India-based Suven Pharmaceuticals announced that it has signed definitive agreements to acquire a 56% equity stake in NJ Bio, Inc. for $64.4 million.
NJ Bio is a contract research organization (CRO) contract development and manufacturing organization (CDMO) providing chemistry and biology services to the biotechnology and pharmaceutical sectors. The company is headquartered in Princeton, New Jersey, with additional chemistry facilities in Bristol, Pennsylvania. NJ Bio has two subsidiaries: NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC.
Suven Pharmaceuticals Ltd. is a pharmaceutical research expert, primarily operating in contract development and manufacturing operations.
As part of the deal, Suven Pharma will invest $15 million in primary equity to accelerate NJ Bio’s growth initiatives. The definitive documents grant Suven a call option to purchase the remaining shares of NJ Bio and a put option for NJ Bio’s shareholders to sell their shares to Suven, both exercisable after five years. If exercised, Suven could acquire 100% of NJ Bio’s equity.
Following the acquisition, NJ Bio will become a subsidiary of Suven Pharma, with its two subsidiaries (NJBIO India Pharmaceutical Private Limited and NJ Biotherapeutics, LLC) becoming step-down subsidiaries.
According to data captured in the LevinPro HC database, this acquisition represents the 28th CRO deal of 2024. There were 44 CRO transactions announced during 2023 and 41 announced during 2022.
This also marks Suven’s second acquisition of 2024. In February, the company merged with Cohance Lifesciences, a CDMO previously owned by private equity firm Advent International. Financial terms of that deal were not disclosed.
