Balaxi Pharmaceuticals Ltd Management Discussions.

On the positive side, increased vaccine coverage allowed a return to some normalcy in routine economic activities, which li_ed sentiments

Economic Overview and Outlook

Global Economic Overview

Countries worldwide had levied several lockdowns and travel restrictions to control the spread of the infection of COVID-19 in CY2021. However, new mutations of the virus kept returning, keeping the rate of the human toll high enough to be of concern. On the positive side, increased vaccine coverage allowed a return to some normalcy in routine economic activities, which li_ed sentiments. Exceptional measures to safeguard people’s livelihoods were deployed soon after the Pandemic began in early CY2020. The governments of most countries are trying to maintain the flow of credit and offer direct financial support to people and businesses. The governments’ relaxation and temporary financial regulatory modifications, such as repayment moratoriums and debt guarantee, provided a lifeline to many businesses and families. However, the Pandemic’s impact on households and the balance sheets of businesses has been uneven between and within countries due to disparities in sectoral composition.

The global economy is slowing in CY2022, owing to disruptions in global energy, food, and commodity supplies caused by the Russia-Ukraine war and the ramifications of China’s sweeping lockdowns to contain a renewed coronavirus outbreak. The International Monetary Fund (IMF) reduced its global growth forecast for CY2022 and CY2023 by 0.8% and 0.2%, respectively, to 3.6% in its April World Economic Outlook report. Fear of continued uncertainty may lead to a further downgrade in global trade flow growth prospects. Rising inflation remains a significant source of concern across the board.

Beyond CY2023, global growth is expected to slow down to around 3.3% in the medium term. Commodity price increases and broadening price pressures have resulted in CY2022 inflation projections of 5.7% in advanced economies and 8.7% in emerging markets and developing economies—1.8% and 2.8% higher than in January. Multilateral efforts are required to alleviate the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, combat climate change, and end the Pandemic.

There is still a lot of uncertainty surrounding global growth. Economic dynamics already driving the worldwide recovery from the Pandemic will be amplified by the conflict in Ukraine. The war has pushed up commodity costs and exacerbated supply interruptions, contributing to inflation. The path of the Pandemic, government policy actions, the evolution of financial conditions and commodity prices, and the economy’s ability to adjust to health-related obstacles will all influence future developments. Higher supply production, improved in-country delivery networks, and more equitable international distribution are required. Many countries’ monetary policies are expected to tighten even more to keep inflationary pressures at bay. The pattern of these drivers and their interaction with country-specific features will determine the recovery rate and the extent of long-term scarring.

Indian Economic Overview

The outbreak of the COVID-19 Pandemic had put the Indian government’s resolve to the test. Overall, the period had been a challenging year for the Indian economy, with an 8% contraction in FY2020–21. However, there was a lot of relief following the announcement of the Union Budget for FY2021-22. It focussed on strengthening the Nation First Vow, which included, among other things doubling farmer income, supporting infrastructure, making India healthier, better governance, improving opportunities for youth, universal education, women empowerment, and inclusive growth.

The International Monetary Fund (IMF) has reduced India’s economic growth forecast for FY2022-23 to 8.2% from 9% in January 2022, citing high oil prices on consumer demand and private investment. The multilateral agency recommended monetary tightening by central banks in its World Economic Outlook report to keep inflationary expectations in check amid global supply disruptions caused by the Ukraine war. The IMF has warned that the war will ‘severely impede global recovery,’ slow growth, and exacerbate inflation. The Fund also reduced India’s FY2023-24 growth forecast to 6.9% from 7.2%.Regardless, India is expected to continue to be the world’s fastest-growing major economy, with China’s GDP growth slowing to 4.4% in CY2022 from 8.1% in CY2021.

Industry Overview

Indian Pharmaceutical Industry

Over the last five decades, the Indian pharmaceutical business has grown tremendously in home and international markets. India’s pharmaceutical industry accounts for more than 20% of the worldwide generics market by volume and 62% of global vaccine demand. The business dubbed the ‘Archetype of Affordable Healthcare’ has made significant contributions to improving public health outcomes in India and worldwide.

 

Source: IMF

According to a Crisil December 2021 study, demand for sustainable costs, particularly crude oil prices, will impact India’s macroeconomics, including the current account deficit and inflation. These would operate as a stumbling block to expansion.

