Suven Pharmaceuticals Ltd Management Discussions

ECONOMIC & INDUSTRY OVERVIEW

Global Economy: The global economy demonstrated resilience in 2024, growing 3.3% despite geopolitical instability, inflationary pressures and shifting trade patterns. Advanced economies expanded by 1.7%, led by the US,driven by strong consumer demand, while emerging markets grew at 5%. Global inflation moderated to 5.8% and supply chain pressures eased, creating a more stable operating environment for trade and investment.

Looking ahead, global GDP is projected to sustain ~3.3% growth through 2026, with advanced economies normalising and emerging markets- including India- providing significant growth momentum. This backdrop supports cross-border partnerships, supply chain diversification and innovation-led manufacturing- all central to Cohances growth strategy.

Indian Economy: India remains one of the fastest-growing major economies, with FY25 GDP estimated at 6.5%, underpinned by infrastructure investment, robust consumption and improved rural demand. Infiation averaged 4.6%, while GST and direct tax collections recorded strong YoY growth, reflecting economic formalisation.

For FY26, growth is projected at 6.3-6.8%, aided by policy initiatives in manufacturing, renewable energy and pharmaceuticals. Indias role as a cost-e_cient innovation hub is further strengthened by supply chain realignment trends (China+1, EU+1), creating sustained opportunities for Cohance as a global CDMO platform.

GLOBAL PHARMACEUTICAL & CDMO SECTOR

The global pharmaceutical market, valued at US$1.67 trillion in 2024, is projected to approach US$2.85 trillion by 2033, driven by innovation in oncology, metabolic diseases, immunology and advanced modalities such as oligonucleotides and ADCs. Large pharma R&D spending exceeded US$190 billion in 2024, with a rising share directed towards complex biologics and targeted therapeutics.

The CDMO market is growing faster than the broader pharma industry, at a projected CAGR of 7.2% to reach US$368.7 billion by 2034. Asia-Pacific- led by India- has become a preferred development and manufacturing hub, driven by cost-competitiveness, quality and regulatory alignment.

Within CDMOs, high-growth niches- ADC payload-linkers, bioconjugation, oligonucleotide synthesis and complex APIs- are expanding well above market averages, fuelled by late-stage pipeline momentum and capacity constraints at innovators.

Strategic Relevance for Cohance: These macro and sector dynamics reinforce Cohances focus on niche, high-value segments. Our integrated capabilities in ADCs, oligonucleotides and complex APIs position us to capitalise on growing demand for specialised, end-to-end CDMO solutions. With capacity expansions in India and the US, we are well-placed to benefit from sustained outsourcing momentum and global supply chain diversification.

ABOUT THE COMPANY

Cohance Lifesciences is a fully integrated global CDMO, partnering with leading innovators across the entire product lifecycle- from route scouting and early development to commercial manufacturing. With advanced capabilities in oligonucleotides, bioconjugation and complex small molecules, we address some of the most challenging chemistries in the industry.

Our end-to-end model integrates payload-linker synthesis, HPAPI handling and fill-finish readiness with API, FDF and specialty chemical platforms, enabling seamless scale-up and faster time-to-market. Backed by a team of highly skilled scientists, regulatory-compliant infrastructure and a proven record of on-time delivery, Cohance has built long-term partnerships with top global innovators. Our competitive cost base, robust backward integration and therapy-agnostic chemistry expertise position us at the forefront of high-growth, niche technology segments shaping the future of pharmaceuticals.

R&D - Driving differentiation through applied innovation

At Cohance Lifesciences, R&D is the core engine that converts complex scientific challenges into scalable, commercial solutions for global innovators. Our approach goes beyond discovery- we design, adapt and execute solutions with precision, safety and speed, ensuring customers can move from lab to market without compromise. We specialise in differentiated technologies that set us apart: flow chemistry, bioconjugation, oligonucleotide synthesis and sustainable catalysis. These platforms are therapy-agnostic, enabling us to solve problems across oncology, neurology, metabolic diseases and rare disorders. Each project is managed end-to-end- from route scouting and process optimisation to scale-up under GMP- with the agility to adapt to evolving clinical and regulatory requirements.

The following case studies illustrate how we apply these capabilities to deliver measurable impact- shortening timelines, enhancing purity, improving safety and reducing costs. They also highlight why Cohance is becoming a preferred partner for late-phase and commercial supply in high-growth, niche segments.

CASE STUDY 1: FLOW CHEMISTRY - LIKE A FACTORY CONVEYOR VS. A KITCHEN STOVE

Customers Challenge Our Solution

Customers Challenge	Our Solution
A customer required a high-purity chiral intermediate, but the batch process using Gillman reagent was unstable and required multiple re-crystallisations to get the right enantiomer	We replaced the batch setup with a Continuous Stirred Tank Reactor (CSTR) system- like moving from a stovetop to a conveyor belt- ensuring steady-state synthesis and in-line consumption of the unstable reagent
Outcome & Impact
Achieved 70% yield with >99% enantiomeric purity Eliminated multiple re-crystallisations Enabled a more consistent and greener process Reinforced our leadership in chiral synthesis using flow platforms
Just like a precision assembly line improves product uniformity, flow chemistry helped us streamline production for superior purity.
CASE STUDY 2: SPEEDING ADC DEVELOPMENT - MAKING TOXIC PAYLOADS SAFER AND FASTER
Customers Challenge	Our Solution
A biotech client needed a high-potency payload-linker (ADC Construct) synthesised under cGMP, but previous vendors were unable to meet purity and timeline goals or resolve the challenges encountered during scale up	At NJ Bio, we applied our expertise in synthetic chemistry, bioconjugation and HPAPI containment to deliver a solution by designing a scalable, low-impurity synthesis route, using advanced analytics and controlled environments

