Suven Pharmaceuticals has finalized an agreement to acquire a 67.5% stake in Sapala Organics for Rs 229.5 crore in an all-cash transaction. This acquisition, aimed at strengthening Suven’s portfolio in Oligo and nucleic acid building blocks, positions the company strategically in the pharmaceutical development and manufacturing sector.
Based in Hyderabad, Sapala Organics specializes in Oligo drugs and nucleic acid building blocks, crucial for treating neurodegenerative diseases, respiratory disorders, diabetic retinopathy, and certain cancers. In the fiscal year 2024, Sapala Organics reported sales of Rs 67 crore with an adjusted EBITDA of approximately 45%.
Under the terms of the agreement, Suven Pharmaceuticals plans to collaborate with existing shareholders to jointly manage Sapala’s operations over the next few years. Post-FY27, Suven intends to acquire the remaining 32.5% stake to attain full ownership of Sapala Organics. This acquisition is anticipated to be valued between 13-15 times the EBITDA multiple, contingent on Sapala’s financial performance during the interim period.
Annaswamy Vaidheesh, Executive Chairman of Suven Pharmaceuticals, highlighted the strategic significance of the acquisition, stating, “Nucleic acid based therapy holds immense potential in treating genetic-level diseases, offering new possibilities for patients previously deemed incurable. This acquisition expands our technological capabilities, complementing existing platforms like ADCs and Oligos.”
Dr. P Yella Reddy, leader of Sapala Organics and a prominent figure in nucleic acid chemistry, will continue to lead the company as CEO. Additionally, he will serve as a strategic advisor for Suven’s initiatives in the Japanese market through the Suven+Chance platform.
This acquisition underscores Suven Pharmaceuticals’ commitment to advancing innovation in pharmaceuticals and strengthening its position as a leader in specialized drug development and manufacturing.