Medicamen Biotech Ltd Management Discussions

1. COMPANY OVERVIEWMedicamen Biotech Limited (MBL) is a research-driven, fully integrated pharmaceutical company engaged in the research, development and manufacturing, and global marketing of Finished Dosage Forms (DFFs) and liquid formulations. MBL specializes in Oncology, Cardiovascular Diseases (CVD), Central Nervous System (CNS), Diabetology, Anti-Malarias, Antibiotics and Pain Management with an established presence across more than 35 countries in the Rest of the World (ROW) and an expanding footprint in highly regulated markets,The Company operates through its three state-of-the-art manufacturing facilities:

The Company operates through its three state-of-theart manufacturing facilities:

Bhiwadi Facility (Rajasthan): A 210,000 sq. ft. contemporary facility housing six dedicated blocks for general formulations and an integrated R&D block. The facility holds EU-GMP certification (Greece) and WHO-GMP approval. Haridwar Unit I (Uttarakhand): A 32,000 sq. ft. WHO-GMP and FDA Ethiopia (EFDA) certified facility focusing on Oral Solid dosages, Ointments and liquid oral formulations. Haridwar Unit II (Uttarakhand): A 35,000 sq. ft. state-of-the-art US FDA-approved facility dedicated to complex oncology, OSD, formulations and lyophilized & ready-to-use liquid injectables.

MBL continues to strengthen its domestic branded formulation presence in India across key therapeutic segments such as Anti-Hypertensive, Anti-Diabetics and Cardiology through its subsidiary, Medicamen Life Sciences Private Limited (MLS),

2. INDUSTRY OVERVIEW, BUSINESS ENVIRONMENT & COMPANY PERFORMANCE

The financial year 2025-26 marked another significant milestone in Medicamen Biotech Limiteds growth journey as the Company continued to strengthen its position across regulated international markets and the domestic pharmaceutical landscape. Guided by its commitment to quality, the Company remained focused on expanding its global footprint, enhancing manufacturing approvals and building a sustainable branded formulations business in India.

Industry Overview:

text[[148, 867, 481, 928], [582, 134, 914, 255]] The global pharmaceutical industry continues to demonstrate resilience, supported by rising healthcare expenditure, ageing populations, increasing prevalence of chronic diseases and continued advances in pharmaceutical innovation. Demand for specialty therapies, particularly in Oncology, Cardiovascular Diseases, Diabetes and Central Nervous System disorders, continues to grow, creating significant opportunities for pharmaceutical manufacturers with strong research, regulatory and manufacturing capabilities.

India continues to strengthen its position as one of the worlds leading pharmaceutical manufacturing hubs, supported by its cost competitiveness, highly skilled scientific workforce, robust manufacturing infrastructure and strong regulatory framework. Government initiatives aimed at promoting domestic manufacturing, improving healthcare accessibility and encouraging innovation continue to provide long-term growth opportunities for the sector. The increasing burden of lifestyle-related diseases has also accelerated demand for chronic therapies, resulting in sustained growth across therapeutic areas such as cardiovascular diseases, diabetes and oncology. These favourable industry fundamentals align well with the Companys long-term strategic priorities and provide a strong platform for future growth.

Building a Scalable Domestic Branded Business

The Companys domestic branded formulations business, operated through Medicamen Life Sciences Private Limited, delivered an outstanding year of growth and significantly strengthened its market position in chronic therapies. During the year, the business recorded 71% 71% year-on-year sales growth, driven by focused execution, deeper engagement with healthcare professionals and expansion across Cardiovascular Diseases and Diabetes. The Company further strengthened its prescription base by building relationships with more than 1,800 leading Key Opinion Leaders (KOLs) and Key Business Leaders (KBLs), whose continued confidence in the Companys brands reflects the growing clinical acceptance of its product portfolio. The domestic business is now supported by a dedicated team of 112 professionals, operating across nine states, engaging with over 8,000 doctors and 10,000 chemists, while ensuring widespread product availability through a robust distribution network of more than 225 distributors across North India and Maharashtra. These initiatives have significantly enhanced the Companys market reach and prescription generation capabilities.

MBL has to deepen its presence in high-growth oncology segments such as Hematology, Prostate Cancer and Hormonal Therapy through focused scientific engagement, specialist coverage and stronger relationships with leading oncologists and hematologists.