Outcome & Impact

IND-enabling batch delivered in 5 months <0.1% impurities across 3 validation batches Phase 1 trial enabled; awarded Phase 2 contract; on track to win their complete 6-ADC pipeline within 3-4 quarters Strengthened our end-to-end ADC CDMO positioning

Think of it like assembling a guided missile- the targeting system and payload must connect precisely. Thats what we enabled, safely and swiftly.

CASE STUDY 3: OLIGONUCLEOTIDE SYNTHESIS - LIKE PROGRAMMING A BIOLOGICAL CODE
Customers Challenge	Our Solution
The clients siRNA-based therapeutic needed high- purity oligos, but previous synthesis runs had yield and impurity concerns	We leveraged our solid-phase synthesis infrastructure at Nacharam, optimised cycle efficiency and implemented dual-mode puri_cation using ion-exchange and RP- HPLC
Outcome & Impact
Achieved >98.5% purity Reduced project timeline by 6 weeks Enabled Phase 1 clinical supply and client site audit Positioned Cohance among the leading oligonucleotide CDMOs in Asia
Creating oligonucleotides is like writing biological software- every base must be placed in the correct order. We delivered that precision at speed.
CASE STUDY 4: USING LIGHT TO ACCELERATE CHEMISTRY - A BRIGHT IDEA FOR HIGHER YIELDS
Customers Challenge	Our Solution
An ADC intermediate required bromination, but batch processing led to high impurity levels and long residence times	We transitioned to a photo-flow reactor, _ne-tuned light wavelengths and selected 365 nm UV as the optimal source to drive reaction completion with minimal by- products
Outcome & Impact
Improved yield; impurities reduced from 1% to non-detectable Residence time reduced 4x, increasing daily throughput Demonstrated platform strength in light-enabled flow chemistry
Just like a tailor uses specific light to spot fine stitches, we used precise light to perfect the reaction and the product came out _awless.
CASE STUDY 5: SAFER, SMARTER SYNTHESIS WITH MICROCHANNEL REACTORS
Customers Challenge	Our Solution
The customer needed a scalable and safe process for a highly exothermic cyanation step using NaCN	We engineered the process using a Corning G1 microchannel reactor, enabling exceptional mixing and heat control- like managing temperature with a precision espresso machine
Outcome & Impact
Yield of 71% with >95% purity Controlled heat generation for improved safety Scaled from lab to pilot with ease Showcased Cohances ability to convert hazardous batch reactions into safe, continuous flow formats
Instead of managing a boiling pot, we handled it drop by drop- safer, smarter and faster.
CASE STUDY 6: CATALYSTS THAT WORK OVERTIME - AND SAVE COST TOO
Customers Challenge	Our Solution
A hydrogenation process using a Pd catalyst became commercially unviable due to poor recovery and excessive costs	We implemented a fixed-bed hydrogenation setup, enabling reusable catalyst cycles while maintaining high conversion and purity
Outcome & Impact
Catalyst reused 4-5 times Product yield of 75% with 99.8% purity Residence time of just 0.6 min, significantly improving throughput Delivered a sustainable and commercially scalable solution
Imagine if you could reuse your best-performing tool multiple times- without losing precision. Thats what we achieved here.

These case studies are not isolated wins- they are proof points of a consistent, repeatable capability model that underpins our growth strategy. By leveraging advanced platforms such as flow chemistry, microreactor systems, bioconjugation and oligonucleotide synthesis, we are delivering solutions that many in the industry consider high-barrier.

Every success strengthens our ability to capture late-phase opportunities, deepen customer relationships and move into commercial supply with higher-value programs. As our expanded oligonucleotide and bioconjugation capacities come online and as we scale our complex API and specialty chemistry platforms, these same innovation engines will ensure Cohance remains ahead of customer needs, industry trends and competitive offerings- turning science into sustainable value creation for all stakeholders.

Outlook

Despite near-term inventory destocking in parts of the Pharma CDMO business, we expect FY26 to deliver double-digit revenue growth, driven by the scale-up of niche technologies and expansion of our differentiated platforms.

Our niche-technology share has increased from mid-teens of revenues in FY25 to above 20% in Q1FY26 and is on track to reach mid20s by year-end, supported by strong demand in ADC payload-linkers, bioconjugation and oligonucleotide synthesis. These segments, alongside complex APIs, will be key growth drivers in FY26 and beyond.

Major capacity investments- including the cGMP oligonucleotide building block facility at Nacharam and the expanded bioconjugation suite at NJ Bio- will be fully operational over the next 12-18 months, enabling us to participate meaningfully in late-phase and commercial supply opportunities.