 

Source: ibef.org

According to the Indian Economic Survey 2021, the domestic market was expected to grow threefold in the next decade. India’s domestic pharmaceutical business was estimated to be worth $42 billion in CY2021, rising to $65 billion by CY2024 and $120-130 billion by CY2030.

Biopharmaceuticals, services, bio-agriculture, bio-industry, and bioinformatics are part of India’s biotechnology industry. In CY2020, the Indian biotechnology sector was worth $70.2 billion, and by CY2025, it is predicted to be worth $150 billion. According to CARE Ratings, India’s pharmaceutical industry, estimated to reach more than $60 billion by August 2021, will grow at an annual pace of 11% over the next two years.

In FY2020-21, Indian pharmaceutical exports totalled $24.44 billion, while in CY2022, they totalled $22.21 billion (until February 2022). India is the world’s 12th largest exporter of medical goods. The pharmaceutical sector accounts for 6.6% of the country’s overall merchandise exports. As of May 2021, India had shipped 586.4 lakh COVID-19 vaccines to 71 countries, including grants (81.3 lakh), commercial exports (339.7 lakh), and COVAX platform exports (165.5 lakh). Indian pharmaceuticals are exported to over 200 nations worldwide, with the United States being the most critical market. In terms of volume, generic medications account for 20% of global exports, making the country the world’s largest provider of generic medicines.

India’s medicine and pharmaceutical exports totalled $3.76 billion between April 2021 and May 2021. Between April 2020 and December 2021, the Indian medications and pharmaceuticals sector received $19.19 billion in FDI. Between April and December 2021, foreign direct investment (FDI) inflows into India’s medications and pharmaceuticals sector totalled $1.206 billion. North America was India’s largest pharma export market in FY2021, with a 34% share, while shipments to the US, Canada, and Mexico grew by 12.6%, 30%, and 21.4%, respectively.

Covid 19 Pandemic raged throughout the world for around the past two years, and even though its effect seems to die down, the rising human toll raises worries, despite rising vaccine coverage. On January 16, 2021, India began administering COVID-19 vaccinations. There have been 2,067 new cases recorded in the previous 24 hours as of April 19, 2022. The Government of India (free of cost channel) and direct state procurement categories have delivered around 192.27 crore vaccine doses to States/UTs. COVID-19 balance of more than 20.33 crore and unutilised COVID-19 vaccine doses are still available for administration with the States/UTs.

The Middle East & Africa Pharmaceutical Market

According to the Magma Information Centre research report, the Middle East and Africa (MEA) Pharmaceutical Drug Delivery market was valued at $48.9 billion in CY2020. It was expected to reach $122.7 billion by CY2030, rising at a CAGR of 9.67% from CY2021 to CY2030.

The Middle East and Africa represent the world’s fi_h-largest regional pharma market. According to IQVIA’s recent figures, most of the largest markets grew slowly due to COVID lockdowns, with Saudi Arabia in the top position. (IQVIA is pronounced as I-Q-VIA, where I am taken from IMS Health or can be interpreted as Intelligence. Q comes from Quintiles or can be construed as Quotient, and VIA is the path of transformation or a helping hand to achieve something.)

The overall MEA pharmaceutical market reached $30 billion in September CY2021, and, according to IQVIA’s quarterly report published in January, the region’s market is forecasted to reach $47 billion in CY2022.

According to the report, many large markets experienced slow growth due to Covid-19 lockdowns. Saudi Arabia is the largest pharma market with $8.5 billion in value, followed by Egypt with $6.3 billion. The rest of the top 5 includes South Africa ($3.7), United Arab Emirates ($2.8), and Algeria ($2.4).

Despite the success of local and regional players, big pharma kept its commanding lead in MEA with 58 % of total sales. Sanofi, Novartis, and GSK continue to be the top three.

Angola

Africa is a continent of significant opportunities, especially for pharmaceutical companies. According to the latest statistical consensus, the market for the pharmaceutical industry in Africa will be worth about ~$85 billion by 2022.

Angola is one of the most significant economies in Africa. The oil crisis has had a substantial impact on the economy. Still, it has also created an opportunity to widen the narrow base of the economy to a more diversified one, and the pharma industry is a beneficiary.

According to Company research and data, the Generic Medicines Market in Angola has been steadily growing over the last decade, thanks to the emphasis placed on this class of drugs by the Public Sector. The population, in general, has more access to public sector healthcare services and is the primary source of healthcare services. Registering excellent growth in both value and volume, the Public Sector was the cornerstone of the Generic Medicines Market’s success in value and volume over the last decade. While the Pharmacy Market has kept its market share in Generic Medicines, the Hospital Market is seeing substantial growth in market share. According to Fitch Solutions Report, Angola’s pharmaceutical market will double by 2031 in local currency terms and will remain a relevant market among leading African countries.

