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Suven Pharma's $27 Mn Acquisition Spurs Growth In Organic Sector With Sapala Deal

Suven Pharma to acquire 67.5% of Sapala Organics for Rs 229.5 crore, boosting nucleic acid therapy and ADC technology capabilities.

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  • Jun 15, 2024

  • Mrudula Kulkarni

Suven Pharma's $27 Mn Acquisition Spurs Growth In Organic Sector With Sapala Deal

Suven Pharma revealed on Thursday that it will acquire a 67.5% share in Hyderabad's Sapala Organics for Rs 229.5 crore. The transaction's finalisation depends on standard adjustments for working capital and net debt.According to a regulatory filing, Suven Pharmaceuticals has confirmed a definitive agreement for this substantial investment in Sapala Organics. Sapala Organics is recognized for its involvement in the rapidly expanding field of oligo and nucleic acid building blocks.

Annaswamy Vaidheesh, Executive Chairman of Suven Pharmaceuticals, “We see massive potential given it’s a niche technology in the rapidly growing space. Nucleic acid-based therapy targets diseases at a genetic level and has the potential to help patients immensely and cure previously incurable conditions.” He further stated that the acquisition would give Suven access to several distinct technology platforms, such as ADCs (antibody-drug conjugates) and oligos.

In addition, P Yella Reddy, founder of Sapala Organics said in a statement “A strategic partner like Suven, with its wider reach and resources, will help take the firm to the next level while providing significant growth and development opportunities for its employees as well.”

Sapala Organics recorded around Rs 67 crore in revenue for the fiscal year 2024. Through this acquisition, Suven Pharmaceuticals intends to capitalize on Sapala’s specialized technology and enhance its presence in the dynamic domain of nucleic acid-based therapies.

The acquisition is anticipated to finalize by the end of the fiscal year 2026-2027, pending the satisfaction of standard closing requirements. This strategic step supports Suven's larger goal of expanding into new technology areas and strengthening its abilities in advanced therapeutic sectors. After the news, Suven Pharmaceutical’s shares closed down 0.63% at Rs 667.25 each on the BSE.

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