INDEGENE LIMITED IPO

OVERVIEW OF THE COMPANY: Indegene Limited is a digital-first company that provides commercialization solutions for the life sciences industry. They primarily assist companies in developing drugs, navigating clinical trials, and bringing products to market. Their services also include regulatory submissions, pharmacovigilance, complaint management, and sales and marketing support.

Here’s a quick summary about Indegene limited:

Founded in 1998.
Provides digital-led services across the life sciences sector including biopharma, emerging biotech, and medical devices
The company reported a revenue of ₹2364.10 crore in 2023.
Indegene’s IPO is considered a rare event as it breaks the trend of no IPO launches during May in the last four election cycles

Indegene limited Company Background:

Company was incorporated as ‘Indegene Lifesystems Private Limited’ at Ahmedabad, Gujarat, as a private limited company, incorporation dated October 16, 1998. Thereafter, the registered office of our Company was shifted from Gujarat to Karnataka in June 2003, and then, from Karnataka to Maharashtra in May 2014. Further, pursuant to a resolution passed by our Shareholders at the EGM held on February 29, 2016, the name of our Company was changed to ‘Indegene Private Limited’. Thereafter, the registered office of our Company was shifted from Maharashtra to Karnataka in February 2017.

BUSINESS STRATEGY of INDEGENE Limited:

Strengthen our “go to market” engine
Develop our technology portfolio
Pursue strategic acquisitions
Focus on operational excellence

Technology and Data of Indegene limited

NEXT Content Authoring: This is a Gen AI-based medical report authoring tool that generates the first draft of medical reports for medical writers to review. It helps reduce the time-to-submission for these reports and allows medical writers to spend more time in reviewing reports instead of authoring them.
NEXT MLR Automation Review: This platform simplifies medical, legal and regulatory (MLR) review of medical as well as promotional materials. It helps review content for accuracy and ensures that any content that is published complies with regulatory guidelines.
NEXT Adverse Events Management: This platform helps with monitoring adverse event intake and processing or reported adverse events, and seriousness assessment. Our insights engine provides predictive analytics across all steps of the process. This empowers our clients to make faster submissions to health authorities, which in turn enhances patient safety.
NEXT Analytics: This is an AI-enabled proprietary platform that allows life sciences companies to optimize their go-tomarket model. It helps deliver personalized outcomes to HCPs by utilizing data from over 2 million HCPs and over 200 million HCP interactions, as well as AI-driven scientific modelling and strategic insights.
Texture: This tool is used by brand managers at life sciences companies to drive patient engagement and therapy adherence. Texture enables conversations with patients and helps increase adherence to prescribed drugs.
NEXT BOT: This is a Gen AI-enabled conversational bot that acts as a virtual assistant to help users with answering questions from end customers. For example, it helps sales representatives answer questions on their drug portfolio, and call center agents answer pharmacovigilance related questions. This tool helps the user in answering questions more effectively, while reducing the response time for end customers.
NEXT Forecasting: This is a comprehensive forecasting platform that assesses the market potential of a biopharmaceutical product in terms of revenues across therapy areas and geographies. This platform helps our clients allocate the budget for sales and marketing across the entire product lifecycle for a brand.
Channel Effectiveness Model: This model uses machine learning to make estimations of the impact of marketing campaigns on product sales. This helps our clients in allocating their sales and marketing budgets to improve product revenue and profitability. This model can be simultaneously used across multiple markets and brands and is easily implementable owing to pre-built customizable modules.
NEXT Commercial Content Intelligence: This is an AI powered platform that assists in identifying reusable commercial content. This platform helps with organizing commercial content by automatically classifying and tagging digital assets according to their specific biopharmaceutical domains.
NEXT Campaign Collaboration: This is a collaboration platform designed for easy planning, management, and measurement of multi-channel campaign operations. It provides a single interface for campaign workflow management, such as brand planning and campaign briefing, and provides insights on campaign performance across multiple channels.
NEXT Content Collaboration: This is a client collaboration platform that allows us to engage with our clients in developing content. It helps us streamline the content development process comprising planning, review and reporting. It also sends alerts based on rule-based processes.
NEXT HCP Journey Optimization: This is an AI powered platform that connects and integrates data from multiple sources, such as digital interactions and prescriptions data, to develop multi-dimensional profiles of HCP cohorts. This allows us to enhance HCP engagement by optimizing for content messaging and channel preferences.
NEXT Regulatory Submissions Planning: This platform uses AI and predictive analytics to centrally track regulations and plan for submissions across the globe, in real-time. The tool predicts impact of new regulatory changes on submission timelines and helps our clients with planning submissions and managing internal employee R

