Cohance Lifesciences (COHANCE) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition strengthens position as a global technology-led CDMO with end-to-end ADC capabilities and a strong U.S. presence, expanding the addressable market in the fast-growing ADC/XDC CDMO segment.

• NJ Bio brings expertise in linker and bioconjugation, complementing existing strengths in payload chemistry and manufacturing.

• Expands into emerging modalities like radioconjugates, oligonucleotide conjugation, nucleic acid chemistry, and mRNA technologies.

• Dual-location platform (U.S. and India) enhances global reach and customer value, making the entity one of the few CRDMOs with presence across both regions.

• Establishes leadership in ADC with significant synergies and a complementary innovator customer base.

Financial terms and conditions

• 56% stake acquired at a pre-money equity value of $100 million, with a total investment of $64.4 million.

• $49.4 million for secondary acquisition, $15 million as primary equity infusion for growth, capex, and GMP expansion.

• Remaining stake held by Dr. Naresh Jain and family, with call/put options for full acquisition after five years; Dr. Jain to remain CEO for five years, with board seat allocation.

• Deal is valued at low to mid teen EV/CY25 EBITDA and is expected to be EPS accretive in two years.

• Acquisition to be completed before end of December 2024, financed through cash reserves.

Synergies and expected cost savings

• Minimal customer overlap creates significant cross-sell opportunities and access to a broader customer base, especially in Europe and Japan.

• Deep technology integration across ADC/XDC value chain, leveraging large-scale GMP infrastructure and end-to-end ADC expertise.

• Seamless solution from discovery to commercial manufacturing for customers, with complementary scientific capabilities and technology platforms.

• Suven's established manufacturing and cGMP quality management will help NJ Bio retain projects from early to late phase and commercial stages.