Angola’s pharmaceutical markets are growing in every sector. Prescription drugs are forecast to grow at a compound annual growth rate of ~6%, generics at ~9%, over-the-counter medicines at ~6%, and medical devices at ~11%. Two factors are driving this growth: y Rapid Urbanisation. Angola’s population is undergoing a massive shi_. By 2025, two-fi_hs of economic growth will come from cities that enjoy better logistics infrastructures and healthcare capabilities. Urban households have more purchasing power and are quicker to adopt modern medicines. y Healthcare Infrastructure. The Public

Healthcare provision is becoming more efficient through various initiatives. The introduction of innovative delivery models is increasing capacity still further.

Latin America Pharmaceutical Market

As per the Magma Information Centre research report, the Latin America Pharmaceutical Drug Delivery market was valued at $62.2 billion in CY2020 and is projected to reach $160.5 billion by CY2030, growing at a CAGR of 9.97% from CY2021 to CY2030. The oral drug delivery segment was expected to be the highest contributor to this market, with $23.2 billion in CY2020, and is anticipated to reach $49.5 billion by CY2030, registering a CAGR of 7.86%.

According to statistics, the generic drugs market in Latin America currently has a value of $37.1 billion. It is expected to reach a value of $50.6 billion, growing with a CAGR of 6.4% between 2021 and 2026. ACCORDING TO A PROJECTION FROM COHERENT MARKET INSIGHTS, the CMO (Contract Manufacturing Organisations) pharmaceutical market in Latin America will increase from $15 million in 2020 to more than $39.7 million by 2027. This represents a CAGR of 14.7% over these seven years. The Latin American over-the-counter drugs market is growing significantly: it’s set to post a robust CAGR of 8.64% between 2021 and 2026 and an increase in volume from US$11.4 billion to US$17.3 billion, as per projections from Market Data Forecast.

The Central American region is a subset of the Latin American Market and comprises seven countries: Belize, Guatemala, El Salvador,

Honduras, Nicaragua, Costa Rica, and Panama. The estimated combined population size of the region is~49 a million people, and its combined Gross Domestic Product (GDP) is estimated at ~$275 billion. The country with the highest GDP in the region is Guatemala – ~$78.5 billion, and the country with the lowest GDP is Belize – ~$1.8 billion.

Trends in Pharma Industry

The pharmaceutical sector is undergoing a significant transformation. Due to the development of various technologies, the traditionally slow adoption of technology is today undergoing rapid changes. Other than technology advancements, pharma firms are influenced by several other factors. The primary driving forces of price and quality of the medicines/treatments have also moved beyond success in the pharmaceutical business. The prominent pharma industry trends include:

y Amalgamations Of Artificial Intelligence:

The pharmaceutical business will benefit from artificial intelligence (AI) in developing new, automated algorithms. It will aid in producing speedier, more precise, and reproducible results.AI could also be used in molecular analysis and drug discovery fields.AI will help in the treatment of challenging diseases, the comprehension of complex clinical data, the monitoring of drug adherence, and the improvement of clinical trial inclusion and exclusion criteria.

The glob al AI in the pharma market was predicted to increase at a 32.3% compound annual growth rate (CAGR) from $934.56 million in CY2021 to $1,236.09 million in CY2022. The Global Healthcare AI so_ware market size is predicted to reach $354.47 billion by CY2030 with a CAGR of 48.2%.

y New Use Of Marketed Products:

In the w ake of the Covid-19 Pandemic, pharmaceutical and biotech businesses continue to innovate in treatments and vaccines and the science behind their developments. Emerging technologies are being used to develop medications, and established scientific procedures are being adapted to find novel therapeutic approaches in the RNA (Ribonucleic acid) sector and clinical trials.

y Tapping Unpenetrated Markets:

Besides increasing business in established countries, CY2021 witnessed companies moving into largely untapped markets. The preferred destinations in this context were

China and Japan. Indian drug companies have around a 1% share in the Japanese Pharmaceutical Industry. These companies would require inter-governmental relations, trade policies, and novel business models to penetrate further.

y Leveraging OTC Arena:

The pharmaceutical and over-the-counter (OTC) industry is expected to grow significantly through CY2026. Thanks to critical players’ increasing adoption of tactics, the market is likely to develop steadily.

