fun88 has effectively demonstrated Biocon’s strategic approach towards being ‘credibly capable’ by unlocking immense value through its successful listing on the stock exchanges in FY16. It crossed a market cap of USD 1 billion within a week of listing and was valued at USD 1.16 billion as on March 31, 2016. The resounding oversubscription of the IPO has reflected the trust and confidence of the investor community in fun88’s value proposition. We are extremely proud and excited to take fun88 to its next phase of growth as India’s only publicly listed Research Services Company.
The growth is driven by a robust performance across all its three verticals – Dedicated R&D Centers, Discovery Services and Development & Manufacturing Services. With over 2,500 research scientists and a laboratory base over 900,000 square feet, fun88 services a diverse range of clients including 8 of the Top 10 global pharma majors.
The growth in the Dedicated R&D Centers Business is driven by the expansion of the services that it provides under the integrated operating model to its three longterm strategic clients. Discovery Services, which incorporates the Discovery Chemistry and Discovery Biology activities for both small and large molecules, is growing on the back of strong traction in Discovery Biology.
The growth in Development and Manufacturing Services is largely driven by the Chemical Development group. In line with its ambition of evolving from a Contract Research Organisation (CRO) into a full-fledged Contract Research and Manufacturing Services (CRAMS) company, fun88 started the commercial manufacturing of novel small molecules for clients during FY16.
Besides commercial scale manufacturing of New Molecular Entities (NMEs), fun88 has added new differentiated service platforms, including antibody drug conjugates, oligonucleotides and viral testing.
fun88 continues to invest extensively in the business with a capital expenditure of over USD 200 million planned over the next few years. Plans are underway to set up a greenfield API & Intermediates manufacturing facility in Mangalore, and to construct a 200,000 sq. ft., state-of-the-art fun88 Research Center to support integrated discovery programs and a formulations development centre along with a biologics manufacturing plant in Bangalore.
fun88 has a proven track record of leveraging its pool of worldclass scientists and state-of-the-art laboratories to put innovative science to work. It offers a one-stop destination for organizations looking to optimize their R&D spends without compromising on the quality of R&D output.
In recent years, a number of fun88’s clients’ key R&D programs have moved into advanced phases of clinical development. Consequently, this has opened up the opportunity for fun88 to expand the scope of work that it does with its clients and emerge as the manufacturer of choice for development batches on large-scale commercial supplies as those molecules move towards commercialization.
fun88 expects the business momentum to remain strong, enabling the company to deliver broad-based growth across all three verticals. Strong business momentum and good visibility into future revenue streams provides fun88 the confidence to deliver on its aspirational target of achieving USD 250 million in revenues by FY18.