Onyx Biotec Ltd Management Discussions

FY 2025 represents the fiscal year 2024-25, from 1 April 2024 to 31 March 2025, and analogously for FY 2024 and previously such labelled years.

GLOBAL ECONOMY

The global economy is holding steady, although the degree of grip varies widely across countries. Global GDP growth in the third quarter of 2024 was 0.1 percentage point below that predicted in the October 2024 WEO, after disappointing data releases in some Asian and European economies. Growth in China, at 4.7 percent in year-over-year terms, was below expectations. Faster-than- expected net export growth only partly offset a faster-than-expected slowdown in consumption amid delayed stabilization in the property market and persistently low consumer confidence. Growth in India also slowed more than expected, led by a sharper-than-expected deceleration in industrial activity. Growth continued to be subdued in the euro area (with Germanys performance lagging that of other euro area countries), largely reflecting continued weakness in manufacturing and goods exports even as consumption picked up in line with the recovery in real incomes. In Japan, output contracted mildly owing to temporary supply disruptions. By contrast, momentum in the United States remained robust, with the economy expanding at a rate of 2.7 percent in year-over-year terms in the third quarter, powered by strong consumption.

Where inflation is proving more sticky, central banks are moving more cautiously in the easing cycle while keeping a close eye on activity and labour market indicators as well as exchange rate movements. A few central banks are raising rates, marking a point of divergence in monetary policy.

Global financial conditions remain largely accommodative, again with some differentiation across jurisdictions (see box below) Equities in advanced economies have rallied on expectations of more business-friendly policies in the United States. In emerging market and developing economies, equity valuations have been more subdued, and a broad-based strengthening of the US dollar, driven primarily by expectations of new tariffs and higher interest rates in the United States, has kept financial conditions tighter.

Economic policy uncertainty has increased sharply, especially on the trade and fiscal fronts, with some differentiation across countries (see box below). Expectations of policy shifts under newly elected governments in 2024 have shaped financial market pricing in recent months. Bouts of political instability in some Asian and European countries have rattled markets and injected additional uncertainty regarding stalled progress on fiscal and structural policies. Geopolitical tensions, including those in the Middle East, and global trade frictions remain elevated.

The Outlook

Energy commodity prices are expected to decline by 2.6 percent in 2025, more than assumed in October. This reflects a decline in oil prices driven by weak Chinese demand and strong supply from countries outside of OPEC+ (Organization of the Petroleum Exporting Countries plus selected nonmember countries, including Russia), partly offset by increases in gas prices as a result of colder-than- expected weather and supply disruptions, including the ongoing conflict in the Middle East and outages in gas fields. Nonfuel commodity prices are expected to increase by 2.5 percent in 2025, on account of upward revisions to food and beverage prices relative to the October 2024 WEO, driven by bad weather affecting large producers. Monetary policy rates of major central banks are expected to continue to decline, though at different paces, reflecting variations in growth and inflation outlooks. The fiscal policy stance is expected to tighten during 2025-26 in advanced economies including the United States and, to a lesser extent, in emerging market and developing economies.

Global growth is expected to remain stable, albeit lackluster. At 3.3 percent in both 2025 and 2026, the forecasts for growth are below the historical (2000-19) average of 3.7 percent and broadly unchanged from October. The overall picture, however, hides divergent paths across economies and a precarious global growth profile (see the box below). Among advanced economies, growth forecast revisions go in different directions. In the United States, underlying demand remains robust, reflecting strong wealth effects, a less restrictive monetary policy stance, and supportive financial conditions. Growth is projected to be at 2.7 percent in 2025. This is 0.5 percentage point higher than the October forecast, in part reflecting carryover from 2024 as well as robust labor markets and accelerating investment, among other signs of strength. Growth is expected to taper to potential in 2026.

In the euro area, growth is expected to pick up but at a more gradual pace than anticipated in October, with geopolitical tensions continuing to weigh on sentiment. Weaker-than-expected momentum at the end of 2024, especially in manufacturing, and heightened political and policy uncertainty explain a downward revision of 0.2 percentage point to 1.0 percent in 2025. In 2026, growth is set to rise to 1.4 percent, helped by stronger domestic demand, as financial conditions loosen, confidence improves, and uncertainty recedes somewhat.

In other advanced economies, two offsetting forces keep growth forecasts relatively stable. On the one hand, recovering real incomes are expected to support the cyclical recovery in consumption. On the other hand, trade headwinds—including the sharp uptick in trade policy uncertainty— are expected to keep investment subdued.

Source: World Economic Outlook, Update Growth: Divergent and Uncertain, International Monetary Fund

OVERVIEW OF THE INDIAN ECONOMY

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. According to the April 2025 edition of the IMFs World Economic Outlook, Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

The April 2025 edition of the WEO shows a downward revision in the 2025 forecast compared to the January 2025 update, reflecting the impact of heightened global trade tensions and growing uncertainty Despite this slight moderation, the overall outlook remains strong. This consistency signals not only the strength of Indias macroeconomic fundamentals but also its capacity to sustain momentum in a complex international environment. As the IMF reaffirms Indias economic resilience, the countrys role as a key driver of global growth continues to gain prominence.