 

Source: Euromonitor; NIchollas Hall Insights; Company annual reports

Over-the-counter drugs will see an increase in volume, value, and reach. With greater penetration in the rural market, OTC consumerisation will aid in alleviating the problems caused by a doctor shortage. Chemists would be better equipped to provide over-the-counter medications for common ailments.

Business Overview

Who we are: Balaxi Pharmaceuticals Limited is a branded IPR-based pharmaceuticals Company focusing on frontier markets, with a vast and growing portfolio of drugs across multiple therapeutic segments. The Company has an on-ground presence in markets within Africa, Caribbean Islands & Latin America. It is presently an ‘asset-light’ IP-based pharmaceutical company with a different portfolio across multiple therapeutic segments, stock & sell models, and supplying branded and generic medicines. The pharmaceuticals formulation business is the fundamental driver of revenue, earnings, and growth.

Our markets: Balaxi Pharmaceuticals Limited is well-established in the existing markets of Angola, Guatemala, Honduras, and the Dominican Republic. The Company has a strong presence in terms of competitive positioning, product registrations, on-ground stock-and-sell infrastructure, and brand recognition. It is entering newer geographies in Africa and Latin America, specifically El Salvador, Ecuador, Nicaragua, Zambia & Central African Republic. Beyond this, the company has plans to expand in additional Latin American countries for the next orbit of growth. Balaxi Pharmaceuticals Limited has submitted several technical dossiers of pharmaceutical products for product registration in El Salvador, Honduras, Guatemala, and the Dominican Republic – hence building a deep pipeline of registered/approved products that will eventually become a formidable portfolio. With a growing brand penetration in Venezuela, among the top three markets by size in Latin America, the Company now aims to create in-roads in this region.

Pharmaceutical Business

Balaxi Pharmaceuticals Limited has a rich portfolio of 610 pharmaceutical product registrations, strong distribution strength of 37 warehouses, and a fleet of owned vehicles across four countries. The Company aims to double its portfolio of product registrations over the next two years. Balaxi Pharmaceuticals Limited has plans to set up a pharma warehouse in Nicaragua, Ecuador, Zambia & Central African Republic.

‘Asset Light’ Model: The Company participates in all stages of the pharma value chain, except in the R&D and manufacturing stages. Instead, it prefers to register proven and established generic drugs under its brand by efficiently procuring its products from cost-effective WHO GMP-certified contract manufacturers in India, China, and Portugal. This approach liberates the Company from making significant manufacturing CAPEX while significantly enabling it to shrink its time to introduce a product into specific markets. It also helps in reducing the payback period from its product development and registration processes and allows the company to generate strong returns on its investments. To put it simply, Balaxi Pharmaceuticals Limited typically outsources its production to be asset-light and practical, allowing the Company to focus more on registrations (IPs), sales growth, and expansion. It has matured by demonstrating success in frontier markets such as sub-Saharan Africa and semi-regulated markets in Central America.

‘Asset Right’ Model: Over the medium term, as part of its evolution from participating in semi-regulated frontier markets, Balaxi

Pharmaceuticals Limited aims to enter advanced markets gradually. The Company will need to be a qualified player with an in-house EU-GMP certified manufacturing facility. To achieve this, it is gradually moving its business model from being ‘Asset Light’ to becoming ‘Asset Right.’ While Balaxi Pharmaceuticals Limited will continue its organic growth within its chosen markets in Africa and Central America, the Company plans to establish a manufacturing facility in Hyderabad that will initially serve to produce niche branded products of more proprietary nature and those that do not easily lend themselves well to be outsourced. As the plant gets ready to make EU-specific products under the EU GMP certification, it will productively contribute to creating differentiated products for existing semi-regulated frontier markets. This move will help Balaxi Pharmaceuticals Limited to judiciously decide what to manufacture in-house and what to outsource from GMP manufacturers. Under this model, the Company will be able to manufacture and outsource, depending on the regulatory requirements of destination markets.

