Suven net profit down 42%, to invest $25 million on Alzheimer’s drug clinical trial
Suven reported a net profit of `20.23 crore, compared with `34.73 crore a year ago, while revenue declined 29% to `101 crore
Hyderabad: Biopharmaceutical firm Suven Life Sciences Ltd on Friday posted a 42% decline in net profit in the quarter to June due to declining sales of its contract research and manufacturing services (CRAMS) business.
Suven reported a net profit of ₹ 20.23 crore, compared with ₹ 34.73 crore a year ago. Revenue declined 29% to ₹ 101 crore. The CRAMS business accounts for 95% of the company’s revenue.
Suven, which is into drug discovery, said it spent about ₹ 15.9 crore, or 15%, of revenue on research and development.
The company said its board has authorized the creation of an overseas subsidiary with an initial investment of $25 million for clinical development and commercialization of Suven pipeline and in-licensed molecules.
Mint reported in April that Suven was planning to invest $25 million on its Alzheimer’s drug to take it through Phase2(a) clinical studies.
Suven’s Alzheimer’s drug SUVN-502 completed phase 1b clinical trial, and is under preparation for Phase 2a or proof-of-concept study on 537 patients in US.
Phase 2(a) study is critical to get an outlicensing partner to take the drug development forward.
Suven will be funding phase 2 (a) trials from ₹ 200 crore raised through sale of shares to institutional investors in December, in which the promoters led by the company founder and chief executive officer Venkat Jasti diluted about 9% of their stake.
Shares of Suven gained 2.27% to close at ₹ 255 on BSE; the benchmark Sensex gained 1.88% to end at 28,067.31 points.
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