Panacea Biotec Ltd Management Discussions

GLOBAL VACCINE MARKET

Vaccines Market Overview

The global vaccine industry continued to evolve during onancial year 2025 26, supported by the expansion of routine immunization programmes, increased focus on life-course vaccination, growing investments in regional manufacturing, and continued development of vaccines against endemic, epidemic, and pandemic-prone diseases. The World Health Organization (WHO) Immunization Agenda 2030 and Gavis 2026 2030 strategy continue to provide the principal global frameworks for improving equitable access to vaccines, strengthening immunization systems, and supporting sustainable vaccine markets.

Vaccination remains one of the most effective public-health interventions. During the period of ~50 years since the launch of the Expanded Programme on Immunization, vaccines have contributed to saving more than 150 million lives and accounted for ~40% of the global reduction in infant mortality. According to the latest WHO UNICEF Estimates of National Immunization Coverage (WUENIC), 90% of infants globally, or nearly 116 million, received at least one dose of a diphtheria, tetanus and pertussis (DTP) vaccine in 2025, while 85%, or nearly 110 million, completed the full three-dose series. However, an estimated 13.5 million zero-dose children did not receive a single vaccine in their first year during 2025 . The global vaccine market continues to be shaped by the need to protect unvaccinated and under-vaccinated populations, introduce vaccines against additional diseases, strengthen supply security and expand immunization beyond infancy. Gavis 2026-2030 strategy is expected to support the vaccination of more than 500 million additional children and adolescents while expanding access to vaccines against more than 20 diseases, including several climate-sensitive diseases such as dengue .

Demand growth is expected across paediatric combination vaccines, HPV vaccines, pneumococcal conjugate vaccines, dengue vaccines, malaria vaccines and vaccines used for outbreak preparedness and response. Adult, adolescent and maternal immunization are also becoming increasingly

relevant components of national vaccination strategies.

Vaccines Market Dynamics

The global vaccine market remains concentrated, with a limited number of manufacturers accounting for a substantial share of vaccine volumes and onancial value. Vaccine production capacity also remains geographically uneven, with several countries in the African and Eastern Mediterranean regions continuing to depend substantially on vaccines manufactured outside their respective regions. Consequently, regional manufacturing, technology transfer, regulatory capacity development and predictable procurement have become important components of global vaccine-security strategies. The African Vaccine Manufacturing Accelerator (AVMA) was launched in June 2024 as a ten-year financing mechanism to support commercially sustainable vaccine manufacturing in Africa. AVMA was established as a US$ 1 billion pull-nancing instrument, providing milestone and accelerator payments to eligible manufacturers . AVMA aims to support the procurement of at least 800 million vaccine doses manufactured in Africa by 2035, across at least four manufacturers using three different technology platforms. Its long-term impact will depend upon African manufacturers successfully achieving regulatory approvals, WHO prequaliocation where applicable, competitive manufacturing economics and access to predictable procurement opportunities.

Beyond Africa, countries and regions are strengthening domestic and regional vaccine-manufacturing capabilities to improve supply resilience, diversify sourcing and reduce dependence on imported products. These initiatives may create opportunities for manufacturing partnerships, technology collaborations, contract development and manufacturing arrangements and regional product registrations.

South-East Asia continues to account for the largest share of global vaccine volumes, while North America remains the highest-value market owing to premium-priced vaccines.

Middle-income countries represent the largest demand segment by volume and continue to drive long-term growth through expanding national immunization programmes. Future growth in the vaccine market is expected to be supported by efforts to improve routine immunization coverage, reach zero-dose and under-vaccinated populations, introduce vaccines against additional diseases and extend vaccination to adolescents, adults, pregnant women and other priority populations. The WHO Immunization Agenda 2030 provides the overarching global framework for maximizing the benets of vaccines, while Gavis 2026-2030 strategy focuses on introducing and scaling up vaccines, strengthening health systems, improving programme sustainability and supporting healthy vaccine markets. Under Gavi 6.0, priority areas include reaching zero-dose children and missing communities, strengthening regional vaccine supply security, increasing domestic ownership of immunization programmes, and supporting vaccines against endemic, epidemic, and pandemic-prone diseases. Gavis 2024 Vaccine Investment Strategy includes future programmes or learning agendas for tuberculosis, Group B streptococcus, dengue, mpox, and Hepatitis E .

Restraints

Low purchasing power in developing countries: The traditional six vaccines under the Expanded Programme on Immunization (EPI), viz. measles, diphtheria, pertussis, tetanus, oral polio, and Bacille Calmette-Guerin (BCG vaccine for tuberculosis disease), are mature products and offered as combination vaccines. High x ed costs and a steep learning curve make new vaccines relatively expensive, as the investments in R&D and production facilities need to be recovered and production techniques need to be optimized and perfected to bring down variable production costs. Non-market activities undertaken by international organisations without competitive process may discourage private investments in development of vaccines as it creates unreal pricing pressures for manufacturers trying to enter the market without such extramural funding (like grants, etc.), creating barriers to entry, and uncertainty regarding commercial viability. These market and non-market factors together continue to threaten the business case of developing novel vaccines that are or could potentially be included in the priority pathogen list.

Opportunities

Growing Global Demand: Increased awareness of the importance of vaccination can expand market opportunities.

Technological Advancements: Innovations like mRNA technology can lead to development of more effective vaccines.

Combination vaccines: Potential value of a combination vaccine versus co-administration of separate antigens.

Partnership and Collaborations: Collaborating with governments, NGOs and other pharma companies to enhance reach and resources.

Public Health Initiatives: Leveraging global health campaigns to promote vaccination programs.

Value of Combination Vaccines

Panacea Biotec has focused on development of fully-liquid combination vaccines like Pentavalent (DTwP-HepB-Hib) & (DTwP-HepB-IPV) and Hexavalent (DTwP-HepB-Hib-IPV). In this endeavour, the Company had the opportunity to change the global paediatric immunization program twice with the launch of Easyv e -TTR in 2005 and EasySixR in 2017.

Market generation activities undertaken by international organisations continue to increase the number of vaccines being covered by the National Immunization Programs and more countries are rolling out the WHOs recommended schedule for vaccination either through self-funded or donor-funded programs. Vaccines targeting priority pathogens continue to provide large-scale opportunities for expansion as each such vaccine chosen can immediately reach more than 100 million babies born every year.

International immunization agencies continue to support the introduction of vaccines that can improve coverage, simplify delivery and strengthen programme efficiency. Gavis 2026-2030 strategy includes a specic objective to introduce and scale up vaccines while maintaining healthy, sustainable markets and improving regional supply security. The transition from separate pentavalent and IPV administration to hexavalent vaccination represents an important potential evolution in paediatric immunization programmes. The timing and scale of this transition will depend upon country decisions, product availability, a ordability, onancing, regulatory approvals and readiness of national immunization systems.

The latest Gavis 73 Supported Countries demand scenarios indicate that hexavalent demand may increase from ~18 million doses in 2026 to 74 - 125 million doses in 2030, depending upon the pace of transition. By 2035, demand under the two scenarios is forecast at 92 - 167 million doses.

Indian Vaccine Market

India has one of the worlds largest immunization programmes and a substantial domestic vaccine-manufacturing base. The Universal Immunization Programme provides vaccination against multiple vaccine-preventable diseases through a nationwide network of government health facilities and outreach services. India maintained national full-immunization coverage above 90% during each of the four onancial years from 2022 23 to 2025 26. Full-immunization coverage was reported at 97.9% for 2025 26, demonstrating the scale and reach of the Universal Immunization Programme . The Government of India launched a nationwide HPV vaccination campaign on February 28, 2026, for ~1.2 crore eligible girls aged 14 years across all States and Union Territories. The vaccine is being provided free of cost through designated government health facilities and is recorded through the U-WIN platform.

Indias research, manufacturing and regulatory ecosystem also supports the development and supply of vaccines for domestic and international markets. Continued investment in biotechnology, clinical research, manufacturing infrastructure, cold-chain systems and disease surveillance is expected to strengthen Indias role in global vaccine development and supply.

A key driver in the Indian vaccine market is the growing focus on preventive healthcare and government of Indias push on Project Indradhanush. With increasing awareness about disease outbreaks and the long-term beneots of immunization, both government and private stakeholders are prioritizing vaccination as a cost-e ective public health tool. The expansion of awareness campaigns, school-based programs, and healthcare worker outreach in rural areas is bolstering the Indian vaccine market growth. Additionally, the rise in lifestyle and infectious diseases has shifted consumer preference towards preventive measures. This change, together with strong government support and improved healthcare infrastructure, is signicantly accelerating vaccine demand across various age groups and socio-economic segments in India.

With one of the worlds largest paediatric populations, routine childhood immunizations remain a cornerstone of healthcare priorities. Simultaneously, an aging demographic is increasingly vulnerable to diseases like inouenza, pneumococcal infections, and shingles, prompting rising adult and geriatric vaccination needs. Government and private healthcare providers are introducing targeted immunization schedules to address these segments, backed by improved healthcare access and urbanization. This demographic-driven demand ensures consistent consumption across age groups, creating long-term market stability and encouraging new product development tailored to age-specic immunity requirements.

Opportunities in Indian Vaccine Market:

The Government of India is the single largest buyer of vaccines with procurement being undertaken for more than 25 million babies annually.

Higher local content requirements in Indian tenders continue to offer opportunities for Indian manufacturers to develop and commercialise EPI vaccines for the Indian high- volume but low-value Indian market.

Gavis 2026-2030 strategy and its 2024 Vaccine Investment Strategy provide market signals for vaccines against additional diseases, including tuberculosis, dengue, Group B streptococcus, mpox and hepatitis E. These developments may create opportunities for Indian manufacturers with relevant development platforms, scalable manufacturing capabilities and experience in supplying a ordable vaccines .

Expansion of digital immunization systems, preventive healthcare programmes and vaccination across additional age groups may support long-term growth in Indias public and private vaccine markets.

Challenges:

Vaccine misinformation: Misconception about vaccines often arises when there are information gaps or unsettled science, as human nature seeks to reason, better understand, and ll in the gaps. Vaccine misconceptions and misinformation are a major concern among governments, funding agencies, vaccine manufacturers and suppliers, and other stakeholders alike. Low acceptance rates due to vaccine misinformation result in the lower market penetration of effective and safe vaccines, which could adversely affect the market.

Regulatory Hurdles: Stringent and varying regulations across countries can delay market entry.

Competition: Increasing competition from other pharmaceutical companies developing similar vaccines.

Supply Chain Disruptions: Natural disasters, pandemics, or geopolitical issues can disrupt the supply chain.

Adverse Events and Safety Concerns: Reports of adverse events can lead to loss of trust and legal liabilities.

Stockouts of existing Vaccines

Vaccine stockouts continue to present a risk to immunization programmes, particularly where procurement, onancing, manufacturing or quality-related issues affect supply continuity. The latest WHO Global Vaccine Market Report records 68 countries reporting at least one national-level vaccine stockout during 2023 .

