As India’s contract manufacturing and development organization (CDMO) is set to double in the next decade, Anthem Biosciences is planning to raise 33.95 billion rupees ($397m) in an initial public offering (IPO).
Anthem expects to list its shares on the BSE (formerly the Bombay Stock Exchange) and National Stock Exchange of India, according to a draft filing at the end of 2024.
The company doesn’t expect to access the proceeds of this transaction; instead shareholders will sell off their stakes and reap the full rewards, including Viridity Tone – an entity of the private equity firm True North – and the strategic investor DavosPharma, which acts as an intermediary for Anthem’s customers in the US.
Anthem began operations in 2007 as an outsourced manufacturing provider to pharma companies with expertise in the production of small molecules and biologics such as antibodies. The company also assists clients with the safety and efficacy testing of their candidates.
Earnings
Per the filing, Anthem earned a total of 14.8 billion rupees ($177.6m) in the year ending March 2024, up from 11.3 billion rupees ($135.6m) in the year ending in March 2023.
The firm bagged 9.1bn rupees ($109.2m) in the six months ending in September 2024, which was also up from 6.2 billion rupees ($74.4m) compared to the same time period in 2023.
Anthem stands out as one of the fastest growing CDMOs in India compared to peers such as Syngene, Sai Lifesciences and Aragen, according to the filing.
Manufacturing footprint
The firm also plans to add an additional manufacturing facility in Harohalli to its existing units in 2025, taking its total custom synthesis and fermentation capacity from 270 kL and 142 kL to 425 kL and 182 kL respectively.
Indian market
India’s CDMO market is expected to swell from $25.8bn in 2025 to $51.2bn in 2030, with an expansion of almost 15% per year.
The space, which is a major source of generic medicines and vaccines worldwide, is being spurred by increasing demand for generics and biosimilars in addition to outsourced manufacturing by pharmaceutical companies.
India is also seen as increasingly attractive for pharma outsourcing due to lower costs of labor than the US and European markets.
Additionally, many companies turn to India as they reduce their reliance on Chinese providers to improve their resilience to shocks from pandemics and geopolitical shifts.
