Suven Pharmaceuticals Limited, a leading Contract Development and Manufacturing Organization (CDMO) has announced its acquisition of a 56% stake in NJ Bio Inc., an advanced ADC (Antibody-Drug Conjugate) specialist, for $64.4 million. This strategic move strengthens Suven’s position as a technology-driven CRDMO with a significant presence in the rapidly expanding ADC market, which is projected to grow by 25% annually.
Key Highlights of the Acquisition
- Market Leadership: NJ Bio, a Princeton-based CRDMO, is renowned for its comprehensive ADC expertise, including payload chemistry, bioconjugation, and ADC-specific analytical platforms.
- Strategic US Presence: The acquisition grants Suven access to NJ Bio’s 80,000 sq ft state-of-the-art R&D and manufacturing facility in Princeton, offering dual-location solutions across the US and India.
- Growth Outlook: NJ Bio has delivered over 500 projects to 150+ clients and achieved a 70%+ CAGR since 2021. The company is expected to generate $32 million in revenue by 2024.
- Key Financials: NJ Bio is projected to achieve revenues of approximately $32 million in CY2024, representing a robust CAGR of over 70% since CY2021. The company has consistently prioritized R&D investments to advance novel technology platforms for ADC drug development and has recently established a cGMP-compliant manufacturing facility to further strengthen its capabilities.
Deal Details
Suven’s investment includes $49.4 million to buy out minority shareholders and a $15 million primary equity infusion to support NJ Bio’s expansion. The deal includes an option to acquire the remaining stake after five years.
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Suven Pharmaceuticals