Revenue from each Subsidiaries of Indegene limited

Indegene Ltd – 6.46%
ILSL Holdings, Inc. (“USA”) – NILL
- DT Associates Research and Consulting Services Limited UK- 3.33%
- DT Associates Research and Consulting Services, Inc.- 0.98%
- Cult Health, LLC – 8.78%
- Indegene, Inc. USA- 79.56%
  - Services Indegene Aptilon, Inc.- Negligible
Indegene Healthcare Mexico S de RL de CV (“Indegene Mexico”) -NILL
Indegene Japan, LLC (“Indegene Japan”) – 0.09%
Indegene Ireland Limited.- NILL
- Indegene Fareast Pte. Ltd.- 0.01%
- Indegene Lifesystems Consulting (Shanghai) Co. Ltd.- 0.78%
- Indegene Europe, LLC, Switzerland – NILL
- Indegene Healthcare Germany GmbH-NILL
- Indegene Healthcare UK Ltd -nill
- Trilogy Writing & Consulting GmbH (“Trilogy”)
  - Trilogy Writing & Consulting, Limited (“Trilogy Limited”)
  - Trilogy Writing & Consulting, ULC (“Trilogy ULC”)
  - Trilogy Writing & Consulting, Inc. (“Trilogy, Inc.”)

CATEGORY-WISE REVENUE BREAKUP of Indegene limited

(₹ in million, unless otherwise indicated)

	For the nine months ended December 31,		For the Financial Year			CAGR 2021 –2023 Pelatro IPO: Is the Aggressive Hype Over?
	2023	2022	2023	2022	2021
Revenue from Enterprise Commercial Solutions	11,360.31	9,860.06	13,568.89	10,161.57	5,645.75	55.03%
Revenue from Omnichannel Activation	2,312.08	1,911.91	2,826.84	1,414.15	787.38	89.48%
Revenue from Enterprise Medical Solutions	4,405.68	4,216.02	5,602.27	4,315.59	3,050.08	35.53%
Revenue from others	1,088.04	750.86	1,063.33	754.78	179.53	143.37%
Total revenue from operations⁽²⁾	19,166.11	16,738.85	23,061.33	16,646.09	9,662.74	54.49%

Revenue from top ten geographies in India in last three years is as follows:

(₹ in million, except percentages)
	For the Financial Year
	2023		2022		2021
Revenue from operations
North America	15,745.77	68.28%	11,027.45	66.25%	6,136.46	63.50%
Europe	6,308.83	27.36%	4,538.49	27.26%	2,454.03	25.40%
India	355.60	1.54%	332.90	2.00%	313.09	3.24%
Rest of the world	651.13	2.82%	747.25	4.49%	759.16	7.86%
Total revenue from operations	23,061.33	100.00%	16,646.09	100.00%	9,662.74	100.00%

Our revenue from top clients of Indegene limited

(₹ in million, except percentages)

	For the Financial Year
	2023		2022		2021
Revenue from operations
From top five customers	11,344.67	49.19%	9,175.76	55.12%	5,446.52	56.37%
From top ten customers	15,450.68	67.00%	11,927.15	71.65%	6,949.95	71.93%

Track record of creating value through acquisitions of Indegene limited:

