PE firm Advent International backed Suven Pharmaceuticals said it has entered into a definitive agreement to acquire a controlling stake in Hyderabad-based contract research development organisation (CDMO) Sapala Organic for Rs 229.5 crore, in an all cash deal.
Suven will initially acquire a 67.5% equity stake of Sapala subject to customary working capital and net debt adjustments, the remaining stake a few months after FY2026-27, as per the terms of the definitive agreements, the company told stock exchanges.
Sapala had a revenue of over Rs 67 crore and adjusted EBITDA margins of around 45% for FY24.
Sapala is an oligonucleotide-focused CDMO player. Oligonucleotides are short DNA or RNA molecules with applications in pharma and diagnostics.
The oligonucleotide building blocks market is $750 million and is expected to grow at 20% CAGR.
Sapala is one of the very few players and has a strong customer base including innovator pharma, CDMOs and diagnostic companies, and is a key partner in their Oligo drug NCE programs.
“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 founded by P Yella Reddy who has extensive experience in nucleic acid chemistry and formerly worked as Director (R&D) with Aisin Cosmos R&D Co. Ltd (Toyota Group) in Japan and India for over 20 years.
Reddy will continue to run the business as the CEO and also be associated with the Suven+Chance platform as a strategic advisor for the Japan market.
