Indian contract drug makers timed their IPOs right. But is the business worth the premium?

An expected change in the global pharmaceutical supply chain away from China is excited about the Indian Convention Research, Development and Production Organizations (CRDMOs), which serves to develop drug developing drugs lately.

Anthem Biosciences reflects the enthusiasm of the investor as export -oriented CRDMOs, including SAI Life Sciences and Divi’s laboratories, try to diversify and derive innovative pharmaceutical companies. However, experts, CRDMOs are expected to record high growth, while financial performances have not yet reflected this warned.

The Bengaluru -based anthem Biosciences made an excellent output on the stock exchanges on July 21 and listed the National Stock Exchange with a 27 percent premium compared to the first public offering price. La570. IPO, with the size of the problem La3.395.79 Crore has subscribed to 67.42 times. Anthem’s shares were traded on July 25 at a price-winanç (PE) rate of 93.24.

General Manager and General Manager Ajay Bhardwaj said, “The good news is… China is a giant. Mint before.

According to the Ministry of Commerce, about 65% of India’s imported casting drugs and developed drugs worth $ 3.5 billion came from China. The government wants to strengthen local production with an incentive scheme based on raised drug production, as it forces self -sufficiency in casting drugs that fall into production drugs.

Today, the Indian CRDMO industry is only 2-3% of the global CRDMO market worth $ 3-3.5 billion and worth 145 billion dollars. According to a recent report of BCG and IPSO, it grew by 15% annually between 2019-2024.

In the report, the industry stated that at a top of overturning to grow with a large ceiling gap to grow, the competitive advantage in small molecular abilities focus on faster starting time, quality and cost advantages.

Unlike CRDMOs, CDMOs (contract development and production organizations) are typically included in the production of already commercialized drugs.

Premium trade

Sai Life Sciences, which made its release in December 2024 La837 on July 25, close to the highest level La851, about 102 times more to the company and about 8.2 times the notebook value.

Divi’s laboratories and Syngene International were traded with 80.31 and 55.09 PE premiums, respectively. In contrast, the generic pharmaceutical giants are relatively modestly valued: Sun Pharmaceutical Industries 37.37 PE ratio, DR RAINT’s laboratories at 18.84 and jeep operations at 23.53.

Sai Life Sciences has been over 18% since its shares list NSE. Divi’s laboratories won 35.56%from 30 July 2024 to 28 July 2025, pyramal pharmma 20.36%, Syngene International’s shares fell 12.72%.

Syngene International, a unit of Biofarmasym company Biocon, launched this financial gain season last week. Revenue from operations increased by 11% annually. La875 Crore for the quarter is a solid starting start (4% income increase in Yoy) compared to FY25 performance. The management maintained the expectation of increased income in the middle of young people for 26 financial years.

SAI Life Sciences provided 16% income increase La1,695 Crore in FY25. Divi reported that full -year income increased by 19% annually LaNet profit increases to 37%, while 9,360 Crore, La2,191 Crore.

According to BNP Paribas, Divi’s is expected to increase an annual income of 18% in the 1st Paribas.

Sunil Khaitan, General Manager of Finance in India in Goldman Sachs, said, “India CDMO sub -sector offers an extremely promising opportunity to see investors as direct beneficiaries of the Chinese+1 thematic.” Mint. “We expect the capital markets in this field to accelerate within the next 6-12 months.”

What is the excitement of investors?

China is a plus a theme-tedaric chains and reduces excessive dependence in China-a driving force, but that’s not just that.

CRDMOs, as they foresee to earn more customers in the future, an aggressive capacity expansion is on the path of expansion and technological niches bank to address biotechnology companies as demand for new technologies and drugs increases.

Anthem has an antique drugs that target and kill cancer cells, peptides (short chains of amino acids), lipids and oligonucites (synthized nucle acids) on new chemical beings, as well as biology (living organisms or components) and RNAi (a gene regulatory mechanism), cancer cells, peptides (short chains of amino acids), lipids and oligonucites (synthized nucle acids).

One of the Sides of Stides Pharma, listed in January, is expected to focus on niche areas such as Biological, Pharmaceuticals, Injected and Pharmaceuticals-Injections Combinations. GLP-1s, usually sold in pen-filled devices (hormones regulating blood sugar levels), it is expected that the proposals in the drug-device combinations will have a great growth opportunity.

CEO Neeraj Sharma said, ız We are currently performing 5 -fold expansion of our cartridge filling features to meet our customer demand, which will significantly increase the future income, ”he said. Mint In a response sent by E -Post.

Anthem Biosciences and Sai Life Sciences MintQueries.

Experts, investors not only for the potential growth directed by these tail winds, but also for the diversification of portfolios of CRDMO’ler said. Focusing on domestic formulations and US generics, the opportunities in traditional pharmaceutical companies, new approval and slowing down regulatory problems.

“Investor wants to be exposed to companies and segments from China with high growth potential and shift themes from China to India.” He said. Mint.

Are the values worth this?

Shaikh, CRDMOs have reported stable, moderate income increase, even if their valuation is expensive, their performance is not encouraging enough.

Unlike sectors such as Shaikh, a company, which can measure a company’s performance of a company based on hospital bed fullness and average income per bed, management interpretation for contract drug producers is the main indicator of the expected growth and performance of the company.

Most companies report that there is an increase that attracts the attention of innovators to hire their services and has begun to expand aggressive capacity. Syngene plans to increase biological production footprint for 36.5 million dollars through the newly acquired US facility.

Divi’s laboratories LaThe 650-700 Crore capacity expansion in existing facilities and SAI Life Sciences have completed the second stage of the IV capacity expansion for Small Molecular Active Pharmaceutical Components and Intermediates.

Behind this, the growth appearance continues to be strong.

“Considering the potential adding of the earnings, Capex projects and the potential of new molecules, Brokerage Nuvama Equation Equity Research Analyst, Analyst, is expected to be strong for export-oriented CDMOs for the next 2-3 years.” He said. Mint.

However, the CDMO job is not linear, Akolkar said that he should pay attention to annual performance, not a few quarters of the person’s number.