Suven Pharmaceuticals Limited has announced the acquisition of a 56% equity stake in NJ Bio, Inc., a Contract Research, Development, and Manufacturing Organization (CRDMO) specializing in antibody-drug conjugates (ADCs) and related technologies. The acquisition involves a mix of secondary share purchases and a primary equity infusion, amounting to $64.4 million.
As part of the transaction, Suven is investing $15 million in a primary equity infusion to support NJ Bio’s growth initiatives. The remaining $49.4 million will be used to purchase 932,113 common equity shares from existing shareholders. Following the acquisition, NJ Bio will operate as a subsidiary of Suven Pharmaceuticals.
NJ Bio, headquartered in Princeton, New Jersey, reported revenue growth from $6.5 million in 2021 to $21.6 million in 2023. The company provides end-to-end services in payload-linker synthesis, bioconjugation, and analytical solutions for ADC development. It also operates two subsidiaries: NJBIO India Pharmaceutical Private Limited in India and NJ Biotherapeutics, LLC in the United States, which will become step-down subsidiaries of Suven post-acquisition.
Suven has structured the deal with options to acquire the remaining equity in NJ Bio after five years. This includes a call option for Suven to purchase the remaining shares and a put option for the existing shareholders to sell them, potentially enabling Suven to own 100% of NJ Bio.
The acquisition aligns with Suven’s strategy to strengthen its capabilities in high-growth areas such as ADCs and broader conjugation-based therapies. Suven plans to complete the transaction by the end of December 2024, subject to customary closing conditions.
The investment is being executed under the applicable provisions of Indian and international regulatory frameworks, including the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and the Consolidated FDI Policy 2020.