RUBICON RESEARCH LIMITED FILES DRHP WITH SEBI

RUBICON RESEARCH LIMITED FILES DRHP WITH SEBI

DRHP Link: https://www.axiscapital.co.in/wp-content/uploads/Rubicon-Research-Limited-DRHP.pdf

Rubicon Research Limited has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”). Rubicon Research is a pharmaceutical formulations company, driven by innovation through focused research and development, with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets and in particular the United States. Based on the peer set (of six listed Indian companies assessed by F&S, and the company), Rubicon Research is the only Indian pharmaceutical player with a complete focus on regulated markets. (Source: F&S Report)

The company’s initial public offering comprises a fresh issue of up to ₹ 5,000 million and an offer for sale aggregating up to ₹ 5,850 million by the promoter selling shareholder, General Atlantic Singapore RR Pte Limited.

The company proposes to utilize the Net Proceeds from the fresh issue offer towards prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the company, funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes. The proceeds from the offer for sale shall be received by the selling shareholder, General Atlantic Singapore RR Pte Limited.

Axis Capital Limited, IIFL Securities, and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.

About the company:: According to F&S, between Fiscals 2022 and 2024, Rubicon Research were the fastest growing Indian pharmaceuticals formulations company with a CAGR for total revenue of 62.5% which was five times higher than the average (of 11 companies, including us) assessed by F&S. As per F&S, in Fiscal 2024, Rubicon Research were ranked among the top 10 Indian companies in terms of total Abbreviated New Drug Application (“ANDA”) approvals. The company received 14 ANDA approvals from the US FDA in Fiscal 2024, 12 ANDA approvals in Fiscal 2023 and nine ANDA approvals in Fiscal 2022. According to F&S, in Fiscal 2024, among Rubicon’s 55 commercialized products (“Commercialized Products”) in the US, the company held a market share of more than 25% by volume for seven products. Furthermore, according to F&S, none of their manufacturing facilities have received an “Official Action Indicated” (“OAI”) status by the US FDA since 2013.

Rubicon Research have two US FDA inspected R&D facilities – one each in India and Canada, and two manufacturing facilities in India with multiple accreditations from multiple regulatory agencies such as US FDA, Food and Drugs Administration, Maharashtra (WHO-GMP accreditation) and Health Canada. Our facilities are equipped with a range of drug development and manufacturing capabilities across dosage forms.

Company’s branded products, i.e. products prescribed by brand name, are marketed through Rubicon’s recently acquired subsidiary, Validus Pharmaceuticals LLC (“Validus”). Non-branded products, i.e. those for which a prescription with the specific active ingredient (but not a specific brand name) is required, are marketed by the company’s wholly owned subsidiary AdvaGen Pharma Ltd. (“AdvaGen Pharma”) and selectively via third-party distributors.

As on March 31, 2024, Rubicon Research had a portfolio of 69 active1 ANDA and New Drug Application (“NDA”) products approved by the US FDA. According to F&S, company’s portfolio includes 55 Commercialized Products, with a US generic pharmaceutical market size of USD 2,386.6 million, of which the Company contributed USD 154.3 million in Fiscal 2024. These products are being marketed and are available for purchase by customers in the US. According to F&S, in March 2024, the company had a commercialization rate of 79.7% in the US market, with 55 Commercialized Products out of a total of 69 active US FDA approvals. A high commercialization rate allows the company to better monetize their expenditure on development of their products. As of March 31, 2024, the company have 19 new products awaiting US FDA ANDA approval and 46 product candidates in various stages of development.

Within the company’s commercialized Products’ portfolio, products in the analgesics / pain management therapy area contributed 33.08%, 26.67% and 29.85% of their revenue from operations in Fiscals 2024, 2023 and 2022 respectively. According to F&S, the growth of the analgesics market is supported by the incidence of chronic pain, the rising incidence of surgical procedures and the aging population, which is more prone to conditions requiring pain management.ends GNI