(Source: India: Fastest-Growing Major Economy, Ministry of Finance, Posted On: 23 APR 2025 4:40PM by PIB Delhi)

The recent GDP growth figures of 5.4% year over year1 for the second quarter of fiscal year 2024 to 2025 probably caught markets off guard (it was significantly below the Reserve Bank of Indias projection of 6.8%). Slower growth in the first half of the fiscal (6%) led the RBI to bring down the annual projection to 6.6% (down from an earlier projection of 7%). However, its essential not to let the headline numbers overshadow the nuanced story beneath: GDP is just one lens to evaluate economic health, and this quarter reveals resilience in certain pockets that are worth noting.

Rural consumption has remained robust, supported by strong agricultural performance, while the services sector continues to be a key driver of growth. Manufacturing exports, particularly in high- value-added components (such as electronics, semiconductors, and pharmaceuticals), have displayed strength, underscoring Indias growing role in global value chains. We believe the slow growth in the secondary sector3 is temporary (due to disruptions caused by monsoons).

Deloitte has revised its annual GDP growth projection for India to between 6.5% and 6.8% in this fiscal year, and between 6.7% and 7.3% in the following one. A tempered global growth outlook and a delayed synchronized recovery in the industrial economies amid changing trade and policy regulations—compared to what was previously expected—will likely weigh on Indias exports and outlook for the next fiscal year. India will have to adapt to the evolving global landscape and harness its domestic strengths to drive sustainable growth.

Decoding the slowdown in the second quarter

On the expenditure side, the slowdown in investments and exports were key factors weighing on the economy. Gross fixed capital formation (GFCF), a key driver of economic growth, slowed down to 5.4%. This was partly due to slower government capex utilization, which was at 37.3% in the first half of this year, lower than last years 49%.

Geopolitical uncertainties and disruptions in global supply chains, particularly in the Red Sea region, continued to weigh on exports. Petroleum product exports experienced a consistent decline across all three months of the quarter, averaging an approximate 30% contraction. As a result, total export growth slowed to 2.8%. At the same time, imports were higher due to a rise in oil and gold imports.

On the production side, gross value added grew by 5.6% in the second quarter, down from 6.8% in the previous one, primarily due to poor performance in the secondary sector. The slowdown in the industrial sector was somewhat expected as the index of industrial production showed signs of slowing across multiple sectors, particularly in mining and electricity. Mining contracted by 0.1%, while electricity and other utilities grew by just 3.3% (a sharp decline from the previous quarters 10.4%). The construction sector grew 7.7%—its lowest since the last quarter of fiscal 2021 to 2022. Growth in manufacturing was modest, at 2.2% (down from 7%).

We believe these sectoral declines are temporary due to monsoon-driven disruptions (8% abovenormal rainfall)4 and restrictive spending during elections. What is concerning is we also suspect the possibility of higher dumping from neighbouring countries. Imports of goods such as plastics, organic chemicals, iron and steel products, machinery, and electronic components have seen a sharp jump in recent months and pose a significant threat in the months ahead amid restrictive trade regulations in industrialized nations.

Amid this growth slowdown, there were a few emerging trends that pointed to inert resilience.

• Robust rural consumption: Agricultural growth hit a five-quarter high of 3.5%, aided by a strong monsoon season. Indicators like rising sales of fast-moving consumer goods and declining numbers of jobs demanded through the Mahatma Gandhi National Rural Employment Guarantee Act (more commonly, MGNREGA) confirm strength in rural demand. With healthy kharif5 harvests and improved rabi sowing, rural consumption is expected to remain strong, further boosted by festive season spending.6

• Strong services sector growth: Services grew by 7.2%, driven by public administration and defence (9.1%) and finance, insurance, and real estate (7.2%). Services exports surged 21.3%. Between April and October 2024, total services exports stood at US$216 billion, compared to US$192 billion in 2023. This growth is crucial given the sectors significant contribution to Indias GDP and employment, specifically for the urban middle-income population.

• High-value manufacturing exports: Exports of electronics, engineering goods, and chemicals have grown significantly, now comprising 31% of total merchandise exports. Given that micro, small, and medium enterprises are significant contributors to manufacturing supply chains and exports, rising performance of these enterprises points to healthy growth in this export segment.

• Controlled fiscal deficit: The fiscal deficit stood at 4.4% of GDP in the second quarter of this fiscal year, accounting for 29.4% of the budget estimate, and standing 10% lower than last year. This gives government some room to ramp up spending to boost demand. With lower capital expenditure in the first half of this fiscal year, the government is poised to ramp up spending in the coming half, supporting demand and crowding in private investments. A significant uptick in government spending is expected in the second half of this fiscal year to meet budgetary targets,

Vwhich may provide additional support to the economy and boost investment by crowding in private investments.