PANACEA BIOTECS BUSINESS AND STRATEGY

Panacea Biotec group continues to focus on its vaccines, pharmaceutical and nutrition business. Vaccines business contributes the largest share in the consolidated revenues. We believe that we have a strong pipeline of products and are well positioned for future growth in all the segments.

At the heart of Panacea Biotecs strategy lies a deep commitment to Research & Development. Our focus is not only on advancing science but also on making it a ordable, practical, and impactful for families worldwide. By improving e cacy, simplifying dosing regimens, and/or reducing the cost of manufacturing, our R&D efforts ensure that our innovations translate into better access, better outcomes, and healthier lives. We seek to leverage a strong pipeline, organized around expected operational growth drivers for creating long-term growth opportunities.

Building on this foundation, we are now consciously shaping our portfolio around the complete journey of a child. From the earliest stage of life where vaccines safeguard against life-threatening diseases, to early-age nutrition that supports growth and development, and into ongoing healthcare and wellness solutions, Panacea Biotec is creating a continuum of care. This child-centric approach ensures that we remain trusted, and indispensable across multiple stages of a familys health journey.

A critical enabler of this strategy is the trust and equity among paediatricians, earned over decades through our vaccines and pharmaceutical offerings. This unique positioning allows us to introduce new portfolios seamlessly, with credibility and conodence, reinforcing our role as a partner to both healthcare professionals and parents. By leveraging this strong foundation, Panacea Biotec is well placed to extend into adjacent categories and create a holistic ecosystem of solutions that strengthens our engagement with consumers over time.

We are committed to strategically capitalizing on growth opportunities, primarily by advancing our own product pipeline and maximizing the value of our existing products, but also through various business development initiatives. We view our business development activities as an enabler of our strategies and seek to generate growth by pursuing opportunities and transactions that have the potential to strengthen our business and capabilities. We assess our business, assets and scientic capabilities / portfolio as part of our regular, ongoing portfolio review process and continue to consider business development activities that will help advance our business strategy.

Panacea Biotecs Vaccine Business

Panacea Biotec is one of the leading manufacturers of paediatric vaccines and has played a pivotal role in eradication of poliomyelitis from India and many other countries, being one of the largest suppliers of oral polio vaccines to UNICEF, the Government of India and other developing countries. In the last over two decades, the Company has supplied more than 10.5 billion doses of polio vaccine and more than 210 million immunizations of fully liquid wP based combination vaccines in India and developing countries. Our innovations have helped in increasing paediatric immunization coverage, provided signicant savings in the overall cost of immunization and saved the lives of millions of children in developing countries. We believe that the following are our key strengths:

Advanced Research & Development

Strong R&D teams and state-of-the-art laboratories leverage intellectual property to enable the development of innovative vaccines and other products.

Strong Regulatory Expertise

Deep expertise in navigating complex global regulatory environments ensures efficient and timely product approvals.

Robust Manufacturing & Supply Chain

E cient manufacturing and distribution networks ensure timely, reliable delivery of high-quality vaccines and other products globally.

Trusted Brand & Global Reputation

A trusted partner for healthcare providers and global public health agencies, driving high acceptance and long-term health impact.

Journey marked by Polio eradication leading to bigger

impact across infectious diseases

The Company has pioneered in the development of vaccines ranging from recombinant, polysaccharide conjugate, and viral vaccines. The Company has a strong pipeline of vaccines under development to boost its future growth, including DengiAllR, a single-dose live-attenuated tetravalent vaccine against Dengue fever, NuCoVacR-11, a pneumococcal polysaccharide conjugate vaccine (11-valent), a multi-epitope nanoparticle-based broadly protective Beta coronavirus candidate vaccine, and several other vaccines at various stages of development.

Our paediatric vaccine franchise focuses on providing newborns protection against deadly diseases like diphtheria, tetanus toxoid, B. pertussis, hepatitis B, haemophilus inuenza Type b (Hib), and polio. We have a strong legacy as a global vaccine player with a track record to bring rst-t o-market innovative products like:

Worlds first fully liquid wP-IPV based hexavalent vaccine, EasySixR (DTwP-HepB-Hib-IPV)

Worlds first fully liquid wP-IPV based pentavalent vaccine, EasyFourPolR (DTwP-Hib-IPV)

Worlds first fully liquid wP based pentavalent vaccine, Easyv e-TTR (DTwP-HepB-Hib)

Worlds first monovalent oral polio vaccines (mOPVs) and bivalent oral polio vaccine (bOPV with poliovirus type 1 and type 3), Bi-OPVR.

During the onancial year 2025-26, total revenues from vaccines business was 4,102.56 million as against 3,098.43 million in the previous financial year. The revenue from export of vaccines has increased to 2,771.75 million (~67% of total vaccines revenue) as against 2,169.37 million during previous year.

The existing commercialized product portfolio of the Company includes key proprietary vaccines: hexavalent vaccine EasySixR, fully-liquid pentavalent vaccine EasyFourPolR, fully-liquid tetravalent vaccine EasyfourR-TT, WHO prequalied fully-liquid pentavalent vaccine Easyv e-TTR, and bivalent poliomyelitis vaccine Bi-OPVR.

In India, the Company has a eld force of around 150 persons spread across the country to regularly reach out to nearly 10,000 paediatricians across India. Over 400,000 children are vaccinated in the private market in India. EasySixR is the brand leader in India with the largest market share in its segment (IQVIA March 2024). The wP-IPV based hexavalent vaccines also compete with aP-IPV based vaccines in the private market in India.

About Easy ve-TTR

Easyove-TTR is the worlds orst fully liquid wP-based Pentavalent vaccine that was launched in India in 2005. After receiving WHO pre-qualiocation in 2008, more than 210 million doses have been supplied to over 75 countries globally. It is a ready-to-use combination vaccine that does not require preparation by healthcare workers at the clinic, reduces the number of visits to vaccination centres, and reduces the overall cost of immunization for all stakeholders.

About EasySixR and EasyFourPolR

Panacea Biotec is the innovator and intellectual property holder of EasySixR, the worlds first fully-liquid hexavalent vaccine. The WHOs Strategic Advisory Group of Experts on Immunization (SAGE) has supported the global rollout of wP-IPV based hexavalent vaccine in the global immunization schedule creating an opportunity for more than 250 million doses of hexavalent vaccine annually. Panacea Biotec is in the process of expanding its manufacturing capacities in order to meet the growing demand of vaccines in future by public health agencies.

In 2024, Panacea Biotec also launched the worlds first fully-liquid wP-IPV based pentavalent vaccine under brand name of EasyFourPolR which provides protection against diphtheria, tetanus toxoid, B. pertussis, Hib, and polio. It is the only vaccine in its segment of wP-IPV based vaccine that aids healthcare practitioners who prefer to give hepatitis B as a standalone vaccine or in mixed schedules due to high-risk births.

Environmental Sustainability: Our combination vaccines, led by EasySixR, EasyFourPolR, and EasyFive-TTR, also set the precedent of promoting environmental sustainability. Adoption of EasySixR in the immunization program leads to reduction of over 60% carbon emissions, helps make a single immunisation program (3 vs 1), over 50% reduction in supply chain costs and storage benets , and also more than 50% reduction in biological waste.

Apart from lower number of injections and less pain for children, EasySixR provides additional benets to parents and governments. As parents are able to get all the vaccinations completed in fewer visits, they are more likely to get their children vaccinated. With higher vaccination rates, governments have to spend less money to create healthcare infrastructure and doctors / nurses spend less time on treating avoidable diseases among children; families also get benet ed as they truly spend their income to improve their quality of life. Hence, overall society benets from critical combination vaccines like EasySixR.

60% reduction in CO2 emissions

CO emissions for 30	Current immunisation	Hexavalent
2
million doses (in kg)	schedule	Vaccine
	(3 Penta and 3 IPV)
Paper	7,988,775	3,195,510
Glass	225,721	90,288
Steel	4,625	1,850
Transportation	8,707,455	3,482,982
Total for 30 million doses	16,926,576	6,770,630

Source: Company assessment based on comparative packaging, material utilization and transportation requirements

for 30 million immunization doses. The calculations are based on the assumptions and methodology maintained by the Company.

Considering the benets that hexavalent vaccine offers, WHO SAGE in October 2021 approved adoption of hexavalent vaccine in the global immunization program. This led to PAHOs adoption in May 2023 and Gavis adoption in June 2023. The pace and scope of country transitions from separate pentavalent and IPV vaccination to hexavalent vaccination are expected to be the principal drivers of future hexavalent demand. The latest Gavi 7.3 demand scenarios are presented below:

Transition Scenario for
	2026	2030	2035
adoption of Hexavalent vaccine
Accelerated transition	18	125	167
Limited transition	18	74	92

Actual demand will, however, depend upon country introduction decisions, onancing, product availability, programme readiness and procurement timelines.

Pipeline vaccines

The Company is in the process of launching TedShotR (Tetanus and Diphtheria reduced) vaccine in India after having received marketing authorisation in India. We expect it to compete in the annual 250 million private market in India and the public market procurement.

The Phase III clinical trial for Indias first dengue vaccine, DengiAllR, is ongoing. The Company has collaborated with the Indian Council of Medical Research (ICMR) for the Phase III clinical trial of DengiAllR vaccine.

The Phase II/III clinical trial of NuCoVacR-11, the Companys 11-valent pneumococcal conjugate vaccine candidate, has been completed in India. Subject to receipt of applicable regulatory approvals, NuCoVacR-11 is expected to compete in the approximately 1,000 million annual pneumococcal vaccine market in India.

The Company is also developing a multi-epitope recombinant

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mpox vaccine, VaxiPox designed against highly conserved antigens across mpox clades, jointly with BRIC-THSTI. A recombinant, nanoparticle broadly protective Beta coronavirus candidate vaccine is being developed in collaboration with BRIC-THSTI.

About DengiAllR

Panacea Biotecs tetravalent dengue vaccine candidate, DengiAllR has been developed to provide balanced protection across all four dengue virus serotypes while ensuring a superior safety proole compared to existing options. One of the major challenges in dengue vaccine development has been the risk of antibody-dependent enhancement (ADE), which can lead to more severe disease in individuals without prior dengue exposure. This has been a recurring safety concern with earlier and some current vaccines, where e cacy against certain serotypes was inconsistent.

In fact, long-term analyses of competing products (Daniels et al (Nat Med 31)) have shown that while protection was achieved for DENV1 and DENV2, there was little to no e cacy against DENV3 and DENV4 in seronegative individuals. Moreover, imbalances were observed in hospitalization rates for DENV3, with the vaccine arm showing more cases than placebo, and regulatory reviews have highlighted the risk of hospitalization and severe dengue - including dengue haemorrhagic fever - linked to DENV3 and DENV4 in dengue-naive recipients.

DengiAllR has been designed to overcome these limitations by avoiding structural imbalances that contribute to serotype-specic risks. Its safety advantage is reinforced by both human challenge and non-human primate studies, where DengiAlls strains have demonstrated robust protection. In controlled human infection models, vaccinated volunteers resisted wild-type dengue challenge, showing prevention of both viremia and symptomatic illness across all four serotypes without evidence of breakthrough severe cases. Similarly, monkey challenge studies conrmed that vaccinated animals mounted strong neutralizing antibody responses, were protected from clinical illness, and did not experience ADE-associated complications.

