Is Anthem Biosciences IPO Good or Bad – Detailed Review

Anthem Biosciences Limited’s IPO is kicking off its initial public offering, which will be open from July 14, 2025, to July 16, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Anthem Biosciences IPO is good or bad, whether it is worth investing in this IPO, and so on.

This article offers a comprehensive Anthem Biosciences IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Anthem Biosciences IPO Review

Anthem Biosciences Limited’s IPO offers investors a gateway into India’s rapidly expanding CRDMO and speciality ingredients sector. Headquartered in Bengaluru, Anthem provides end-to-end contract research, development, and manufacturing services with integrated NCE and NBE capabilities. Its comprehensive platform covers modalities like RNAi, ADCs, peptides, lipids, and oligonucleotides, with strong global client relationships. In FY25, Anthem reported Rs. 1,844.55 crore in revenue with robust profitability, though its margins moderated slightly.

Anthem’s growth strategy focuses on capacity expansion, technological advancements, and a broader speciality ingredients portfolio. However, investors should weigh risks like high client concentration, regulatory hurdles, and project execution challenges before subscribing to the IPO.

Company Overview of Anthem Biosciences IPO

Anthem Biosciences Limited is an innovation-driven and technology-focused Contract Research, Development, and Manufacturing Organisation (CRDMO). The company offers fully integrated operations spanning drug discovery, development, and manufacturing. Anthem Biosciences is one of the few Indian companies possessing integrated New Chemical Entity (NCE) and New Biological Entity (NBE) capabilities across discovery, development, and commercial manufacturing.

The company provides end-to-end CRDMO services to innovator-focused emerging biotech and large pharmaceutical companies globally. Its CRDMO platform includes five main modalities, such as RNA interference (RNAi), antibody-drug conjugates (ADC), peptides, lipids, and oligonucleotides. It also has four manufacturing capabilities, such as custom synthesis, flow chemistry, fermentation, and biotransformation. Beyond CRDMO services, Anthem Biosciences also manufactures and sells complex, specialised fermentation-based Active Pharmaceutical Ingredients (APIs), including probiotics, enzymes, peptides, and more.

They earn 70.78% from developmental and commercial manufacturing, 10.87% from research and development, and 18.35% from speciality ingredients. As of March 31, 2025, Anthem Biosciences operates two manufacturing facilities in India, Unit I in Bommasandra and Unit II in Harohalli, with Unit III in Harohalli under construction. The total custom synthesis capacity is 270 kL, and the fermentation capacity is 142 kL, and is expected to increase to 425 kL and 182 kL by H1FY26, respectively. The company has a strong focus on sustainable manufacturing practices, with approximately 90% of its energy sourced from renewable sources as of March 31, 2025. The company is led by an experienced team, including founder and CEO Mr. Ajay Bhardwaj.

Industry Overview of Anthem Biosciences IPO 

Anthem Biosciences operates within the global pharmaceutical industry, which was valued at USD 1,524.0 billion in 2024 and is projected to reach USD 2,076.0 billion by 2029, growing at a CAGR of 6.4%. Key drivers for this growth include an elderly population, rising chronic diseases, and increasing R&D investments. The market is bifurcated into innovator drugs (NCEs and NBEs) and generic drugs (including biosimilars). The innovator drug market is projected to grow faster, at a CAGR of 7.4% from USD 782.6 billion in 2024 to USD 1,119 billion by 2029.

The pharmaceutical market is transitioning, with a gradual shift in market share from large pharmaceutical companies to small pharmaceutical and biotech companies. Small pharmaceutical and biotech companies are expected to grow at a CAGR of 8.5% between 2024 and 2029.

The CRDMO (Contract Research, Development, and Manufacturing Organisation) industry is crucial to the pharmaceutical and biotechnology sectors. The global CRDMO industry was estimated at USD 213.1 billion in 2024 and is projected to reach USD 330 billion by 2029, with a CAGR of 9.1%. The Indian CRDMO industry is one of the fastest-growing globally, with a projected CAGR of 13.4% from 2024 to 2029, reaching an estimated value of USD 15.4 billion. This growth is supported by India's demographic advantages, strong manufacturing base, favourable FDI policies, intellectual property protection laws, and cost advantages.