Indias near-term outlook

We now expect India to grow between 6.5% and 6.8% in fiscal year 2024 to 2025, in our baseline scenario. Although admittedly lower than previously estimated, because of a slower first half of the year, we expect strong domestic demand in the second half, driven by a significant uptick in government spending.

This will be followed by growth between 6.7% and 7.3% in fiscal year 2025 to 2026, with significant downside risks (hence a wider range; figure 1). Indias growth projections in the subsequent year will likely be tied to broader global trends, including rising geopolitical uncertainties and a delayed synchronous recovery in the West than anticipated. Disruptions to global trade and supply chain due to intensifying geopolitical uncertainties will also affect demand for exports.

(Source: https://www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-outlook.htmr)

INDIAS GROWTH IN GLOBAL CONTEXT

India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. The countrys economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts. In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional outperformance.

The IMF has also revised its growth estimates for other major global economies. Chinas GDP growth forecast for 2025 has been downgraded to 4.0 per cent, down from 4.6 per cent in the January 2025 edition of the World Economic Outlook. Similarly, the United States is expected to see a slowdown, with its growth revised downward by 90 basis points to 1.8 per cent. Despite these revisions, Indias robust growth trajectory continues to set it apart on the global stage.

(Source: India: Fastest-Growing Major Economy, Ministry of Finance, Posted On: 23 APR 2025 4:40PM by PIB Delhi)

Industry Overview

THE PHARMACEUTICAL INDUSTRY SECTOR

The global pharmaceutical industry witnessed a transformative phase in the past year, driven by scientific breakthroughs, demographic shifts, evolving patient needs and rapid digitalisation. Amidst evolving global health demands and economic pressures, the industry strengthened its foundation for long-term growth while adapting to structural changes across regions and therapeutic segments.

Indias pharmaceutical market is projected to see strong growth, with medicine spending expected to reach US$ 38-42 Billion by 2028, with a CAGR of 7-10% from 2024 to 2028. This growth is driven by a combination of expanding access, growing demand for treatments across both acute and chronic conditions, and continued reliance on affordable generic medicines.

India is capable of manufacturing low-cost generic alternatives due to a number of economic factors favouring the industry. Some of these include the competitive land rates, the cheap labour available, low resource costs like water, electricity etc., lower cost of production machinery. Importantly, the various drugs like, Intermediates, APIs and Formulation companies are seamlessly integrated while following international regulations of safety.

MARKET SIZE

The Indian Pharmaceutical Industry has witnessed a robust growth over the past few years moving on from a turnover of approx. US $ 1 billion in 1990 to over US $30 billion in 2015 of which the export turnover is approximately US $ 15 billion.

With 100% FDI for greenfield and 74% for brownfield pharma projects, strong PLI incentives, and large-scale infrastructure like Hyderabad Pharma City (~US $9.7 billion investment), the engine for expansion is strong.

The global pharmaceutical industry is currently worth about USD 1.6 trillion, with India contributing around 3 per cent to 3.5 per cent. The anticipated growth will solidify Indias position as a key player in the global pharma landscape.

Many of the Indian pharmaceutical companies are experienced in servicing top multinational companies for their highly regulated markets, meeting their stringent quality expectations. The same • experience enables Indian organizations to cater to the needs of the regulatory authorities of most nations across the world. Further, technical consultancy capability of National Institute of Pharmaceutical Education and Research is contributing to the growth of the industry.

In FY 2024-25, Indias pharmaceutical exports rose to US $30.47 billion—a substantial 9.3% increase—with nearly one-third of export revenue coming from the U.S. market. Pharma represented nearly 7% of Indias total merchandise exports, underscoring its critical role in the countrys trade portfolio.

Indias pharma sector now employs approximately 550,000 to 570,000 people directly in roles such as manufacturing, R&D, regulatory affairs, and sales by 2025.

Job listings in healthcare and pharma jumped by 62% Year-on-year as of March 2025, driven by demand for AI, digital health, and informatics professionals.

INDIAN PHARMACEUTICAL INDUSTRY

According to a recent EY FICCI report, as there has been a growing consensus over providing new innovative therapies to patients, Indian pharmaceutical market is estimated to touch US$ 130 billion in value by the end of 2030 and US$ 450 billion market by 2047. India ranks 3rd worldwide for pharmaceutical production by volume and 14 th by value. The country has an established domestic pharmaceutical industry, with a strong network of 3,000 drug companies and ~10,500 manufacturing units.

Indias drugs and pharmaceuticals exports stood at US$ 27.82 billion in FY24 (April- March). According to Government data, the Indian pharmaceutical industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India. During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market. The Indian pharmaceutical industry has seen a massive expansion over the last few years and is expected to reach about 13% of the size of the global pharma market while enhancing its quality, affordability, and innovation. Indian pharmaceutical sector is expected to • # * grow at a CAGR of 22.4% in the near future. The government has set ambitious target to boost the medical devices industry in India, aiming to elevate it from its current US$ 11 billion valuation to US$ 50 billion by 2030.

