Venus Remedies Ltd Management Discussions

. GLOBAL ECONOMIC OUTLOOK: NAVIGATING RESILIENCE AMID UNCERTAINTY

The global economy in 2024 displayed notable resilience, achieving a real GDP growth of 3.3% despite mounting geopolitical tensions and policy uncertainty. However, signs of decelerating momentum emerged, casting a cautious outlook for 2025 as nations grapple with heightened risks and uneven recovery paths.

Regional Performance

Economic activity varied across regions.The United States maintained robust momentum, fuelled by strong consumer spending and a dynamic labour market. India, now the worlds fifth-largest economy with a GDP of US$3.89 trillion, demonstrated exceptional resilience despite battling persistent inflationary pressures and global economic headwinds.

In contrast, China underperformed relative to expectations, revealing underlying structural challenges and sluggish demand.

Inflation Trends

Global headline inflation continued downward, falling to 5.8% in 2024, compared to 6.8% in 2023 and 8.7% in 2022. While this signals progress, inflation remains well above prepandemic levels. The forecast for 2025 projects a further decline to 4.4%, though disparities persist. Advanced economies are expected to approach target inflation rates more swiftly, while emerging markets

may face prolonged adjustments.

The primary challenge now lies in managing monetary transitions without fragmenting global economic coordination or impeding sustainable growth.

Manufacturing Dynamics

Manufacturing activity in 2024 was marked by divergence across key economies. China continued to anchor global manufacturing with vigorous expansion, while Europe posted mixed performance amid energy constraints and weak demand. The United States showed a split trajectory- some indicators reflected growth, while others hinted at a slowdown. Globally, manufacturing expanded modestly, with a growth estimate of 0.6%, reinforcing the theme of cautious optimism layered with sectoral and regional complexities.

Outlook

The global economy, already contending with persistent challenges, now faces a renewed wave of volatility. Initial projections by the International Monetary Fund (IMF) had anticipated steady- if modest- growth extending through 2024 and into 2025. However, this outlook has been notably disrupted by recent policy shifts, particularly the imposition of new tariff regimes by the United States and subsequent retaliatory measures from key trade partners.

As a result, growth expectations have been revised downward, with global GDP forecasted to expand by just 2.8% in 2025 and 3% in 2026- a marked decline from the 3.3% originally projected for both years in early 2025.These downward adjustments highlight the far-reaching implications of rising trade tensions and escalating policy unpredictability, weighing heavily on investor confidence and cross-border economic flows.

Growth Drivers

FY25 has showcased Indias inherent resilience and strategic commitment to transformative growth, propelled by a potent blend of demographic advantage, digital innovation, and steadfast investment in foundational infrastructure.

GDP Momentum

Recognised as the fastest-growing major economy, India continued its upward trajectory with a projected GDP growth of 6.5%- a moderation from the impressive 9.2% recorded the previous year. This growth was primarily driven by significant public infrastructure spending, alongside strong domestic demand fuelled by private consumption. The financial sector remained stable, supported by healthy credit expansion, which spurred economic activity across key segments.

Manufacturing Strength

Indias manufacturing sector demonstrated robust growth throughout FY25, as evidenced by the Manufacturing Purchasing Managers Index (PMI) remaining consistently above the 50-point threshold- a key expansion indicator- for the 44th consecutive month. A notable uptick in employment accompanied this sustained momentum, while inflationary pressures showed clear signs of easing.

Inflation Trends

Retail inflation fell to a near six-year low of 3.34% in March, largely driven by declining prices of vegetables and protein-rich foods. This moderation follows a recent policy rate cut by the Reserve Bank of India (RBI), which anticipates average consumer price inflation (CPI) to align with its target of 4% for FY2025-26. Concurrently, wholesale price inflation eased to a six-month low of 2.05%, reflecting ongoing deflation in key food categories.

External Performance

Indias external sector also achieved impressive gains. Total exports of goods and services reached an all- time high of US$820.93 billion in FY25, reflecting a 5.5% year-on-year increase from US$773 billion in the previous fiscal year. This export performance is particularly noteworthy considering the ongoing global economic headwinds and trade volatility.

Fiscal Position

India is on track to meet its FY25 fiscal deficit target of 4.8% of GDP, bolstered by stronger-than-expected nominal growth, steady revenue inflows, and prudent spending. The current account deficit has narrowed, supported by a services trade surplus

and record-high remittance inflows, fuelled by improved employment prospects in OECD countries. Collectively, these factors have kept the current account position stable and manageable.

