Suven Pharmaceuticals acquires majority stake in NJ Bio, strengthens US presence

Suven Pharmaceuticals Limited, a technology-focused contract development and manufacturing organisation (CDMO), has announced the acquisition of a controlling 56% stake in NJ Bio Inc., a US-based specialist in antibody-drug conjugates (ADC). The $64.4 million investment not only secures Suven’s foothold in the burgeoning ADC market but also enhances its presence in the United States, a key strategic market.

NJ Bio, headquartered in Princeton, New Jersey, is recognised for its cutting-edge expertise in ADC and XDC solutions. Founded in 2017 by Dr Naresh Jain, a highly regarded scientist in the ADC domain, the company has demonstrated remarkable growth. It has successfully executed over 500 projects for 150 clients, achieving accolades like the prestigious World ADC Awards for four consecutive years.

The acquisition reflects Suven’s ambition to expand its market presence in the fast-growing ADC CDMO sector, projected to grow annually by over 25%. With this move, Suven Pharmaceuticals gains access to NJ Bio’s state-of-the-art 80,000-square-foot R&D and manufacturing facility, offering advanced capabilities in payload chemistry, payload-linker synthesis, bioconjugation, and ADC-specific analytical platforms.

Dr Jain, who will remain as CEO of NJ Bio, emphasised the synergistic potential of the partnership. He noted that NJ Bio’s proven ability to solve complex ADC challenges aligns with Suven’s goal to provide end-to-end CDMO solutions, from discovery to commercial manufacturing.

Strategic Significance

Suven Pharmaceuticals aims to position itself as a leader in the evolving ADC and XDC segments. The acquisition creates a unique US-India CRDMO footprint, allowing the company to leverage NJ Bio’s advanced capabilities and experienced workforce. This aligns with Suven’s vision of expanding its portfolio into emerging modalities such as nucleic acid chemistry and mRNA.

Moreover, the acquisition opens significant cross-selling opportunities by combining Suven’s robust infrastructure with NJ Bio’s established customer base of small-to-mid biotech firms and large pharmaceutical companies.

Financial Projections

NJ Bio is expected to generate $32 million in revenue for calendar year 2024, with a compounded annual growth rate exceeding 70% since 2021. The $15 million primary equity infusion from Suven will be allocated towards expanding NJ Bio’s GMP-compliant manufacturing facility, further solidifying its position in early-stage ADC development.

Suven’s Executive Chairman, Vivek Sharma, highlighted that the acquisition aligns with the company’s strategy to lead in innovative drug modalities. Dr V. Prasada Raju, Managing Director at Suven Pharmaceuticals, echoed these sentiments, underlining how NJ Bio’s capabilities complement Suven’s expertise in the ADC value chain.

The ADC Opportunity

Antibody-drug conjugates represent one of the fastest-growing modalities in pharmaceutical development, valued at $2.7 billion and poised to reach $8 billion by the end of the decade. With ADC technology already improving the lives of over 100,000 patients, Suven’s acquisition places it at the forefront of this transformative market.

The transaction is expected to close by December 2024, marking a significant milestone for Suven Pharmaceuticals in its journey to becoming a global leader in advanced CDMO solutions.