Together, these findings position DengiAllR as a safer and more programmatically deployable dengue vaccine candidate, with the potential to eliminate the need for pre-vaccination screening. By combining a broad tetravalent response with early evidence of durable safety from challenge studies, DengiAllR stands out as a next-generation solution capable of addressing the global unmet need for a reliable dengue vaccine.

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About Mpox candidate vaccine VaxiPox

Mpox, caused by the Monkeypox virus (MPXV), has re-emerged as a signicant global health c oncern with multiple clades in circulation. Clade I (Central African, further divided into Ia and Ib) is associated with more severe disease and higher fatality rates, while Clade II (West African, with subclades IIa and IIb) has been responsible for the widespread outbreaks since 2022. The ongoing circulation of both severe and milder clades highlights the unpredictable nature of the disease and the potential for further international spread. A major clinical challenge lies in the waning immunity resulting from the cessation of smallpox vaccination programs after eradication in 1980. While older populations may retain partial cross-protection, younger generations are largely susceptible, leaving a growing global immunological gap. This has been compounded by new epidemiological patterns of transmission, including household spread, nosocomial infections, and sexual networks, which have accelerated the diseases reach across continents.

Against this backdrop, Panacea Biotec, in collaboration with

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BRIC-THSTI, is developing VaxiPox , a novel multi-epitope

subunit vaccine designed to target conserved antigens across

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circulating clades. Unlike live-virus vaccines, VaxiPox offers a safer prole suitable for wider populations, including immune compromised individuals and children, while eliciting both strong T-cell and neutralizing antibody responses. With global Mpox cases surpassing 142,000 conrmed infections across more than 130 countries since 2022, the demand for effective, broadly protective vaccines have never been more pressing. The global mpox vaccine market, valued at ~US$ 114.06

million in 2025-26, is projected to reach nearly US$ 372.85

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million by 2035, growing at a CAGR of over 13.3%. VaxiPox is well-positioned to address this unmet need, combining scientioc innovation with scalable production to ensure accessibility in both developed and resource-limited regions.

About Broadly protective Beta coronavirus candidate

vaccine

A recombinant, nanoparticle candidate vaccine collaboratively developed with BRIC-THSTI, has potential to offer protection against SARS-CoV-1, SARS-CoV-2 and MERS to drive broad neutralization. It has been formulated with Panacea Biotecs EmulsiPan adjuvant. The program is co-funded by The Coalition for Epidemic Preparedness Innovations (CEPI) (US$12.5 million) and is advancing towards Phase I human safety studies.

Beta coronaviruses have emerged repeatedly in recent decades, underlining the urgent need for broadly protective vaccines. The SARS-CoV-1 outbreak in 2001 (commonly referred to as the 2002 2003 SARS pandemic) demonstrated how a novel coronavirus could spread rapidly across continents, resulting in over 8,000 cases with nearly 10% fatality. This was followed by the SARS-CoV-2 pandemic in 2019, which escalated into the most disruptive global health crisis in recent history, infecting hundreds of millions, causing millions of deaths, and leaving long-lasting socio-economic impacts worldwide. Parallel to these, Middle East Respiratory Syndrome (MERS) - first identied in 2012 - has continued to pose a persistent threat, especially in Saudi Arabia. By May 2025, there have been 2,626 conrmed cases globally, of which more than 2,217 were reported in Saudi Arabia alone, with a fatality rate close to 39%. These repeated incursions underscore the unpredictability and high lethality of beta coronaviruses.

India, like several other countries, faces a heightened vulnerability due to animal reservoirs and environmental interfaces. Dromedary camels are recognized carriers of MERS-CoV, and multiple coronavirus strains have also been identied in Indian bat populations. The close human animal proximity that characterizes large parts of India - driven by livestock dependence, expanding urban encroachment, and ecological disruption - further elevates the risk of zoonotic spillovers. In conic t-prone or resource-constrained regions, surveillance and containment are even more di cult, compounding the risk of localized outbreaks escalating into wider epidemics.

Together, these initiatives highlight how Indias scientioc partnerships are producing globally relevant vaccine solutions. With rising risks from coronaviruses, poxviruses, and other zoonoses, platforms that combine antigenic breadth, rapid manufacturability, and a ordability are poised to become cornerstones of global pandemic security.

Global Institutional business for Vaccines

Panacea Biotec has been one of the largest suppliers of vaccines to multilateral agencies such as UNICEF and PAHO and has been supplying vaccines to institutional customers and national governments for over two decades. During the year under review, the Companys vaccines were exported to ~37 countries across Africa, Asia, and Latin America. In addition to supplying Easyv e-TTR, EasySixR and Bi-OPVR, the Company plans to seek WHO prequalication for its pipeline products and other licensed products such as Pneumococcal Conjugate vaccine, Dengue Tetravalent vaccine, EasyFourPolR and Td vaccine, enabling their supply to UN agencies and other national governments.

As part of its strategy to expand into the international private vaccine market, the Company has already registered its vaccines in 17 countries, including through the African Medicines Regulatory Harmonization (AMRH) initiative. This will, inter alia, facilitate the launch of its products across ~32 countries in the African region that have ratied the African Medicines Agency (AMA) Treaty.

Panacea Biotec remains committed to supporting the global cause of providing a ordable vaccines to children across the world. The Company works closely with leading global health organizations, including WHO, Gavi, UNICEF, PAHO, CEPI, the Gates Foundation, and the Clinton Health Access Initiative (CHAI). The Company is also a member of the Developing Countries Vaccine Manufacturers Network (DCVMN), a public health-driven international alliance of vaccine manufacturers that shares a common vision and mission of combating infectious diseases and accelerating access to a ordable, high-quality vaccines.

Our Role in Polio Eradication

The Company has delivered over 10.5 billion doses of polio

vaccines across the world. We started this journey in India in

1990 and then subsequently touched more than 1 billion doses supplied in 2007 - the largest in the world at the time. Worlds first monovalent oral polio vaccines (mOPVs) and bivalent oral polio vaccine (bOPV with Poliovirus Type 1 and Type 3), Bi-OPV: Anticipating stagnancy in the number of polio cases in 2005, Panacea Biotec launched monovalent OPV vaccines to help arrest the number of polio cases and nally , reach 0 cases in 2011 that we celebrate even today.

GLOBAL PHARMACEUTICAL MARKET

The global pharmaceutical industry continued to demonstrate resilient growth during 2025, supported by rising medicine utilisation, the increasing burden of chronic diseases, continued introduction of innovative therapies and expansion of healthcare access across several markets. According to IQVIA, the global prescription pharmaceutical market reached ~US$1.7 trillion at list prices in 2025, recording year-on-year growth of ~10%. Global medicine spending is projected to reach US$2.6 trillion by 2030, representing an estimated compound annual growth rate of 5% - 8%. This growth outlook remains subject to factors including pricing and reimbursement pressures, changes in healthcare and trade policies, geopolitical uncertainty and the increasing impact of loss of exclusivity for major pharmaceutical products.

Global pharmaceutical market size and growth, 2016 - 2030

The global demand for medicines is being shaped by demographic changes, ageing populations, increasing healthcare access and the continuing prevalence of non-communicable diseases. Cardiovascular diseases, cancer, chronic respiratory diseases and diabetes remain the principal non-communicable diseases globally. The World Health Organization estimates that these conditions account for a substantial majority of premature deaths from non-communicable diseases, with physical inactivity, unhealthy diets, tobacco use, harmful use of alcohol and air pollution being among the major contributing risk factors. The burden is particularly signiocant in low- and middle-income countries, creating a continuing need for accessible, a ordable and effective therapies.

The geographical composition of the pharmaceutical market remains concentrated in developed markets. The United States continued to be the largest pharmaceutical market, accounting for approximately 53% of the global prescription medicine market by value in 2025, while Europe represented approximately 24%. Although the Asia-Pacioc region accounted for a smaller share of global sales value, the region remains important from a long-term perspective due to its large patient population, increasing medicine utilisation and expanding healthcare infrastructure. China, the worlds second-largest pharmaceutical market, is expected to remain an important contributor to global volume growth through 2030. Growth in the Middle East and Africa has also accelerated, supported by healthcare reforms, improved access and increasing demand for medicines.

Growth is becoming increasingly concentrated in high-value and specialty therapeutic areas. Oncology, immunology and diabetes together accounted for ~43% of global pharmaceutical market value in 2025. Obesity treatments have also emerged as a major contributor to market growth, reec ting increasing prevalence, improved diagnosis and the rapid adoption of new-generation therapies. Oncology remained the largest therapeutic area, with global sales of ~US$288 billion during 2025. Continued innovation in antibody-drug conjugates, immunotherapies, radio- pharmaceuticals, targeted therapies and other advanced modalities is expected to support growth, although increasing generic and biosimilar competition will moderate growth for certain established products.

The industry is continuing its transition from predominantly broad-based small-molecule therapies towards a more diversied portfolio of targeted and specialized treatments. Biologics, biosimilars, cell and gene therapies, precision medicines, companion diagnostics, RNA-based treatments and therapies for rare diseases are becoming increasingly important components of pharmaceutical research and commercial portfolios. At the same time, small-molecule medicines continue to play a critical role due to their established clinical utility, scalability, patient accessibility and suitability for generic competition.

Innovation remained active during 2025. The US Food and Drug Administrations Center for Drug Evaluation and Research approved 46 novel drugs during 2025, in addition to approvals for new indications and expanded patient populations for previously approved medicines. Globally, an estimated 73 novel active substances were launched during 2025, exceeding the average recorded over the preceding decade. These developments reec t sustained investment in research and development despite increasing scientioc, regulatory and commercial complexity.

Digital technologies are increasingly being integrated throughout the pharmaceutical value chain. Artiocial intelligence, machine learning, automation and advanced analytics are being applied in target identication, molecular design, clinical-trial planning, manufacturing, pharma-covigilance, regulatory processes and commercial decision-making. Their effective deployment has the potential to improve development productivity, shorten certain decision cycles and enable more efficient use of clinical and real-world data. However, adoption will require robust governance relating to data quality, validation, cybersecurity, patient privacy and regulatory compliance.

The industry also faces a signicant cycle of patent expiries and loss of exclusivity through the remainder of the decade. Generic and biosimilar competition is expected to improve patient access and generate savings for healthcare systems, while placing pressure on the revenues of originator companies. Loss of exclusivity is expected to be one of the principal factors moderating global pharmaceutical market growth through 2030. Consequently, pharmaceutical companies continue to focus on pipeline replenishment through internal research, licensing arrangements, strategic collaborations and acquisitions of differentiated products and technology platforms.

Pricing and market-access pressures remain important considerations, particularly in major developed markets. Governments and healthcare payers continue to seek a balance between encouraging pharmaceutical innovation, ensuring the sustainability of healthcare expenditure and improving patient access. In parallel, evolving trade policies, supply-chain localisation initiatives and geopolitical developments are encouraging companies to reassess manufacturing networks, sourcing strategies and supply-chain resilience.