S. Deccan Transcon Leasing IPO: Is This IPO a Alienated Dud? No.	Name of the acquired company / selling entity	Description of acquired company	Geography served	Year and month of acquisition
1.	Trilogy Writing & Consulting GmbH	A company offering medical writing consultancy services.	Europe, the United Kingdom and North America	March 2024
2.	Sotus 852 GmbH^*	N.A.	N.A	November 2022
3.	Cult Health	A full-service healthcare marketing agency.	North America	October 2022
4.	Medical Marketing Economics, LLC	A value-based pricing, market access and reimbursement strategy firm.	North America and Europe	August 2021
5.	DT Associates Limited	A digital transformation and customer experience (“CX”) consulting firm.	North America and the United Kingdom	August 2019
6.	Wincere, Inc.	A company providing clinical data management services.	North America	December 2016
7.	Encima Group, Inc.	A company offering marketing automation and analytics services.	North America	November 2016
8.	Skura Corporation Inc.^**	A company offering omnichannel sales enablement software products.	North America	April 2016
9.	Vantage Point Healthcare Information Systems, Inc.	A population health analytics platform.	North America	October 2015
10.	Total Therapeutic Management, Inc.	A healthcare quality improvement and clinician engagement business.	North America	December 2013
11.	Aptilon Holdings, Inc.	A company engaged in building customer engagement technologies.	North America	November 2012
12.	MedCases LLC	A company offering continuing medical education (“CME”) on digital platforms.	North America	August 2006
13.	Medsn, Inc.	A biopharmaceutical sales training company.	North America	September 2005

KEY MARKET TRENDS for of Indegene limited:

Trends in the life sciences industry affecting demand for our solutions

Outsourcing trends. Outsourcing trends in the life sciences industry are driven by various factors including: (i) deficit of in-house talent and domain expertise in life sciences; (ii) ability of outsourcing service providers to optimize regulatory and medical affairs operations by effectively navigating the regulatory landscape and enabling timely approvals; (iii) in-house digital challenges and proliferation of data; (iv) rising SG&A and R&D expenses; and (v) increase in the number and complexity of clinical trials (Source: Everest Report). Changes to outsourcing trends, such as internalization of operations or a shift to captive centers, especially for sales and marketing operations, may result in one or more of our clients reducing their engagements with us.
Healthcare reform. Various government bodies are considering or have adopted healthcare reforms and may undertake, or are in the process of undertaking, efforts to control growing healthcare costs through legislation and regulation
Pace of digitization. The life sciences industry has been historically slow in the adoption of technology compared to other industries. However, over the past few years, life sciences companies are placing higher emphasis on digital innovation and enterprise-wide transformation initiatives to improve operational efficiencies

Strength:

Domain expertise in healthcare:
Robust digital capabilities and in-house developed technology portfolio
Track record of establishing long-standing client relationships:
Global delivery model:
- We cater to the needs of our clients from six operation hubs and 17 offices located across North America, Europe and Asia;
Experienced management and motivated talent pool supported by marquee investors:
Track record of creating value through acquisitions

Key Financial Performance of Indegene limited

	As of and for the nine months ended December 31,		As of and for the Financial Year
	2023	2022	2023	2022	2021
Restated profit from continuing operations after tax	2,419.02	2,172.79	2,660.99	1,628.18	1,856.82
Profit margin⁽⁵⁾ (%)	12.62%	12.98%	11.54%	9.78%	19.22%
EBITDA⁽⁶⁾	4,198.51	3,435.42	4,541.89	2,659.10	2,639.65
Adjusted EBITDA⁽⁷⁾	4,198.51	3,435.42	4,541.89	3,128.09	2,611.76
Adjusted EBITDA Margin⁽⁷⁾ (%)	21.91%	20.52%	19.69%	18.79%	27.03%

CAPITALISATION STATEMENT of Indegene limited:

(₹ in million, except ratios)

Particulars	Pre-Offer as at December 31, 2023
Borrowings
Current borrowings (2)(A)	605.20
Non-current borrowings (2) (B)	3,388.13
Total Borrowings (A) + (B) = (C)	3,993.33
Equity
Equity share capital(2)	443.51
Other equity(2)	12,826.50
Total Equity (D)	13,270.01
Total Borrowings/ Total Equity (C/D)	30.09%
Non-current borrowings/Total Equity (B/D)	25.53%