Suven Pharma Acquires Sapala Organics Stake for Rs 229.5 Cr

New Delhi, Jun 13 (PTI) Suven Pharmaceuticals on Thursday said it will acquire 67.5 per cent stake in Hyderabad-based Sapala Organics for Rs 229.5 crore.

The company, which is one of the country's largest integrated contract development and manufacturing organisation players, has entered into a definitive agreement for investment in Sapala Organics, it said in a regulatory filing.

Suven will acquire a 67.5 per cent stake for a consideration of Rs 229.5 crore, subject to customary working capital and net debt adjustments, it added.

The company stated that it expects to complete the acquisition of the remaining equity stake in the target firm after FY2026-27, subject to the completion of customary closing conditions.

Sapala has a presence in the fast-growing, Oligo and nucleic acid building blocks segment.

"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," Suven Executive Chairman Annaswamy Vaidheesh said.

With this acquisition, the company now has multiple differentiated technology platforms such as ADCs and Oligos amongst others, he added.

Sapala Founder P Yella Reddy said that 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.

Sapala reported a revenue of around Rs 67 crore for FY24.

Shares of Suven Pharma ended 0.63 per cent lower at Rs 667.25 apiece on the BSE.