Suven and Cohance Merger to Drive Revenue and Market Expansion

Suven Pharmaceuticals and Cohance Lifesciences aim to more than double their combined revenue to around Rs 6,000 crore by FY29 via organic and inorganic growth. The merged entity will leverage pharmaceutical contract development and manufacturing opportunities, enhancing market reach and positioning them as a strategic partner globally.

Suven Pharmaceuticals and Cohance Lifesciences are setting ambitious targets following their merger, aiming to more than double their combined revenue to approximately Rs 6,000 crore by FY29. The strategy involves significant organic and inorganic growth endeavors, according to Prasada Raju, Managing Director of Suven Pharma.

The merger, which has secured approvals from both NSE and BSE, awaits a final nod post-shareholders meeting directed by the National Company Law Tribunal, scheduled for November 28, 2024. Once ratified, the unified entity will focus on expanding its pharmaceutical CDMO, specialty chemicals CDMO, and APIs.

India currently holds a 2.7 per cent stake in the global CDMO market, and Suven-Cohance aims to capitalize on increasing demand by enhancing their international contracts and pipeline of Phase-3 molecules. This merger strengthens their position in high-value APIs, supported by market-leading EBITDA margins and increased output capacity.

(With inputs from agencies.)