We continue to expect FY26 EBITDA margins to remain in the low 30s, reflecting ongoing investments to scale niche capabilities.

Our long-term vision is to reach INR 85 billion ($1 billion) in revenues by 2030 with mid-30s margins, through a balanced mix of organic growth and strategic acquisitions.

By staying focused on science-led innovation, operational excellence and customer-centric delivery, Cohance is well-positioned to capitalise on sector tailwinds, deepen partnerships with innovators and create sustainable value for all stakeholders.

AN ECONOMIC OVERVIEW

Global Economy

2024 was a showcase of resilience amidst extreme volatility and intense human conflict. Global GDP growth was pegged at approximately 3.3%, about 10 basis points higher than the previous year. This demonstrates the growing economic stability in the face of frequent disturbances. Global inflation dropped faster than expected in most regions, reaching 5.8% in 2024, primarily due to the unwinding of supply-side issues and the easing of restrictive monetary policy.

Major economies appear to be adjusting well to shifting trade trends and policies, opening doors to sustainable and inclusive growth opportunities. While the recovery path is dynamic, these transformations lay the groundwork for a more balanced and adaptable global economy.

Growth in advanced economies was at 1.7% in 2024, with strong U.S. activity helping to offset slower growth in other regions. The sustained momentum in the US was driven by robust consumer spending, a strong labour market and supportive financial conditions Commodity price trends in 2024 offer a mixed outlook. Ample supply and sluggish demand have kept commodity prices relatively stable in the latter half of 2024. Oil prices have faced continued pressure in late 2024, largely due to a lacklustre forecast for global demand and abundant supply.

The Eurozone, on the other hand, shows a weaker outlook. Its moderate growth is expected to be 0.8% in 2024. Despite a slow growth trajectory, Chinas economy grew by 4.8% in 2024.

Global trade, a key driver of economic activity, grew by 3.3% in 2024. Trade growth in advanced economies is projected at a modest 2.1%, while in Emerging Markets & Developing Economies (EMDEs), it is expected to register a healthy growth of 5.0%. The slowdown reflects challenges such as rising protectionism, trade distortions and the impact of the Ukraine-Russia war, which disrupted supply chains and increased costs.

Financial markets remain dynamic, with US equities benefiting from business-friendly policies and emerging markets adapting to shifting capital flows. The strengthening of the dollar continues to influence global trade and investment patterns. While geopolitical and trade shifts present challenges, they also create avenues for innovation and resilience, reinforcing the need for forward-thinking strategies in a rapidly evolving global landscape.

Global headline inflation is projected to reach 4.4% in 2025 and 3.5% in 2026, with advanced economies expected to reach target levels of 2.1% by 2025. In line with this, crude prices are likely to decline in the same year. However, non-fuel commodity prices are set to rise by 2.5%, supporting growth in key

Outlook: The global economic environment reflects a cautiously optimistic sentiment among corporates and investors alike. Global output is anticipated to grow steadily by 3.3% in 2025 and 2026, with the US maintaining strong momentum and emerging economies exhibiting significant growth potential.

Advanced economies, particularly in Europe, are expected to experience moderate growth. Economic policy shifts and evolving trade dynamics will likely drive businesses to adapt, innovate and compete in a rapidly changing global market.

SOURCES: IMF, WORLD BANK

Indian Economy

India, recognised as the fastest-growing major economy globally, maintained its expansion in FY25. The projected GDP growth for the year stands at 6.5%, a decline from the 9.2% recorded in the preceding year.

Government expenditures on infrastructure principally supported this performance, while robust domestic demand, particularly from private consumption, played a significant role in achieving this outcome. Consumption expenditure increased by 6.9%, reflecting a strong recovery in rural markets, accompanied by sustained urban demand. However, the growth trajectory faced headwinds due to escalating global trade tensions. Headline inflation averaged 4.6% for the full year in FY25, the lowest since FY19. The RBI lowered its repo rate to 6% by the end of the financial year through two consecutive repo rate cuts. This decision carefully balanced growth support with price stability amid global commodity price volatility, while also infusing liquidity into the system.

The IIP (Index of Industrial Production) registered a sluggish expansion of 3.9% year-over-year, hindered by the weaker performance of the manufacturing sector. On the fiscal front, annual Goods & Services Tax (GST) collections surpassed H22.08 lakh crore, representing a year-on-year increase of 9.4%, indicating enhanced compliance and the formalisation of the economy. Concurrently, net direct tax collections rose year-on-year by 13.57%. India appeared poised to achieve its fiscal deficit target of 4.8% of GDP in FY25, driven by strong economic growth. Indias forex reserves increased to an all-time high of US$638.69 billion at the end of February 2025.

Outlook: In FY26, the Indian economy is expected to demonstrate moderate growth compared to the previous financial year, with a projected real GDP growth of 6.3-6.8%, albeit from a high base. With this, India is poised to strengthen its position as one of the fastest-growing major economies, significantly contributing to global GDP growth. Its leadership in IT services, pharmaceuticals and renewable energy, along with strategic trade agreements and the Production-Linked Incentive (PLI) scheme, will enhance its global competitiveness.