Financial Overview of Anthem Biosciences IPO

The financial performance of Anthem Biosciences over the three fiscal years ending March 31, 2023, 2024, and 2025, reflects strong growth and consistent profitability, underscoring robust operational execution and healthy demand across its CRDMO and speciality ingredients segments. Revenue from operations increased steadily from Rs. 1,056.92 crore in FY23 to Rs. 1,419.37 crore in FY24 and further to Rs. 1,844.55 crore in FY25, driven by scale expansion and strong client relationships across regulated markets.

Material margin, which indicates gross profitability before operating costs, moderated from 67.90% in FY23 to 57.76% in FY24 but improved slightly to 59.67% in FY25. EBITDA improved from Rs. 446.05 crore in FY23 to Rs. 519.96 crore in FY24 and rose further to Rs. 683.78 crore in FY25. However, the EBITDA margin moderated from 41.53% in FY23 to 36.25% in FY24 and remained stable at 36.81% in FY25, indicating effective cost control.

Profit After Tax (PAT) stood healthy at Rs. 385.19 crore in FY23, slightly softened to Rs. 367.31 crore in FY24, and rebounded to Rs. 451.26 crore in FY25. Correspondingly, PAT margins decreased from 33.97% in FY23 to 24.77% in FY24 and further to 23.38% in FY25.

In terms of return metrics, Return on Equity (RoE) remained robust at 24.89% in FY23, moderated to 20.04% in FY24, and inched up to 20.82% in FY25, showcasing consistent value creation for shareholders despite margin normalisation. Return on Capital Employed (RoCE) also stayed strong at 31.69% in FY23, 25.71% in FY24, and 26.88% in FY25, indicating efficient capital deployment and sustained operational efficiency.

Overall, Anthem Biosciences continues to demonstrate strong topline growth and resilient profitability, with healthy margins and return ratios reflecting disciplined execution, cost efficiency, and a well-balanced growth strategy despite some gross margin moderation during its scale-up phase.

Strengths and Risks of Anthem Biosciences IPO

Let’s dive into the strengths and weaknesses to assess if the Anthem Biosciences IPO is good or bad for investors.

Strengths 

• Comprehensive One-Stop Service Capabilities: Anthem Biosciences offers end-to-end CRDMO services across the entire drug life cycle, including drug discovery, development, and manufacturing, for both small molecules and biologics. It is one of the few Indian companies with integrated NCE and NBE capabilities.

• Innovation-Focused Approach and Advanced Technologies: The company has a strong focus on innovation, offering advanced technological solutions across modalities (RNAi, ADC, peptides, lipids, oligonucleotides) and manufacturing practices (custom synthesis, flow chemistry, fermentation, biotransformation). It is a pioneer in green chemistry techniques in India.

• Differentiated Business Model: Anthem Biosciences caters to small pharmaceutical and emerging biotech companies, offering services from discovery to commercial manufacturing. It largely uses a Fee-For-Service (FFS) model, which is preferred by these companies due to its cost-effectiveness and transparency.

• Long-Standing Customer Relationships: The company has long-standing relationships with a large and diversified customer base, including large pharmaceutical companies and emerging biotechs across over 44 countries.

• Wide Speciality Ingredients Portfolio: Anthem Biosciences has a broad portfolio of niche speciality ingredients like GLP-1, fermentation-based products, probiotics, enzymes, nutritional actives, and vitamin analogues, leveraging its large fermentation capacity.

• Fully Built-Out Automated Manufacturing Infrastructure: The company operates cGMP-compliant manufacturing facilities with high automation and a consistent regulatory compliance track record, including accreditations from USFDA, ANVISA, TGA, and PMDA.

Risks

• Dependence on CRDMO Services Demand: A significant portion of revenue (81.65% in FY25) comes from CRDMO services. Any adverse impact on customer businesses or industries can materially affect Anthem.

• Failure in Developmental Projects: The business can be adversely affected by failures in early-phase developmental projects or an inability to manufacture commercially viable drugs, as seen in FY23 with a Phase III molecule failure and commercialised molecule withdrawal.