The Companys institutional oncology footprint also expanded during the year with increased engagement across several premier cancer care and government healthcare institutions, including AIIMS Delhi, Rajiv Gandhi Cancer Institute, Tata Memorial Centre, American Oncology Institute, Indo-American Cancer Institute, CNCI Kolkata, KGMC Lucknow, CGHS, HLL and Kamla Nehru Institute. In addition, the Company has initiated strategic engagement with chemotherapy day-care centres, which is expected to create new avenues for patient access and support future growth within the oncology business. These initiatives reinforce the Companys commitment to delivering specialised therapies through a diversified and sustainable healthcare network.

Overall, 2025-26 was characterised by disciplined execution, expansion of strategic partnerships, deeper engagement with healthcare professionals and continued investments in high-growth therapeutic areas. The Companys balanced business model, comprising regulated market manufacturing, contract development and manufacturing (CDMO) opportunities, exports and a rapidly growing domestic branded formulations business, positions it favourably to capitalise on emerging opportunities while creating sustainable long-term value for all stakeholders.

3. STRATEGIC GROWTH INITIATIVES & FUTURE GROWTH DRIVERS

Over the past few years, Medicamen Biotech Limited has pursued a disciplined growth strategy centred on strengthening its manufacturing capabilities, expanding its product portfolio, enhancing regulatory compliance and building long-term relationships across domestic and international markets. The Company has consistently invested in research and development, manufacturing infrastructure, product registrations and commercial capabilities to create a diversified and sustainable business model. While these strategic investments have required significant upfront expenditure, they have established a strong foundation for future growth and are expected to deliver increasing commercial benefits as product commercialisation accelerates and capacity utilisation improves.

Expanding Presence in Regulated Markets

The Company continues to strengthen its presence in highly regulated pharmaceutical markets through focused investments in manufacturing excellence, regulatory compliance and strategic customer partnerships. During the year, the Company further advanced its commercialisation strategy following the successful approval of its oncology manufacturing facility by the US Food and Drug Administration (US FDA), the Company secured multiple Contract Development and Manufacturing Organisation (CDMO) partnerships with pharmaceutical companies in the United States, reinforcing its capabilities in complex oncology formulations and creating new avenues for long-term revenue growth.

In Europe, the Companys EU-GMP certified manufacturing facility continues to support product development and contract manufacturing opportunities for international partners. The Company is actively progressing product development programmes and regulatory filings for multiple products in collaboration with European customers, while also expanding its presence in Australia and Canada through dossier submissions and regulatory approvals. These initiatives reflect the Companys commitment to diversifying its geographical presence and strengthening its position in regulated pharmaceutical markets.

Strengthening Global Market Presence

The Company continues to diversify its international business by expanding beyond its traditional export markets and increasing its presence across emerging and regulated geographies. While maintaining its established position across Africa and the Middle East, Medicamen is actively pursuing opportunities in Europe, North America, Australia and South Africa to create a more balanced and resilient revenue portfolio.

Company performance and Business highlights

Medicamens long-term strategy is built on creating a diversified pharmaceutical business with balanced contributions from regulated market exports, CDMO services, domestic branded formulations and specialty therapies.

2025-26 was a year of strong business expansion for Medicamen Biotech Limited, marked by healthy revenue growth across its domestic and international operations. The Companys strategic investments in manufacturing capabilities, product development, regulatory approvals and market expansion continued to strengthen its long-term growth platform. While these investments moderated profitability during the year, they have positioned the Company to capitalise on significant commercial opportunities across regulated markets, CDMO services and domestic branded formulations in the coming years.

On a standalone basis, the Company reported Revenue from Operations of 17,884.58 Lakhs, representing a growth of 18.08% 18.08% over the previous financial year. Total Income increased to 18,195.01 Lakhs, reflecting sustained demand across key business segments and improved market penetration. Consequently, EBITDA stood at 2,139.10 Lakhs, while Profit Before Tax (PBT) and Profit After Tax (PAT) were 1,154.78 Lakhs and 940.87 Lakhs, respectively. Basic Earnings Per Share (EPS) stood at 6.94.