However, external risks, such as a global economic slowdown, geopolitical tensions and trade disruptions, could impact Indias future economic outlook. Moreover, a slowdown in urban consumption, a spike in food inflation and sluggish growth in capital formation may also affect the growth outcome.

OUR BUSINESS SPACE

01 :Global Pharmaceutical Sector

The global pharmaceutical industry is experiencing unprecedented growth due to rising advancements in drug discovery and development, the increasing prevalence of various diseases and expanding healthcare infrastructure.

With the growing burden of various life-threatening diseases, the need for pharmaceuticals is rising.

Chronic diseases, such as cardiovascular illnesses, diabetes and cancer, remain the most common causes of death worldwide, accounting for approximately 71% of total global annual deaths. Furthermore, the emergence of new biotechnologies is revolutionising treatment modalities, thereby driving market growth.

The global pharmaceutical market size was valued at US$1,669.95 billion in 2024 and is projected to reach approximately US$2,857.48 billion by 2033.

The R&D landscape: The global pharmaceutical industrys innovation ecosystem has demonstrated notable acceleration and adaptability, particularly in enhancing R&D productivity. In 2024, the projected return on investment in pharmaceutical research and development is expected to increase to 5.9%, maintaining its positive trajectory from the previous year. This growth has been largely driven by the expansion of GLP-1 therapies, which have played a pivotal role in enhancing returns.

Concurrently, the average cost of drug development increased to US$2.23 billion, continuing an upward trend observed among 12 of the top 20 global pharmaceutical companies. The phase III clinical trial cycle times have increased by 12%, resulting in higher R&D expenditures and a longer time-to-market.

The total R&D expenditure of large pharmaceutical companies has continued to grow in 2024, both in absolute terms- reaching US$190 billion, an increase from US$163 billion in 2023- and as a percentage of sales, exceeding 25% for the first time.

In 2024, a total of 65 Novel Active Substances (NAS) were launched globally, representing a decline from 80 in 2023; however, this number remains above pre-pandemic levels.

Leading therapies: Oncology remains at the forefront of research and development, showing significant advancements in treating lung and breast cancer. Immunology concentrates on therapies for autoimmune diseases, while treatments addressing diabetes and obesity continue to evolve.

Mental health remains a paramount concern, with the introduction of new therapies aimed at alleviating depression and anxiety.

Despite the progress made in diagnostics and treatment, cancer continues to pose a formidable health challenge.

According to IQVIAs report, an increase in incidence is projected by 2050, particularly in lower-income nations. Global expenditures on cancer drugs amounted to US$223 billion in 2023, with projections indicating an increase to US$409 billion by 2028.

The Growing Impact of

Oligonucleotides: Oligonucleotide therapeutics, a category of RNA-based pharmaceuticals, employ methodologies such as Antisense RNA, RNA interference (RNAi), Aptamers and CRISPR-Cas9 to selectively target genes and biological processes associated with diseases, including oncology, neuro-degenerative disorders, cardiovascular conditions, renal diseases and infections.

Until recently, most oligonucleotides licensed by the Food & Drug Administration (FDA) and available on the market were used to treat rare disorders. Today, oligonucleotides- also known as oligos- are being applied not only in research and diagnostics but increasingly in therapeutic interventions.

The oligonucleotide therapeutics market is experiencing substantial growth, largely driven by the increasing prevalence of cancer, which has necessitated the development of innovative diagnostic tools to meet this demand. Moreover, advancements in DNA sequencing technology and the integration of micro_uidic techniques are further driving the markets expansion. It is anticipated that North America will account for 39% of the global market growth during the forecast period.

02 :Global CDMO Segment

Contract Development & Manufacturing Organisations (CDMOs) play a pivotal role in the pharmaceutical and biotechnology sectors by delivering end-to-end development and production services to biopharmaceutical companies worldwide. CDMOs facilitate comprehensive clinical and pharmaceutical development, production, quality assurance and adherence to regulatory compliance requirements.

Their expertise encompasses Good Clinical Practice (GCP), Good Manufacturing Practice (GMP) and quality assurance methodologies. Additionally, they support commercial production, supply chain management and regulatory affairs, ensuring pharmaceutical companies adhere to Current Good Manufacturing Practice (CGMP) and industry regulations.

The global Contract Development & Manufacturing Organisation (CDMO) market was valued at approximately

US$184.90 billion in 2024 and is projected to grow to approximately US$197.40 billion in 2025, ultimately reaching an estimated US$368.70 billion by 2034. The market is projected to expand at a CAGR of 7.2% between the years 2024 and 2034.

The Asia-Pacific region holds the largest market share, emerging as an attractive hub for pharmaceutical development and production due to cost-e_ective manufacturing, low labour costs and supportive regulatory policies.

Major Trends in the Pharmaceutical CDMO market

Promising Research and Development Services:

Pharmaceutical CDMOs provide a variety of services in biotechnology and pharmaceuticals. Recent advancements, such as Next-Generation Sequencing (NGS), Computer-Aided Drug design (CAD), Computer-Aided Manufacturing (CAM) and chromatography techniques for protein puri_cation, are widely adopted by researchers, clinicians and industrialists. These services comply with regulatory guidelines for risk assessment and standard operating procedures.

