Veeda Clinical Research IPO

Veeda Clinical Research Limited (Veeda Lifesciences) IPO Strengths

• A Platform for Comprehensive Drug Development Solutions

Veeda Lifesciences offers an extensive range of CRO services, surpassing major global and Indian peers. Through strategic expansions, the company has evolved from an HVS and generics-focused CRO to a provider of diverse drug development services, including pre-clinical, clinical, and biopharmaceutical solutions, supporting global clinical trials.

• Strong Scientific Capabilities Supported by Advanced Infrastructure

Veeda Lifesciences leverages its scientific expertise and global infrastructure to conduct complex studies across multiple therapeutic areas. With advanced clinical trial capabilities, specialized laboratory equipment, and extensive volunteer databases, the company delivers high-quality research solutions, ensuring regulatory compliance and effective drug development support worldwide.

• Established Quality Credentials with a Strong Focus on Quality Management

Veeda Lifesciences upholds the highest quality standards, having undergone 119 global regulatory inspections and 447 client audits as of September 30, 2024. With a robust Quality Management System aligned with international guidelines, the company ensures compliance, continuous improvement, and rigorous training, reinforcing its commitment to excellence in research and regulatory standards

• Strategic Growth Through Acquisitions

Veeda Lifesciences expands its capabilities through strategic acquisitions, strengthening its position as a leading CRO. The acquisition of Bioneeds India enhanced pre-clinical services, while Health Data Specialists broadened global clinical trial execution. A strong leadership framework ensures seamless integration, optimizing synergies for comprehensive drug development solutions worldwide.

• Global Leadership with Scientific Expertise

Veeda Lifesciences’ diverse leadership team brings deep scientific and industry expertise. Led by Dr. Mahesh Bhalgat, the team includes seasoned professionals across Clinical Trials, Pre-Clinical, and Biopharma services. With a global presence, their strategic insights and experience enhance drug development solutions, ensuring strong client relationships and operational excellence

More About Veeda Clinical Research Limited

Veeda Lifesciences is an independent, global, full-service Contract Research Organization (CRO) offering a broad spectrum of services across different stages of the drug development value chain. These services range from non-clinical and pre-clinical testing to early and late-phase clinical trials. The company specializes in various drug modalities, including:

• Novel Chemical Entities (NCEs)

• Novel Biological Entities (NBEs)

• Generics and Biosimilars

• Medical Devices

Core Service Offerings

Veeda Lifesciences provides the following key services:

Clinical Trials

• Covers early to late-phase studies (Phase I-IV)

• Conducted across multiple hospital sites

• Ensures scientific, operational, and regulatory expertise

• Supports market authorization by regulatory agencies

Healthy Volunteer Studies (HVS)

• Focuses on clinical pharmacology in healthy volunteers

• Measures bioavailability and bioequivalence of drugs

• Evaluates pharmacokinetics and pharmacodynamics

• Complies with stringent regulatory standards

Pre-Clinical Trials

• Includes in vitro (laboratory-based) and in vivo (animal-based) studies

• Supports Phase I study designs

• Provides comprehensive drug development support for biotech and pharmaceutical companies

Biopharma Services

• Specializes in biologics and biosimilars

• Includes analytical and functional characterization

• Provides clinical bioanalysis

Global Presence and Market Growth

Veeda Lifesciences operates across key markets in North America, Europe, and Asia, including India. Since its inception in 2004, the company has expanded its capabilities through organic and inorganic growth strategies.

Financial Performance

As of September 30, 2024, the revenue generated from contracts with customers is as follows:

• Clinical Trials: ₹1,322.13 million (43.31%)

• HVS: ₹1,123.13 million (36.79%)

• Pre-Clinical Services: ₹600.27 million (19.66%)

• Biopharma Services: ₹7.46 million (0.24%)

Infrastructure and Resources

Veeda Lifesciences has seven facilities across India, including locations in Ahmedabad, Mehsana, Bangalore, and Peenya. The company has access to over 280 clinical sites in India and 558 global clinical sites. The infrastructure includes:

• Clinical Trial Units: Equipped with ICU beds, ECG machines, and monitoring systems

• HVS Facilities: Houses 244 beds and advanced LC/MS-MS machines

• Pre-Clinical Labs: 148 experimental rooms and microbiology laboratories

• Biopharma Labs: Cell culture and synthetic chemistry labs with state-of-the-art equipment

Industry Outlook

Indian Industry Outlook

• Market Growth:

• The CRO industry in India is witnessing robust expansion, driven by increased R&D investments and supportive regulatory reforms.

