Anthem Biosciences IPO: Check IPO Date, Lot Size, Price & Details

Business Background

Anthem Biosciences is a fast-growing, innovation-driven Contract Research, Development, and Manufacturing Organization (CRDMO) headquartered in Bengaluru. It specializes in both small and large molecules, making it unique among Indian peers. The company operates with an integrated model across drug discovery, development, and commercial manufacturing, with a strong portfolio of New Chemical Entities (NCEs) and New Biological Entities (NBEs). It serves 500+ clients globally, including large pharma and emerging biotech companies.

IPO Details:

Objectives:

The company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Promoter Selling Shareholder.

Key Strengths

• Diverse & Evolving Molecule Mix: It works across multiple modalities - small molecules, biologics, peptides, ADCs, oligonucleotides - giving it a future-ready portfolio aligned with emerging biotech trends like RNA therapeutics and ADCs
• High Entry Barriers through Complex Chemistry: It has proven capabilities in multi-step synthesis, high-potency APIs (HPAPIs), and fermentation processes - areas that require stringent infrastructure, know-how, and compliance. This limits competition and elevates pricing power.
• Recurring & Long-Term Engagements: Most top molecules contribute consistently over multiple years, aided by patent protection lasting till 2039, ensuring revenue visibility. This long lifecycle is uncommon in generic or commoditized segments.

Key Risks

• Revenue Concentration: Significant revenues i.e 70.9% of revenues are generated from top 5 customers & top 10 contribute 77.3%. Loss of any single customer can impact them significantly.
• Long Working Capital Cycle: Net working capital cycle stood at 222 days, higher than many Indian/global peers, impacting cash flow efficiency.
• Regulatory Risk: Operating in regulated markets exposes the company to rigorous inspection norms (USFDA, ANVISA, TGA)
• Geographical Concentration: It generates over 81% of its revenue from regulated markets (Europe + North America), indicating any price erosion or geo political tensions could hit the top line severly.

Financial Overview:

Conclusion:

It has delivered best-in-class growth in revenues (30%), EBITDA margins (36.8%), and RoE (27%), positioning it as one of the most efficient and fastest-growing Indian CRDMOs. While not the largest by revenues, it outpaces peers like Syngene and Divi’s in profitability and capital efficiency. With over 81% revenue from regulated markets, capabilities across small and large molecules, and strong ESG credentials, it offers a differentiated, high-moat play.

With earnings valuations of its peers like Syngene – 54x, Divis Labs – 84x, Sai Life Sciences – 94x, Anthem’s valuations of ~71x seems to be fair. So, we recommend subscribing to the IPO for long-term gains.