Outlook

Balaxi Pharmaceuticals Limited aims to foray into and establish its presence in a few more frontier and regulated markets over the current decade. The Company’s short-term goal is to capture incremental market share in the existing geographies and establish strong beachheads for sustained organic growth in Honduras, El Salvador, Nicaragua, Ecuador, Zambia and Central African Republic. It has also set its eyes on entering additional markets in Africa (similar characteristics to Angola) and Latin America in the medium term. Balaxi Pharmaceuticals Limited also aims to have an ideal blend of branded and generic medicine to maximise returns. Given the growing importance of health and disease management by the world’s population, the Company plans to leverage and grow in challenging frontier markets where a_ordability and health consciousness within the population is steadily increasing. Given its existing business model, solid management expertise and market knowledge, a proven IP-based strategy for growth, a rapidly growing consumer goods business, and the exciting pharmaceutical fundamentals of its chosen markets, it is steadily entering and expanding. Balaxi Pharmaceuticals Limited faces a bright and prosperous future.

The Company also plans to set up a manufacturing facility in Hyderabad. It aims to gradually enter advanced markets like Europe and needs to be a qualified player with an EU GMP certified manufacturing facility. While Balaxi Pharmaceuticals Limited continues its march of penetrating and building its presence in multiple frontier markets, its preparation to enter advanced markets is gradually taking shape. In this way, the Company is not only charting out its short-term potential for growth but also its longer-term ambitions for becoming a fully integrated pharmaceutical player that is equally comfortable with both semi and highly regulated markets.

Financial Overview

Business Highlights (Consolidated)

(Rs. in crore)

Particulars FY2022 FY2021 Growth (%)
Net Sales & Operating Income 279.39 231.33 20.77
Other Income 4.97 2.23 122.86
Total Income 284.36 233.56 21.74
EBITDA 55.18 44.64 23.61
Depreciation 0.51 0.30 70
PBIT 54.52 44.34 22.95
Profit Before Tax 54.52 44.33 22.95
Tax Expense 6.83 6.19 10.33
Profit after Tax 47.66 38.14 25

During the year, Balaxi Pharmaceuticals Limited’s turnover improved to Rs. 279.38 crore compared to Rs. 231.33 crore, resulting in a growth of 20.77%.

The Company delivered a commendable performance, despite the challenging external environment and Covid-19 Pandemic scenario. For the period under the review, the Company’s stock and sell model meant that due to ex-stock availability and strong brand reputation, it was better able to pass on raised prices of its products to customers when many competitors were unable to sustain their supplies. Balaxi Pharmaceuticals Limited’s ability to efficiently manage its operations to counter supply chain bottlenecks and raw material inflationary pressures put it in an advantageous position against competition, allowing it to pass through higher prices and gain market share.

Ratio Analysis

(Consolidated) 2021-22 2020-21
Debtors Turnover Ratio 5.3 4.35
Inventory Turnover 3.48 25.82
Current Ratio 0.67 2.31
Debt Equity Ratio 0.56 0.53
Operating Profit Margin (%) 19.57% 19.17%
Net Profit Margin (%) 17 % 16.33%
Return on Net worth 42.11% 57%

Our robust business model enables us to deliver effective products to our chosen market places, generate attractive returns for our stakeholders and build a sustainable business. We have leveraged our prudent financial expertise to fast-track our growth. Even though FY2021 started on a difficult note, we ensured it ended on a high note, having succeeded in turning around our overall business in our established markets. Over the years, we have made steady progress in building a robust pipeline, strengthening capabilities, and consolidating processes for faster delivery.

The Company has an effective compliance management system, which gives preventative warnings in case of any violations. To ensure that it is in conformance with the overall corporate policy and in line with predetermined objectives, the independent Audit Committee and the Board of Directors regularly review the performance of the Company. Balaxi Pharmaceuticals Limited’s Internal auditors are PCN & Associates, to guide the smooth functioning of risk management policies, building an organisation’s broad awareness of risks across businesses and corporate functions; developing formal reporting and monitoring processes; building risk management maintenance plans that would keep the information updated and refreshed; deploying an ERM framework in key business areas and corporate functions; aligning risk management with the business planning exercise and aligning the role of assurance functions.

Internal Controls

A reputable external agency is auditing the Company’s internal controls. This results in an unbiased and independent examination of the adequacy and effectiveness of the internal control systems in achieving the Company’s goal of optimal operation. The activities are safeguarding and protecting the Company’s assets from unauthorised use or disposition, keeping proper accounting records, and verifying the authenticity of all transactions.

Balaxi Pharmaceuticals Limited has an effective compliance management system that issues preventative warnings in the event of any violations. The independent Audit Committee and/or the Board of Directors regularly review the Company’s performance to ensure that it is by overall corporate policy and in line with predetermined objectives. PCN & Associates serve as the company’s internal auditors, guiding the smooth operation of risk management policies, raising organisational awareness of risks across businesses and corporate functions, developing formal reporting and monitoring processes, and developing risk management maintenance plans to keep the information updated and refreshed, deploying an ERM framework in key business areas and corporate functions, and aligning risk management with the business plan.