Strategic Collaborations & Regulatory Compliance: Several biopharmaceutical companies, from small start-ups to large-scale plants, rely on resources from specific industrial players.

All operations comply with regulatory standards from the U.S FDA or EMA, adhering to GMP, CGMP and GLP guidelines. Scientific innovations arise from the interdependence between companies, organisations and government authorities.

Implementation of GMP, GLP and cGMP in Medical Practice: Every industrial process, from planning to launch, follows Good Manufacturing Practices (GMP), Good Clinical Practices (GLP) and current-Good Manufacturing Practices (cGMP). Biopharmaceutical products, such as vaccines, drugs and antibodies, undergo cGMP and GLP processes to ensure quality, safety and risk assessment. CDMOs deliver these improved products and authenticated services to companies and consumers for patient safety.

Flow chemistry: It is a method of conducting chemical reactions in a continuously flowing stream rather than in traditional batch processes. In the pharmaceutical industry, flow chemistry is increasingly adopted for drug development and manufacturing. It also offers significant advantages in terms of process efficiency, reduced impurity formation, higher yields and enhanced safety. It also enables the safe execution of hazardous reactions by minimising the need to handle large inventories of reactive chemicals, making it particularly valuable for sensitive or high-risk processes.

Advantages of Flow Chemistry

Superior Heat Transfer Efficiency: A high surface-to-volume ratio in flow reactors enhances the rate of heat transfer, making it ideal for managing exothermic reactions. This enables tighter temperature control, improving overall reaction safety and efficiency.

Rapid Mixing and Enhanced Reaction Control: Continuous systems allow for faster mixing, which accelerates reaction rates and minimises the risk of over-reactions. This leads to lower impurity levels and improved product selectivity.

Intrinsic Safety: Flow reactors typically operate with much smaller reaction volumes than batch processes, significantly reducing the risk associated with hazardous reactions. This intrinsic safety reduces the need for extensive safety infrastructure and expands the scope for conducting complex chemistries.

Scalability: Microreactors eliminate the need for large-scale agitators while improving heat and mass transfer. This enables efficient scaling up of reactions by increasing the number of reactors rather than reactor size, thereby ensuring consistent reaction conditions.

Improved Product Quality: Precise control over heat and mass transfer in continuous flow processes significantly reduces the likelihood of reaction runaway and side reactions, resulting in fewer by-products, lower impurity levels and greater consistency in product quality.

Oligonucleotide CDMO market: The global oligonucleotide CDMO market size is projected to reach US$18.37 billion by 2034, growing from US$2.55 billion in 2024 to US$3.11 billion in 2025. The market is expanding at a CAGR of 21.83% between 2025 and 2034.

Key Growth Drivers

Rise in Demand for Gene & Cell Therapies: Gene and cell therapies hold great potential to treat illnesses such as cancer, genetic disorders and neurological diseases. Peptides and oligonucleotides serve as essential components and building blocks for targeted drug delivery systems, immunotherapies and gene editing tools. As businesses seek specialised knowledge to produce these complex medicines, demand for peptide and oligonucleotide CDMO services has surged due to advancements in gene and cell therapies. The oligonucleotide CDMO market is expected to grow in the coming years, driven by an increase in clinical studies and regulatory approvals for these treatments.

Strict Regulatory Compliance: The regulatory context for oligonucleotides is complex and continually evolving. Meeting compliance standards can be challenging, especially for novel compounds. CDMOs manage intricate legal frameworks, adapt to new directives and address specific demands in oligonucleotide research and manufacture.

Technological advancement: Solid-phase Peptide Synthesis (SPPS), automated synthesis and continuous flow techniques enhance efficiency in oligonucleotide CDMOs.

Next-Generation Sequencing (NGS) ensures thorough characterisation of oligonucleotides. Cell-free synthesis enables the production of flexible peptides, while advancements in RNA synthesis facilitate the development of RNA-based medicines. Novel nanoparticle-based delivery methods increase bio-availability. In the evolving CDMO landscape, integrated analytical platforms provide comprehensive product characterisation and quality control.

Cutting-edge innovations: Antibody-Oligonucleotide Conjugates (AOCs) and Peptide-Oligonucleotide Conjugates (POCs) represent next-generation bioconjugates that merge the specificity of oligonucleotides with the targeting capabilities of antibodies or peptides. These innovative platforms are driving advancements in precision medicine, gene-targeted therapies and molecular diagnostics.

Antibody-Oligonucleotide Conjugates (AOCs): As cancer incidence rises, precision medicine is becoming increasingly vital. Antibody-Oligonucleotide Conjugates (AOCs), which combine antibodies with oligonucleotides to regulate gene expression, represent a promise in advancement in targeted therapy. In addition, Antibody-Drug Conjugates (ADCs) continue to show promisein delivering cytotoxic agents to specific antigens with precision. This highlights the mechanism of AOCs, underscoring their unique ability to selectively target and modulate disease-causing proteins. It also examines the structural components of AOCs and their growing application in tumour therapy.

Peptide–Oligonucleotide Conjugates (POCs): Peptide-Oligonucleotide Conjugates (POCs) are covalent constructs that consist of DNA or RNA molecules chemically linked to synthetic peptide sequences. These hybrid architectures combine the programmable self-assembly and recognition capabilities of oligonucleotides with the structural versatility and bioactivity of peptides. Due to the complementary advantages of both molecular components, POCs have garnered significant attention in recent years, with applications spanning gene-targeted therapies, nanomaterials and molecular diagnostics.

