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Business News/ Companies / People/  Suven net profit down 42%, to invest $25 million on Alzheimer’s drug clinical trial
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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

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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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Published: 15 Aug 2015, 12:19 AM IST
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