Suven Pharma ~ Demerged CRAMS Arm of Suven Life Sciences

Cohance has published recent investor presentation (link). Very detailed as compared to last one with expanded view and additional details on each of the business verticals:

[Note: This is proforma consolidated numbers and summary for RA Chem, ZCL and Avra Labs. Suven numbers are not consolidated till now under presentations.]

Key readings:

• Revenue growth of 21% CAGR between FY19- FY21. Consol. revenue FY’22 of 12802 INR Mn.
• EBIDTA margin 28% for FY’22. margin growth CAGR of 32% between FY’19 – FY’22.
• Business Mix – 65% API, 30% CDMO and rest 5%. Good growth and higher contribution from CDMO.
• Concentration – Top 5 customer 20% revenue, Top 5 products 32% of revenue

CDMO:

• CDMO across pharma and speciality chem. Relationship are mostly 6+ years old with innovators.
• 36% growth between FY20 – 22.
• Cohance supplies intermediates of several NCE’s involved in ongoing clinical trials with large potential including:
  • Lung cancer drug in Ph III;
  • Anti-thrombotic drug starting Ph III;
  • Active discussions for various other supplies

API

• Portfolio of Nascent high-potential products (9 molecules) with near term potential of 3 billion.
• 24% CAGR growth between FY’20 – FY’22.
• Pipeline products (12 molecules) – Mid term potential of 10 bn.
• Semi regulated market focused fillings: 15 China, 10 Brazil.

Overall capability and Capex:

• Capacity expansion from 850 kL at acquisition to 1,330 kL in FY23 & 1,500+ kL by FY24.
• CWIP of ~50 Crs for FY’23.
• Capex of ~ 6 % – 7% of revenue.
• Cash and liquid investment – 412 Crs.

Overall, Advent has steared the Cohance ship quite well for last 2.5 year. 1.8x revenue over the last 3 years at 20%+ CAGR. Have added 40+ customers since acquisition. Discussions underway with 10+ global innovator pharmacos for opportunities in lifecycle management of genericized molecules. Pipeline of new products with mid-term sales potential of INR 10 Bn in an addressable mkt of ~INR 100 Bn

They are looking at Cohance as a platform for all things Pharma/API/CDMO under Advent. Should auger well for Suven post full integration.

Disc: Invested

Thanks,
Tarun