Suven Pharma, has announced on Thursday its acquisition of a 67.5% stake in Hyderabad-based Sapala Organics for Rs 229.5 crore. The deal is subject to customary working capital and net debt adjustments.
In a regulatory filing, Suven Pharmaceuticals confirmed that it has entered into a definitive agreement for this significant investment in Sapala Organics, a company known for its presence in the fast-growing segment of oligo and nucleic acid building blocks.
“We see massive potential given it’s a niche technology in the rapidly growing space. Nucleic acid-based therapy targets diseases at a genetic level and has the potential to help patients immensely and cure previously incurable conditions,” said Annaswamy Vaidheesh, Executive Chairman of Suven Pharmaceuticals. He added that the acquisition would provide Suven with multiple differentiated technology platforms, including ADCs (antibody-drug conjugates) and oligos.
Sapala Organics’ founder, P Yella Reddy, expressed optimism about the partnership. “A strategic partner like Suven, with its wider reach and resources, will help take the firm to the next level while providing significant growth and development opportunities for its employees as well,” he said.
Sapala Organics reported a revenue of approximately Rs 67 crore for the financial year 2024. With this acquisition, Suven Pharmaceuticals aims to leverage Sapala’s niche technology and expand its footprint in the rapidly evolving field of nucleic acid-based therapies.
The acquisition is expected to be completed after FY2026-27, subject to the fulfillment of customary closing conditions. This strategic move aligns with Suven’s broader vision to diversify its technology platforms and enhance its capabilities in cutting-edge therapeutic segments. Following the announcement, shares of Suven Pharmaceuticals ended 0.63% lower at Rs 667.25 apiece on the BSE.
This acquisition marks a significant step for Suven Pharmaceuticals in strengthening its technological and market position in the pharmaceutical industry, promising substantial growth and innovation in the coming years.
