Hyderabad's Suven to acquire controlling stake in Princeton based NJ Bio, Inc

Hyderabad: Hyderabad based Suven Pharmaceuticals Limited ("Suven"), a technology-leading CDMO specializing in complex and innovative drug modalities, has announced the acquisition of a controlling stake in NJ Bio Inc with an investment of $64.4 million.

Based in Princeton, NJ Bio is a premier ADC/XDC-focused CRDMO offering cutting-edge solutions across the ADC value chain. It was founded by Dr Naresh Jain, a well renowned scientist in the ADC space, holding PhD from Boston University and Post Doctoral Research Fellow at The Scripps Research Institute, California.

He had previously founded The Chemical Research Solution LLC, an ADC CRO and served in senior R & D roles at J&J for 8+ years. NJ Bio has served 150+ customers, delivered over 500 projects in 5 years, and won the prestigious World ADC Awards for four consecutive years 2021to 2024).

The ADC outsourcing market, valued at $2.7bn, currently is projected to grow at 25%+ annually and this acquisition may position Suven as a key player in one of the fastest growing segments of the Pharma CDMO landscape.

“Through NJ Bio, we deepen our pioneering expertise and offerings across the ADC value chain, from R&D to commercialization. NJ Bio’s capabilities in drug discovery and early-stage development gives us the much-desired early entry point in the customer’s ADC drug development cycle while also giving us access to ADC focused innovator companies with longstanding relationships,” said Suven MD Dr V Prasada Raju.

State-of-the-art 80,000 sq ft R&D and manufacturing facility in Princeton coupled with a highly talented pool of technical experts provides Suven with a nearshore presence and offers customers flexible dual location solutions across the US and India.

According to Hyderabad based company's statement Suven will acquire 56% stake in NJ Bio with a pre-money valuation of US$100m through a combination of primary and secondary. While US$49.4mn for buying out the existing minority shareholders, US$15mn as primary equity infusion which will be mainly used for capex like GMP expansion at the existing Princeton facility. Dr Jain will continue to lead NJ Bio in the next phase of its growth, along with the senior leadership group. The transaction is expected to close before the end of December 2024.

“NJ Bio has, over the last few years, created enormous value for our clients by solving complex ADC challenges. We have been instrumental in moving our client’s discovery programs to rapid proof-of-concept and clinical manufacturing. Now, I am thrilled to announce that NJ Bio will strategically partner with Suven, a technology-led CDMO, which will enable NJ Bio to also provide its clients with expanded capabilities from discovery to commercial manufacturing. I am confident that with NJ Bio and Suven’s synergistic capabilities, we will emerge as a leading global CDMO in ADCs and other emerging modalities,” said NJ Bio Founder and CEO, Dr Naresh Jain.