Overall, the global pharmaceutical industry is expected to remain on a positive long-term growth trajectory, supported by unmet medical needs, demographic trends, scientioc advancement and broader access to healthcare. Success will increasingly depend upon the ability of companies to maintain high standards of quality and regulatory compliance, develop differentiated and cost-e ective products, manage complex global supply chains, leverage digital technologies responsibly and establish collaborative partnerships across the healthcare ecosystem.

Indian Pharmaceutical Market

The pharmaceutical industry in India is a signicant part of the

nations foreign trade and offers lucrative potential for investors. Millions of people around the world receive a ordable and inexpensive generic medications from India, which also runs a sizable number of plants that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration (USFDA).

According to data from the Economic Survey 2025 26 and recent industry reports, the Indian pharmaceutical market stood at US$ 57.61 billion (~ 4,970 billion) in 2025 and is estimated to reach US$ 60.32 billion (~ 5,200 billion) in 2026. Backed by structural reforms and reliable export capacity, the market is projected to reach US$ 79.74 billion by 2031.

Widely recognized as the Pharmacy of the World , India ranks

rd th

3 globally in pharmaceutical production by volume and 11 by value. Driven by manufacturing expansions, total pharmaceutical exports grew by 9.4% to reach US$ 30.47 billion (~ 2,660 billion) in FY2024 25, spanning 191 countries and territories.

India has an established domestic pharmaceutical industry, with a strong network of ~3,000 pharmaceutical companies and ~10,500 manufacturing units. India supplies over 50% of Africas requirement for generics, ~40% of generic demand in the US and ~25% of all medicine in the UK.

Reciprocal tari s introduced by the United States have added uncertainty to the outlook. The Reserve Bank of India (RBI) has cautioned that these tari developments may dampen exports and weaken domestic demand, prompting a downward revision of its growth forecast from 6.7% to 6.5%. The US Governments reciprocal tari policy is likely to signiocantly impact Indian pharmaceutical companies, particularly those exporting to the US market. USA is Indias largest market for pharmaceutical exports, accounting for ~31% of Indias total pharmaceutical exports in financial year 2024-25. To counter these challenges, India is intensifying efforts on diversifying its export markets, negotiating trade agreements, and boosting domestic manufacturing. The country is also poised to beneot from supply chain realignments and foreign direct investment diversication. However, the global slowdown driven by trade tensions remains a key risk. RBI maintains that calibrated policy support can enable India to navigate this volatility and strengthen its position within the emerging global economic landscape.

Indian Nutrition Market

The Indian baby food and infant formula market is experiencing robust growth in 2026, valued at over US$ 10 billion and projected to grow at a CAGR of 5% to 7%. The growth in this market is driven by increasing female workforce participation and increasing awareness among the parents for overall development of children through nutritional products. Consumers are increasingly using baby food products to give additional supplements to increase the immunity and health of infants and young children. Government initiatives such as the Pradhan Mantri Matru Vandana Yojana (PMMVY) and Integrated Child Development Services (ICDS) are crucial in promoting proper infant nutrition in the country. These programs aim to address malnutrition and improve maternal and child health by providing support and nutritional supplements. Additionally, advancements in research and technology have led to innovative product formulations, focusing on nutritional content and development benets .

With a growing awareness of nutritions importance in early childhood, increasing disposable incomes, and changing lifestyles, the market has become dynamic and competitive. The demand for organic and natural ingredients has also gained traction, resulting in a growing preference for healthier options among parents.

Healthcare professional recommendations are serving as a

key driver for the expanding infant and toddler nutrition market in India. Parents increasingly rely on guidance from paediatricians and nutrition experts when making decisions about their childrens diets. As healthcare professionals emphasize the crucial role of proper nutrition in early childhood development, their endorsements carry considerable weight, inouencing parental choices. Paediatricians often recommend products that contain essential nutrients, vitamins, and minerals, aligning with a childs specioc developmental needs. This endorsement provides a direct link between healthcare advice and consumer purchasing behaviour.

Indian Baby Care Products Market

The Indian baby care products market size in 2026 is valued between US$ 5.51 billion and US$ 5.57 billion. It is expected to reach US$ 9.52 billion to US$ 9.72 billion by 2031 at a CAGR of 11% to 12% annually. Baby care products are designed to cater to the unique needs of babies and young children whose delicate skin requires special care and attention. These value-added products are formulated to be mild and gentle, with no parabens, phthalates, toxins, or mineral oil, with a focus on providing hydration and nourishment to the skin while keeping it clean and comfortable. The baby skincare products market in India has witnessed signiocant growth in recent years. The increasing awareness among parents regarding the importance of using safe and natural products for their babies skin has led to a rise in demand for baby skincare products. Moreover, the growth of the e-commerce industry has made it easier for parents to access a wider range of products and purchase them online. The increasing number of women joining the workforce in India has led to a rise in demand for baby care products, as working parents have less time to follow traditional methods of baby care.

Additionally, the use of innovative product packaging and the

incorporation of organic ingredients with health benets have further boosted the demand for baby care products in India. These trends are expected to continue driving the growth of the baby care products market in India in the coming years.

PHARMACEUTICAL FORMULATIONS AND NUTRITION

BUSINESS

During the year under review, total consolidated revenues from pharmaceuticals and nutrition business was 2,295.18 million as against 2,492.51 million during previous financial year. The revenues from exports of pharmaceutical products were 1,441.48 million as against 1,838.27 million in previous onancial year. The domestic revenues from pharmaceutical formulations and nutrition business increased to 853.70 million from 654.24 million during previous financial year mainly due to higher revenue from contract manufacturing activities.

International Pharmaceutical Formulations Business

During the year under review, the Companys wholly-owned subsidiary Panacea Biotec Pharma Limited ( PBPL ) has exported its pharmaceutical products to over 40 countries worldwide including the United States, Canada, Germany, Serbia, Bosnia, Kosovo, UAE, Saudi Arabia, Qatar, Russia, Kazakhstan, Algeria, Turkey, Tanzania, Kenya, Uganda, Ghana, Indonesia, Vietnam, Philippines, Myanmar, Sri Lanka, Mongolia, Thailand, Brazil, Panama, Ecuador, Paraguay, Costa Rica, Chile, Cambodia, Jordan, Trinidad & Tobago, Rwanda, etc.

PBPL has been pursuing its international pharmaceutical formulation business with a team of dedicated employees and has established relationships with various key business associates / partners who market / distribute its products across several countries in the world in both ICH markets and ROW countries.

In North America and Europe, PBPL is taking several steps to strengthen its position. Panacea Biotec Germany GmbH (PBGG) launched Valgapan (Valganciclovir) in Germany during previous onancial year, while portfolio expansion with Siropan is underway. Broader European expansion is advancing, with marketing authorisation applications for PacliAllR oled in 11 EU countries. The orst marketing authorization is expected during the current financial year, followed by commercial launches. Product registrations are initiated in new markets like the UK that will help in sustained growth. Portfolio building is also supported by in-licensing products from other manufacturers, alongside assessment of nutrition and supplement opportunities to build a broader presence in the region.

In the Rest of the World (ROW) markets, PBPL expanded its global presence signiocantly during the year under review. PBPL entered markets such as Algeria, Egypt, Libya, Oman, Qatar, and South Africa, with product launches scheduled in the next 1-2 years. Saudi Arabia also witnessed the relaunch of Rizatriptan, reinforcing PBPLs established base in the region. In Asia-Pacioc region, products were successfully commercialized in Indonesia, and regulatory transfer activities were completed in Australia, paving the way for a commercial launch of under registration dossiers in financial year 2026-27. With these developments, PBPL has set the foundation to expand its ROW markets footprint from ~40 operational countries to 54 over the next v e years, with 8 new markets expected to be added in the near term and remaining in the longer horizon.

PBPL now maintains 386 active registrations across ROW markets, supported by 36 registration dossiers under review and a further 68 dossiers planned for oling in the current onancial year. Alongside regulatory expansion, portfolio development has been accelerated, with seven new products under various stages of development.

Nutrition and Baby Care Business

In the Indian market, PBPL continues to pursue a clear strategy of strengthening its existing brands while building new categories to address the evolving needs of families - children, newborns, and new mothers. Our focus has been on creating meaningful healthcare solutions that extend beyond clinical care into everyday preventive and lifestyle wellness, while expanding access through deeper retail penetration and digital platforms.

Since its launch in June 2023, our sustained efforts to build our brand ChilRunR, have been supported by innovative marketing initiatives such as Fizz Zone taste camps, Shakti Health camps and Observation Studies designed to assess the impact of products on childrens growth in real-world scenarios. In addition, campaigns in schools and Resident Welfare Associations have successfully amplied awareness and trust among parents, reinforcing ChilRuns positioning as a trusted nutritional solution for growing children.

Also, ChilRun fullR has demonstrated considerable success in enhancing childhood growth, especially among ones at risk of malnutrition, according to the results of a comprehensive 90-day nationwide post-marketing observational study in more than 4,000 kids, conducted by PBPL.

During the onancial year 2025-26, PBPL launched the NikoMomR Baby Skin Care range to complement NikoMomR Baby Diapers and Wet Wipes. NikoMomR Baby Skin Care covers a wide spectrum of everyday essentials for newborn babies such as Massage Oil, Head-to-Toe Wash, Daily Lotion, and Diaper Rash Cream. Each product is hypoallergenic, toxin-free, and dermatologically tested, ensuring that delicate baby skin receives only the best. Infused with natural oils, plant-based extracts, and nourishing vitamins, the range provides holistic baby care without harmful chemicals like parabens, sulfates, silicones or articial dyes. During the onancial year 2025-26, PBPL also launched StaartR Prime Infant Formula in 2 variants. The Staart Prime Infant Formula for Stage 1 (0 6 Months) and for Stages 2-3-4 (6-24 months) is formulated to provide age-appropriate nutrition support for infants when breastfeeding is not possible. It contains a blend of proteins, prebiotics, DHA, ARA, vitamins, minerals and other nutrients which are recognized for their role in supporting age-appropriate overall growth and development of the baby. Staart Prime is free from palmolein oil, maltodextrin, fructose, high fructose corn syrup and table sugar.

Recognizing the importance of modern retail channels, PBPL

has expanded access to its brands through e-commerce platforms. Its brands are now available on Amazon, Flipkart, Tata 1mg, etc. in addition to its own direct-to-consumer portal,www.7Nshop.com, which enables customers to access its offerings directly from PBPL. This multi-channel approach has positioned PBPL to engage with consumers across digital and physical ecosystems, ensuring its brands are accessible anytime, anywhere, and paving the way for future launches.

