Indegene IPO Review – GMP, Finance, and More

Indegene IPO Review: Indegene is facing an IPO issue of Rs. 1,841.76 Cr will commence on May 6, 2024. The issue will close on May 8 and be listed on the exchange on May 13, 2024. In this article, we will analyze GMP, financials, strengths and weaknesses of Indegene Limited IPO Review 2024. Read on. to find out!

Indegene IPO Review – Company Overview

Indegene provides digital-led commercialization services to the life sciences industry, including biopharmaceutical, emerging biotechnology, and medical device companies, supporting drug development and clinical trials, regulatory submissions, pharmacovigilance and complaint management, and product sales and marketing. . .

These solutions enable life sciences companies to develop products, bring them to market, and drive sales throughout their life cycle in a more effective, efficient and modern way. Indegene provides solutions for all aspects of commercial, medical, regulatory and R&D operations for life sciences companies.

The company has built relationships with each of the top 20 biopharmaceutical companies in the world by revenue. As of December 31, 2023, Indegene had a total of 65 active customers, 27 of whom had bills exceeding $1 million and five customers receiving bills of $10 million each.

Indegene’s business can be divided into the following business segments:

1. Enterprise Commercial Solutions: This primarily involves supporting the company’s digital marketing operations. Service providers in this sector support life sciences companies by creating customized marketing plans and campaigns and expanding reach to healthcare professionals (“HCPs”).
2. Omnichannel activation: These solutions help life sciences companies leverage a “digital-first” approach to optimize last-mile promotion of biopharmaceuticals and medical devices to HCPs across multiple channels.
3. Enterprise Healthcare Solutions: At Enterprise Medical Solutions, Indegene helps companies create medical content, product labels. We also review medical communications to ensure compliance with regulatory guidelines and provide pharmacovigilance services.
4. etc: Indegene provides consulting services in addition to corporate commercial and healthcare services. This may include solutions that help increase efficiency in drug discovery, patient recruitment for clinical trials, and clinical data management and support.

Indegene IPO Review – Industry Insights

The life sciences industry consists of companies engaged in R&D, manufacturing, and marketing of pharmaceuticals and medical devices. The two main sectors of this industry are biopharmaceuticals and medical devices.

1. Biopharmaceuticals: This segment consists of companies that discover, develop, manufacture, and sell drugs to treat, vaccinate, or alleviate the symptoms of a disease or disease.
2. Medical Equipment: This segment consists of companies engaged in R&D, production and sales of medical application systems and devices for treating or diagnosing diseases or illnesses.

The total sales of the biopharmaceuticals and medical devices sector in 2023 were estimated at 138.3 trillion rupees (USD 1.8 trillion), with biopharmaceuticals accounting for 69%, or 95.4 trillion rupees (USD 1.2 trillion). occupied.

By 2026, total sales of the biopharmaceuticals and medical devices sector are expected to reach ₹163.5 trillion (USD 2.1 trillion), with biopharmaceuticals accounting for 69%, or ₹113 trillion (USD 1.4 trillion). is expected to occupy. Life Sciences operating expenditures are increasing at a CAGR of approximately 6.7% from 2020 to 2022 and are estimated to reach approximately INR 12 trillion (USD 156 billion) by 2022.

Expenditures are expected to grow at a CAGR of approximately 6.5% to reach ₹15.5 trillion (USD 201 billion) by 2026 due to factors such as increasing population aging, increasing prevalence of chronic diseases, and discovery of new diseases.

The historical growth rate (2020-2022) is higher than the projected growth rate (2022-2026). That’s because historical growth was driven by the pandemic and was a one-off. However, the overall growth trajectory and underlying drivers remain the same.

Indegene IPO Review – Financials

In FY23, Indegene reported revenue of Rs. 2306 Cr, up 39% from Rs. 1665Cr in FY22. The company has continued to expand its revenue at a CAGR of 55% since FY21.

Last year’s net profit increased 63% to 190 million won. 163 Cr in FY22 to Rs. FY23 has 266 Cr. Net profit growth has remained at a CAGR of 33% since FY21, slightly lower than the revenue growth.

The company’s EBITDA margin declined from 27% in FY21 to 19.7% in FY23. Due to the decline in EBITDA margin, net profit margin fell from 19.2% in FY21 to 11.54% in FY23.

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Indegene IPO Review – Key Players

Indegene is not a listed company in India or globally. Therefore, we cannot perform peer-to-peer analysis of the company.

Company Strengths

1. Expertise in the medical field: The company’s deep understanding of the healthcare sector helps to efficiently modernize and digitize key functions of the life sciences commercialization process.
2. Powerful digital capabilities: Over the years, Indegene has developed a series of proprietary tools and platforms, including applications that use AI, ML, and other advanced analytics tools to automate and create AI-driven efficiencies.
3. Strong customer performance: The company has long-standing relationships with biopharmaceutical leaders globally. The customer base grew steadily from 44 in FY21 to 62 in FY23.
4. Track record built through acquisitions: Since 2005, Indegene has built a strong presence in North America through several acquisitions, including the new acquisition of Trilogy Writing & Consulting GmbH. This is a company that provides medical writing consulting services, acquired in March 2024.

company’s weaknesses

1. Industry-related hazards: The Company focuses solely on the life sciences industry, and impacts to each industry could have a negative impact on the Company.
2. Geographically concentrated risk: Most of the company’s customers are located in North America and Europe. Therefore, business and profitability largely depend on the performance of the region.
3. Industries that are very difficult to predict: The life sciences operations industry is highly competitive. Companies are always competing for internal sales, marketing departments, information technology, and more.
4. Interest and loan repayment delays: Indejin’s statutory auditor pointed out the subsidiary’s delay in interest payments. Indegene itself has reportedly delayed depositing the company’s Provident funds.

Indegene IPO Review – GMP

Shares of Indegene Ltd were trading at a premium of 37.39% in the gray market on Apr 30, 2024. The stock in Gray Market was trading at Rs 621. This gives a premium of Rs 169 per share over the ceiling price of Rs 452.

Indegene IPO Review – Key IPO Information

promoter: Indegene is a professionally managed company and its promoters are BCP Topco VII Pte. Corporation

Book Operations Lead Manager: Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, JP Morgan India Pvt Ltd and Nomura Financial Advisory & Securities (India) Pvt Ltd

Proposal registered by: Link Intime India Pvt Ltd

purpose of the problem

1. Of the net proceeds of Rs 391.33 Cr will be utilized for debt repayment of Indegene subsidiaries.
2. Of the net proceeds of Rs 102.916 Cr will be utilized to finance capital expenditure of the company and its subsidiaries. The entire amount will be disbursed over the next three years until FY27.
3. The remaining amount will be utilized for general corporate purposes and to fund additional acquisitions.

conclusion

Indegene is a leading provider of digitally driven commercialization services for the life sciences industry. The company has a strong track record of building solid relationships with leading biopharmaceutical companies around the world. Domain expertise, strong digital capabilities and strategic acquisitions are some of its core strengths.

However, the company faces risks associated with industry concentration, geographic concentration, and intense competition. IPO proceeds will be used for debt repayment, capital expenditures and general corporate purposes.

The company’s financial performance has been impressive, but continued revenue growth has led to concerns over declining EBITDA and net profit margins. Overall, Indegene offers opportunities for the growing life sciences industry, but it also comes with significant risks and challenges. So, would you invest in the upcoming IPO of Indegene Ltd? Let us know below.

Written by Nasir Hussein

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