• Market dynamics are shifting as pharmaceutical companies focus more on outsourcing clinical, healthy volunteer, and pre-clinical services.

CAGR

• Steady Expansion:

• The industry is estimated to grow at a CAGR of approximately 12–15% over the next five years, reflecting the rising demand for cost-efficient, high-quality clinical research solutions.

Future Growth Outlook

• Positive Trajectory:

• Continued globalization and increased focus on personalized medicine are expected to further boost market opportunities.

• Expansion of clinical trial networks and improved infrastructure in India are pivotal to future success.

Key Growth Drivers

• Regulatory Support: Evolving guidelines that streamline clinical research and encourage innovation.

• Cost-Effectiveness: Competitive operational costs attract global sponsors.

• Technological Advancements: Adoption of advanced diagnostic tools and data analytics enhances trial efficiency.

• Growing Biopharma Sector: Rising investments in biologics, generics, and biosimilars create new service avenues.

How Will Veeda Clinical Research Limited Benefit

• Expanding Market Opportunities: Veeda Lifesciences will benefit from India’s growing CRO industry as pharmaceutical companies increasingly outsource clinical research. This demand surge enables Veeda to expand its service portfolio, strengthening its position in the global market.

• Regulatory Advancements; Favourable regulatory reforms in India streamline clinical research processes, reducing approval timelines. Veeda Lifesciences can leverage these policies to accelerate trials, enhance compliance, and attract global clients seeking efficient and regulatory-compliant research solutions.

• Cost-Effectiveness: India’s competitive operational costs make it a preferred destination for clinical trials. Veeda Lifesciences can capitalize on this advantage by offering high-quality, cost-efficient research services, attracting pharmaceutical and biopharma companies worldwide.

• Technological Innovations: With the adoption of advanced diagnostic tools, AI-driven analytics, and digital trial platforms, Veeda Lifesciences enhances research efficiency. These innovations improve data accuracy, accelerate study completion, and position Veeda as a leader in clinical research.

• Growth in Biopharma Sector: Rising investments in biologics, generics, and biosimilars create new opportunities for Veeda Lifesciences. By expanding its expertise in these areas, Veeda can strengthen collaborations with global pharmaceutical firms, ensuring long-term growth and sustainability.

Veeda Clinical Research Limited IPO Overview

Veeda Clinical Research has refiled its draft red herring prospectus (DRHP) with SEBI for an IPO. The offering includes a fresh issue of ₹185 crore and an offer-for-sale of up to 1.30 crore equity shares from promoters and investors. Major sellers include Basil Private Limited, Bondway Investments Inc., Dr. S N Vinaya Babu, Sabre Partners AIF Trust, and others. Axis Capital, CLSA India, IIFL Securities, and SBI Capital Markets are the lead managers, while Link Intime India is the registrar.

Veeda Clinical Research Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue: ₹185 crore Offer for Sale (OFS): 1.30 crore equity shares
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post -issue	TBA

Veeda Clinical Research IPO Important Dates

IPO Activity	Date
IPO Open Date	TBA
IPO Close Date	TBA
Basis of Allotment Date	TBA
Refunds Initiation	TBA
Credit of Shares to Demat	TBA
IPO Listing Date	TBA

Veeda Clinical Research IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Veeda Clinical Research Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	(0.04)
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	(0.02)
Net Asset Value (NAV)	189.04
Return on Equity	0.03%
Return on Capital Employed (ROCE)	1.71%
EBITDA Margin	18.32%
PAT Margin	(0.09%)
Debt to Equity Ratio	0.32

Peer Group Comparison

Name of the Company	Revenue (₹ in millions)	Face Value (₹)	EPS (₹)	RoNW (%)	NAV (₹)	P/E (times)
Veeda Lifesciences	3,887.77	2	(0.04)	(0.02)	189.04	[●]
Sai Life Sciences Limited	14,651.78	1	4.57	8.49	53.83	144.87
Syngene International Limited	34,886.00	10	12.71	23.99	231.29	58.87
Vimta Labs Limited	3,182.61	2	18.51	12.83	144.20	46.86
Jeevan Scientific Technology Limited	39.65	10	(0.86)	2.74	3.13	(52.67)

Key Insights

• Revenue: Syngene International Limited leads in revenue with ₹34,886 million, indicating strong market presence. Sai Life Sciences follows with ₹14,651.78 million. Veeda Lifesciences and Vimta Labs have moderate revenues, while Jeevan Scientific reports the lowest at ₹39.65 million.

