Suven Pharma up over 5.5%

Suven Pharma opened 4.5% higher at Rs.697.35 and rose further to Rs.705, up over 5.5%. Its 52-week high is at Rs.767, hit on 4th Jan’24.

The stock price rose after the company announced that it has acquired Hyderabad-based company, Sapala Organics, for Rs 229.5 crore, in an all cash deal.

Sapala is a Contract Development and Manufacturing Organization (CDMO) focused on Oligo drugs and nucleic acid building blocks including Phosphoramidites & Nucleosides, drug delivery compounds (including GalNAc), Pseudouridine, amongst others.

The proposed transaction is subject to customary closing conditions.

Suven has agreed to initially acquire 67.5% by way of secondary transfer from Sapala’s  existing shareholders, which is 51% of the share capital on a fully diluted basis. After  FY27, Suven will acquire the balance shareholding through secondary purchase, such that, post consummation, it will own 100%.