- 09 Dec 2024
- ICICI Securities
SUVEN TO ACQUIRE CONTROLLING STAKE IN US BASED NJ BIO, INC, AN ADC PLAYER
News: Suven Pharmaceuticals has announced the acquisition of a controlling stake in NJ Bio Inc (Princeton, US) with an investment of US$ 64.4 million. NJ Bio is a premier ADC-focused CRDMO offering cutting-edge solutions across the ADC value chain. The company has served 150+ customers, delivered over 500 projects in 5 years. The company is expected to record revenues of ~US$ 32 million in CY24, reflecting a 70%+ CAGR since CY2021. The Company has consistently invested in R&D to develop novel technology platforms related to ADC drug development as well as a more recently set up a cGMP compliant manufacturing facility.
Views: ADCs are a promising new treatment for cancer and are expected to become a substitute for conventional chemotherapy. This would be Suven’s second significant acquisition after Cohance and after Advent took controlling stake in the company. The deal is valued at a low-to-mid teens multiple of CY25 projected EBITDA, based on growth outlook. The valuation looks fair given the future potential of ADCs in targeted cancer therapies.
Impact: Positive