03 :Global ADC Space

Biologics, also called large molecules, including New Biological Entities (NBE) and biosimilars, are characterised as intricate, high-molecular-weight compounds composed of proteins and produced from living organisms through biological methods. The production of biologics is notably expensive and in most instances, their administration can only be conducted via injection or infusion. Antibody Drug Conjugates (ADCs) are one such example and represent an emerging class of targeted anti-cancer therapeutic drugs.

ADCs constitute a groundbreaking category of chemotherapeutic agents that synergistically combine the precision of monoclonal antibodies (mAbs) with potent cytotoxic substances.

Each successive generation of ADCs has progressively advanced towards the objective of targeted cancer therapy, achieving enhanced efficacy and minimising off-target toxicity.

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Notably, there have been 12 FDA approvals thus far and over 1,500 ADCs are currently undergoing -various developmental stages. The momentum within this field is emphasised by numerous billion-dollar industry agreements and global sales surpassing US$12 billion in 2024.

Manufacturing ADCs is particularly complex, requiring precision in conjugating toxic payloads to antibodies while maintaining their stability and activity, which necessitates highly controlled production environments. The ADC market, is expected to reach US$67 billion by 2030, growing at a CAGR of 31%.

The success of ADC therapies hinges on the capabilities of CDMOs, particularly in managing the intricate processes of antibody conjugation, payload selection and quality control.

The ADC CDMO Opportunity: The Antibody Drug Conjugate (ADC) Contract Development & Manufacturing Organisation (CDMO) market is currently undergoing substantial expansion, driven by the increasing demand for advanced cancer therapies and the complex nature of ADC manufacturing processes. This market is projected to attain a valuation of US$1.5 billion by 2025 and is forecasted to exhibit a CAGR of 25% from 2025 to 2033, culminating in an estimated value of approximately US$9 billion by 2033.

Key factors fuel this expansion: l The rising prevalence of various cancers, particularly solid tumours and haematological malignancies, is creating a significant need for effective ADC treatments l Advancements in ADC technology, including improvements in linker and payload design, are leading to enhanced efficacy and reduced toxicity, further stimulating market growth l The increasing outsourcing of ADC manufacturing by biopharmaceutical companies, driven by cost efficiency and specialised expertise, will be a key driver of market expansion l Growth will be fuelled by continuous innovation in ADC design, improved manufacturing technologies and strategic collaborations between pharmaceutical companies and CDMOs The trend towards end-to-end CDMO services, encompassing all aspects of ADC development and manufacturing, is becoming increasingly prominent. This integrated approach streamlines the process and reduces development timelines.

Advanced Technology: Bioconjugation and Targeted Protein Degraders (TPDs) are transformative strategies in modern biomedical research. While bioconjugation enables the precise linking of biomolecules to create multifunctional therapeutics and diagnostics, TPDs harness the bodys natural degradation pathways to eliminate disease-driving proteins. Together, these approaches are expanding the frontiers of targeted and effective treatments.

Bioconjugation

Bioconjugation is the process of joining two molecules together to form a complex through a covalent bond. Bioconjugation methods are used to create novel multifunctional bioconjugates by interlocking two different molecules in a site-specific manner. It promotes the formation of dimers or oligomers, which, on maturation, may lead to substances of biomedical importance. Different biomolecules include carbohydrates, lipids, proteins and nucleic acids. Especially, proteins form the most diverse molecules, which contribute to the number of amino acids present and hence serve as the major substrates in bioconjugation reactions.

Targeted Protein Degraders (TPDs)

Targeted Protein Degraders (TPDs) represent a promising class of therapeutic agents that leverage the cells natural protein degradation systems to eliminate disease-causing proteins, especially those previously deemed undruggable. Unlike conventional inhibitors that merely suppress protein activity, TPDs enable complete and sustained removal of the target protein, which can offer prolonged therapeutic effects, particularly when protein turnover is inherently low. These macromolecular compounds are engineered to selectively degrade intracellular proteins, membrane-bound proteins and even transcription factors, opening new avenues for treating complex and refractory diseases.

04 :Global API Segment

Active Pharmaceutical Ingredients (APIs) are crucial in cardiology, oncology, neurology, orthopaedics, endocrinology and pulmonology. Their production includes research, development, manufacturing and rigorous quality control. APIs can also be combined with other ingredients to create medications for multiple symptoms or conditions.

The increasing accessibility of healthcare and rising awareness in developing countries drive demand for cost-e_ective treatment options, such as biologics and biosimilars, contributing to the markets continued expansion. Rising cases of chronic diseases, infectious diseases and genetic disorders further fuel this demand.

The demand for safe and effective drugs is also driving the growth of the API market.

