Rubicon Research Limited, established in 1999, is a pharmaceutical formulation company focused on innovation through research and development, with a strong presence in regulated markets, particularly the United States.
The company operates two R&D facilities inspected by the USFDA (United States Food and Drug Administration) in India and Canada, along with two manufacturing plants in India. It holds accreditations from global regulatory bodies like the USFDA, WHO-GMP (World Health Organization - Good Manufacturing Practices), and Health Canada. Rubicon’s portfolio includes 55 commercialised formulations in the U.S., highlighting its focus on regulated markets.
Issue size
| Funds to be Raised in the IPO | Amount |
|---|---|
| Overall | ₹1,085 crores |
| Fresh Issue | ₹500 crores |
| Offer for sale | ₹585 crores |
The utilisation of proceeds:
| Purpose | INR crores (%) |
|---|---|
| Repayment of Borrowings | 310.00 (62.00%) |
| Funding acquisitions and general corporate purposes | 190.00 (38.00%) |
Financial Snapshot
| Financial Year Ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total Assets | 559.52 | 749.70 | 1,109.49 |
| Revenue | 330.42 | 419.00 | 872.39 |
| Profit After Tax | (67.12) | (16.89) | 91.01 |
*All figures are in ₹ Crores.
Strengths
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Holds a strong portfolio of commercialised products, maintaining a market share of over 25% for seven products in the US market.
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R&D capabilities in India and Canada enable product innovation and development, reducing reliance on third parties.
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Established US sales and distribution platform through subsidiaries, covering both non-branded and branded product markets.
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Demonstrates regulatory compliance with US FDA inspections and approvals from international bodies.
Risk factors
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The company heavily relies on the US market, making it vulnerable to adverse developments in that region.
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Operating in a highly regulated industry, any product recalls, inspection failures or facility shutdowns could negatively impact operations.
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R&D efforts may not always lead to successful marketable products, posing risks to revenue growth.
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Intense competition within the pharmaceutical industry may affect margins and hinder future growth prospects.
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Fluctuations in foreign currency exchange rates could negatively impact the company’s financial performance.
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Debt agreements, including unsecured loans, impose restrictive covenants, and any non-compliance could lead to accelerated repayment obligations.
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