Kiran Mazumdar-Shaw urges to Rethink IPO Norms for Biotech Startups

Kiran Mazumdar-Shaw has raised concerns over India’s listing rules, saying the current system fails biotech startups in India. She urged to rethink IPO norms for Biotech startups.

Speaking in Bengaluru today, she stressed that biotech startups in India face structural barriers when trying to access public markets.

She explained that biotech firms typically spend a decade or more in research and clinical trials before generating revenue. However, the Securities and Exchange Board of India requires a three-year revenue track record for listing.

Also Read: Advancing Interventional Radiology in India Through Collaboration

“We don’t have listing norms that allow companies to list as pre-revenue or even pre-clinical companies,” she said. “In the US, you can do all this. In India, SEBI requires three years of revenue track record. How does a clinical-stage biotech ever meet that?”

Mazumdar-Shaw said this mismatch in biotech startup IPO norms limits access to capital and weakens the funding ecosystem. It also makes it harder to retain scientific talent, as companies look for better opportunities abroad. She warned that without reforms, India risks falling behind in building a science-led innovation ecosystem.

She cited Bicara Therapeutics as an example. While its research and development were carried out in India under Biocon, the company was structured in the United States. “All the R&D happened in India, but we decided to create the company in the US because India does not value innovation the way the US does,” she said.

Her comments underline rising concerns around India biotech startup funding, pre-revenue biotech companies, and the need for flexible listing norms to support innovation.