Anthem Biosciences, a Bengaluru-based contract research, development and manufacturing organization (CRDMO), is set to launch its ₹3,395 crore initial public offering next week, capitalizing on geopolitical tailwinds as global pharmaceutical companies seek alternatives to Chinese suppliers.
The company's management believes it is positioned at a "very good inflection point" as global pharma companies increasingly move away from China, creating significant growth opportunities for Indian CRDMOs. "The good news is that China is a behemoth. So we have that much headroom to grow," said Ajay Bhardwaj, managing director and chief executive officer.
Strong Financial Performance Drives Market Confidence
Anthem has demonstrated robust growth trajectory, with revenue growing at a compounded annual growth rate (CAGR) of 24.8% over the last five financial years. In FY25, the company's revenue grew 30% year-on-year to ₹1,844 crore, while profit after tax rose to ₹451 crore, up 23% compared to the previous year. The company maintained an EBITDA margin of 36.81% in FY25.
The IPO, scheduled to open for public subscription from July 14 to July 16, is entirely an offer-for-sale with no fresh shares being issued. The price band has been fixed at ₹540 to ₹570 per share, valuing the company at over ₹31,800 crore at the upper end of the band.
Geopolitical Tailwinds Create Market Opportunity
India's CRDMO sector is poised for 13-15% revenue growth this fiscal year as supply chains worldwide diversify away from China amid geopolitical uncertainties, according to a May 2025 report by Crisil Ratings. Currently, India accounts for less than 5% of the global CRDM market, which is dominated by the US, Europe and China.
"We're now the second source for many products made in China, and the first choice for new ones," Bhardwaj told Moneycontrol. The company has seen an increase in requests for proposals (RFPs) from global pharma companies seeking supply chain diversification.
Specialized Capabilities in Complex Modalities
Anthem differentiates itself through innovation and specialized platform capabilities. The company works with new chemical entities as well as biologics and has platform capabilities to work on RNAi, antibody drug conjugates, peptides, lipids and oligonucleotides. It also manufactures specialty ingredients such as probiotics and nutritional actives for India and global markets.
The company's early bet on combining synthetic chemistry with fermentation and enzymatic processes has enabled it to lead in complex modalities. Anthem serves more than 550 pharma and biotech firms, with the top 5 customers contributing 70% of revenue. More than half of Anthem's revenue comes from the US, followed by Europe, India and rest of Asia.
Aggressive Capacity Expansion Plans
To meet growing demand, Anthem is expanding aggressively with a capex investment of ₹451.4 crore. The company is expanding capacity in one of its two existing units and setting up two new units. Unit III (NeoAnthem) is operational, and Unit IV is under construction on a 30-acre site at Harohalli, Karnataka, which will support both small and large molecule programs. The proposed Unit V is planned in Hosur.
By FY26, the company's fermentation capacity is expected to reach 182 KL, and custom synthesis at 425 KL. The company is sitting on a net cash of ₹622.8 crore to fund this expansion.
Pipeline Strength and Market Position
Anthem has 16 projects in late-phase development that will be commercialized soon, providing significant opportunity for revenue growth. "We have a significant opportunity for cashing in on this growth," said Bhardwaj.
The company's facilities have passed multiple USFDA, PMDA, and TGA inspections with zero observations, demonstrating regulatory compliance across key markets. CFO Mohammed Gawir Baig emphasized the sticky nature of client relationships, noting that the company is "embedded in their filings, their IP, their future."
Among Indian CRDMOs, Divi's Laboratories leads with revenue of ₹9,360 crore and 31.7% EBITDA margin, followed by Syngene International with ₹3,642 crore revenue and 29% EBITDA margin. Anthem's performance positions it as a significant player in the rapidly growing Indian CRDMO sector.
