Veeda Clinical Research plans to raise Rs 500-Rs 700 crore from an Initial Public Offering (IPO) and offer for sale (OFS), sources privy to the development told Moneycontrol.
The company is in the process of filing a draft red herring prospectus with the Securities and Exchange Board of India (SEBI), they said.
The company declined to comment on the IPO.The Ahmedabad-based Clinical Research Organisation, backed by private equity investor CX Partners, in June announced that it had raised $16 million from PE firm Sabre Partners and high networth individuals like Pranab Mody of JB Chemicals, Havells India family office, Nikhil Vora founder of Sixth Sense Ventures and Arjun Bhartia of Jubilant, among others.
Traction in BA/BE studies
In an interview with Moneycontrol, Ajay Tandon, Managing Director of Veeda said the company’s core segment of bioavailability and bioequivalence (BA/BE) studies would continue to gain traction with a large number of drugs going off-patent over the next 5-6 years.
To launch a generic drug, pharmaceutical companies need BA/BE studies to demonstrate that the generic version of the drug is equivalent to the proprietary or innovator drug.
"...there will be a continuing need for these studies to be conducted. Within India, Veeda maintains a strong position to be able to support some of these clinical research requirements over the coming years," Tandon said.
Other growth areas
In addition to generics, the company expects strong growth from demand for clinical trials of biosimilars and novel drugs.
"Biosimilars is a growing segment globally and India too. We ourselves are making lot of investments in the capability development in terms of systems and people to be able to address this significantly growing market."
Tandon said he is also seeing enquiries from multinational companies who want to conduct clinical trials for their novel drugs in India.
"We are seeing increasing interest in India and we certainly look to be able to provide those services to our global clientele in India itself," Tandon said.
To bolster its capabilities to offer full scale clinical services for biosimilars and novel drugs, Veeda has acquired the controlling 50.1 percent stake in Bengaluru-based Bioneeds India Private Limited, after acquiring a significant minority stake earlier in March this year.
Tandon also feels that the first-ever large phase-3 clinical trials conducted by Indian vaccine makers like Bharat Biotech and Zydus Cadila to test their COVID-19 vaccines will give confidence to the global pharmaceutical industry to consider India to test their drugs products and vaccines.
Tandon said the company was also focusing on building a global offering for bio-analytical services for pharmaceutical products.
Veeda has conducted more than 3,500 trials and developed more than 1,000 bioanalytical methods across generics, new chemical entities, and biosimilars. Veeda has completed more than 80 global regulatory inspections.