Outlook for FY26

As FY26 begins, India is poised to maintain its growth momentum, with the IMF projecting a 6.3% expansion. This outlook is supported by resilient domestic demand, continued policy reforms, and sustained capital investment- particularly in infrastructure- expected to foster private sector engagement. While global uncertainties and trade tensions persist, Indias solid fundamentals and proactive policies will likely underpin a stable and forward-moving economic environment.

In 2024, the global pharmaceutical sector experienced continued growth and significant strategic shifts. A notable uptick was seen in Mergers & Acquisitions (M&A) within the broader life sciences sector, with deal values generally showing a rebound towards the latter half of 2024, aiming to surpass 2023 levels in strategic areas, despite initial reports of a decrease in pharma-specific megadeal values (e.g., a reported 36% decrease in deal values for pharma and life sciences due to fewer megadeals, from 10 in 2023 to 4 in 2024, as per some analyses of specific large transactions). This M&A drive were fuelled by large pharmaceutical companies seeking to replenish pipelines, acquire emerging technologies like Al and gene therapies, and expand into lucrative therapeutic areas.

Simultaneously, the industry grappled with the "patent cliff," with an estimated US$50 billion to US$60 billion in sales at risk from patent expirations between 2023 and 2028. This necessitated strategic pipeline diversification and increased M&A activities to mitigate revenue erosion.

Reflecting broader industry trends, there was an accelerated focus on Artificial Intelligence (Al) and digital transformation, with significant investments in these areas aimed at boosting efficiency, cutting costs, and speeding up drug discovery and commercialisation.These strategic responses and technological advancements align with a broader positive trend in the biopharma sector, as evidenced by improving financial health and clinical development.

Following a post-pandemic rebound in 2023, biopharma funding continued its upward trajectory into 2024, bolstered by increased activity in IPOs, follow-on funding, and diverse public and private capital sources.

Concurrently, the volume of clinical trials stabilised in 2024 at 5,318, halting the year-on-year declines seen in 2022 and 2023. This figure remarkably mirrors the pre-pandemic level of 5,316 in 2019 and slightly surpasses 2023s total of 5,302. The short-term volatility from COVID-19 trials since 2019 has been largely offset by a surge in trials from China- headquartered companies and recent boosts from EBP (Emerging Biopharma) and larger firms, particularly in Phase I.

Looking ahead, the largest driver of medicine spending growth through the next five years is still expected to be the availability and use in developed markets of innovative therapeutics, offset by losses of exclusivity and the lower costs of generics and biosimilars.

• The global use of medicine is expected to reach nearly 3.8 trillion defined daily doses in 2028

• Medicine use in Latin America and Asia has grown more rapidly than in other regions, and this trend will continue through 2028

• The two leading global therapy areas- oncology and immunology- are forecast to grow 14-17% and 2-5% CAGR through 2028

• Oncology is projected to add 100 new treatments over five years, contributing to an increase in spending of US$ 224 Bn to a total of more than US$ 440 Bn in 2028 and facing limiting new losses of exclusivity

• Treatments for auto-immune disorders are forecast to reach US$192 Bn globally by 2028, driven by steadily increasing numbers of treated patients and new products in some new immune disorders

• Diabetes spending growth is slowing to low single digits in most developed markets and declining in some, especially net of rebates

DEFINING TRENDS IN THE GLOBAL PHARMACEUTICAL SPACE

Explosion in Advanced Therapies (Cell & Gene Therapies, RNA-based Medicines): Beyond traditional small molecules and biologies, theres a significant surge in developing and commercialising highly specialised and often curative therapies. This includes Gene Therapies (e.g., for rare genetic disorders), Cell Therapies (like CAR-T for cancers), and RNA-based medicines (mRNA vaccines, siRNA therapeutics).This segment demands new manufacturing capabilities, supply chain logistics, and pricing models.

Focus on "Beyond the Pill" Solutions: Pharmaceutical companies increasingly look beyond just selling

drugs. This involves developing integrated solutions that include diagnostics, digital health tools, patient support programs, and adherence technologies to improve patient outcomes and demonstrate value to payers.

Geographic Diversification of R&D andCommercialisation:V\lh\\e major markets like the US, Europe, and Japan remain critical, theres a growing emphasis on emerging markets, particularly China and India, not just as manufacturing hubs but also as significant R&D centres and growing commercial markets. China, in

particular, is seeing a surge in locally- headquartered companies conducting global clinical trials.

