Pharma Powerhouse Unleashed: Suven–Cohance Merger Set to Redefine India’s CDMO Landscape

Suven Pharmaceuticals and Cohance Lifesciences obtained regulatory approval to seal a history-making merger to form one of India's biggest integrated Contract Development and Manufacturing Organizations (CDMO). The deal was approved by the National Company Law Tribunal (NCLT) on March 27, 2025, after unprecedented shareholder backing - more than 99.9% affirmative voting from both houses.

 

Key Highlights:

 

Share Swap Ratio: Cohance shareholders will get 11 fully paid-up Suven Pharma shares (face value ₹1 each) for each 295 Cohance shares (face value ₹10 each) held by them. The new Suven shares will be listed on NSE and BSE.

 

Ownership Structure: After the merger, Advent International entities will hold 66.7% of the merged entity, while public shareholders will hold 33.3%.

 

Strategic Reasoning: The merger brings together Suven's and Cohance's complementary strengths in pharmaceutical and specialty chemical CDMO, as well as API manufacturing. This synergy is anticipated to fuel cross-selling, cost savings, and operational efficiencies, capitalizing on Cohance's cutting-edge antibody-drug conjugate (ADC) platform and Suven's established customer base.

 

Financial Brawn: The combined company has a net worth of over ₹3,700 crore and will enjoy enhanced manufacturing capabilities, including additional US FDA-compliant facilities.

 

Timeline: The deal is targeted to be concluded in 12–15 months, subject to final regulatory approvals.

 

Market Impact: Suven Pharma's stocks jumped 13% on the news, showcasing high investor enthusiasm for the growth potential of the merger.

 

This merger makes the new company a diversified, innovation-focused leader in India's fast-expanding CDMO and API industry with a strong foundation for international growth.

 

Source: Economic Times, Business Today, Pharma Industrial India