The Indian healthcare industry reached over US$ 370 billion in 2022 and is expected to reach over US$ 610 billion by 2026. Indian hospital market valued at US$ 98.98 billion in FY23 and projected to grow by 8% CAGR and reached to US$193.59 billion by FY32. India is among the top 12 destinations for biotechnology worldwide and third largest in Asia Pacific. The country holds 3-5% of the global biotechnology industry pie. In 2022, Indias bioeconomy was valued at US$ 137 billion, and aims to achieve US$ 300 billion mark by 2030.

Global pharmaceutical giants and Indian MNCs are increasingly investing in digital transformation, data science, Al-driven R&D, and setting up Global Capability Centers (GCCs) to drive innovation and compliance.

India has emerged as the medial tourism hub of the world providing cost-effective treatments with the latest technology enabled by several pathbreaking reforms and provisions in healthcare sector. Access to affordable HIV treatment from India is one of the greatest success stories in medicine. India is one of the biggest suppliers of low- cost vaccines in the world, thereby rightly making it the Pharmacy of the World.

Furthermore, the pharma sector is playing an integral role in shaping the Digital Health ecosystem in India. With the governments National Digital Health Mission (NDHM) and a growing focus on health-tech startups, telemedicine, and e-pharmacies, the integration of pharma with digital tools is transforming healthcare delivery across urban and rural India.

DRY POWDER INJECTIONS - AN OVERVIEW

The global dry powder injectables market is experiencing substantial growth, with a projected market size of USD 22.8 billion by 2032, growing from USD 12.5 billion in 2023, according to dataintelo.com. This expansion is driven by factors like the increasing prevalence of chronic diseases, the inherent advantages of dry powder injectables (enhanced stability, longer shelf life, and ease of administration), and continuous technological advancements in formulation and delivery.

Key Market Drivers:

Rising Prevalence of Chronic Diseases:

The growing number of individuals suffering from chronic illnesses like diabetes, cardiovascular diseases, and respiratory conditions, which often require injectable therapies, is a major factor boosting market growth.

Advantages of Dry Powder Injectables:

• Enhanced Stability: Dry powder formulations offer improved stability compared to liquid injectables, minimizing the risk of degradation and extending shelf life.

• Extended Shelf Life: This stability translates to longer storage times, reducing waste and making them more suitable for various settings, including remote locations.

• Ease of Administration: Dry powder injectables can be easily reconstituted with a diluent before administration, simplifying the process for healthcare professionals.

Technological Advancements:

Continuous innovation in formulation techniques and delivery systems, such as the development of more efficient reconstitution methods and advanced inhaler devices, are contributing to market expansion.

Medical Applications:

The medical segment, particularly for treating infectious diseases and chronic conditions, dominates the market due to the widespread use of dry powder injectables in these areas.

Growing Demand for DPIs:

Increased awareness and usage of Dry Powder Inhalers (DPIs) for respiratory conditions like asthma and COPD are also driving market growth.

Market Trends:

Shift towards Single-Dose and Multi-Dose DPIs:

The market is seeing a rise in the adoption of both single-dose and multi-dose DPIs for various respiratory conditions.

Focus on Innovative Formulation Technologies:

Pharmaceutical companies are investing in research and development to create more effective and user-friendly dry powder formulations.

Expansion in Emerging Markets:

While developed markets like the US and Europe are leading the way, emerging markets in Asia- Pacific and the Middle East are experiencing rapid growth in the adoption of dry powder injectables.

Increased Use in Veterinary Applications:

Dry powder injectable formulations are also finding increasing use in veterinary medicine to treat infections and other conditions in animals.

Indian Export Scenario:

• India is a significant exporter of dry powder injections, with key export destinations including Ghana, Pakistan, and Tanzania.

• Major export categories include penicillin-based injections, pituitary hormones, and veterinary medicinal preparations.

Future Outlook:

The dry powder injectables market is expected to maintain its growth trajectory, driven by ongoing advancements in technology, a growing emphasis on patient convenience, and the expanding application of these products across various medical and veterinary fields.

THE RISE OF NEW TECHNOLOGIES

While traditional pharmaceutical manufacturing and formulation remain the backbone of the industry, Indias pharma sector is undergoing a digital transformation, embracing next-generation technologies to improve efficiency, innovation, compliance, and patient outcomes. From drug discovery to supply chain management, Indian pharma companies are investing in AI, big data, blockchain, IoT, digital therapeutics, and cloud computing to drive growth and global competitiveness.

• AI and Automation: Artificial intelligence and automation are revolutionizing drug discovery, clinical trials, and pharmacovigilance. Indian pharma companies are deploying AI for Predictive drug modeling to reduce R&D costs and accelerate discovery timelines, Automated screening of clinical data for adverse event detection and faster regulatory submissions, Chatbots and virtual assistants for improving patient engagement in digital health platforms.

• Blockchain: Blockchain is gaining momentum in Indian pharma for its ability to offer secure, transparent, and tamper-proof systems. Drug traceability and anti-counterfeiting is done through end-to-end tracking of supply chains. Clinical trial integrity and consent management is employed to enhance trust in data sharing. Blockchain adoption is particularly significant in ensuring compliance with global drug supply standards, especially for exports to regulated markets.