To further strengthen its retail presence, PBPL had set up a new dedicated trade expansion initiative under the LEAP SBU last year. This specialized team penetrated into untapped markets making its brands available at specialized chemist retail chains such as Frank Ross pharmacies, Zeelab pharmacies, Global Pharmacy Plus, Chemist Box, Noble Plus, Dr Morepen Pharmacies and standalone chemist outlets. While LEAP has played a key role in making its brands available at such outlets, it has been instrumental in enhancing and revamping distribution to make its brands available at general trade outlets. Today, PBPLs brands are available at more than 30,000 chemists which are catered through 1800+ distributors. To strengthen last-mile connectivity, PBPL is expanding its stockiest base, to create a structured go-to-market model for agship consumer brands such as StaartR Prime, NikoMomR and ChilRunR, ensuring deeper retail penetration and stronger presence in modern and general trade channels. In parallel, Panacea Biotec is investing in and leveraging its proprietary platform www.7Nshop.com alongside e-commerce and quick commerce partners such as Amazon, Flipkart, and Tata 1mg. By integrating its CFA network into D2C deliveries, PBPL is creating a hybrid supply model that combines scale efficiency with consumer convenience, thereby supporting its ambition to become a leading household name in family healthcare.

Together, these initiatives reec t an India strategy built on three pillars: (i) sustaining and scaling existing brands through awareness campaigns and retail expansion; (ii) launching new, strategically aligned categories that extend our neonatal and paediatric expertise into broader family care; and (iii) leveraging new channels, digital platforms, and acquisitions to reach a wider consumer base. By integrating nutrition, hygiene, and lifestyle wellness under a unied approach, PBPL is positioning itself as a holistic partner in the growth and well-being of families in India.

Supply Chain Management

Panacea Biotec is committed to ensuring the timely availability of its products to its business partners and patients. It has an established Supply Chain Management (SCM) system designed for creating end-to-end visibility and controls right from sourcing of materials till collection of receivables for the vaccines, pharmaceuticals, nutrition and baby care products.

In India, Panacea Biotec has built a robust and agile supply chain designed to support its fast-growing vaccines, baby hygiene, and nutrition businesses. The Group operates through 2 Central Warehouses and 14 Sales Depots / Carrying & Forwarding Agents (CFAs), supported by a network of nearly 1,800 distributors as of March 31, 2026. This infrastructure ensures a Pan-India presence, enabling timely availability of products across urban, semi-urban, and rural markets. Globally, Panacea Biotec has established a supply chain framework designed to deliver reliability, compliance, and efficiency across ICH and ROW markets. Panacea Biotec works with world-class logistics providers, clearing agents, and airlines, ensuring consistent delivery to partners in Asia, Europe, Africa, and North & South America. To support its fast-expanding footprint, Panacea Biotec continues to optimize its export logistics and international distribution partnerships, aligning with its growth strategy to reach 50+ countries over the next v e years.

A key strength lies in Panacea Biotecs cold chain management expertise, which underpins its vaccines business. The Company employs Vaccine Vial Monitors (VVMs), data loggers, refrigerated vehicles, cold rooms, ice boxes, coolant, and Tyvek packaging to ensure temperature stability throughout the supply journey. Every pallet in international consignments is otted with data loggers, enabling real-time monitoring and compliance with stringent global regulatory requirements.

Additionally, Panacea Biotec has developed a Track & Trace system and best-in-class documentation protocols, minimizing risks of delays, damages or demurrage. This system not only ensures timely deliveries but also reinforces Panacea Biotecs reputation as a trusted partner in critical healthcare supply chains worldwide. By aligning its global distribution strength with its product pipeline in vaccines, immunosuppressants, nutrition, and hygiene products, the Company is well positioned to scale its international business across regulated ICH and ROW markets.

Together, Panacea Biotecs domestic and international supply chain infrastructures form a complementary backbone that supports its growth ambitions. In India, the focus remains on retail expansion, brand visibility, and direct consumer engagement, while globally the emphasis is on compliance driven logistics, cold chain excellence, and strategic distributor partnerships. This dual approach ensures that the Company not only delivers efficiency and reliability today but also creates the capacity and exibilit y needed to scale in line with its long-term business strategy.

MANUFACTURING FACILITIES

Vaccine Drug Substance facilities at Lalru

The Company operates state-of-the-art drug substance manufacturing facilities at Lalru, Punjab, which commenced operations in 2002. Lalru site houses multiple blocks dedicated to produce recombinant, bacterial, and viral vaccine drug substances.

Specialized Manufacturing Blocks for Vaccine Drug Substances: The facility is designed with dedicated, independently operable manufacturing blocks, each tailored to the specic process and biosafety requirements of different vaccine platforms. These blocks enable high-containment, contamination-controlled production of complex biologics with enhanced operational exibilit y.

The manufacturing blocks are categorized as follows:

Bacterial Vaccines Block: Supporting the cultivation, inactivation, and downstream processing of bacterial antigens.

Viral Vaccines Block: Equipped for propagation of viral strains under controlled bio safety conditions.

Recombinant Vaccines Block: Designed for microbial expression systems (E.coli, Pichia pastoris) used in recombinant protein production.

These specialized blocks enable the manufacture of critical

vaccine drug substances, including:

recombinant hepatitis B surface antigen (r-HBsAg) -

produced via yeast expression systems and puried .

Tetanus toxoid (TT) puried tetanus toxoid, used as both an antigen and carrier protein.

Haemophilus inuenzae type b (Hib) Polysaccharide and Hib-TT Conjugate.

Inactivated whole-cell pertussis (wP) and diphtheria toxoid (DT).

Viral Drug Substance Line - currently supporting the manufacturing of dengue vaccine drug substance, with scope for other viral vaccines under development.

Each block is engineered to comply with international GMP guidelines and incorporates scalable bioprocessing technologies to support both clinical and commercial-stage manufacturing.

The Lalru facility is WHO prequalied for the production of Hepatitis B and Hib-TT conjugate antigens, which are key components in the manufacture of the Companys WHO-prequalied pentavalent vaccine Easyv e-TTR as well as the Companys hexavalent vaccine, EasySixR.

To meet the growing demand from UN agencies and national immunization programs globally for hexavalent vaccines, the Company is currently executing a major capacity expansion project at the Lalru site for scaling up of manufacturing capacities for whole-cell pertussis (wP) and diphtheria toxoid (DT) to 70 million doses per annum. The facility expansion has been successfully completed and technology transfer from existing block to new line has been completed successfully for like-to-like scale batches. The Company has already received approvals for whole-cell pertussis (wP) from the Indian National Regulatory Authority (NRA) while application has been made for diphtheria toxoid (DT) as well. The application for WHO pre-qualication is targeted to be submitted during current financial year.

In order to help nanc e the said capacity expansion project, the Company has been sanctioned long-term loan of upto US$ 20 million by the U.S. Governments development nanc e institution, the U.S. International Development Finance Corporation ( DFC ). DFCs financing will enable the Company to expedite completion of Scale-up batches, to support the supply of hexavalent vaccine to U.N. agencies for childhood immunization globally. The process was delayed due to change in the U.S. Government which has now cleared the proposal. The process of legal due diligence and nalization of financing documents for the said long-term loan is now in advanced stage.

Vaccines Drug Product Facility at Baddi

The Companys state-of-the-art manufacturing facility for vaccine drug products, comply with the cGMP practices of the key International regulatory bodies like WHO cGMP standards. The Vaccine Formulation Facility at Baddi, Himachal Pradesh, which started its operations in the year 2008, comprises of two blocks. The production block is spread over approx. 2,800 M2 constructed areas at each floor . The warehouse cum cold storage block measures approx. 4,702 M2. The facility has two independent formulation suites and three lling lines for manufacturing of bacterial, viral and recombinant vaccines including live attenuated vaccines in pre-lled syringe (PFS) and in single dose and multi-dose vial presentations. The facility also has large lyophilization capacity for manufacturing lyophilized vaccines in vials. This facility is approved by Indian NRA and several other countries and is also pre-qualied by WHO for the pentavalent vaccine Easyv e-TTR and bOPV. The Quality control laboratories of the facility are equipped with an assortment of sophisticated analytical equipment for testing of vaccines and input materials to assure quality of the product at each stage of manufacturing. The warehouse facility is equipped with cold storage and deep freezers for cold chain maintenance and dispatch management of vaccines.

Pharmaceutical Formulations Facility at Baddi

Panacea Biotec Pharmas state-of-the-art pharmaceutical formulations facility at Baddi, Himachal Pradesh became operational in year 2006. The facility is equipped for bilayer tablets, complex sustained release coatings and delayed release coatings. The facility has received several certications and accreditations from international regulatory authorities including USFDA, National Health Surveillance Agency (ANVISA), Ghana, Ukraine, Uganda, Saudi Arabia, Ethiopia, Zimbabwe, Kazakhstan, Tanzania, EAEU, Uzbekistan, WHO-GMP (CDSCO), etc.

Quality is a core guiding factor behind Panacea Biotecs decisions and actions. Panacea Biotec Pharma maintains a harmonized Pharmaceutical Quality System (PQS) that caters to all markets. Some of its pharmaceutical formulation products are routinely supplied to low-income countries under access programs through international agencies such as PAHO.

Panacea Biotec Pharma has dedicated and independent Quality Control facilities in the manufacturing facilities comprising of sample preparation with isolate or containment, wet lab, lab for atomic absorption spectroscopy, dissolution testing and stability testing as per ICH Guidelines, a packaging-material testing laboratory and a fully self-contained microbiology lab to carry out tests for microbial counts, microbiological assays and assessing environment controls.

Panacea Biotec Pharmas pharmaceutical manufacturing expertise lies in various Oral-solid, semi-solids and liquid oral dosage forms such as:

Oral-solids - conventional tablets / capsules, controlled / delayed release / enteric coated tablets and capsules, tablet in tablet, tablet in capsule, multi layered capsules, hard gelatin / soft gelatin capsules, mouth dissolving / chewable tablets, beads encapsulation, coating (olm, sugar, and functional), taste masking and fast-dissolving tablets;

Semi-solids - ointments / creams / gels, transdermal drug delivery system; and

Liquids - suspensions / syrups / solutions.

Cytotoxic / Oncology Facility at Baddi

Panacea Biotec Pharmas cytotoxic injectable formulation facility at Baddi, Himachal Pradesh, has dedicated lling lines for liquid & lyophilized injectables as well as pilot scale up batches complying with USFDA, EU and ROW cGMP norms. Cytotoxic facility is equipped for manufacturing conventional and technology-based injections e.g. nano-particle and liposomal lyophilized products. This facility has been approved by Indian NRA, USFDA, Health Canada, Ukraine, Uganda, Saudi Arabia, Ethiopia, Zimbabwe, Kazakhstan, Tanzania, WHO-GMP (CDSCO).

The above facility continues to be under the warning letter issued by the USFDA. PBPL has undertaken several corrective and preventive measures to comply with the observations raised by USFDA. It has also engaged international consultants as part of its corrective and preventive action plan to ensure that the manufacturing facilities meet the required standards. It is regularly undertaking further corrective and preventive actions as per the commitments made to USFDA. Nevertheless, the supplies of existing products to US market are continuing and there is no material adverse impact on current business from the facility.

