Anthem
Biosciences on high pace growth
With the right business
model and a planned strategy, Anthem Biosciences is well positioned to
benefit from the opportunities available in the contract research
space. Having strong project pipeline from large multinational
pharmaceutical majors, the start up is all set to cross Rs 65
crore in the current financial year.
Some businesses start with years of planning and some are just meant to
happen. In this current marketplace, most new businesses start as a
result of years of market research and business planning. Venture
capitalists, founder(s) and consultants get together with ideas, and
they work on the process in order to maximize profits. Despite this,
while most of them take several years to reach their growth capacity
and churn out significant revenue, there are some marked
examples of businesses that started out organically as an idea of
one/several individuals. Started in the year 2006, Bangalore-based
Anthem Biosciences is an example of an idea and an
opportunity getting executed and exploited. The founders did not spend
too much time discussing it. They started with the right planning and
in short time the company was up and running.
The genesis
After working for over two decades, and having pioneered in setting up
new businesses in their previous jobs, the founders of Anthem
had reached a point where the next level of growth for them had to be
outside their former employer. It is a natural evolutionary process,
for some to set up something on their own. There are always ideas that
one has when working in a job, which never get taken up due to various
factors and just fade away. Most of them never have the opportunity to
try them out and see if there is really some substance in them. They
had such an opportunity, they took it, and Anthem was set up.
People behind Anthem come with diverse background. Anthem Biosciences
toppers are Ganesh Sambasivam, K C Ravindra and Ajay Bharadwaj. Its
other business Anthem Cellutions, which mainly deals in enzymes,
nutraceuticals and food additives, was founded by Malay Barua, Rupesh
Kinekar and Ajay Bharadwaj.
The people at Anthem Biosciences bring years of experience to
the company. It is a team of experienced chemists, biologists,
engineers and businessmen. “Ganesh was the Chief Scientific
Officer of Syngene, a Biocon group company and Ravindra was heading
manufacturing at Biocon. So there is a lot of complementarity of
skills. Three of us bring research, manufacturing and business
experience with the company. In Cellutions, Rupesh was handling
Business Development at AB Mauri, he had worked in Biocon
before and Malay Barua was heading the enzymes business in Biocon. We
know each other from a very long time, says Ajay Bharadwaj, CEO and
co-founder Anthem Biosciences.
“We never talked about it at Biocon. I was in Biocon for a
very long time, more than 21 years. I was a part of the very initial
group. So, I was the President, Business Development at Biocon and any
growth further beyond that had to be lateral it wouldn’t be
vertical within Biocon. The next position I could grow to was not open.
So I had to go out of the company. I must also emphasize that I have a
very good relation with Kiran and Biocon,” adds Bharadwaj.
Anthem Biosciences started in July 2006 and within three
months formed the enzymes business division. They are two distinct
businesses, but part of the Anthem family. Commenting on the idea of
setting up of Cellutions, Malay Barua, Head, Anthems Cellutions says,
“Novozymes acquisition opened our eyes to a very good
opportunity. We had good knowledge and affinity for this business. Our
passion for enzyme business actually led to this move. Novozymes is
number one player in the enzyme space so we thought why not create the
number two. And with decades of experience in this segment we thought
that we can start.”
Raising operational funds wasn’t difficult. The founders
convinced State Bank of India to lend them money. However as most
budding businessmen do, Anthem owners did not approach venture
capitalists, although the company did talk to to a lot of VCs.
“The decision turned to be good because the economic downturn
had made the VCs very restless, so getting them on board would have
created a lot of tension,” Bharadwaj says.
Company Offerings
Anthem Biosciences, is a DRAP (Discovery Research Alliance Partner) for
its clients. The founders hate to call Anthem an “outsourcing
company” and instead refer to it as
“research support and services.” The company offers
value added services at any stage of the drug discovery process,
including integrated early stage development of a drug from concept to
proof of concept. Dr Ganesh, CSO and co-founder, Anthem Biosciences
says, “We have expanded the research support business beyond
just a pair of hands, by offering significant intellectual contribution
to the projects entrusted to us. The services include early stage
chemistry, building blocks, medicinal chemistry (hit to lead to lead
optimization), route scouting and process optimization, in vitro and in
vivo biology, GMP and non GMP kilo and pilot plant. We have a number of
integrated development projects for small biotechs as well.”
In a span of three years, the company has built competitive teams to
undertake entire discovery projects in different therapeutic areas such
as oncology, anti-infectives, cardiovascular, inflammation, metabolic
disorder.. Anthem provides analytical support for discovery services,
chemical development and manufacturing. Its control team is capable of
developing robust analytical methods for various services.
Anthem Cellutions has contributed 25-30 percent of the total revenue in
2008-09 to the group. Anthem has some very good plans for Cellutions
but does not want to reveal it now. Barua however shares, “We
will be looking into adding more portfolios in this business. Right now
we are formulating niche products using our expertise.”
He further says, “We don’t do any manufacturing, we
are a research and services company. We don’t have the
typical CRAMS model.”
Growth targets &
strategy
Anthem has achieved a revenue of Rs 45 crore for its first full year of
operation. The company hopes to cross the target of Rs 65 crore for the
current financial year. According to the founders, so far the company
is on track.
Its focus is delivery centric and not just scale and customer
acquisition. The company is continuously adding new dimensions and
capabilities to its portfolio, which keep pushing the envelope in this
whole research support services space. Bharadwaj comments,
“We had a good start. That is not always easy. Our strategy
would be to keep it sustained. So our focus will be to build on this
good start and also establish platform technologies to set us apart. We
will also be looking at hiring quality people. We have more than 200
people now, 170 of them being scientists with good years of experience
in the pharmaceutical industry.”
“The company has very clear plans of using the internal funds
for financing further growth. Currently, the focus is to grow through
internal accruals and debt. Our banks are very supportive and internal
generation of cash is enough to allow us to fund the next growth cycle,
adds Bharadwaj.
Investments and future
plans
The overall investments in Anthem have been to the tune of Rs 40 crore.
“Having worked in this domain for years we are very sure
about what we are going to do, what the infrastructure is to be put in,
what will be our area of expertise and we did exactly that. We are spot
on budget, not a rupee less or more, says Bharadwaj.
Anthem has significantly invested in new biology infrastructure and is
now adding some platform technologies, which will further set Anthem
Biosciences apart from its peers. For its enzyme business the company
is planning significant investments to cement its position as a biology
led enterprise.
“We are putting new platform technologies so we are building
bigger and better labs. We are putting up a new building. One of our
big focus is also doing integrated development
projects—starting with target given by the clients to convert
them into optimized leads and do the in vivo and in vitro
testing. The more we add in terms of infrastructure the more
our clients will give us integrated projects,” shares
Sambasivam.
The management in Anthem do not believe in spending too much time and
energy in client acquisition. They say, “Once having done
that the real focus of delivery gets disillusioned. We are over 96
percent successful in our projects. Our business model was that we need
not be the biggest company but we certainly want to be the
best.” Anthem is flexible in its approach to evolve efficient
models that suit each client. Thus in this crowding segment of CROs,
Anthem has successfully distinguished itself as a top tier organization
with a highly skilled team, quality services and on-time performance.
Anthem
is located in an industrial park in Bangalore covering five plus acres
with a built capacity for more than 250 researchers.
Currently, the company employs over 200 people and plans to hire
more. The CRO started with debt financing from State Bank
India. The equity investors are Dr Ganesh Sambasivam, K C Ravindra and
Ajay Bharadwaj. The company also has a small equity investment from its
marketing alliance partner in the US, Davos Pharma.
Jahanara Parveen