• Cloud Computing: Indias pharmaceutical industry is increasingly adopting cloud computing to enhance flexibility, scalability, and cost-efficiency in operations. Pharma companies are using cloud platforms to streamline R&D, manage clinical trial data, ensure regulatory compliance, and enable real-time collaboration across global teams. This shift is also supporting faster drug development and improved data security in a highly regulated environment.

• Cybersecurity: As the pharmaceutical industry becomes more digitized, cybersecurity has emerged as a critical priority. Indian pharma companies are strengthening their cybersecurity frameworks to protect sensitive clinical data, intellectual property, and manufacturing systems from evolving cyber threats and data breaches. Ensuring robust data protection is essential for maintaining regulatory compliance and safeguarding global operations.

GOVERNMENT INITIATIVES

Some of the major initiatives taken by the government to promote the pharmaceutical industry in India are as follows:

• In February 2024, the Finance Ministry announced the total expenditure in Interim 2024-25 estimated at Rs. 47,65,768 crore (US$ 571.64 billion) of which total capital expenditure is Rs. 11,11,111 crore(US$ 133.27 billion).

• In March 2024, the Cabinet approved an expansion of the PLI Scheme for Pharmaceuticals, with an additional outlay of Rs. 15,000 crore (US$ 1.8 billion) to support advanced drug manufacturing, research in biologics, and formulation development.

• The government is actively promoting digital health, AI in drug discovery, and smart manufacturing under the Ayushman Bharat Digital Mission, integrating the pharma sector with next-gen technologies for diagnostics, drug monitoring, and personalized medicine.

• The Pharma PLI Scheme (2021-present) has incentivized over 200 pharmaceutical firms, supporting large-scale production of 41 critical APIs, and is projected to generate over 100,000 direct and indirect jobs by 2026.

• The Promotion of Bulk Drug Parks Scheme, launched in 2020 with an allocation of Rs. 3,000 crore (US$ 360 million), supports the development of state-of-the-art manufacturing clusters in Himachal Pradesh, Gujarat, and Andhra Pradesh.

• The National Institute of Pharmaceutical Education and Research (NIPER) expansion plan, launched in 2023, aims to upgrade and establish new R&D and skill development hubs, with increased funding for pharma education and innovation.

• The Drugs & Cosmetics Act Amendment, proposed in 2022, aims to create a more robust regulatory framework for new drug approvals, clinical trials, and quality control, aligning Indian laws with global standards.

• The India Pharma & India Medical Device 2023 Expo, hosted in Gandhinagar, brought together stakeholders from 70+ countries, showcasing Indias capacity in biologics, biosimilars, diagnostics, and med-tech innovation.

• The government has launched the MedTech Mitra initiative, focused on supporting Indian health- tech and pharma startups through regulatory guidance, incubation, and funding support.

• Under Indias G20 Presidency in 2023, the Health Track emphasized pharma cooperation, pandemic preparedness, and equitable access to medicines, positioning India as a global leader in affordable healthcare solutions.

THE FUTURE OF THE PHARMACEUTICAL INDUSTRY IN INDIA: KEY TRENDS AND INSIGHTS

Indias pharmaceutical industry, already a global leader in the production of affordable generics and vaccines, is set for significant transformation in the coming years. Fueled by innovation, government support, and evolving global healthcare needs, the future of the sector looks promising. Below are the key trends that will shape the future of the pharmaceutical industry in India:

1. Expansion of Biologics and Biosimilars- As global demand rises for precision medicine, Indias pharma sector is increasingly investing in biologics and biosimilars. Companies are building capabilities in biotechnology to produce complex therapies for chronic diseases like • # cancer, autoimmune disorders, and diabetes.

2. Digital Transformation in R&D and Manufacturing - Pharma companies are adopting digital tools such as AI, machine learning, data analytics, and cloud computing to streamline R&D, optimize clinical trials, and improve manufacturing efficiency. This shift is reducing • costs and accelerating time-to-market for new drugs.

3. Rising Demand for Contract Development and Manufacturing (CDMO) - India is • emerging as a preferred hub for CDMO services, as global pharma companies seek cost- effective partners for formulation, development, and large-scale manufacturing. Indian firms are expanding capabilities to serve as global manufacturing powerhouses.

4. Growth in Personalized and Precision Medicine - With advances in genomics and diagnostics, personalized medicine is gaining traction. Indian pharma companies are collaborating with health-tech startups and research institutes to develop therapies tailored to individual patient profiles.

5. Focus on Sustainable and Green Manufacturing - Environmental sustainability is becoming a core focus. Pharma firms are investing in green chemistry, waste reduction, and energy-efficient processes to minimize their environmental footprint and meet global ESG - expectations.

6. Strengthening of API and Bulk Drug Ecosystem - To reduce dependence on imports, especially from China, India is building a self-reliant ecosystem for Active Pharmaceutical Ingredients (APIs) and intermediates. Government-backed schemes and bulk drug parks are helping localize production at scale.