Both the above facilities i.e. Pharmaceutical Formulations Facility and Cytotoxic / Oncology Facility, at Baddi were also having accreditation from The National Institute of Pharmacy and Nutrition (OGYEI) Hungary (EU). Following the inspection in January 2026, the said Authority issued a Statement of non-compliance with Good Manufacturing Practice , thereby halting supplies of non-vital products. However, the supply of all critical products is allowed. PBPL has implemented comprehensive corrective and preventive actions (CAPA) and the re-inspection is planned in September 2026.

Nutrition Products Manufacturing Facility at Baddi

Panacea Biotec Pharma has set up a manufacturing facility to manufacture nutrition products at Baddi, Himachal Pradesh which became operational in April 2023. This manufacturing facility currently has installed capacity of ~6 tons per day. Panacea Biotec Pharmas paediatric nutrition products under the brand name, ChilRun fullR, ChilRunR7+, ChilRun fullR No Sucrose, are being manufactured at this facility.

The facility holds valid accreditations and certications from FSSAI (Food Safety and Standards Authority of India), A+ rating in external FSSAI Schedule IV Audit and is audited by the external third parties and found compliant to the GMP Codex Standard. Panacea Biotec Pharma also plans to set up facilities for new dosage forms of nutrition products in future.

RESEARCH & DEVELOPMENT

Panacea Biotec is a progressive & innovative biotechnology company engaged in research & development, manufacturing and marketing operations across pharmaceuticals, vaccines, nutrition and natural or herbal products. The Company is guided by its vision of Innovation in Support of Life and strongly believes that innovation is important to the long-term success of the Company. Panacea Biotec specializes in complex generics, vaccines, and novel drug delivery platforms to offer higher value and better health outcomes for the patients, governments and overall society. Panacea Biotecs research and development efforts have been its greatest strength. Its ambitions are backed by distinguished, ultra-modern, state-of-the-art R&D Center with around 75 scientists with deep roots within the academic community in important clusters in India, USA and Germany among other countries. Additionally, Panacea Biotec is collaborating with leading research organizations across the globe for the development of novel high impact products.

One-Stream R&D Center at New Delhi

Panacea Biotecs OneStream Research and Development (R&D) Centre ( ORC ) is a state-of-the-art facility to cater to all the modern aspects of vaccine development. This center has advanced genetic engineering, molecular biology, bacterial culture, animal cell culture, small scale and pilot scale fermentation, purication & analytical characterization and formulation development capabilities. It is equipped with all the necessary infrastructure and scientic manpower to carry out innovative research in the areas of antigen design, expression of antigen in a suitable host system and its purication. This is followed by formulation of antigen with suitable adjuvant and immunological evaluation in animal model.

The Company has done pioneering work in the development of viral, recombinant, sub-unit and polysaccharide conjugate vaccines, using both mammalian and microbial expression platforms. In last one year, ORC has made signicant progress in the development of several vaccines including a multi epitope nanoparticle based broadly protective beta coronavirus vaccine candidate. These programs have now progressed to preclinical toxicology stage. Each of these programs will signicantly address the healthcare burden posed by these diseases and address concerns related to new and emerging pathogens. The R&D center has established a high-cell density E.coli platform for the production of recombinant antigens and proteins. This will help in developing recombinant molecules as for use as in prevention, therapeutics and as carrier protein for conjugated vaccine.

The R&D center has a strong team to develop conjugation chemistries for many polysaccharide-based vaccines such as for typhoid, meningitis, and many more in near future. The ORC team is also engaged in carrying out research for development of several other vaccines such as Meningitis, Malaria, Mpox and vaccine against anti-microbial resistant bacteria. These candidates are part of our future product pipeline.

A multi-epitope nanoparticle based broadly protective beta coronavirus (BPBC) vaccine candidate to protect against MERS, SARS-CoV-1 and SARS-CoV-2 is also being developed in ORC. Pre-clinical proof of concept studies for this candidate are completed and steps for clinical development are in progress. This research activity is supported by CEPI and is in collaboration with the Translational Health Science and Technology Institute (THSTI), an autonomous institute of the Department of Biotechnology, Ministry of Science and Technology, Government of India. A stage gate review from progression of development of BPBC candidate from preclinical to clinical stage was conducted by CEPI, which was successful. Phase I clinical study for BPBC vaccine candidate is planned to be initiated in second half of current financial year. The Company is also continuously exploring collaboration opportunities with various institutions for development of novel products, including plant-based protein as nutrition supplement. Collaborative research project DENSTAR for clinical development of DengiAllR in Africa was recently launched. This project involves 9 leading organizations from USA, EU, Africa and Korea, in addition to Panacea Biotec. DENSTAR project has received 11.1 million funding support from EU (EDCTP3 Program), and one of the objectives of the program is to support marketing authorization of DengiAllR in Africa for use in adults and children.

Vaccine Formulation R&D Centre at Lalru

The Companys vaccine formulation research and development center at Lalru, Punjab is equipped with all the necessary infrastructure and scientic manpower to cater to all the modern aspects of vaccine formulation development. In past various manufacturing process were designed to handle aseptic and blending operations for several vaccines including Easyove-TTR, EasySixR, EasyFourPolR, DengiAllR, NuCoVacR-11 and TedShotR, etc.

SAMPANN R&D Centre at Lalru

SAMPANN R&D Centre of Panacea Biotec Pharma Ltd. at Lalru, Punjab continues to focus on Research & Development in various therapeutic areas with a constant focus on developing di cult to develop formulations focused on chronic and super speciality therapeutic areas. Panacea Biotec has deep experience in developing innovative drug delivery-based products that enjoy considerable brand equity amongst physicians.

Panacea Biotecs nanotechnology-based product PacliALLR (Paclitaxel bound in human albumin particles) was launched in 2011. At the time, it was the worlds orst generic for Abraxane, manufactured by Celgene, USA. This demonstrates the Companys ability to handle the most complex generics and deliver a high-quality product in constrained and challenging timelines.

In the eld of pharmaceutical research, Panacea Biotec has developed different innovative technologies such as hydro gel based topical drug delivery system of peptides and herbal drugs, solid-solid dispersion for highly variable drugs, self-emulsifying drug delivery system (SEDDS) and controlled release drug delivery systems in different therapeutic areas. SAMPANN is in the advanced stage of development of new products for US, Europe and ROW markets in the therapeutic segments of immuno-suppressant, diabetes and pain management, etc.

Simultaneously, the SAMPANN R&D Centre has successfully diversied into research & development of consumer health and nutrition products. The Centre has successfully developed advanced nutrition products for the pediatric segment and is actively expanding its portfolio with innovative dosage forms, including baby cereals, bars, gummies and cosmetics. Beyond pediatric care, the Centre is developing personal care products for infants as well as comprehensive womens personal care and skincare products, including prenatal and postnatal care. Its research also focuses on related specialties such as gynecology and adult nutrition.

Besides this, the Centre multidisciplinary research also focuses on the development of specialized nutritional supplements tailored for global UNICEF initiatives.

Clinical Research

Clinical research is a critical function that guides clinical decisions based on facts and scientic data through clinical studies on vaccines and drugs that can affect the health and well-being of millions of people. Panacea Biotec continuously undertakes clinical trials (Phase I, Phase II and Phase III) for all its investigational new vaccines and drugs as well as bioequivalence studies (as per New Drugs and Clinical Trials Rules 2019) for its innovative and generic product portfolios across both vaccines and pharmaceutical products.

DengiAllR Phase III trial: The overall enrolment of study participants has been completed in December 2025. All 10,335 study participants, spread across 20 sites in India, have been administered with the single dose of the study investigational medicinal product (i.e. vaccine or placebo). Currently, the participants are being followed up for adverse events and fever surveillance. The vaccine is expected to be launched in 2027-28 subject to successful completion of the clinical trial and receipt of necessary regulatory approvals. NuCoVacR-11 Phase II/III trial: All 446 study participants, spread across 5 study sites in India, have been administered with the 3-dose primary series (at 6, 10 and 14 weeks of age schedule) of either NuCoVacR-11 or the comparator vaccine in a 1:1 ratio. The dosing of last participant was completed in September 2025. The primary series (3+0 schedule) Phase II/III study has been completed successfully and the report has been submitted to the DCGI. NuCoVacR-11 is expected to be launched in current onancial year subject to receipt of necessary regulatory approvals.

Intellectual Property

Panacea Biotec has a strong portfolio of intellectual property in the form of patents, trademarks and copyrights in both vaccines and pharmaceutical formulations business. As of March 31, 2026, Panacea Biotec Group has led over 496 patent applications in over 65 countries including India which include 22 patent applications pending grant and patent applications which were prosecuted.

As of March 31, 2026, Panacea Biotec Group has been granted over 466 patents globally out of which 42 are active. Some of the countries where patents have been granted are India, USA, Germany, Mexico, Brazil, Japan, Russia, Canada, China, Sri Lanka, Ukraine, South Korea, Nigeria, Indonesia, Malaysia, Philippines, Vietnam and the African Regional Intellectual Property Organisation (ARIPO) covering 14 countries, etc. Panacea Biotec Group has led ~746 trademark applications for registrations, out of which ~233 have been registered in India, ~189 have been registered outside India and ~324 applications are pending registration as on March 31, 2026. Further, the Group has ~103 registered copyrights as on March 31, 2026. With a view to expand its product portfolio in nutrition range of products, PBPL has acquired trademarks, copyrights, patents, designs, domain names, product formulations and technical know-how, customer database and digital marketing assets, etc. inter-alia, in relation to the brand name, Power Gummies. PBPL has rights over ~188 trademark applications with respect to gummy based nutrition products, out of which ~97 have been registered in India, ~18 have been registered outside India, and ~73 applications are pending registration as on March 31, 2026.

Human Resources

Our employees drive our vision, mission, and values and are the driving force behind our growth across all business segments. Through meaningful engagement and development, we help employees thrive, work with purpose, and support sustainable success. Our programmes foster an inclusive, supportive environment that values diversity, well-being, continuous learning, and workplace safety. Through our philosophy of People First , we create a culture that supports individual growth and organization growth.

We advanced our talent acquisition transformation by strengthening internal capabilities in talent scouting and market intelligence, reducing reliance on external vendors. Our digital platforms improve transparency, streamline hiring, and enhance candidate and on boarding experiences.

Our structured onboarding program, Pravesh ensures smooth cultural and functional integration of new joiners, while customized managerial and leadership tracks prepare future-ready managers and leaders. For existing employees, the Unnati program provides performance insights, identify skill gaps and guides targeted development interventions. We continued strengthening our talent ecosystem by moving toward a skill-based organisation that supports business agility and employee growth that improved visibility into roles, skills, and personalised career paths. Our IJP (Internal Job Posting Program) expanded access to opportunities, accelerated internal mobility, and supported career movement across job families. Together, these efforts are building a high-performance, future-ready workforce. We continue to provide opportunities for employees to re-skill, up-skill, multi-skill and multi-task.

A dening shift in our journey has been the move from talent shing to talent farming. Our focus is on building managerial and leadership bench strength from within, through development journeys and preparing people for broader responsibilities and this is done through campus hiring at our manufacturing plants and R&Ds with a robust 6 months induction program followed by project-based assignments to broaden their exposure across functional areas with dened deliverables to be achieved in subsequent 6 months to ensure that we grow them horizontally and vertically. To ring fence key talent, we provide additional job responsibilities with suitable additional role allowances fostering both horizontal and vertical growth.

