Indegene Bets Big On Precision Pharma Marketing With $104 Million BioPharm Acquisition Says ICICI Securities

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ICICI Securities Report

Indegene Ltd.’s acquisition of BioPharm strengthens its presence in brand activation and adds to marketing campaign execution capabilities. Total consideration to be paid for the acquisition is $104 million (including earnouts of $27 million), valuing BioPharm at 9.7 times on trailing EV/Ebitda, as of CY24.

BioPharm has a superior Ebitda margin profile of 27% (on net revenue) and management expects the acquisition to be EPS accretive post five–six quarters.

We increase our revenue estimates by ~5%/10%/10% and cut our earnings per share by 0.5%/2.8%/0.6% for FY26/27/28 led by a cut in margin (due to the transaction, integrations and D&A expenses) and lower other income.

We continue to value at 26 times target multiple on Sep’27E-ending EPS of Rs 23 to arrive at a target price of Rs 610. Maintain Add.

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