In 2024, synthetic APIs accounted for 72% of the market, driven by strong demand for generic drugs and the cost-e_ective production of these APIs. Their lower manufacturing costs offer advantages to Contract Development & Manufacturing Organisations (CDMOs) by reducing production expenses. In 2024, the cardiology segment led the API market with a 23.7% share, driven by the high prevalence of cardiovascular diseases. North America remains the dominant region, holding an estimated 36.7% market share in 2024, supported by its advanced healthcare infrastructure, strong research capabilities and high demand for innovative pharmaceuticals. Despite challenges such as rising operational costs and FDA regulatory fees, the region continues to maintain its leadership in the market.

The global API market is estimated at US$240.8 billion in 2024 and is projected to grow from US$232.13 billion in 2025 to US$328.94 billion by 2030, with a CAGR of 7.22%.

05 :Global Specialty Chemicals industry stands at the forefront of industrial innovation, reaching a market value of US$641.5 billion in 2023 and is expected to surge to US$914.4 billion by 2030 at a CAGR of 5.2%. This growth reflects the increasing dependence of modern industries, ranging from construction and electronics to water treatment and other sectors. These chemicals not only enhance performance and sustainability but also help businesses stay competitive in a rapidly evolving global market. The expansion of applications in pharmaceuticals, food and feed additives and the fast-growing _avours and fragrances segment drives the momentum. As processed foods and beverages gain popularity in developed markets, _avouring agents are witnessing a steep rise in demand. Simultaneously, consumers are gravitating towards innovative taste profiles and unique aromatic experiences, pushing companies to explore new frontiers in formulation and extraction.

Agro Chemical Market: Beyond the factory floor and laboratory, another key pillar of the specialty segment is emerging agrochemicals. With global agricultural output facing mounting pressure, the agrochemical industry is proving indispensable in ensuring food security for a growing population. Agrochemicals, comprising fertilisers, pesticides and plant growth regulators, play a critical role in protecting crop health, improving soil fertility and increasing yields.

In 2024, the global agrochemicals market is valued at US$287.85 billion. It is poised to reach US$439.77 billion by 2029, driven by technological advancements, the adoption of precision farming and the growing need to combat evolving pest and disease threats. Fertilisers, particularly those based on nitrogen, are vital for accelerating plant growth, while pesticides, including insecticides and fungicides, shield crops against biotic stress.

The rapid evolution of the specialty and agrochemical sectors is being driven by a confluence of structural trends- climate change adaptation, the digitisation of agriculture, breakthroughs in genetic engineering and a growing shift towards sustainable, organic and non-GMO solutions.

Outlook

As the global population is projected to reach 8.5 billion by 2030, agricultural commodity demand is expected to grow at an annual rate of 1.2%. Meeting this rising demand will require significant productivity gains, with yield enhancement expected to account for 87% of the increase, an area where agrochemicals will play a pivotal role. Together, specialty and agrochemicals are shaping the foundation of a more resilient and efficient global ecosystem. From enabling next-generation industrial applications to safeguarding food systems, these industries are no longer ancillary- they are central to how the world innovates, nourishes and sustains itself.

SOURCE: GRANDVIEW RESEARCH, THE BUSINESS RESEARCH

ABOUT THE COMPANY

Cohance Lifesciences is a fully integrated CDMO with a global footprint, offering a synergistic suite of development and manufacturing services tailored to complex molecules. With robust infrastructure and expertise, Cohance Lifesciences collaborates with clients across the entire product lifecycle, from route scouting and early development to full-scale commercial manufacturing.

Cohances chemistry capabilities are therapy-agnostic and backed by efficient delivery models that adhere to strict timelines. Driven by excellence and innovation, the team ensures reliable, high-quality solutions for partners in the pharmaceutical and _ne chemical industries.

Cohances commitment to excellence and innovation is reflected in client feedback, with customers consistently praising their dedication to exceeding expectations. Its ability to deliver reliable, high-quality solutions within strict timelines positions it as a trusted partner in the pharmaceutical and _ne chemical industries. Recognised for its pursuit of excellence and customer satisfaction, the Company continues to be a preferred collaborator. Cohance is well-positioned in high-growth verticals such as ADCs, oligonucleotides and specialty APIs, aligned with global innovation trends.

Financial performance

On a consolidated basis, revenue from operations stood at H1,198 crore in FY2024-25, compared to H1,051 crore in FY2023-24, reflecting a growth of 14%, driven by a stronger product mix, increased operational efficiency, and improved business momentum.

The Pharma CDMO segment continued to be the largest contributor, delivering H737 crore and accounting for 62% of consolidated revenues. Growth in this segment was supported by strong customer traction and further boosted by the integration of NJ Bio and Sapala Organics, two high-growth platforms. The Specialty Chemicals business also returned to a growth trajectory, contributing 17% of consolidated revenues during the year.

Profit After Tax (PAT) stood at H268 crore, lower than H300 crore in FY2023-24, representing a decline of 11%, primarily on account of one-time charges and higher integration-related costs.

Adjusted EBITDA for FY2024-25 stood at H443 crore, marginally increased from H435 crore in FY2023-24. While revenue growth and a stronger business mix supported operating performance, the overall EBITDA was impacted by one-time charges of H56.5 crore. These included H15.1 crore towards ESOP expenses and H41.4 crore towards legal and merger costs linked to the integration of Cohance Lifesciences. Adjusted EBITDA margin stood at 37% in FY2024-25 as against 41% in FY2023-24. Excluding these exceptional items, underlying margins remained robust, reflecting improved operating leverage and efficiency.

