Anthem Biosciences targets March 2028 Unit 4 operations

Anthem Biosciences Limited is targeting around March 2028 for Unit 4 to begin operations, with Rs 1,200 crore Phase 1 designed to match the combined setup of Units 1, 2 and 3. Management said on November 4, 2026 that 30%-35% of the investment will go to biology, including planned biologics, fill-finish and oligonucleotide capabilities.

When will Anthem Biosciences Unit 4 begin operations?

Anthem Biosciences is targeting Unit 4 operations around March 2028. Management said the 30-acre facility must first be commissioned and receive required regulatory approvals, meaning the plant will need further time to ramp after it starts.

The company said its Rs 1,200 crore Phase 1 capex guidance remains intact for the next two years. Management did not provide an annual spending schedule, a commissioning date before March 2028, or a revenue and utilisation target specifically for Unit 4.

Anthem Biosciences currently estimates asset turns at about 1.2x to 1.3x and aspires to return to about 1.5x. Asset turns measure revenue generated relative to assets; management said existing facilities could move toward the target over the next year, while Unit 4 will require a longer horizon after commissioning and approvals.

How large will Anthem Biosciences Unit 4 be?

Anthem Biosciences said Phase 1 of Unit 4 will be equivalent to Units 1, 2 and 3 put together. The company did not disclose annual production volumes for those units, so the comparison is based on the scale of the facility setup rather than a stated output measure.

Phase 2 is also intended to be equivalent in setup to Phase 1, but management said it will follow the first phase and has no board-approved capex guidance yet. It declined to provide a formal Phase 2 estimate, although it noted that a comparable facility size could imply a similar spending range.

The project is being developed while installed capacity has not reached optimum utilisation, according to management. That position is why Anthem Biosciences declined to state when Unit 4 itself could reach its 1.5x asset-turn aspiration, even as it aims to improve turns across the existing business.

Unit 4’s scale differs from the more gradual demand ramp often associated with second-source manufacturing contracts. Management said a new approved second supplier may build volumes slowly, whereas Phase 1 will add capacity equal to the company’s first three units combined before the full demand profile is known.

Where will Anthem Biosciences spend Unit 4 capital?

Anthem Biosciences expects at least 30%-35% of Unit 4 Phase 1 investment to go to biology, with the remainder directed to chemistry. Management said the detailed allocation is fungible because investment choices will be guided by customer demand rather than a fixed division among individual technologies.

Biologics manufacturing and drug-product fill-finish are planned additions at Unit 4. Management said the company has historically concentrated on drug substance, but considers fill-finish prudent as biologics activity expands because it enables completion of the drug product after the active substance is made.

Oligonucleotides are another specified investment area, alongside work in peptides and high-potency antibody-drug conjugates, or ADCs. Management said Anthem Biosciences has worked in peptides, oligonucleotides, ribonucleic acid interference, or RNAi, and ADCs since 2014-15, progressing from laboratory-scale work to commercial-scale capability.

The expansion also includes significant fermentation investment. Management said mature programmes are generally supported through in-house enzymes and fermentation-based solutions to reduce exposure to overseas supply chains and support competitive costs; for H1, it said about 75%-78% of procurement was domestic and China accounted for about 20%-21%.

What pipeline demand could support Unit 4?

Anthem Biosciences had 15 commercial molecules and nine late-stage molecules in Q2 FY27, after one late-stage programme gained approval and moved into the commercial category. Management said the newly commercial molecule came from an emerging biotech portfolio and serves a chronic-care category, but withheld the product identity and sales estimate under customer contracts.

The nine late-stage programmes may add commercial manufacturing demand over the next 18-24 months, but management said trial outcomes will determine which ones advance. It said a few could become commercial in the current financial year, while cautioning that Phase III trials can fail or need further work.

Management also referred to five molecules that became commercial over the past 18 months, split equally between active pharmaceutical ingredients and advanced intermediates. Anthem Biosciences is currently the only supplier for those programmes, management said, although an acquiring large pharmaceutical company may seek a second supplier later.

Existing commercial molecules provide another source of demand before the planned March 2028 startup. Management said most remain growth molecules, with the first patent expiry in 2032 and some patents extending to 2037 or nearly 2040; revenue should generally track underlying molecule growth, subject to changes in customer allocation.

How does Anthem Biosciences’ business mix affect expansion?

Anthem Biosciences said about 85% of its business is contract development and manufacturing organisation, or CDMO, work, and roughly 15% is Specialty Ingredients. Within the overall business, commercial manufacturing of approved molecules contributes about 65%, while research and development supplies and development supplies account for the remaining 20% in broadly equal portions.

International markets account for roughly 84% of revenue and India about 16%. The United States represents about 22%-24% of exports and Europe about 60%-odd, though management said shipment geography does not necessarily identify the customer’s origin or the final market for a pharmaceutical product.

Customer concentration remains material: the top five customers contribute about 50%-odd of business and the top 10 about 80%-odd. Management also reported better inflows of requests for proposals and requests for quotations in the last quarter, although it described the biotech funding recovery as mixed amid geopolitical uncertainty.

Anthem Biosciences uses Davos, described by management as a 50-year-old US partner, for commercial arrangements, logistics, customs and documentation. Management said the arrangement helps smaller biotech customers that may lack those resources, while the company keeps day-to-day customer contact from Bangalore.

Conclusion

Unit 4 represents a substantial capacity project for Anthem Biosciences: Phase 1 carries Rs 1,200 crore of planned expenditure and is intended to equal the company’s first three units combined. The investment broadens biology, biologics, fill-finish and oligonucleotide capabilities while the current pipeline includes 15 commercial molecules and nine in late-stage development.

The next items to watch are the targeted around-March 2028 start, the subsequent commissioning and regulatory approvals, and the time required to ramp utilisation. Management also said outcomes from the nine late-stage programmes could become clearer over the next 18-24 months, while Phase 2 spending will be disclosed only after board approval.