Suven Pharmaceuticals, an India-based pharmaceutical company, has entered into a definitive agreement to acquire a strategic controlling stake in Sapala Organics, aiming to enhance its presence in the oligonucleotide sector. The acquisition signifies a significant expansion of Suven's contract development and manufacturing organization business into oligonucleotide technology.
The agreement outlines Suven's initial acquisition of a 67.5% stake in Sapala Organics through a secondary transfer from the current shareholders. This transaction will result in Suven holding a 51% share capital of Sapala on a fully diluted basis. Post the financial year 2026 to 2027, Suven plans to acquire the remaining shares, ultimately owning 100% of Sapala Organics' share capital on a fully diluted basis
The total acquisition cost is estimated to be between 13 and 15 times Sapala's earnings before interest, taxation, depreciation, and amortization, subject to the company's financial performance up to 2027. This strategic move aligns with Suven's growth strategy and aims to strengthen its position in the pharmaceutical industry$([1])$.