7. Integration of Blockchain for Supply Chain Transparency - Blockchain is being explored to combat counterfeiting and enhance supply chain traceability. Indian pharma companies are piloting blockchain solutions to ensure secure, tamper-proof tracking of drugs from manufacturer to end-user.

8. Increased Global Collaborations and M&A Activity - Indian pharma firms are expanding their global presence through strategic partnerships, acquisitions, and investments in international R&D hubs. This trend is likely to continue, strengthening Indias role in the global pharmaceutical supply chain.

9. Government Support and Regulatory Reforms - Initiatives like the Production Linked Incentive (PLI) scheme, Pharma Innovation Fund, and streamlined regulatory processes will continue to boost innovation and competitiveness in the Indian pharma sector.

ROAD AHEAD

India stands as one of the worlds leading pharmaceutical hubs, renowned for its cost-effective production, strong regulatory compliance, and global reach. Having earned the title of the Pharmacy of the World, Indias pharmaceutical industry is now entering a new phase of growth driven by innovation, digitization, and value-added services such as biologics, biosimilars, and specialty drugs.

Indias biopharma sector is expected to grow rapidly, with biologics and biosimilars projected to account for a large share of exports by 2030. Globally, demand for personalized medicine and specialty drugs will create new growth avenues for Indian pharma players.

Digitally skilled pharmaceutical professionals are also on the rise. As per industry estimates, regulatory affairs, data science, and digital therapeutics are among the fastest-growing pharma job segments in India, with tens of thousands of new roles expected by 2026.

As noted by global experts at the India Pharma & Medical Device Expo 2023, Indias pharma industry has the potential to double its exports and become a US$ 100 billion export powerhouse by the end of the decade, while continuing to serve as a cornerstone of global health security.

COMPANY OVERVIEW

Onyx Biotec Ltd. is a leading pharmaceutical company engaged in the manufacture and sale distribution of generic and proprietary pharmaceutical products.

Onyx Biotec Ltd. established in 2009, develops, manufactures and distributes generic and branded pharmaceutical products in various forms like (WFI) Water for Injection, Dry Powder Injections, Dry Powder Syrup.

We employ a staff of dedicated people who work together to produce drug products that sick people can afford to buy that will treat their illness, make them well, reduce suffering and improve the quality of their lives.

Unit-1 was started in 2010, for the production of Sterile Water for Injections (SWFI) ampoules in FFS technology. Having 6 production machines, and a list of esteemed customers like Aristo, Mankind, Dr Reddys, Sun Pharma, Macleods etc, it has established itself as a major player in this field.

Unit-2 came into manufacturing in 2023, and has a state of an art facility, involved in the manufacturing of Dry Powder Injections, and Dry Powder Syrup (Cephalosporin) range. It was granted WHO- GMP certificate by the CDSCO in May 2024. With the latest 21 CFR machines, and technology, it aims to provide the customer with the best of quality products at affordable prices.

The highlights of the financial results for the year ended March 31, 2025 and the corresponding figure for the previous year are as under:

(Rs in Lakhs except EPS)

Particulars	Standalone
	2024-25	2023-24
Revenue from Operations	6,195.14	5,374.88
Other Income	116.74	12.55
Total Income	6,311.88	5,387.43
Total Expenditure	5,664.06	4,938.43
Profit before tax	647.82	448.99
Current Tax	106.40	30.97
Income tax Adjustment	3.06	-
Deferred Tax Adjustment	42.93	54.56
Profit after Tax	495.42	363.46
Basic Earnings per share	3.30	2.42

KEY RATIOS

Particulars	FY 2024-25	FY2023-24
Revenue (Rs. in Lacs)	6,311.88	5,387.43
Net Profit After Tax (Rs. in Lacs)	495.42	363.46
Earnings per share (in Rs.)	3.30	2.42
EBITDA (Rs. in Lacs)	1151.11	846.37
Net Profit Margin (%)	8.00	6.76
Return on Equity Ratio	0.12	0.17
Current Ratio (times)	1.91	1.31
Debtors Turnover(times)	3.48	5.26
Debt-equity (times)	0.22	1.22
Return on capital employed (%)	11.88	11.22

CA UTIONARY STA TEMENT

Statements in this Management Discussion and Analysis report detailing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the Companys products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other factors such as litigation and / or labor negotiations.

Additional Shareholders Information

FY2025 represents fiscal year 2024-25, from 1 April 2024 to 31 March 2025, and analogously for FY2024 and previously such labelled years.

1. General Body Meetings

Below table gives the details of date, time, location and business transacted through special resolution at last three Annual General Meetings:

Financial Year	Date & Time	Location	Special Resolution(s) Passed
2023-24	September 30, 2024 at 2.00 p.m.	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None
2022-23	September 30, 2023 at 11.00 am	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None
2021-22	September 30, 2022 Rs at 11.00 am	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None

Resolution(s) passed through Postal Ballot

During the year, the Company did not pass any special resolution through postal ballot.

