India’s biotech industry is witnessing a dynamic shift, and at the center of this transformation is Anthem Biosciences Ltd, a Bengaluru-based contract research and manufacturing powerhouse. As the company prepares to launch its Initial Public Offering (IPO), investors, analysts, and pharma enthusiasts are keenly eyeing what could be one of the most compelling biotech listings of the year.
In this blog, we explore everything you need to know about the Anthem Biosciences IPO – from its business model and financials to its risks, opportunities, and market outlook.
🧬 About Anthem Biosciences
Founded in 2006 by Ajay Bharadwaj, a former executive at Biocon, Anthem Biosciences has grown into one of India’s top Contract Research, Development, and Manufacturing Organizations (CRDMO).
The company offers integrated services across:
- Drug discovery and development
- Clinical trial support
- Commercial manufacturing of active pharmaceutical ingredients (APIs) and specialty ingredients
- Biologics, peptides, oligonucleotides, and fermentation-based platforms
Anthem has worked with more than 675 global clients and executed over 8,000 projects, largely serving clients in the North American and European markets.
📊 Anthem Biosciences IPO Details
As per its DRHP (Draft Red Herring Prospectus) filed with SEBI:
- IPO Size: ₹2,000 crore (expected)
- Fresh Issue: ₹750 crore
- Offer for Sale (OFS): ₹1,250 crore by existing investors, including Private Equity firms like IFC and NewQuest
- Book-Running Lead Managers: Kotak Mahindra Capital, Jefferies, and Citi
- IPO Purpose:
- Capex for expansion
- Debt repayment
- Working capital needs
- General corporate purposes
The company has already attracted pre-IPO interest from marquee institutional investors and is expected to price its offering in a way that values it at ₹8,000–10,000 crore.
🧠 Business Model and Revenue Streams
Anthem Biosciences operates through two major business verticals:
1. CRDMO Services (82% of FY25 revenue)
This includes:
- Process research and development
- Analytical services
- Preclinical and clinical development support
- Manufacturing of intermediates and APIs
The company is known for its expertise in complex and niche molecules, particularly in peptides, RNA-based therapies, and ADCs (Antibody Drug Conjugates).
2. Specialty Ingredients (18% of FY25 revenue)
Products in this vertical include:
- Enzymes
- Nutraceuticals
- Probiotics
- Biocatalysts
- Cosmetic actives
This segment taps into the growing demand for wellness, food tech, and clean-label health ingredients globally.
🏭 Infrastructure and Expansion
Anthem operates three R&D and manufacturing campuses in Karnataka:
- Bommasandra (HQ and R&D)
- Harohalli I and II (Manufacturing)
The company is building a third phase at Harohalli to scale up fermentation capacity and broaden biologics manufacturing. It also plans to enter cell and gene therapy manufacturing, marking a significant expansion into future-oriented therapeutics.
💰 Financial Performance
Let’s look at some of Anthem’s key financials over the last three fiscal years (FY23–FY25):
| Metric | FY23 | FY24 (Est.) | FY25 (Est.) |
|---|---|---|---|
| Revenue | ₹1,083 Cr | ₹1,300 Cr | ₹1,650 Cr |
| EBITDA Margin | 29.2% | 30%+ | ~31% |
| PAT (Profit After Tax) | ₹210 Cr | ₹260 Cr | ₹330 Cr |
| ROCE | ~24% | ~26% | ~28% |
Anthem has shown consistent revenue growth with robust EBITDA margins, a key indicator of operational efficiency in the pharma and biotech manufacturing sector.
🔍 Key Strengths
- Diversified Global Clientele: Anthem serves pharma giants, biotech startups, and research institutions across 30+ countries.
- High-Margin Specialty Ingredients: Offers strong profitability beyond core pharma services.
- Expertise in High-Growth Therapeutics: Strong focus on complex drug development technologies.
- Innovation-Led Growth: 1,000+ scientists work on cutting-edge molecule development and process innovations.
- Repeat Client Base: Over 80% of revenue comes from repeat customers.
⚠️ Risks to Watch
Every IPO comes with its own set of risks. Here are some challenges Anthem faces:
- High Dependence on Global Markets: Over 90% of its revenue comes from exports, making it vulnerable to foreign exchange risks and regulatory changes abroad.
- Client Concentration: A few major clients contribute significantly to revenue.
- Regulatory Compliance: As a CRDMO, the business is subject to stringent audits from the US FDA, EMA, and Indian regulators.
- Capex-Heavy Business: Expansion into new therapeutic categories requires continuous investment, impacting margins temporarily.
- Market Competition: Competes with Indian players like Syngene and global giants like Lonza, Catalent.
📈 Market Outlook: Why Anthem’s Timing Is Right
The global CDMO/CRDMO market is expected to grow at a CAGR of 10%+, driven by the increasing outsourcing of drug development and manufacturing by global pharma companies.
Key drivers include:
- Rising biologics demand
- Cost and speed advantages of outsourcing
- Increased complexity of drug molecules
- Post-COVID diversification of global pharma supply chains
India is gaining favor as a reliable, cost-efficient manufacturing destination, and Anthem is poised to ride this wave with its high-end capabilities.
📊 Valuation Expectations
Analysts estimate that Anthem could command a valuation in the range of ₹8,000–10,000 crore, translating to a P/E multiple of 25–30x on FY25 projected earnings.
This compares well with peers:
- Syngene International (P/E ~35x)
- Divi’s Labs (P/E ~40x)
- Lonza (Global CDMO) – Premium valuation due to scale
Given its niche positioning and consistent performance, Anthem’s IPO may see strong demand from both retail and institutional investors.
🧾 Should You Subscribe?
✅ Subscribe If You:
- Believe in the long-term growth of biotech and outsourcing
- Seek exposure to a high-margin, high-growth business
- Want to invest in an innovation-driven Indian company
- Prefer businesses with strong foreign currency revenue streams
❌ Skip If You:
- Are risk-averse and wary of regulatory dependence
- Prefer dividend-paying, stable businesses over growth stories
- Are uncomfortable with IPO valuations that factor in future growth
📝 Final Thoughts
Anthem Biosciences is one of the most promising CRDMO stories to emerge from India. With its upcoming IPO, the company is looking to scale new heights, enter new domains like cell and gene therapies, and expand its global footprint.
For investors looking to bet on the future of pharma, deep science, and Indian innovation, Anthem Biosciences offers a compelling story — but as with any IPO, careful analysis and timing are crucial.
Disclaimer: This blog is for informational purposes only and not a recommendation to buy, sell or subscribe to any securities. Please consult a SEBI-registered financial advisor before investing.