Suven Pharma to acquire 56% stake in U.S. firm NJ Bio for $64.4 million 

Global private equity major Advent International firm Suven Pharmaceuticals will acquire 56% stake in NJ Bio Inc for $64.4 million.

The acquisition is expected to be completed this month and help consolidate its position in the contract development and manufacturing organisation (CDMO) space, Suven said on Saturday. Based in Princeton, NJ Bio is into cutting-edge solutions across the antibody-drug conjugates (ADCs) value chain.

Under the transaction, Suven will buy out existing minority shareholders for $49.4 million besides investing $15 million as primary equity infusion, which will be mainly used for expansion of the Princeton facility. With the acquisition, Suven will have a research and development as well as manufacturing base in the key US market.

NJ Bio Inc founder Naresh Jain, a well known ADC scientist, will continue as CEO and retain his stake in the company. NJ Bio is expected to record revenues of around $32 million in CY24.

On the rationale behind the acquisition, Suven said the ADC outsourcing market is valued at $2.7 billion and projected to grow at more than 25% annually. The acquisition positions Suven as a key player in one of the fastest growing segments of the pharma CDMO landscape.

“NJ Bio’s capabilities in drug discovery and early-stage development gives us the much-desired early entry point in the customer’s ADC drug development cycle..,” Suven MD V. Prasada Raju said.