Annual General Meeting (AGM):

As per the Circulars issued by the Ministry of Corporate Affairs and the SEBI, from time to time, the 20 th Annual General Meeting of the Company is scheduled to be held on Saturday, September 27, 2025, at 12.30 P.M through Video Conference /Other Audio-Visual Means (VC/OAVM) facility. The venue of the AGM shall be deemed to be the registered office of the Company at Village Vir Plassi, Near Sainimajraropar, Nalagarh Road, Solan, Himachal Pradesh - 174 101. The detailed instruction for participation and voting at the meeting is available in the notice of the 20 th AGM.

Proposal to Conduct Postal Ballot for any Matter in the Ensuing Annual General Meeting

There is no proposal to conduct a postal ballot for any matter in the ensuing Annual General Meeting.

2. Book Closure Date:-

From September 21, 2025 to September 27, 2025 (both days inclusive)

3. Dividend

To strengthen the financial position of the Company and to augment working capital, your directors do not recommend any dividend for the FY 2025.

4. Financial Calendar

The financial year of the Company starts on 1 st April every year and ends on 31 st March subsequent year.

Indicative calendar of events for the financial year 2025-26 are as under
For the first half-year ending 30 September 2025	First / Second week of November 2025
For the quarter and nine months ending 31 December 2025	First / Second week of February 2026
AGM for the year ending 31 March 2026	First week of September 2026

5. Listing of Stock Exchange and Stock Codes

National Stock Exchange Limited

C-1, Block G, Bandra Kurla Complex,

Bandra (East), Mumbai - 400 051 Trading Symbol- ONYX

Annual Listing fees to the National Stock Exchange have been paid for the FY 2025-26. The Custodian fee for NSDL & CDSL has also been paid for the FY 2025-26.

6. The International Security Identification Number (ISIN)

ISIN is a unique identification number of traded scrip. This number has to be quoted in each transaction relating to the dematerialized securities of the Company. The ISIN of the Companys equity shares is INE0WVU01018.

7. Market Price Data

Monthly High and Low Prices of the Equity Shares of the Company for the year ended 31st March, 2025: (Source: www.nseindia.com)

Month	NSE
	High	Low
Nov 24	62.50	51.00
Dec 24	89.80	52.60
Jan 25	97.45	63.10
Feb 25	71.00	56.10
Mar 25	62.45	53.75

*The Company got listed on November 22, 2024

8. Performance in comparison to board based indices

Performance of Equity Shares of the company in comparison to NIFTY:

9. Registrar and Share Transfer Agents

M/s. MAS Services Limited, T-34, 2nd Floor, Okhla Industrial Area, Phase - II, New Delhi -110020, is the Registrar and Share Transfer Agent of the Company, both for Physical & Demat Shareholders. Accordingly, all communications on matters relating to Share Transfers, Dividend etc. may be sent directly to them. Complaints, if any, on these matters may also be sent to the Compliance Officer of the Company.

10. Share Transfer System

As on date, the 100% of the issued and subscribed capital are held in dematerialised form, the process for physical share transfer is not relevant.

11. Description of Voting Rights

All shares issued by the Company carry equal voting rights, and one share confirms one vote.

12. Nomination Facility

Shareholders may contact their respective Depository Participant (DP) to avail nomination facility.

13. Shareholding Pattern as on 31st March 2025:

Distribution of shareholdings on the basis of ownership

	As on 31 st March 2024		As on 31 st March 2025
Particulars	No. of shares	% of total	No. of shares	% of Total	% change
Promoter\u2019s Holding
Individuals	1,18,03,200	88.60	1,18,03,200	65.10	(23.50)
Companies	-	-	-	-	-
Sub-Total	1,18,03,200	88.60	1,18,03,200	65.10	(23.50)
Indian Financial Institutions
Banks	-	-	-	-	-
Mutual Funds	-	-			-
Foreign holdings
Foreign Institutional Investors		-	9,72,000	5.36	5.36
Non-Resident Indians	-	-	48,000	0.26	0.26
ADRs / Foreign Nationals	-	-	. -	-	-
Sub total	-	-	10,20,000	5.62	5.62
Indian Public and Corporate	15,19,000	11.40	53,09,000	29.28	17.88
Total	1,33,22,200	100.00	1,81,32,200	100.00	. -

14. Distribution of shareholding as on March 31, 2025

Range	No. of Shareholders	% of Total Shareholders	No. of Shares	% of Total Shares
1 - 5000	0	0	0	0
5001 - 10000	0	0	0	0
10001 - 20000	380	68.966	7,60,000	4.191
20001 - 30000	0	0	0	0
30001 - 40000	56	10.163	2,24,000	1.235
40001 - 50000	2	0.363	10,000	0.055
50001 - 100000	42	7.623	3,18,000	1.754
100001 & Above	71	12.886	1,68,20,200	92.764
Total	551	100	1,81,32,200	100

15. Outstanding ADRs & GDRs, Warrants or any other convertible instruments, conversion date and likely impact on equity shares

During the year under review, the Company has not issued any ADRs & GDRs, Warrants or any other convertible instruments. The Company has at present no outstanding ADRs/GDRs/Warrants to be converted that has an impact on the equity shares of the Company.