Consolidated net worth of the Company stood at H1,697 crore as on March 31, 2025.

The Companys Consolidated debt-equity ratio stood at 0.05x in FY2024-25, as against 0.02x in FY2023-24, reflecting improved financial discipline and ongoing deleveraging efforts.

The reduction was achieved through prudent deployment of internal accruals towards debt repayment, supported by healthy operating cash flows. The Company generated net cash flow from operations of H288 crore in FY2024-25, which was largely deployed towards investments in capacity expansion, integration of new platforms, and debt repayment.

RATIOS (STANDALONE) AS PER REQUIREMENT OF SEBI LISTING REGULATIONS:

	31 March 2025	31 March 2024 (Restated) (refer note 58)	Change in %
Current ratio=Current assets/Current liabilities	3.32	10.45	-68.23%
Debt equity ratio=Total borrowings/Total equity	0.03	0.02	50.00%
Debt service coverage ratio=(Profit after tax+Finance cost+Depreciation)/ (Finance cost+Principal component of term loans)	31.61	27.70	14.13%
Return on equity ratio/return on investment ratio=Net Profit after tax divided by average equity	0.13	0.16	-20.70%
Inventory turnover ratio=Cost of goods sold divided by Average Inventory*	1.55	1.16	34.01%
Trade receivables turnover ratio=Revenue from operations divided by average Trade receivables	5.81	8.60	-32.36%
Trade payables turnover ratio=Purchases divided by Average Trade payables	6.95	7.64	-8.92%
Net capital turnover ratio=Revenue from operations divided by (Current Assets less Current Liabilities)	2.21	0.95	132.51%
Net profit ratio=Net profit after tax divided by Revenue from operations	24.85%	28.20%	-11.89%
Return on Capital employed=(Earnings before Finance cost, other income and income taxes) divided by average Capital employed #	12.62%	16.61%	-24.06%

*Cost of goods sold includes cost of materials consumed and changes in inventories of finished goods and work-in-progress.

#Capital employed = Total assets - Current liabilities.

Reasons for change: More than 25%:

Current Ratio: On account of disinvestment of current investments for acquisition of subsidiaries. Debt-equity Ratio: On account of availment of loans during the year.

Inventory turnover ratio: On account of decrease in Inventory.

Trade receivable turnover ratio: On account of increase in trade receivable compared to previous year Net capital turnover ratio: Increase on account of disinvestment of current investments for acquisition of subsidiaries.

Internal Control and its Adequacy

The company is dedicated to maintaining a robust internal control system and environment to prevent and detect errors, irregularities and fraud. This ensures asset security and enhances operational efficiency.

The company has a well-structured internal control system tailored to its size and complexity, aligned with evolving business requirements. It has established internal financial controls in accordance with the Companies Act, 2013, covering key processes relevant to its operational scale.

Internal controls are implemented at both the entity and process levels to ensure regulatory compliance, adherence to internal control standards and accurate recording and reporting of financial and operational information.

Human Capital & ESG Commitment

At Cohance Lifesciences, we believe our people are central to creating long-term stakeholder value. We foster a culture of ownership, collaboration and continuous learning, with sustainability and compliance embedded throughout our operations. Our initiatives- spanning capability building, gender diversity, Safety & Well-being and ESG-focused development- are benchmarked against CDMO leaders such as Lonza and Thermo Fisher.

In todays dynamic business landscape, human capital is a strategic driver of organisational culture, performance and growth. Accordingly, Cohance Lifesciences invests in its people to build capacity, sharpen skills and cultivate leadership- positioning the company as a hub for learning and delivery.

We design people-focused programs to enhance intellectual capital and global competitiveness. Employees are encouraged to engage in workshops, knowledge-sharing forums and expert-led sessions to stay ahead of industry trends. Workplace safety and well-being remain core priorities, fostering productivity and cohesion. For details on workforce, please refer to BRSR forming part of this Annual Report.

Sustainability Outlook

Cohance Lifesciences remains committed to responsible growth through science-led, sustainable practices. Looking ahead, our ESG agenda prioritises energy efficiency across facilities, responsible sourcing of raw materials, water conservation and waste minimisation. We are advancing digital tools for EHS compliance and exploring green chemistry innovations to reduce environmental impact. Our goal is to embed sustainability into every layer of our operations, aligned with global frameworks such as the United Nations Sustainable Development Goals (UN SDGs) and expectations of leading global CDMO partners.

Risk management

Cohance Lifesciences recognises the evolving risk landscape of the global CDMO industry. Our Enterprise Risk Management (ERM) framework is aligned with ISO 31000 and COSO principles, ensuring proactive risk identification, mitigation and resilience.

The framework highlights the importance of a synchronised and integrated approach to mitigating risks and capitalising on opportunities across our organisation, encouraging a culture of independent, proactive and systematic risk management. Additionally, it fosters a proactive, risk-aware culture by incorporating clearly defined roles, responsibilities, principles and standardised processes. It also ensures systematic risk management through established methods, tools and training initiatives.

Key focus areas include operational continuity, data integrity, regulatory compliance, talent retention, geopolitical exposure and climate risk.