Cohance Lifesciences Limited (formerly Suven Pharmaceuticals Limited) has announced its financial results for the first quarter, marking its first full quarter as a combined entity following recent mergers and acquisitions.

Revenue Growth and Business Highlights

The company reported a 13% year-on-year increase in revenue, reaching ₹5,493.00 million for Q1. This growth was primarily driven by the company's niche technology offerings, which now account for over 20% of total sales, up from mid-teens in the previous fiscal year. Excluding the impact of inventory destocking in the Pharma CDMO segment, the overall business growth exceeded 25% year-on-year.

Cohance's performance across its business segments showed mixed results:

• Pharma CDMO revenue grew by 1% year-on-year, but adjusting for inventory destocking, the growth was approximately 30%.
• Specialty Chemicals, including AgChem, posted a strong 28% year-on-year growth.
• The API+ segment reported a 19% year-on-year increase, supported by strong order visibility and new product launches.

Profitability and Margins

Gross margins expanded to 73.00% from 68.40% in the same quarter of the previous fiscal year, benefiting from a favorable product mix and contributions from recent acquisitions. However, the adjusted EBITDA margin stood at 23.90%, reflecting ongoing investments in high-value modalities, talent, and the integration of recently acquired companies NJ Bio and Sapala.

The company reported an adjusted profit after tax of ₹629.00 million, with a margin of 11.40%.

Strategic Developments

Cohance Lifesciences is making significant strides in expanding its capabilities:

1. A USD 10.00 million bioconjugation cGMP suite is under construction at NJ Bio's Princeton facility.
2. A ₹230.00 million oligonucleotide building block facility in Hyderabad, with up to 700 kg/year GMP capacity, is on track for operational readiness by the end of calendar year 2025.
3. The company secured a significant early-phase integrated payload-linker synthesis and bioconjugation order from an existing U.S. partner.
4. Development of a new OEB6 high-containment dedicated block for a major U.S.-based innovator's customized payload program has been initiated in India.

Management Commentary

Mr. Vivek Sharma, Executive Chairman of Cohance Lifesciences, commented on the results: "Q1 has been an important start to the year, with progress not just in execution but in strengthening the foundation we have built. Our growing presence in niche modalities like ADCs and oligonucleotides, combined with a deepening global customer base, positions Cohance for accelerated growth."

Organizational Updates

The company has made key appointments to strengthen its leadership:

• Mr. Yann D'Hervé has been appointed as CEO of the CDMO business, bringing nearly three decades of global leadership experience.
• Cohance has established an External Advisory Board (EAB) comprising five distinguished global pharma leaders to guide the company's scale-up and differentiation across high-growth modalities.

Outlook

Cohance Lifesciences remains confident in its long-term vision of achieving USD 1.00 billion (INR 85.00 billion) in revenue by 2030, with mid-30s EBITDA margins. The company's focus on niche technologies and strategic investments in capacity expansion are expected to drive future growth.

As the company continues to integrate its recent acquisitions and expand its capabilities in high-value modalities, investors and industry observers will be watching closely to see how Cohance Lifesciences capitalizes on its strengthened market position in the global CDMO space.

Cohance Lifesciences Limited , a prominent player in the pharmaceutical industry, has taken a significant step to bolster its global Contract Development and Manufacturing Organization (CDMO) capabilities. The company has provided a corporate guarantee of $16.50 million to secure a credit facility for its U.S.-based subsidiary, NJ Bio Inc.

Credit Facility Details

Cohance Lifesciences has extended the corporate guarantee to Citibank N.A., enabling NJ Bio Inc. to access a credit facility of $15.00 million. This strategic move is aimed at supporting NJ Bio Inc.'s bioconjugation operations for Antibody-Drug Conjugates (ADCs) in New Jersey, USA.

Terms of the Guarantee

The corporate guarantee comes with the following key terms:

• Guarantee Amount: Up to $16.50 million
• Credit Facility: $15.00 million for NJ Bio Inc.
• Validity: Until June 30, 2028
• Contingent Liability: Capped at $16.50 million for Cohance Lifesciences

Implications for Cohance Lifesciences

The provision of this corporate guarantee creates a contingent liability for Cohance Lifesciences. In the event that NJ Bio Inc. fails to repay the credit facility, Cohance will be obligated to pay the amounts due to Citibank N.A., up to the guaranteed amount.

Strategic Importance

This financial arrangement is expected to strengthen Cohance Lifesciences' global CDMO capabilities, particularly in the specialized area of bioconjugation for Antibody-Drug Conjugates. By supporting its subsidiary's operations in the United States, Cohance is positioning itself to capitalize on opportunities in the advanced pharmaceutical development and manufacturing sector.

Transaction Details

Cohance Lifesciences has confirmed that the transaction was conducted on an arm's length basis, ensuring fairness and transparency. The company has also clarified that there is no involvement or interest from the promoter group in this arrangement.

Regulatory Compliance

The disclosure of this corporate guarantee aligns with Cohance Lifesciences' obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this development.

This strategic financial move by Cohance Lifesciences underscores the company's commitment to expanding its global footprint and enhancing its capabilities in the specialized pharmaceutical manufacturing sector.