced market reach," Prasada said.

In February this year, Suven Pharmaceuticals announced that it would merge with the contract development and manufacturing organisation platform Cohance Lifesciences.