Company Overview:
Indegene Ltd is a technology led digital commercialization provider to the life science industry, including biopharmaceutical, emerging biotech and medical device companies. The company provides technology led expertise and capabilities that assists clients with drug development, clinical trials, regulatory submissions, pharmacovigilance, complaint management and sales & marketing services. Indegene operates across i) Enterprise commercial solutions, ii) Enterprise medical solutions, iii) Omnichannel activation solutions and iv) Enterprise clinical solutions & consultancy services to 65 clients as of 9MFY24. Indegene operates through an internally developed artificial intelligence (AI) and machine learning (ML) based proprietary platforms which allows it to offer solutions to clients across the globe.
Key Highlights:
1. Robust digital capabilities: The company has developed a suite of proprietary tools and platforms that automate and create AI-based efficiencies and advanced analytic capabilities forming core components of Indegene’s offerings. The proprietary “NEXT”-branded tools and platforms assist in driving transformation across the commercialization lifecycle of biopharmaceutical products and medical devices. These capabilities help the company drive efficient, effective and quality solutions for its customers.
2. Domain expertise in healthcare: Indegene’s understanding of the healthcare domain enables itto efficiently modernize and digitize the key functions involved in the life sciences commercialization process. It also assists in contextualizing the use of technology, among other things, to optimize sales and marketing costs, drive omnichannel activation at scale, enable faster recruitment of patients for clinical trials and accelerate time taken to make regulatory submissions.
3. Global delivery model: The company caters to over 65 clients across the globe through various offices and hubs located in North America, Europe and Asia. Indegene is able to offer and execute end-to-end solutions across multiple regions to cater to clients’ requirements because of the streamlined global processes and the scalable nature of its solutions. Indegene’s local presence in various countries provides them with specialized knowledge of the regional market, culture, regulatory requirements and localized medical nuances, such as medical terminology, which enables it to work with clients across time zones and languages, leading to better client engagement.
4. Long standing client relations: The company has long-standing relationships with marquee biopharmaceutical companies including each of the 20 largest biopharmaceutical companies in the world. Contracts with clientstend to remain sticky as the company’s offerings are integrated with the clients’ workflow. Retention rate in FY21/FY22/FY23 stood at 129.9%/159.9%/122.8% respectively.
Valuation: The company is valued at annualized FY24 P/E multiple of 30.5x based on the upper price band on the post-issue capital. The company operates with a unique business model with strategic client’s relationship with 20 of the Top 20 global biopharmaceutical companies in FY23. The company recorded a strong PAT CAGR of 12.7% between FY21-FY23 and is expected to become net debt free post issue. We recommend investors to SUBSCRIBE tothe issue.
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