Cohance Lifesciences Invests USD 10 Million in US Subsidiary NJ Bio Inc.
Cohance Lifesciences has invested USD 10 million in its US subsidiary, NJ Bio Inc., subscribing to Compulsorily Convertible Preferred Stocks (CCPS). This strengthens Cohance's position in the Antibody Drug Conjugate (ADC) market. NJ Bio is a CRDMO focused on ADC and XDC therapies.
The investment is significant in absolute terms (USD 10 million) and strategic for Cohance's focus on the ADC market. However, it's an investment in a subsidiary, not a direct acquisition of a new entity, and the impact on overall consolidated financials is yet to be fully realized.
The investment in a subsidiary specializing in a high-growth area like ADCs is a positive development for Cohance Lifesciences, indicating strategic expansion and commitment to future growth.
Cohance Lifesciences Limited has completed an investment of USD 10 million in its US-based subsidiary, NJ Bio Inc., by subscribing to new Compulsorily Convertible Preferred Stocks (CCPS). This investment follows a previous board approval for a fund infusion of up to USD 10 million.
NJ Bio Inc. is a Contract Research, Development, and Manufacturing Organization (CRDMO) specializing in Antibody Drug Conjugates (ADC) and other conjugation-based therapies. The company offers end-to-end capabilities in payload-linker synthesis, bioconjugation, and analytical services.
This strategic investment reinforces Cohance's commitment to the ADC space and will support NJ Bio's growth initiatives, including capital expenditure. The transaction is considered a related party transaction as NJ Bio is a subsidiary, but it is conducted at arm's length, with no direct interest from the promoter or promoter group other than through Cohance.
The aggregate consideration of USD 10 million was paid in cash through internal accruals for the primary subscription of 188,680 CCPS at USD 53.00 per CCPS. Upon completion of the transaction, Cohance will hold these CCPS, which are convertible to equity shares after three years. NJ Bio was incorporated in the USA on October 23, 2017, and converted to a corporation on August 1, 2022. Its turnover for CY2023 was USD 20.6 million, projected at USD 32.6 million for CY2024, and USD 23.5 million for CY2025. NJ Bio also has business operations in India through its subsidiary, NJBIO India Pharmaceutical Private Limited. The company expects to complete the transaction before the end of September 2026, adhering to applicable FEMA regulations.
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Cohance Lifesciences Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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