Learning and development remained central to our people strategy. Leadership Development Program (LDP) through partnering with management institutes strengthens the bench for senior leadership roles, including site head in our Manufacturing Operations unit. It develops end-to-end perspectives, leadership capabilities, operational excellence, and digital skills to prepare participants to lead plant operations and other functions. The program also focuses on developing conodence in strategic judgement, onancial acumen, people leadership, and changing execution through rigorous, business-integrated learning.

With changing market dynamics, and emerging technologies, building a future-ready workforce that embraces change and improves productivity is essential. We empower employees through structured programs like LinkedIn Learning, on-the-job training, coaching, and access to in-house purchased Articial Intelligence sites.

Our Performance Management System 3+1 KRAs and KPIs links organisational mission, objectives, strategy and tactics- (MOST) with individual deliverables to achieve shared goals. Managers and team members are encouraged to meet regularly to review performance, learning outcomes, and progress against targets.

A 360-degree feed forward is conducted for second line manager and above, with feedback gathered anonymously from self, reporting manager, peers, and subordinates and cross functional team members (peers). At year-end, managers conduct a formal review of goal achievement with subordinates. They provide feedback on both results and behaviour, while employees can share perspectives and seek clarication. At Panacea Biotec, culture is not a statement, its an experience we live. We create a culture of high and differentiated performance where people continue to push boundaries of growth and self-development. We continue to cultivate a workplace where empathy drives leadership, collaboration and co-ordination fuels performance, and every individual feels seen, heard, and valued. We embed human engagement in every interaction. Our autonomous team with self-nominated members led by self-nominated CAPTAINS continue to perform at the highest level and ensure quality of products manufactured with clear objective of Patient Safety. Our culture encourages experimentation without fear, dialogue without hierarchy, and learning without limits. Through purpose-led engagement, inclusive rituals, and values that go beyond walls, we have created a vibrant, emotionally intelligent ecosystem. It is more than a workplace, it is where we grow, thrive, and belong. That is the Panacea Biotec culture. Diversity and inclusion remain a key organizational priority. Currently ~11.3% of our total manpower comprises of women which has increased from 9.2% during previous financial year. We have implemented initiatives to support women throughout their careers such as work from home during early pregnancy and post-delivery complications wherever job roles permit; targeted hiring at entry and managerial levels. Our bench hiring in manufacturing facilities and R&D Centres at entry level in executive cadre supports absorption of qualied women into core roles, reinforcing our inclusive talent acquisition strategy.

As on March 31, 2026, Panacea Biotec Group had a total workforce of ~2,360 employees (as against ~2,504 as on March 2025), of which ~1,717 are skilled employees engaged in corporate, managerial, sales, manufacturing and R&D functions and ~258 were contractual employees. The functional break-up of total employees is as follows:

R&D professionals: ~149 (including ~75 scientists)

Production, Quality Control & Quality Assurance: ~937

Sales, Marketing & Logistics: ~397

Other functions: ~877

Out of the total manpower, ~1,054 employees (including ~101 contractual employees) were part of Panacea Biotec Pharma Limited.

We continued to leverage digitalization of processes leading to reduced human intervention and are closely tracking productivity metrics across business units to ensure better delivery of business. We have implemented ValGenesis, an enterprise-grade, AI-enabled digital validation lifecycle management platform. We have improved and added additional features to our own internally developed tool - NIKHAAR - our digital capability to monitor sales productivity and provide data analytics to employees engaged in sales & marketing to take informed and timely decisions. Darwin Box, Human Resource Management System (HRMS) is running successfully.

We also believe in building strong emotional connections at the workplace. Monthly Birthday celebrations, festive events, recognition through appreciation certicat es, job rotation opportunities reoect our commitment to employee engagement and holistic development.

At Panacea Biotec, we remain committed to create a workplace where excellence, inclusivity, human engagement come together - driving sustainable growth for our people and our business.

Strategic partnerships and collaborations

Panacea Biotec has established relationships with various key business associates, including institutional customers for its products, strategic partners for entry into new international markets and domestic & international partners who market / distribute its products across several countries in the world. Panacea Biotec has a long-standing relationship with the UNICEF, PAHO and the Government of India, which has helped in participating in immunization programs in India and globally. Panacea Biotecs collaborations has enabled it in developing innovative, cost effective and quality vaccines and helped in achieving its goal of providing cost-e ective vaccines to the global population. Panacea Biotecs collaborations include partnership with the National Institutes of Health, USA for development and commercialization in Asia and African countries of its licensed tetravalent dengue vaccine candidate, DengiAllR and its partnership with Serum Institute and its subsidiary for supply of one of the key constituents for the EasySixR vaccine and for introduction of hexavalent vaccine in national immunization programs in developing countries. The Company has also collaborated with Indian Council of Medical Research (ICMR), Government of India for Phase III clinical trial of DengiAllR. Panacea Biotec has entered into key partnerships with global pharmaceutical companies for marketing of pharmaceutical formulations in USA, Canada, EU and other international markets, which has helped Panacea Biotec in expanding its reach and access to new regulated markets.

Panacea Biotec will continue to strengthen its business development team and leverage its strengths in product development and navigate the regulatory landscape to capitalize on opportunities across new-age technologies that will strengthen and reposition its portfolio in the coming years.

Internal Audit & Internal Financial Control System

Panacea Biotec has a comprehensive internal control system that commensurate with its size and nature of operations of the Group entities. This system spans across the organization including all the manufacturing and research & development facilities, warehouses, CFAs & sales o ces besides corporate o ce.

The internal financial controls have been developed and implemented at each business process across the Company and PBPL. The user level responsibilities are constantly shared with key users for their implementation and compliance. Checks & balances and control systems have been established to ensure that assets are safeguarded, utilized with proper authorization and recorded in the books of account. There is a proper deonition of roles and responsibilities across the organization to ensure information o w and monitoring. The internal audits are conducted periodically by an internationally renowned independent audit orm PriceWaterhouseCoopers Services LLP (PwC), the internal auditors of Panacea Biotec. The Audit Committee of Panacea Biotec actively reviews the adequacy and effectiveness of internal controls, internal audit systems and advises improvements as may be required. Post audit follow-ups are carried out to ensure identioed risks are addressed and recommendations of the Audit Committee are implemented. Panacea Biotec has established and maintained adequate and effective internal financial controls over financial reporting (IFCoFR) in accordance with the framework. Panacea Biotec with the help of the independent Internal Audit rm viz. PwC has performed an overall design assessment of the business processes as part of the Internal Financial control reviews. This includes review of policies and procedures adopted by Panacea Biotec for ensuring the orderly and efficient conduct of its business and xing responsibility against all the controls. The design assessment was followed up by the management testing of the controls across processes.

FINANCIAL PERFORMANCE

Summarized Consolidated Balance Sheet

( in million)

Particulars	As at March	As at March
	31, 2026	31, 2025
Assets:
Fixed assets (net)	7,196.28	6,949.63
Non-current Financial assets	120.25	61.50
Other non-current assets	174.75	121.59
Current assets	5,130.49	5,764.74
Total Assets	12,621.77	12,897.46
Equity & Liabilities:
Total Equity	8,348.35	8,347.86
Minority Interest	(59.56)	(41.70)
Non-current liabilities	846.05	921.37
Current liabilities	3,486.93	3,669.93
Total Liabilities	12,621.77	12,897.46

Fixed Assets: Fixed Assets include property, plant & equipment, investment property and intangible assets. The net oxed assets have increased to 7,196.28 million from 6,949.63 million as at the end of previous financial year, mainly on account of capital expenditure incurred on the ongoing expansion project at the Companys drug substance manufacturing site at Lalru, Punjab and modication of the Oncology facility of Panacea Biotec Pharma Limited at Baddi, Himachal Pradesh.

Non-current Financial Assets: Non-current financial assets include long-term investments, loans and other long-term financial assets. The non-current financial assets as of March 31, 2026, have increased to 120.25 million from 61.50 million as at the end of previous financial y ear, mainly due to increase in bank deposits having maturity above 12 months and security deposits.

Other Non-Current Assets: Other non-current assets include deferred tax assets and other non-current assets. The non-current assets as of March 31, 2026, increased to 174.75 million from 121.59 million as at March 31, 2025, mainly due to increased advance taxes during the year.

Current Assets: Current assets include inventories, trade receivables, cash & cash equivalents, other bank balances, short-term loans and other current assets. Total current assets as of March 31, 2026, have reduced to 5,130.49 million as compared to 5,764.74 million as at the end of previous financial year, mainly due to decrease in cash & bank balances and the value of inventories.

Total Equity: Total Equity represents Equity Share Capital and other Equity. Total Equity marginally increased to 8,348.35 million as at March 31, 2026, as compared to 8,347.86 million as at March 31, 2025.

Non-Current Liabilities: Non-current liabilities include long-term borrowings (excluding current maturities), provisions and other non-current liabilities. The non-current liabilities as of March 31, 2026, have decreased to 846.05 million as compared to 921.37 million as of March 31, 2025, mainly on account of lower income received in advance during the financial year under review.

Current Liabilities: Current liabilities include short-term borrowings, trade payables and other current onancial liabilities (including current maturities of long-term borrowings). The current liabilities as at March 31, 2026, have reduced to 3,486.93 million as compared to 3,669.93 million as at March 31, 2025, mainly due to reduction in trade payables.

Summarized Consolidated Statement of Pro t & Loss

( in million)

	For the year ended
Particulars
	March 31,	March 31,
	2026	2025
Revenue from operations	6,397.74	5,590.94
Materials consumed	2,804.83	1,995.37
Employee benets expense	1,807.80	1,730.51
Other expenses	1,831.71	2,124.18
Earning before Interest, tax, depreciation	(46.60)	(259.12)
and amortizations (EBITDA)
Finance Costs	60.45	38.76
Depreciation and amortization	330.60	348.14
expense
Other Income	169.00	206.60
Prot / (L oss) before tax and	(268.65)	(439.42)
exceptional items
Exceptional items	194.96	359.94
Prot / (L oss) Before Tax	(73.69)	(79.48)
Provision for Taxes (including	(2.06)	7.71
deferred tax)
Prot / (L oss) after Tax	(71.63)	(87.19)
Other comprehensive income	54.26	11.10
(net of tax)
Total comprehensive income	(17.37)	(76.09)
Basic and Diluted EPS*	(0.88)	(1.37)

*Earnings / (Loss) per Share in per Equity Share of 1

Revenue from Operations: The consolidated revenue from operations has increased to 6,397.74 million for onancial year 2025-26 as compared to 5,590.94 million for previous onancial year. The revenue from sales of products and services has increased to 6,099.67 million during onancial year 2025-26 as against 4,926.00 million during previous onancial year, mainly due to higher sales of bivalent oral polio vaccine to UN agencies and Government of India. The other operating revenue decreased to 298.07 million during onancial year 2025-26 as against 664.94 million during previous onancial year. The other operating revenue during previous onancial year were higher mainly on account of recognition of higher grant income and receipt of incentive under the Production Linked Incentive Scheme for Pharmaceuticals of the Govt. of India.

