Suven Life Sciences plans to raise $20 mn to fund its clinical trials of one of the molecule that targets the treatment of Alzheimer's disease.
Its one molecule code named '502' has completed the first phase of trials. It will require $20mn for its second phase of trials, which is expected to start by 2011.
Transaction Reference: ET
Suven Life Sciences is a biopharmaceutical company specializing in drug discovery and developmental activities in Central Nervous System disorders.
The company currently has 13 internally-discovered molecules aiming to treat ADHD, Dementia, Depression, Huntington's disease, Parkinson's disease and obesity in addition to developmental candidate SUVN-502 for Alzheimer's disease and Schizophrenia.
Apart from $20mn requirement for the research of the '502' molecule, the company will require another $30 million to fund its various programmes. The company is also planning to issue convertible bonds, that can be FCCBs with a tenure of about 3-5 years for which it has already got the approval from board.
The success of the clinical trials is expected to reap in next 30 months and the funds of which will support company’s further activities.
Even in case of the failure of this research of '502' molecule, the company expects success in collaborative efforts with big pharma companies from where milestone payments will be received.
Suven currently has a collaborative efforts with US-based Eli Lily and is in talks with other major pharma companies for collaborative research.
Its R&D cost has increased by 13% (i.e Rs 7.68 Cr, which is 22% on revenue) for the quarter ended June 2010, yet it is expecting the 15-20% growth this fiscal end.
Suven reported a revenue growth of 16.05% to Rs.36.3 Cr in Q4 FY2010 against Rs.31.3 Cr in Q4 FY2009 with an increase in PAT by 57.76% to 3.45 Cr in Q4 FY2010 against Rs.2.18 Cr in Q4 FY2009.
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 19/08/10 |
Suven Life Science - Fund Raising |
Private Equity |
|
20.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 07/02/12 |
M&A |
Daiichi Sankyo |
Looking For |
- |
Planned |
| 02/02/12 |
M&A |
Aanjaneya Lifecare Limited |
Apex Drugs And Intermediates Limited |
51.05 |
Completed |
| 25/01/12 |
M&A |
Jubilant Life Sciences Limited |
Vanthys Pharmaceuticals Development Private Limited |
- |
Planned |
| 24/01/12 |
M&A |
Watson Pharmaceuticals Inc |
Ascent Pharmahealth Limited |
395.61 |
Completed |
Company |
| Name | Promoters | Office | Competitor | Website |
| Suven Life Sciences Limited |
Venkateswarlu Jasti & Family |
Door no,8-2-334,6th Floor,
SDE Serrene Chembers,
Road No.7 Banjara Hills, Hyderabad - 500034,
Andra Pradesh. |
RPG Life Sciences Limited |
www.suven.com |
