• Transformative Merger with 2x Scale and Double-Digit EPS Accretion in the first year

• Suven poised to become a leading integrated CDMO player in India and globally; will have multiple engines of growth that will help drive stability in financial performance and growth

• Cohance's ADC Platform addition further strengthens Suven’s position in the high growth CDMO segment; also adds lifecycle management capabilities for Innovators

Suven Pharmaceuticals Limited and Cohance Lifesciences Limited have announced a significant move towards a merger, with a scheme of amalgamation aimed at integrating Cohance into Suven. This strategic merger is designed to elevate Suven's position in the Contract Development and Manufacturing Organization (CDMO) industry, leveraging Cohance's expertise in antibody drug conjugates (ADC) and their strong performance in the CDMO sector.

Cohance, known for its leadership in select low-mid volume molecules and a robust ADC platform, has demonstrated impressive growth, contributing significantly to its gross profits. The merger is poised to bolster Suven's leadership in the CDMO space, expanding its operational capacity, customer base, and financial metrics. The integrated platform is expected to feature diverse business units, including Pharma CDMO, Spec Chem CDMO, and API+, enhancing molecule development, lifecycle management, and offering a wide range of high-value molecules and formulation capabilities.

The addition of Cohance is anticipated to provide multiple growth avenues, improve access to GMP facilities, and deliver substantial revenue and cost synergies, including cross-selling opportunities and operational efficiencies. The merger aims to create significant value for shareholders, with impressive EBITDA margins and return on capital employed.

Executives from both companies have expressed their enthusiasm for the merger's potential to shape the future of the pharmaceutical and specialty chemicals landscape, emphasizing the combined scale, capabilities, and best practices that will enhance their leadership position both in India and globally.

The transaction details outline a share swap ratio, where Cohance shareholders will receive shares of Suven, with Advent entities expected to own a significant portion of the combined entity. The merger's completion, slated for the next 12-15 months, is subject to shareholder and regulatory approvals, marking a transformative step for Suven and Cohance in building a leading integrated CDMO player.