cohance lifesciences: ADIA, HarbourVest eye minor stake in Cohance

The Abu Dhabi Investment Authority (ADIA), the sovereign wealth fund of the oil-rich emirate, along with London-based private equity fund HarbourVest, is in discussions to acquire a minority stake in Cohance Lifesciences, Hyderabad-based pharmaceuticals platform owned by global PE fund Advent International. The investors are looking to invest $350-400 million (about ₹2,500-3,000 crore) for a significant minority stake, valuing Cohance Lifesciences at about $1.5 billion (₹ 12,000 crore), said two people aware of the development.
ET’s queries emailed to ADIA and HarbourVest did not elicit a response till press time while an Advent International spokesperson declined to comment.

Advent International currently owns a 76% stake in Hyderabad-based Suven Pharmaceuticals, which was merged with the investor’s existing platform, Cohance Lifesciences. The US-based PE fund owns several active pharmaceutical ingredients (API) businesses and contract development and manufacturing organisation (CDMO) companies such as RA Chem Pharma, ZCL Chemicals and Avra Laboratories and has clubbed all under the Cohance Lifesciences brand.

Cohance Lifesciences (excluding Suven Pharmaceuticals) reported revenue of ₹1,330 crore for 2022-23 with ₹420 crore EBITDA. Its CDMO segment contributed about 32% to the revenue while API’s share was 65%.

Its new products have a near-term sales potential of ₹300 crore from key molecules (addressable market of ₹2,000 crore) while it has a pipeline of products with mid-term sales potential of ₹1,000 crore in an addressable market of ₹10,000 crore, said a company presentation.

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