• Rapid Technological Advancements and Investment Requirements: The industry demands continuous investments in new technologies, and failure to develop or adapt to these can impact competitiveness and demand for services.

• Extensive Government Regulations: Operations are subject to stringent domestic and international regulations. Failure to obtain, maintain, or renew licenses and approvals can adversely affect business operations.

• Customer Concentration: A significant portion of revenue comes from a few key customers (top 5 and top 10 customers contributed 70.92% and 77.33% respectively in FY25), posing a risk if these relationships are not maintained.

• High Dependency on Skilled Workforce: The business relies heavily on a skilled workforce, particularly its R&D team. Inability to attract or retain such personnel can lead to knowledge loss and adverse business performance.

Strategies of Anthem Biosciences IPO

• Expand Technological Capabilities: Continue to invest in and develop new technological capabilities, such as laboratory-scale photochemistry and electrosynthesis, to improve research and development and attract new customers in the discovery and development phases.

• Leverage Manufacturing Capacity for Growth: Increase manufacturing capacity to cater to the anticipated rise in demand from commercialised and late-stage molecules, with ongoing expansions in Unit II and Unit III and future plans for Unit IV and V.

• Grow Complex Speciality Ingredients Business: Broaden the portfolio of niche speciality ingredients, such as biosimilars and complex peptides (including GLP-1 agonists), leveraging technical expertise to secure more contracts with pharmaceutical companies.

• Improve Cost Management and Operational Efficiencies: Continue focusing on sustainability initiatives, including higher use of renewable energy, green chemistry techniques (biotransformation, flow chemistry), and efficient resource management to improve operational efficiency and margins. Also, de-risk the supply chain by diversifying towards cost-effective domestic suppliers.

• Identify Opportunities for Inorganic Expansion: Explore strategic acquisitions and partnerships that complement and extend technological strengths, manufacturing scale, and supply-chain efficiencies, potentially including international jurisdictions.

• Continue Sustainable Manufacturing Practices: Implement more green chemistry and sustainable manufacturing practices, such as photochemistry and electrosynthesis, to reduce waste, lower costs, and improve margins, while increasing the proportion of renewable energy used.

Anthem Biosciences IPO Vs Peers

Anthem Biosciences is one of the youngest Indian CRDMO companies and the fastest among assessed peers to reach Rs. 1,000 crore in revenue within 14 years. It recorded the highest revenue growth from fiscal 2024 to fiscal 2025 compared to its Indian peers.

In Fiscal 2025, Anthem's EBITDA margin was 36.81%, and its PAT margin of 23.38% is the highest among Indian peers. The company's RoCE and RoE in fiscal 2025 were the highest among Indian peers, showcasing industry-leading capital efficiency.

Anthem Biosciences also distinguishes itself by being one of the few companies with integrated capabilities for both small molecules and biologics. It has the largest fermentation capacity among all assessed Indian CRDMOs, with 142 kL as of March 31, 2025.

Objectives of Anthem Biosciences IPO 

The Offer is an offer for sale by the selling shareholders. The company will not receive any proceeds from the offer. The Selling Shareholders are Ganesh Sambasivam, K Ravindra Chandrappa, Viridity Tone LLP, Portsmouth Technologies LLC, Malay J Barua, Rupesh N Kinekar, Satish Sharma, Prakash Kariabettan, K. Ramakrishnan.

Anthem Biosciences IPO Details

IPO Dates

Anthem Biosciences IPO will be open for subscription from July 14, 2025, to July 16, 2025. The allotment of shares to investors will take place on July 17, 2025, and the company is expected to be listed on the NSE and BSE on July 21, 2025.

IPO Issue Price

Anthem Biosciences is offering its shares in the price band of Rs 540 to Rs 570 per share. This means you would require an investment of Rs. 14,820 per lot (26 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Anthem Biosciences is issuing an offer for sale of 5,95,61,404 shares, which are worth Rs 3,395 crores.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on July 17, 2025, through the registrar's website, KFin Technologies Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Anthem Biosciences will be listed on the NSE and BSE on July 21, 2025.

IPO Application Link

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Apply for Anthem Biosciences IPO