BDR Pharma targeting 2027 for IPO launch, looking to acquire units in US, says CMD Dharmesh Shah

BDR Pharmaceuticals chairman and managing director Dharmesh Shah.

BDR Pharmaceuticals is in talks to acquire $100-million worth of manufacturing assets in the United States and plans to launch an initial public offering (IPO) in 2027, chairman and managing director Dharmesh Shah has told Moneycontrol.

The private equity firm Multiples-backed company, with revenues of approximately $200 million, has evaluated a couple of units and is in the due diligence phase.

"A decision on this asset acquisition, which could involve an investment of around $100 million, is expected in the next three to four months," Shah said.

The Mumbai-based drugmaker is also ramping up its investments, particularly in the lucrative US market and strategic acquisitions to fuel growth.

"This move is aimed at manufacturing certain controlled substances and complex molecules locally in the US, partly to cater to the US government market which prefers local producers," Shah added, referring to President Donald Trump’s push for manufacturing.

Despite high operating costs, Indian companies are considering having local units to overcome the tariff uncertainty and also participate in the US government’s programmes such as Medicaid and Medicare.

BDR Pharma shot to fame during the coronavirus pandemic, as the company was among the first to bring out antiviral drugs such as remdesivir, favipiravir and doxycycline.

Investment booster 

The drugmaker has undertaken significant capital expenditure (capex) to support its expansion plans.

In the past three to four years, BDR Pharma has spent close to Rs 600 crore and plans to invest another Rs 700 crore in the coming two to three years. This includes both organic growth initiatives and inorganic acquisitions.

The funding for this massive capex is entirely through internal accruals, as the company maintains a zero-borrowing policy.

BDR Pharma plans to launch its first product in the US in the last quarter of 2026. The US good manufacturing practices (GMP) inspections of two of the company's India units is expected in October and November.

BDR is in the process of acquiring a large basket of abbreviated new drug applications (ANDAs) in the US in a multi-million dollar deal.

The ANDAs cover a mix of solid dosage, injectable, and dermatology products, spanning therapeutic areas like cardio, diabetology, pain management, and oncology.

Shah said the company would transfer at least ten of the acquired ANDAs to India by the end of the year and begin production.

The company plans to have its front-end in the US and go to market under its own label, securing necessary state licences, he said.

The company is setting up an oncology unit in Algeria and is in talks to acquire an asset in Kazakhstan, also focused on oncology and complex injectables.

BDR Pharma's growth strategy also involves expanding its manufacturing capacity in India with new units.

The company has been growing at a rate of 25-27 percent annually, with major growth projected for FY26 and FY27 as more filings get regulatory approvals.

Exports account for 50 percent of BDR Pharma’s revenue, with a target to take it to 70 percent over the next two years.

Research push

Highlighting the focus on complex and technology-driven products, Shah said the company's intellectual property and backward integration would be a key differentiator in competitive markets like the US.

The company is also investing heavily in R&D, with spending at around 12-14 percent of revenues, double the industry average.

A new R&D centre is being set up in Gujarat’s Padra to focus on API synthesis, including oligonucleotides and peptides.

The company is also working on new drug delivery systems and platform technologies to reduce toxicity and enhance the bioavailability of conventional drugs, particularly in oncology.

Along with marketing drugs under its own brands, BDR also licences its medicines to other large Indian pharma players.

The company focuses on complex injectables for treating bacterial and fungal infections, pain, and cancers. In 2022, a consortium led by private equity firm Multiples invested Rs 685 crore ($91 million), for a 9.3 percent stake in BDR.