Therapeutic Focus on Microbiome:

The human microbiome is emerging as a significant area for therapeutic intervention. Research is growing into developing live biotherapeutic products and other microbiome- modulating agents for conditions ranging from gastrointestinal disorders to infectious diseases and even certain cancers and neurological conditions.

The US market

In 2024, total prescription medicine usage increased by 1.7%, reaching 215 billion days of therapy. Retail growth slowed, while non-retail (clinics, doctorsoffices) accelerated. Over 7 billion retail, mail, and long-term care prescriptions were dispensed, up 2.5% from 2023, with acute prescriptions driving the majority of new growth.

Shifts in insurance coverage resulted in an increase in commercial enrolees and a decrease in Medicaid users.

Growth in therapy areas was limited, with notable exceptions: obesity experienced over 50% growth and immunology 11%, driven by novel therapies such as GLP-1 agonists. Although there has been a decline in overall antibacterial use since

2019, the utilisation of last-resort antibacterial has witnessed a significant increase of 42%, indicating an ongoing necessity for stewardship.

Conversely, the utilisation of targeted cancer treatments has increased by 14% since 2019, with oral medications accounting for nearly half of this increase. The flu season experienced historically high cases; however, flu vaccination rates have reached their lowest levels since the 2016-2017 season, while other routine adult and paediatric vaccinations have also shown a decline.

The European market

In 2024, the European pharmaceutical market generated a substantial revenue of US$488,047.0 million.

The market is projected to expand at a 5.9% CAGR between 2025 and 2030. While conventional drugs, or small molecules, were the largest revenue-generating segment in 2024, the Biologies & Biosimilars (Large Molecules) segment is anticipated to be the most lucrative and fastest- growing molecule type over the forecast period. Spain is expected to record the highest CAGR among individual countries between 2025 and 2030.

The pharmaceutical market in the United States is projected to exhibit sustained growth and notable changes in focus by 2025. This evolution is anticipated to be driven by technological advancements, changes in healthcare policies, and an increased emphasis on personalised medicine.

The U.S. pharmaceutical market, valued at US$669.42 billion in 2025, is projected to reach US$883.97 billion by 2030, growing at a CAGR of 5.72%.This surge is to be driven by rising chronic diseases, an ageing population, higher healthcare spending, and efforts to enhance drug affordability and access.

The Indian pharmaceutical market significantly expanded in FY25, reinforcing its crucial role in the national economy and global healthcare. This strong growth signals strategic progress and consistent demand in core therapy areas.

According to market research firm Pharmarack, Indias pharmaceutical market grew by a healthy rate of 8.4% in FY25. Significant value growth across major therapy segments primarily fuelled this impressive performance. The cardiac segment led this expansion, which registered a substantial 10.8% value growth. Closely following were the gastrointestinal segment with 10.2% growth and the anti-diabetic segment with an 8% increase. These three vital segments collectively represent a considerable portion of the pharmaceutical market, accounting for 34% of total pharma sales and contributing to an impressive turnover exceeding ?2,25,000crore (approximately US$25.95 billion).

Beyond value, the domestic market also experienced a tangible increase in demand, evidenced by a 1.2% rise in unit sales, indicating broader access and consumption of pharmaceutical products across the country. This strong showing underscores Indias pharmaceutical industrys underlying health and dynamic nature.

Exports Indias annual drug and pharmaceutical exports achieved a significant milestone in FY25, reaching a record US$30 billion for the first time.This impressive performance not only set a new high but also surpassed the targeted export figure of US$29.38 billion.The United States maintained its long-standing position as Indias largest pharmaceutical export market, accounting for over one-third of total pharma exports. In value terms, exports to the U.S. increased by 14.29%, reaching US$8,953.37 million (up from US$7,833.75 million).

The U.K., Brazil, France, and South Africa completed the top five export destinations, collectively representing less than 10.5% of total exports.

Medical Tourism: India is becoming a hub for medical tourism, with over 4.6 lakh medical visas issued in 2024 alone. India performed 18,378 organ transplants, 1,851 of which were on foreign patients. Foreign nationals typically visit India for organ donations, advanced oncology or other procedures not available in their home countries. Bangladesh leads in medical travel to India with 323,498 visas in 2024 (69% of all medical visas). The numbers may drop due to strained diplomatic ties.

KEY EMERGING TRENDS

Sustainable API sourcing with emphasis on Green chemistry: Beyond boosting API production, theres a nascent but growing focus on integrating green chemistry principles in API synthesis within India. This involves developing more environmentally friendly processes, reducing solvent use, minimising hazardous waste generation, and exploring biocatalysis to meet stringent global sustainability standards and reduce ecological footprint.

