Senores Pharmaceuticals Bets Big On US Expansion And Robust Pipeline

Senores Pharmaceuticals' focus remains on broadening their US base beyond injectables and exploring product acquisitions to fuel future growth, said Managing Director Swapnil Shah, as the company made a remarkable debut on the Indian stock exchanges.

The Ahmedabad-based pharmaceutical firm's shares listed at Rs 600 on the National Stock Exchange, a premium of 53.45% over its issue price of Rs 391, while opening at Rs 593.70 on the BSE, a 51.84% jump.

The strong market performance follows a highly successful IPO, which closed on Dec. 24, with a subscription rate of 93.41 times, driven by robust demand from non-institutional investors. The Rs 582.1-crore offering included a Rs 500-crore fresh issue and Rs 82.1 crore through an offer for sale.

The company plans to utilise the net proceeds from the issue for investing in their subsidiary, Havix Group Inc., to set up a state-of-the-art manufacturing facility for sterile injectables in Atlanta.

The funds from the IPO will also bolster Senores' CDMO/CMO business, which Shah said is poised for growth in the US, particularly in controlled substances and government supply programs. "We already have a presence, and the 51 products in our pipeline awaiting approval will continue to drive our growth over the next two years," he added.

The IPO's anchor investor round raised Rs 261 crore. Equirus Capital Private Ltd., Ambit Private Ltd., and Nuvama Wealth Management Ltd. were the book-running lead managers, while Link Intime India Pvt. Ltd. served as the registrar.

Senores Pharmaceuticals is a global research-driven pharmaceutical company engaged in developing and manufacturing a wide range of generic pharmaceutical products in the B2B segment, predominantly for the regulated markets across various therapeutic areas and dosage forms. Its regulated markets business is primarily focused on the US, Canada and the United Kingdom.

The company has adopted a strategy of identifying, developing and commercialising specialty and complex niche products in the mid-market range and as of March 31, they have received approvals for 19 abbreviated new drug applications.

It develops and manufactures generic pharmaceutical products across various therapeutic areas for emerging markets in the B2B segment, having a presence across 43 countries.

The company also operates a critical care injectables business, supplying critical care injectables to hospitals across India through distributors, and manufactures APIs for the domestic market and Saarc countries.