Aragen Life Sciences eyes IPO as it expands global footprint with biologics, ADCs
Haydarabad -based contract research, development and manufacturing organization (CRDMO) collected $ 100 million from Quadria Capital in January 2025 and about $ 1.4 billion for the company ( La12.259 Crore). Avendus Future Leaders Fund and SBI Life Insurance also contributed La300 crore in a secondary share purchase.
The first public offering (public offering) will probably be the next step for the company, but the general manager (CEO) Manni kantipudi, wants to timer correctly. Kantipudi said, “As a CRDMO in India, we want to be one of the largest and we have made good progress so far.” Uz We are waiting for the right timing to trigger this (public offering), ”he added.
Aragen reported income of consolidated La1,675 CRORE (FY24) in 2024 financially. Although the FY25 figures are not open to the public, Kantipudi said the company’s last financial year grew by about 12% compared to last year and its income was determined approximately. La1,850 CRORE.
Bengaluru -based Anthem Biosciences Ltd and Sai Life Sciences Ltd recently listed peers reported income La1,845 CRORE and La1,695 crore respectively. CRDMO Branch OfbioCon Ltd, Syrgene International LaIncome 3,642 crore.
Recently, CRDMOs have caught the fantasy of investors, new players are listed in oil premiums and high values companies.
Public offering plans
Last month, the Bengaluru -based Anthem Biosciences made a 27% premium on the national stock exchange compared to the price of public offering. La570. IPO, with the size of the problem La3.395.79 Crore has subscribed to 67.42 times. CRDMO’s market value approximately La45,936 crore per last closing. SAI Life Sciences listed in stock exchanges in December 2024 La17,032 Crore. Others like Pyramal Pharma and Syngene International La24,603 Crore and La25,305 Crore, respectively.
An expected change in the supply chain of global drugs away from China has Indian CRDMOs, which are ready to get a larger market share.
According to a BCG report, the CRDMO industry in India is today worth 3-3.5 billion dollars and only 2-3% of the global market, which is worth $ 145 billion.
He said India’s CRDMO industry could rise to $ 25 billion by 2035.
“There is a lot of work whether China is a plus or not – because it is a growing segment, Sur “What can we compare ourselves with Chinese companies, how can we compete with them in terms of cost and agility?”
Kantipudi said India’s main advantages over China contain a lower labor cost, an English -speaking population and a growing talent pool. “We have many young people who graduate with pharma and biotechnology, etc.. We have to educate them.”
Indian companies can compete with Chinese competitors, but the subraancean said that they should answer a few questions about how they can match digitalization, process improvement and cost equation.
Aragen bets on the recently announced capacity expansion and high demand antibody conjugats (ADCs) to take advantage of this change. In line with industry growth, it is waiting for 18-19% annually in 26 fiscal years. According to a Jeffries India report, the country’s CRDMO sector is expected to grow at a growth rate of 18% in an annual compound growth rate.
It also increased investment in artificial intelligence and uses it to produce and digitize the drug discovery chemistry, laboratories and business processes.
ADC Strategy
ADCs are a kind of targeted cancer treatment that combines a biological antibody with a binder with a ‘load’ with a high -potensive chemotherapy medication. The drug works by giving chemotherapy directly to cancer cells while protecting healthy tissue.
Kantipudi said, “India is usually not considered as a biological destination point… However, considering interest in biological and very much in China, there is a handful of players who want to enter India for biological production because the cost of goods and manufacturing is lower than the West.” He said.
Globally working with more than 500 customers, the company, the world’s top 20 pharmaceutical companies, a few years ago, a large extent largely compared to a medium -sized biotechnology -oriented portfolio compared to a compared to the work, he said.
Aragen recently operated the Bengaluru production facility for biology.
Chemically synthesized load or cytotoxic medicine (used in ADCs) to make a high -potens production unit will be held in Haydarabad in October. The company will also add a bioconjual facility and expects to start making ADCs in a year, about 60% cheaper than the West. ADCs used for cancer treatment have attracted a lot of attention among the innovators with a few billion dollars of agreement by giants such as Merck and Roche in the last few years.
Biology bet
“We’ve been biologically since 2014. We learned the market, we founded ourselves as a very strong R -GE (Research and Development) player. And now we are building our production.”
Biological or large molecules make up 15% of the company’s income. However, Kantipudi said that this is expected to increase significantly. In the Bengaluru facility, the company has three customers who are registered to production after working with the research facility in California.
Small molecules or chemical beings continue to be a basis, while biological margins are higher margins, more obstacles for input and a rapid growing category offering higher activity. As great innovators are increasingly considered biologically, the need for outsourcing increases.
The US constitutes 65% of its business and follows Europe with 25%.
Kantipudi said the company also evaluated the purchase targets for growth. Authorized, among the uncertainties on potential tariffs on pharmaceutical imports, added that the company may consider buying an asset in the USA.