• Face Value: Most companies have a face value of ₹10, except Veeda Lifesciences and Vimta Labs, both at ₹2. Sai Life Sciences has the lowest at ₹1, indicating variation in capital structure.

• Earnings Per Share (EPS): Vimta Labs has the highest EPS of ₹18.51, followed by Syngene at ₹12.71. Sai Life Sciences reports a moderate ₹4.57. Veeda Lifesciences and Jeevan Scientific have negative EPS, reflecting losses.

• Return on Net Worth (RoNW): Syngene demonstrates the highest RoNW at 23.99%, showcasing profitability. Vimta Labs and Sai Life Sciences show decent returns, while Veeda Lifesciences and Jeevan Scientific exhibit poor performance, indicating weak financial efficiency.

• Net Asset Value (NAV): Syngene has the highest NAV at ₹231.29, demonstrating strong financial health. Vimta Labs follows with ₹144.20, while Sai Life Sciences reports ₹53.83. Veeda Lifesciences and Jeevan Scientific have lower NAVs, showing weaker asset strength.

• Price-to-Earnings (P/E) Ratio: Sai Life Sciences has the highest P/E of 144.87, reflecting high investor expectations. Syngene and Vimta Labs have moderate P/E ratios. Jeevan Scientific’s negative P/E and Veeda’s undefined P/E indicate weak market confidence

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Capital expenditure towards procurement of equipment and machinery for our Company	500
Investment in the Material Subsidiary, Bioneeds India Private Limited for capital expenditure towards procurement of equipment and machinery	350
Investment in the Material Subsidiary, Bioneeds India Private Limited for Repayment/pre-payment, in part or full of certain borrowings of Bioneeds India Private Limited	108.87
Funding organic growth of the Company, the Material Subsidiary, Bioneeds India Private Limited and Health Data Specialists (Holdings) Limited through marketing and promotional activities, updation of technology and adoption of modern digital solutions in the workflows to enhance the efficiency and quality assurance of the operating processes and data management	330
General corporate purposes*	[●]

Note: *To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC

Veeda Clinical Research Limited Financials (in million)

Particulars	30 Sept 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	18,918.60	20,402.07	7347.65	6775.42
Revenue	3052.99	3887.77	4095.78	2880.26
Profit After Tax	(249.32)	(3.58)	424.23	504.58
Reserves and Surplus	10,489.11	10,473.69	4465.81	4195.82
Total Borrowings	4054.94	2616.85	485.74	472.02
Total Liabilities	8248.52	9752.08	2718.33	2402.60

Key Strategies for Veeda Clinical Research Limited

• Expanding Clinical Trial Capabilities

Veeda Lifesciences is strengthening its global Clinical Trials services by acquiring specialized CROs and leveraging technology. The company focuses on hemato-oncology and aims to expand into solid tumors. Strategic partnerships and AI/ML integration enhance efficiency, speed, and data quality.

• Building Biopharma Services Capabilities

Veeda Lifesciences is expanding Biopharma Services to meet the growing demand for biologics. It plans to invest in cutting-edge technologies, cell line development, and contract research, evolving into a Contract Research and Development Organisation (CRDO) and eventually a Contract Development and Manufacturing Organisation (CDMO).

• Growing Pre-Clinical Services

Veeda Lifesciences is enhancing Pre-Clinical services by expanding capacity, integrating digital solutions, and investing in AI/ML for drug discovery. The company aims to strengthen process development, toxicology assessments, and strategic partnerships to support Investigational New Drug (IND) applications and regulatory compliance.

• Maintaining a Strong Position in Healthy Volunteer Studies (HVS)

Veeda Lifesciences is reinforcing its leadership in Healthy Volunteer Studies (HVS) by expanding study capabilities, ensuring regulatory adherence, and integrating advanced technologies. The company focuses on enhancing efficiency, patient recruitment, and study execution while strengthening its presence in the global pharmaceutical market.