On a consolidated basis, the Company delivered a robust financial performance with Revenue from Operations increasing by 21.67% 21.67% to 19,776.97 Lakhs, while Total Income grew by 19.01% 19.01% to 20,088.29 Lakhs. EBITDA improved by 12.92% 12.92% reflecting the increasing contribution of the Companys diversified business portfolio. Consolidated Profit Before Tax increased by 21.30% 21.30% to 1,198.44 Lakhs, while Profit After Tax recorded a significant growth of 49.43% 49.43% to 977.41 Lakhs. Basic Earnings Per Share improved to 7.22, demonstrating the Companys continued ability to create value for shareholders despite ongoing investments in future growth initiatives.

5. RISK MANAGEMENT

The pharmaceutical industry operates in a dynamic environment characterised by evolving regulatory requirements, changing market conditions and technological advancements. Recognising these challenges, the Company has established a comprehensive risk management framework that enables timely identification, assessment and mitigation of strategic, operational and financial risks while supporting sustainable business growth.

One of the key risks for the Company remains the stringent regulatory environment governing pharmaceutical manufacturing and product approvals across regulated markets. The Company mitigates this risk through continuous investments in quality systems, regulatory compliance, robust documentation practices and adherence to international manufacturing standards, supported by dedicated regulatory and quality assurance teams.

across regulated markets. The Company mitigates this risk through continuous investments in quality systems, regulatory compliance, robust documentation practices and adherence to international manufacturing standards, supported by dedicated regulatory and quality assurance teams.

The Company also continues to diversify its geographical presence to reduce dependence on any single market. Expansion into regulated markets, strengthening of CDMO partnerships and increased focus on domestic branded formulations are expected to create a more balanced revenue mix and improve business resilience.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control framework commensurate with the nature, size and complexity of its business operations. The internal control systems are designed to ensure efficient conduct of business, safeguarding of assets, reliability of financial reporting, compliance with applicable laws and regulations, and effective management of operational risks.

Independent internal audits are conducted periodically to evaluate the effectiveness of internal controls across manufacturing, finance, procurement, quality assurance and other critical business functions. The findings and recommendations of the internal auditors are reviewed by the Audit Committee of the Board, which monitors the implementation of corrective actions and continuously evaluates the adequacy of the internal control environment.

The Company also continues to strengthen its governance practices through enhanced digital systems, process automation and standard operating procedures aimed at improving operational efficiency, transparency and accountability across the organisation. These initiatives provide management with greater visibility into business operations and support timely decision-making while ensuring compliance with applicable statutory and regulatory requirements.

7. HUMAN RESOURCES

Medicamen Biotech Limited firmly believes that its people are the foundation of its long-term success and sustainable growth. The Company continues to foster a performance-driven, inclusive and collaborative work culture that encourages innovation, accountability and continuous learning. During the

2025- 26 was supported by the continued development of a dedicated field force, enabling deeper engagement with healthcare professionals, improved market coverage and enhanced customer relationships. The Company remains committed to attracting, nurturing and retaining high- quality talent while providing employees with opportunities for professional growth through structured training programmes, performance management systems and leadership development initiatives.

8. ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company remains committed to conducting its operations responsibly while maintaining high standards of environmental stewardship, occupational health and workplace safety. Environmental, Health and Safety (EHS) practices are integrated into the Companys manufacturing and operational processes to ensure compliance with applicable statutory and regulatory requirements.

to ensure compliance with applicable statutory and regulatory requirements.

Continuous efforts are undertaken to optimise resource utilisation, improve energy efficiency, minimise waste generation and strengthen environmental sustainability across manufacturing facilities. The Company also places significant emphasis on employee safety through regular safety awareness programmes, preventive maintenance, workplace risk assessments and adherence to established quality and safety protocols. By embedding sustainable practices into its operations, Medicamen seeks to create long- term value for stakeholders while contributing positively to the communities in which it operates.

9. OUTLOOK

The outlook for the pharmaceutical industry remains positive, supported by increasing healthcare expenditure, favourable demographic trends, rising incidence of chronic diseases and continued demand for high- quality, affordable medicines. Against this backdrop, Medicamen Biotech Limited is well positioned to capitalise on emerging opportunities through its diversified business model, regulatory- compliant manufacturing infrastructure and expanding domestic and international presence.