Contract development and manufacturing operations (CDMO) company Suven Pharmaceuticals (SPL), that was acquired recently by PE firm Advent International, reported consolidated net profit for the September quarter increased 10% year-on-year to ₹79.56 crore.
The higher net profit came on a 17% decline in revenue from operations to ₹231 crore (₹278.4 crore). “Q2 revenues have been soft due to inventory de-stocking globally in specialty chemicals,” SPL managing director V.Prasada Raju said.
CEO Sudhir Kumar Singh said “we have initiated building out the commercial engine, hired key leaders for the U.S. and EU markets and in the process of building the team below them. Our focus is to continue scaling existing business... while also on winning new business.”
In the last week of September, Advent International said it has completed acquisition of 50.1% stake in Suven Pharma at the agreed price of ₹495 per share. An open offer for the remaining 26% of stake will be triggered within stipulated timelines, it had said.
In a release on the second quarter results, Executive Chairman Annaswamy Vaidheesh said the transition to the new management has been completed smoothly. “We have augmented the senior leadership with proven track record and deep experience in the space. Our team has met most customers in person... feedback has been very encouraging. The team also interacted with all our 1,200-plus employees and is focused on retention of the existing culture and ethos of the company,” he said.