Risk and Concerns

Balaxi Pharmaceuticals Limited faces risks and uncertainties typical to that faced by global pharmaceutical industry players, which could have a material impact on earnings and the ability to operate in the future. These are determined via robust assessment considering our risk context by the Board of Directors with inputs from the executive management. The Board is satisfied that these risks are being managed appropriately and consistently.

Research and Development

Market research is a critical business catalyst, allowing Balaxi Pharmaceuticals Limited to develop and market differentiated generics and specialty products globally. Best-in-class technologies support the Company’s R&D capabilities, allowing it to deliver affordable products globally. The Company is making proactive investments to build a global pipeline of generics, over-the-counter drugs, and specialty products. It has intellectual property experts on staff to help develop products in various dosage forms, including injectables, orals, liquids, ointments, gels, and sprays. Given the highly competitive nature of its chosen frontier markets, Balaxi Pharmaceuticals Limited maintains a pragmatic approach to identifying future R&D projects. Long-term pipeline development investments are expected to continue and expand in scale and scope. The Company is also investing in research and development. It is developing specific products for emerging frontier markets.

People – the core of our strength

Balaxi Pharmaceuticals Limited strives to provide its employees with a work environment that is congenial and encourages a balanced, healthy, and safe lifestyle. Various growth opportunities are provided to its employees, rewarding and recognising merit. Training programmes are offered to employees to develop their skills. Ensuring that its people are future-ready promotes inclusive growth and knowledge sharing. To upgrade HR processes, the Company continues to institutionalize them. We value our employees’ diversity in skills. Every organisation that values and appreciates its Human Resources succeeds and generates positive results. At Balaxi Pharmaceuticals Limited, we always believe in the concept of human empowerment. We passionately believe that human resource is the organisation’s most important asset, as it influences growth, progress, profits, and shareholders’ values. The Company continued our efforts to improve the HR policies and processes during the year to enhance our performance. Balaxi Pharmaceuticals Limited’s mission is to create a value system and behavioural skills to ensure the achievement of our short and long-term aims. As of March 31, 2022, the Company had over 400 employees on its rolls. It continues to attract excellent talent from within and outside India to further our business interests. Industrial Relations continue to be cordial.

Information Technology

Balaxi Pharmaceuticals Limited is heavily investing in its digital reinvention platform. Automating as many business processes as possible will increase efficiency and accuracy. A framework has been developed within your organisation to capitalise on the opportunities presented by the proliferation of new-age digital technologies and transform into a digitally savvy pharmaceutical company. Some technologies and platforms have been piloted as part of the plan to provide a better and more integrated experience to our partners and clients. We prioritise Data Analytics to drive agile business decisions, automation for business processes, innovation through digital business models, and Consumer Engagement to identify, reach out to, and engage with our customers. Analytics and automation are at the core of the Company’s business strategy. To improve its automation in its manufacturing plants and scale it up year after year, we intend to increase digital consumer engagement.

Balaxi Pharmaceuticals Limited is making significant investments on the digital reinvention platform. The goal is to make all business processes as automated as possible, thus increasing the efficiency and accuracy of all processes. The Company has developed a framework to harness the opportunities presented by the prevalence of new-age digital technologies and transform into a digitally savvy pharmaceutical company. Various technologies and platforms have been piloted to deploy the agenda to deliver a better and integrated experience to our partners and clients.

Through the robust implementation of the ERP(SAP) system, it took adequate checks and balances to eliminate and minimise risk. Balaxi Pharmaceuticals Limited operates in a fully computerised environment, keeping all of its records in the ERP (SAP) system and routing all workflow and approvals through it (SAP). It is important to remember that process efficiency isn’t limited to distribution centres that sell to customers via phone, fax, email, or an SAP customer portal. For better efficiency and lower costs, whether we manage inventory internally or in a customer-bound scenario, we use intelligent inventory management strategies. We get the most out of SAP inventory management systems in this manner.

Cautionary Statements

The Management Discussion and Analysis statements describing the Balaxi Pharmaceuticals Limited’s objectives, projections, estimates, and expectations may be "forward-looking statements" within applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Company’s operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets. It operates changes in the government regulations, tax laws, and other statutes & other incidental factors.