Cohance Lifesciences Limited has remitted an aggregate consideration of USD 10 million towards the subscription of new Compulsorily Convertible Preferred Stock (CCPS) in its subsidiary, NJ Bio Inc., USA. This investment reinforces Cohance’s strategy in the high-growth Antibody Drug Conjugate (ADC) space and aims to support NJ Bio’s growth initiatives. The transaction is expected to be completed by September 2026.
Cohance Lifesciences Invests in US Subsidiary
Cohance Lifesciences Limited has announced the remittance of USD 10 million to subscribe to new Compulsorily Convertible Preferred Stock (CCPS) of its US-based subsidiary, NJ Bio Inc. This strategic investment follows an earlier Board of Directors’ approval and is a significant step in Cohance’s commitment to the Antibody Drug Conjugate (ADC) sector.
Strategic Rationale and NJ Bio’s Business
NJ Bio Inc. is an ADC/’XDC’ focused Contract Research, Development, and Manufacturing Organization (CRDMO) with end-to-end capabilities in payload-linker synthesis, bioconjugation, and analytical services. The investment by Cohance is intended to support NJ Bio’s growth initiatives, including capital expenditure, within the rapidly expanding ADC market. Cohance itself is engaged in contract development, manufacture, and sale of drug products and allied activities, making this investment a synergistic move.
Transaction Details
The aggregate consideration of USD 10 million is for the primary subscription of 188,680 CCPS of NJ Bio at USD 53.00 per CCPS. Upon completion, Cohance will hold these CCPS, which are convertible to equity shares after three years, subject to definitive agreements. The transaction is expected to be completed before the end of September 2026. Details required under SEBI circulars have been enclosed.
NJ Bio Inc. Overview
NJ Bio, Inc. was incorporated in Delaware, USA, on August 1, 2022, and was formerly known as NJ Biopharmaceuticals LLC, established in October 2017. For the fiscal year 2023, NJ Bio reported a turnover of USD 20.6 million, with projections of USD 32.6 million for 2024 and USD 23.5 million for 2025. The company also has business operations in India through a subsidiary, NJBIO India Pharmaceutical Private Limited.
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