Anthem Biosciences expands manufacturing capacity ahead of ₹3,395-cr IPO

CRDMO firm Anthem Biosciences expands peptide and API production, with Unit 4 under development, as it prepares for a Rs 3,395-crore IPO opening on July 14

Anthem Biosciences, a contract research, development and manufacturing organisation (CRDMO), is scaling up its manufacturing footprint to meet rising global demand for fermentation-based active pharmaceutical ingredients (APIs) and high-complexity custom synthesis projects, as it prepares to launch a Rs 3,395-crore initial public offering (IPO) next week.

 

The IPO, which is entirely an offer for sale, is scheduled to open for subscription from July 14 to July 16, with the anchor investor book opening on July 11. The price band has been set at Rs 540–570 per share, and the listing is expected on July 21.

 

Operationally, the company is moving forward with expansion as its third manufacturing facility, focused on peptides and fermentation-based production, is now operational. A fourth, large-scale facility is under development. Anthem has invested Rs 600 crore in Unit 3, while its gross block now exceeds Rs 1,300 crore, with an additional Rs 300 crore in capital work-in-progress. The upcoming Unit 4 spans 30 acres—larger than Units 1, 2, and 3 combined—and is expected to be operational in two years.

 

 

With over 80 per cent of its revenue derived from exports, primarily to the US, Europe, and China, Anthem is positioning itself as a key supplier to global innovators in both pharma and wellness segments. Its business model focuses on novel, high-margin products such as fermentation-based APIs, including probiotics, enzymes, peptides, and vitamins. The company works directly with innovator firms, supplying advanced intermediates or APIs that often appear in New Drug Applications (NDAs) filed by its global clients. 

 

Unlike many of its Indian peers, Anthem claims it has limited dependence on China for raw materials, sourcing less than 20 per cent of its inputs from the country. This de-risked supply chain gave the company a competitive edge during COVID-19 disruptions and aligns with the global “China Plus One” strategy.

 

“While most Indian pharma companies rely on China for 60–70 per cent of their inputs, our dependence is below 20 per cent. This independence took us over a decade to build and has become a key differentiator, especially during disruptions like COVID,” stated Ajay Bhardwaj, chief executive officer, Anthem Biosciences.

 

The company’s Unit 1 and Unit 2 facilities have cleared multiple US FDA inspections, with no observations in the most recent audits. Anthem also undergoes over 40 client audits annually, often from leading global pharma and emerging biotech firms.

 

In terms of clientele, large pharma accounts for 50 per cent of revenue, emerging biotech 20 per cent, and mid-sized pharma firms around 10 per cent. While the Indian market currently accounts for only 20 per cent of revenue, the company expects that figure to rise in absolute terms as both its pharma and nutraceuticals segments grow.

 

With growing global interest in fermentation-based APIs and specialty wellness ingredients, Anthem’s expanded capacity is expected to support its commercial scale-up and bolster margins. Management said its EBITDA margins have consistently remained around 37 per cent, and the company has a strong project pipeline, with 16 new projects in late-stage development.

 

Anthem’s strategy, it says, is not to compete with Chinese players on scale but through process innovation, automation, and compliance. The company has developed in-house control systems that integrate all plant operations, enabling real-time cloud-based tracking and reducing regulatory risk.