16. Commodity Price Risk or Foreign Exchange Risk

The Company is exposed to the risk of price fluctuation of raw materials as well as finished goods and exchange rate fluctuation. The Company proactively manages these risks through forward booking Inventory management and proactive vendor development practices and hedging of foreign currency payables and receivables. The Companys reputation for quality, products differentiation and service, coupled with existence of powerful brand image with robust marketing network mitigates the impact of price risk on finished goods.

17. Credit Rating

The Company has not availed any Credit Rating.

18. Dematerialization of Shares

The Companys scrip forms part of the compulsory dematerialization segment for all investors. To facilitate easy access of the dematerialized system to the investors, the Company has signed up with both the depositories namely National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) - and has established connectivity with the depositories through its Registrar and Transfer Agents, MAS Services Limited.

The breakup of dematerialized shares and shares in certificate form as on March 31, 2025 as under:

Physical	NSDL	CDSL
-	31,66,600	1,49,65,600

19. Other Disclosures

Disclosures on materially significant related party transaction

The statements containing the transactions with related parties were submitted periodically to the Audit Committee. The details of Related Party Transaction are discussed in detail in Notes of the Financial Statements.

All the contracts/ arrangements/transactions entered by the Company during the financial year with related parties were in its ordinary course of business on an Arms Length Basis.

None of the transactions with any of related parties were in conflict with the Companys interest.

Details of non-compliance(s) by the company

There were no strictures or penalties imposed by either SEBI or the Stock Exchanges or any Statutory Authority for Non-Compliance of any matter related to the Capital Markets

Whistle Blower Policy/Vigil Mechanism

The Board of Directors of the company has adopted Whistle Blower Policy. The management of the Company, through the policy envisages encouraging the employees of the Company to report the higher authorities any unethical, improper, illegal, or questionable acts, deeds & things which the management or any superior may indulge in. This policy has been circulated to the employees of the Company. However, no employee has been denied access to the Audit Committee.

Details of Compliance with mandatory requirements and adoption of the non-mandatory requirements

The Company is exempted from compliance with the requirements of Corporate Governance under listing Regulations. However, the Company has complied with the corporate governance requirement, particularly in relation to appointment of woman director on the Board, constitution of an Audit Committee and Nomination and Remuneration Committee.

Disclosure of Accounting Treatments

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard (Ind AS) to comply in all material aspects under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (the 2013 Act)/ Companies Act, 1956 (the Act 1956), as applicable. These financial statements have been prepared on an accrual basis and under the historical cost conventions.

20. Name, Designation & Address of Compliance Officer and RTA for Complaints & Correspondence

Onyx Biotec Limited

Ruchi Chowdhury

Village Vir Plassi, Near Sainimajraropar,

Nalagarh Road, Solan,

Himachal Pradesh - 174 101 Tel: +91 172 2656 6384 Email: sonyxbiotec@gmail.com Website: www.onyxbiotec.com CIN: L24230HP2005PLC028403

Registered / Corporate Office Address for Correspondence

Onyx Biotec Limited

Village Vir Plassi, Near Sainimajraropar,

Nalagarh Road, Solan,

Himachal Pradesh - 174 101 Tel: +91 172 2656 6384 Email: sonyxbiotec@gmail.com Website: www.onyxbiotec.com CIN: L24230HP2005PLC028403

Registrar & Share Transfer Agents

M/s. MAS Services Limited

T-34, 2nd Floor, Okhla Industrial Area,

Phase - II, New Delhi -110020 Tel: 033 2280-6616/6617/6618, Fax: 033 2280-6619 Email: info@masserv.com URL: https://www.masserv.com/

21. Disclosure with respect to demat suspense account/unclaimed suspense account

SL No.	Particulars	Applicability
1.	Aggregate number of Shareholder and the outstanding shares in the suspense account lying in the beginning of the year	Nil
2.	Number of Shareholder who approached the Company for transfer of shares from suspense account during the year	Nil
3.	Number of Shareholders to whom shares were transferred from suspense account during the year	Nil
4.	Aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year	Nil
5.	That the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares	Nil

22. Transfer of Unpaid / Unclaimed Amounts and Shares to Investor Education and Protection Fund

Your Company did not declare any dividend hence the above provisions are not applicable.

23. Reminder to Investors:

As there are no unpaid / unclaimed dividends, no reminders for such unclaimed shares and unpaid dividends to be sent to shareholders. The Company shall ensure compliance as and when applicable.

	For and on behalf of the Board of Directors
	ONYX BIOTEC LIMITED
	Harsh Mahajan	\u2022 Sanjay Jain
Date: May 28, 2025	(Whole-time director)	(Managing Director)
Place: Nalagarh	DIN: 09793917	DIN:02214242