Concord Biotech Ltd IPO

Established presence across the complex fermentation value chain;

Global leadership in immunosuppressant APIs along with a wide spectrum of complex fermentation-based APIs across multiple therapeutic areas;

Scaled manufacturing facilities with a consistent regulatory compliance track record and supported by strong R&D capabilities;

Diversified global customer base with long-standing relationships with key customers;

Experienced Promoters, management team supported by marquee investors;

Financial track record of rapid growth and consistent profitability with healthy cash flows and shareholder returns.

Any delay, interruption or reduction in the supply of its raw materials or the transportation of the company raw materials or products may adversely impact the pricing and supply of its products and have an adverse effect on its business.

Any manufacturing or quality control issues may damage its reputation, subject it to regulatory action, and expose the company to litigation or other liabilities, which could adversely affect its business, financial condition and results of operations.

A slowdown or shutdown in its manufacturing or research and development operations, all located in Gujarat, India, could adversely affect the company business, financial condition and results of operations.

The company depends on a limited number of key customers for a substantial portion of its revenues. Any significant reduction in demand for the company products from such customers may adversely affect its business and results of operations.

If the company is unable to obtain trademarks and patents for its products or protect such proprietary information, or inadvertently infringe on the patents of others, its business may be adversely affected.

The company is subject to extensive government regulations, and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required for its business operations, the company business, financial condition, results of operations and cash flows may be adversely affected.

The company inability to accurately forecast demand for its products, manage it inventory and utilize the company manufacturing capacity optimally may have an adverse effect on its business, financial condition, results of operations and cash flows.

Pricing pressure from customers may affect the company ability to maintain or increase its product prices and, in turn, the company revenue from product sales, gross margin and profitability, which may adversely affect its business, financial condition and results of operations.

The company had significant working capital requirements. If its experience insufficient cash flows to fund the company working capital requirements, there may be an adverse effect on its business, cash flows and results of operations.

The company is currently entitled to certain incentive schemes. Any decrease in or discontinuation in such schemes may affect the company results of operations.

There are outstanding legal proceedings involving the Company.

Certain therapeutic areas contribute to a more significant portion of its total revenue, and the company business, prospects, results of operations and financial condition may be adversely affected if its products in these therapeutic areas do not perform according to the projections of its business plans or if competing products become available and gain wider market acceptance.

The company success depends on its ability to develop and commercialize new products in a timely manner. If the company research and development efforts do not succeed or the products its commercialize do not perform as expected, this may hinder the introduction of new products, and could adversely affect its business, financial condition and results of operations.

The company inability to successfully implement its business plan, domestic and international expansion plans and growth strategies could have an adverse effect on its business, financial condition, results of operations and cash flows.

If the company do not maintain and increase the number of its arrangements for the marketing and distribution of the company products, its business, financial condition and results of operations could be adversely affected.

The company international operations expose it to complex management, legal, tax and economic risks, which could adversely affect the company business, financial condition and results of operations.

The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could adversely impact its business, financial condition, cash flows and results of operations.

The pharmaceutical industry in which the company operate is highly competitive. If its cannot respond adequately to the competition the company expect to face, its will lose market share and the company profits will decline, which will adversely affect its business, financial condition and results of operations.

Non-compliance with and changes in environmental, health and safety, and labor laws and other applicable regulations may adversely affect its business, financial condition, results of operations and cash flows.

The company is subject to the risk of loss due to fire, accidents and other hazards as its R&D and manufacturing processes and materials are highly flammable and hazardous. The company also subject to the risk of other natural calamities or general disruptions affecting its production facilities and distribution chain.

The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business and results of operations.

Its inability to attract or retain companies who are looking to it for in-licensing in the future could adversely affect its market share. If the covenants in the company agreements with such companies are onerous or commercially-restrictive, its results of operations and financial condition could be adversely affected.

The company enter into out-licensing arrangements for the distribution of its products in certain geographies.

If third parties on whom its relies for clinical trials (including bio-equivalence studies) do not perform their obligations as contractually required or as the company expect, or do not comply with the relevant Current Good Manufacturing Practices (cGMP) or other applicable regulations, its may not be able to obtain regulatory approval for or commercialize the company formulations products.

Delay or failure in the performance of its contracts may adversely affect the company business, financial condition and results of operations.

Its success depends on the company ability to retain and attract qualified senior management and other key personnel, and if the company not able to retain them or recruit additional qualified personnel, its may be unable to successfully develop the company business.

The availability of counterfeit drugs, such as drugs passed off by others as its products, could adversely affect the company goodwill and results of operations.

Its inability to meet the company obligations, including financial and other covenants under the company debt financing arrangements could adversely affect its business, financial condition, results of operations and cash flows.

The company currently relies extensively on its systems including information technology systems and products processing/quality assurance systems and their failure could adversely affect its manufacturing operations.

Changes in technology may render its current technologies obsolete or require it to make substantial capital investments.

The company insurance coverage may not be sufficient or adequate to cover its losses or liabilities. If the company suffer a large uninsured loss or if its suffer an insured loss that significantly exceeds the company insurance coverage, its financial condition and results of operations may be adversely affected.

The company has in the past entered into related-party transactions and may continue to do so in the future.

The company is subject to risks arising from exchange rate fluctuations.

The company will be controlled by its Promoters so long as they hold a majority of the Equity Shares, which will allow them to influence the outcome of certain matters submitted for approval of its Shareholders and their interests may differ from those of the other Shareholders.

The company Directors and key management personnel may have interests in the Company in addition to reimbursement of expenses incurred and receipt of remuneration from the Company.

Information relating to the manufacturing capacity, actual production and capacity utilization of its manufacturing facilities included in this Draft Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.

Its ability to pay dividends in the future will depend on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

The company do not own its Corporate Office and its warehouses.

The company has contingent liabilities and capital commitments. Its financial condition could be adversely affected if any of these contingent liabilities or capital commitments materialize.

This Draft Red Herring Prospectus contains information from third parties, including an industry report prepared by an independent third-party research agency, Frost & Sullivan (India) Private Limited (F&S) which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Offer.

Fluctuations in the market value of its investments could adversely affect the company results of operations and financial condition.

The company operations are labor intensive and its may be subject to strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.

Certain non-GAAP measures and other statistical information relating to its operations and financial performance have been included in this Draft Red Herring Prospectus. These non-GAAP measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.