Suven Pharma To Acquire Sapala Organic For Rs 230 Crore

India Pharma Outlook Team | Friday, 14 June 2024

 contract research development organization, technology platforms, India Pharma Outlook

Suven Pharmaceuticals, which is backed by PE company Advent International, said that it has reached a definitive agreement to acquire a controlling stake in Hyderabad-based contract research development organization (CDMO) Sapala Organic for Rs 229.5 crore in all cash.

According to the provisions of the definitive agreements, Suven would initially acquire a 67.5% equity ownership in Sapala, subject to usual working capital and net debt adjustments, with the remaining portion acquired a few months after FY2026-27. Sapala had a sales of more than Rs 67 crore and adjusted EBITDA margins of roughly 45% in FY24.

Sapala is a CDMO player that focuses on oligonucleotides. Oligonucleotides are short DNA or RNA molecules used in pharmaceuticals and diagnostics. The oligonucleotide building blocks market is valued at $750 million and is predicted to develop at a 20% CAGR. Sapala is one of the only players with a large customer base that includes innovative pharma, CDMOs, and diagnostic firms. It is also a significant partner in their Oligo drug NCE efforts.

“With this acquisition, we now have multiple differentiated technology platforms such as antibody drug conjugates (ADCs) and Oligos amongst others. We will continue to invest both organically and inorganically to further build on these,” said Annaswamy Vaidheesh, executive chairman, Suven Pharma.

Sapala was formed by P Yella Reddy, who has vast experience in nucleic acid chemistry and previously served as Director (R&D) for Aisin Cosmos R&D Co. Ltd (Toyota Group) in Japan and India for more than twenty years.

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