Other Income: Other income declined to 169.00 million during financial year 2025-26 as compared to 206.60 million for previous onancial year, mainly due to lower interest income and forex gain. Materials Consumed: Materials consumed include consumption of raw & packing materials and finished goods purchased during the year. The materials consumed were 2,804.83 million for onancial year 2025-26 as against 1,995.37 million for previous financial year. The materials consumed were higher mainly due to higher sales as explained above and change in product mix.

Employee beneots expenses: The employee beneots expenses have increased to 1,807.80 million for financial year 2025-26 from 1,730.51 million for previous financial year, primarily on account of annual increments.

Other Expenses: Other expenses have decreased to 1,831.71 million for financial year 2025-26 as compared to 2,124.18 million for previous financial year, primarily due to reduction in sales promotion expenses, consumption of stores & spares, power & fuel, legal & professional charges and travelling & conveyance expenses during the year under review.

EBITDA (Earning Before Interest, Tax, Depreciation and Amortizations): EBITDA loss has decreased to 46.60 million or financial year 2025-26 as against EBITDA loss of 259.12 million during previous financial year. The decrease in EBITDA loss is mainly on account of higher vaccine sales.

Finance costs: Finance costs comprising of interest and bank charges have increased to 60.45 million during financial year 2025-26 from 38.76 million for previous financial year. Depreciation and amortization expenses: Depreciation and amortization expenses were 330.60 million for financial year 2025-26 as against 348.14 million for previous financial year. Exceptional items: Exceptional items represent recognition of the deferred revenue related to the sale of domestic pharmaceutical brand portfolio of PBPL in 2022 and gain on one-time settlement of dispute with Apotex Inc. The deferred revenue recognised during onancial year 2025-26 was 109.25 million as compared to 359.94 million for previous financial year. The exceptional gain on one-time settlement of dispute during the year was 85.71 million.

Prot / (Loss) before Tax: The Group incurred loss before tax of 73.67 million for financial year 2025-26 as against loss of 79.48 million for previous financial year, because of the reasons as explained above.

Prot / (Loss) after Tax: The total loss after tax has reduced to 73.69 million for financial year 2025-26 as compared to loss after tax of 87.19 million for previous financial year, because of factors discussed above.

Earnings per Share: The total basic and diluted loss per share was 0.88 for financial year 2025-26 as against loss per share of 1.37 million for previous financial year.

Summarized Consolidated Statement of Cash Flow

( in million)

	For the year ended
Particulars
	March 31,	March 31,
	2026	2025
Cash & Cash Equivalent at the beginning	821.25	471.74
Net Cash o ws from Operating Activities	166.94	(273.69)
Net Cash o ws from Investing Activities	(404.95)	649.84
Net Cash o ws from Financing Activities	(10.56)	(26.64)
Cash & Cash Equivalent at the end	573.07	821.25

Cash Flow from Operating Activities: Net cash generated in operating activities was 166.94 million in onancial year 2025-26 as compared to cash utilisation of 273.69 million in previous financial year. The net cash generated in operating activities in financial year 2025-26 was mainly on account of lower investment in working capital during the year under review.

Cash Flow from Investing activities: Net cash used in investing activities was 404.95 million for financial year 2025-26 as compared to generation of 649.84 million for previous financial year. During financial year 2025-26, the net cash utilisation for investing activities was higher mainly due to higher investments in bank deposits for margin money for opening Letter of Credits for purchase of materials.

Cash Flow from Financing Activities: Net cash used in financing activities was marginally lower 10.56 million in onancial year 2025-26 as compared to 26.64 million in previous financial year.

Financial Ratios

The onancial ratios for onancial year 2025-26 and their comparison with previous year including the reasons for variance wherever applicable, are given in Note 53 to the Standalone Financial Statements forming part of the Annual Report and hence not repeated here for the sake of brevity.

Opportunities and Outlook

Panacea Biotec operates in a highly regulated and competitive environment across multiple geographies. Panacea Biotec is engaged in research, development, manufacturing and marketing of a wide range of branded and generic pharmaceutical formulations, novel vaccines and nutrition & baby care products. The management continues to remain committed to grow the Companys business building on its strong foundation and executing its pipeline of products.

SWOT Analysis

Strengths

Leading biotechnology company with over 30 years experience in development, manufacturing and commercialization of vaccines and pharmaceutical formulations

Signicant focus on exports

State-of-the-art cGMP compliant manufacturing facilities

Proven research & development and clinical research capabilities with multi-disciplinary R&D Centers

Robust product pipeline of promising niche products to fuel long-term growth

Extensive sales and distribution network

Strategic partnerships and collaborations

Strong promoter group supported by experienced and qualied management team

Weaknesses

Long gestation period on R&D Projects: R&D projects involve longer development time and medium to high investment as is the norm in the vaccine and pharmaceutical industry. As a result of this, the present protabilit y is affected whereas the output may come in medium to long term future periods.

High dependence on institutional business in Vaccine Segment: A signicant part of the revenue from vaccine business comes from tender driven institutional business. Panacea Biotec has decided to focus on expanding into private markets in India as well as in ROW countries through strategic tie-ups to have a diverse sales base and reduce its dependence on institutional business.

Revenue concentration on few products: In vaccine segment, the revenue generation is mainly dependent on three products i.e. pentavalent, hexavalent vaccine and biovalent polio vaccine. Any future disruption in any of these products may impact the future onancial performance. The Company has expedited development of new products to expand the product portfolio and drive future growth.

Opportunities

To improve capacity utilization: Panacea Biotec is working on entering into manufacturing collaborations with third parties to increase capacity utilization of its manufacturing facilities.

New products in pipeline for commercial launch: Panacea Biotec has several products under late stage of development in vaccines as well as pharmaceuticals.

Addressing unmet need: PBPLs entry in nutrition segment will help in future growth.

Threats

Dependence on few imported suppliers in drug substance. However, Panacea Biotec is focusing on reducing its dependence on foreign suppliers by developing in-house drug substances.

Increasing Regulatory Compliances and Costs: International regulatory agencies like USFDA have started exercising greater controls and compliances. As a result of this, the cost of compliance has a lso started increasing. Panacea Biotec has been following the guidelines prescribed by WHO, USFDA and other regulatory agencies and save and except, recent observations / warning letter from USFDA and EU Authority which has been suitably responded / acted upon, Panacea Biotec has successfully passed several regulatory audits over the years.

Pricing pressure amid intense competition in the pharmaceutical industry across the globe. The Company remains focused on complex generic and vaccines having

lesser competition threat.

Risk of all R&D initiatives not leading to commercially viable and successful products.

Future Growth Strategy

Vaccine Business

Scaling up vaccine sales in private market in India including through launch of new vaccines.

Increasing participation in institutional vaccine business with UNICEF, PAHO etc.

Expediting development of tetravalent Dengue vaccine DengiAllR, Pneumococcal Polysaccharide Conjugate Vaccine NuCoVacR-11 and other vaccines and launch thereof in India and Institutional markets.

Expanding manufacturing capacities to meet the future growing demand of vaccines.

Supply of hexavalent vaccine to UNICEF, PAHO and other international markets.

Pharma and Nutrition Business

Growth in exports of pharmaceutical formulations to ICH market, emerging markets in LATAM and Middle East.

Launch of Paclitaxel protein bound particles for injectable suspension, Cyclosporine and other products, which are currently under approval, in USA.

Filing more ANDAs / dossiers in USA, Europe and other emerging markets.

Scaling up the nutrition business by launching new products and new customer segments

Corporate Social Responsibility

Panacea Biotec recognizes Corporate Social Responsibility as one of its core values by making continuous efforts on spreading awareness on critical health issues impacting the quality of life. Panacea Biotec has been over the years, pursuing Corporate Social Responsibility by putting continuous efforts in the areas of health, education and patient awareness / assistance programs towards the development of a happier and healthier society.

Safety, Health and Environment Protection

The Company operates with a deep commitment to

environmental stewardship, sustainability, and the well-being of people. We are strongly committed to business practices that foster socially, environmentally, and economically responsible growth. Our approach aligns closely with global Environmental, Social, and Governance (ESG) standards, ensuring that we integrate sustainability at every level of our operations. A dedicated Environment, Occupational Health, and Safety (EOHS) department oversees these critical areas, supported by independent consultants who conduct thorough evaluations of our EOHS activities. Our EOHS policy ensures a safe and healthy working environment for employees, contractors, sub-contractors, visitors, and surrounding communities. Through these measures, we are making signicant progress towards our long-term vision of Target Zero Harm: Zero Injuries, Zero Occupational Harm, and Zero Environmental Impact. Panacea Biotec has successfully attained certiocation in Integrated Management Systems at its manufacturing facilities at Lalru and Baddi. These certication include:

ISO 14001:2015 (Environmental Management): Demonstrating our commitment to minimizing environmental impacts.

ISO 45001:2018 (Occupational Health & Safety): Ensuring a safe and healthy workplace for all stakeholders. Key Initiatives: To drive EOHS and sustainability goals forward, Panacea Biotec implements the following strategic initiatives:

Implementation of an EHS management system that promotes proactive compliance with environmental, health, and safety standards, establishes uniform expectations across all operations, and drives continuous improvement in EHS performance.

Deployment of EOHS regulatory surveillance tools in all countries where we operate signicantly .

Proactive EOHS compliance assessments, including self- evaluations and internal audits, with corrective and preventive actions promptly addressed and tracked.

Setting targets to reduce environmental impact, including energy and water conservation, waste reduction, recycling, and reuse initiatives as part of our sustainability roadmap.

Transitioning the Baddi site into a certied Zero Waste to Landll facility to signicantly reduce our environmental footprint.

Collaborating with Grant Thornton Bharat (GTB) to establish benchmarks for the Science Based Targets initiative (SBTi) and long-term sustainability development.

Participation in the EcoVadis assessment, reinforcing our commitment to sustainability and ESG performance across four key pillars: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.

Launch of Suraksha software, an in-house digital platform for real-time reporting and monitoring of workplace hazards and near-misses, enhancing transparency and proactive safety management.

Recognition through the 3-Star Award from Vision Zero India, a rming our excellence in occupational safety, health, and employee well-being. Furthermore, the Company actively integrates ESG considerations into its overall strategy and operations. Through initiatives aligned with the United Nations Sustainable Development Goals (SDGs), we strive to minimize environmental impact, enhance social well-being, and uphold strong governance practices. As part of our auditing and improvement processes, we identify and address critical areas requiring immediate corrective action. We continuously strive to prevent adverse health impacts on employees through regular health awareness sessions, comprehensive medical facilities, and robust insurance benets . Through these comprehensive measures, we continue to strengthen a culture of safety, sustainability, and social responsibility, empowering our workforce and creating long-term value for all stakeholders.

Note: As a result of rounding o adjustments, the ogures/ percentages in a column in various sections in the Annual Report may not add up to the total for such columns.