Pharma 4.0" implementation at shop floor /eve/:This goes beyond general digital transformation. Specific Indian manufacturers are implementing Pharma 4.0 concepts on their shop floors: integrating loT sensors on machinery for predictive maintenance, real-time quality control through process analytical technology (PAT), and automated batch records to reduce human error and improve compliance with global standards.

Targeted digital outreach to Rural & Semi-Urban healthcare professionals: For the domestic market, the specificity lies in using hyper-localised digital campaigns and platforms (e.g., vernacular content on medical education apps, WhatsApp-based doctor communities) to engage healthcare professionals in Tier 2, Tier 3 cities, and rural areas, overcoming geographical barriers for product promotion and medical education.

Changing government and regulatory landscape: As healthcare becomes an important policy agenda item, working effectively with the government will shape the sectors future. Tightening of policy and faster regulatory approvals are increasing competition, requiring companies to be right first time. With increased vigilance from regulators, a focus on quality assurance and control has become even more critical.

Shifting industry dynamic The industry is witnessing a series of changes: a shift from "Make in India" to "Develop in India" increased globalisation, rural markets gaining attention, a focus on value addition versus pricing, and a change from a competitive to collaborative mindset with the merging of sectors, especially Medical Devices, Pharmaceuticals & Disposables.

Digital - Backbone of transformation: Digitisation will be instrumental in reshaping the sector and integrating the ecosystem. To remain competitive, companies must demonstrate agility in responding to the changing relationship dynamics triggered by new digital players and invest in data and analytics capabilities.

INDIAN UNION BUDGET 2025-26: KEY ALLOCATIONS FOR THE PHARMACEUTICAL SECTOR

Increased Budgetary Allocation:

The Department of Pharmaceuticals (DoP) saw a substantial increase in its allocation. The proposed allocation for FY26 is around T5,268.72crore, marking an increase of nearly 29% compared to the Budget Estimates for FY25.This higher allocation signals the governments continued focus on the sector.

Promotion of Bulk Drug Parks: Allocation for the Scheme for the Promotion of Bulk Drug Parks is significantly enhanced, reaching T1,460crare for FY26.This initiative aims to create common infrastructure facilities to reduce manufacturing costs and make bulk drug production more competitive.

Emphasis on Research & Innovation

(PRIP Scheme):The Promotion of Research and Innovation in Pharma Med-Tech (PRIP) scheme received a

proposed allocation of T245crore. This scheme fosters innovation, promotes industry-academia collaboration, and accelerates the discovery, development, and commercialisation of new drugs and medical devices.

Customs Duty Exemptions & Concessions:To enhance the affordability and accessibility of critical medicines, the budget extended full Basic Customs Duty (BCD) exemption to 36 more life-saving drugs (including those for cancer, rare, and chronic diseases), along with the bulk drugs used in their manufacture. Additionally, six other life-saving medicines were brought under a 5% concessional duty rate.

Patient Assistance Programmes (PAPs) Support The BCD exemption was also extended to 37 more medicines and 13 new Patient Assistance Programmes run by pharmaceutical companies, providing these medicines are supplied free of cost to patients.

Overall Healthcare Infrastructure Focus: Beyond direct pharma allocations, the budget emphasised improving broader healthcare infrastructure, including the setting up Day Care Cancer Centres in district hospitals and promoting theFleal in Indiacampaign to boost medical tourism. While not directly a pharma allocation, a stronger healthcare ecosystem benefits the industry.

BUSINESS ENABLER ONE

RESEARCH & DEVELOPMENT

KEY AREAS & FUNCTIONAL DIVISIONS OF R&D

1) Antimicrobial Resistance, Nephrology - Focus areas of therapeutic innovation Antimicrobial Resistance (AMR)- A major health hazard

Venus Medicine Research Centre (VMRC) continues to intensify its efforts to address antimicrobial resistance (AMR), a critical global health concern. The VMRC has adopted a multi-pronged approach that includes repurposing existing drugs and advancing research to enhance the safety and efficacy of antibiotic therapies. A significant area of focus has been reducing nephrotoxicity associated with high- risk antibiotics, ensuring better patient outcomes without compromising treatment effectiveness. In line with its commitment to scientific innovation, VMRC has also integrated CRISPR- Cas-based gene-editing workflows into its research framework, enabling the development of next-generation antimicrobial solutions. While the VMRC continues to explore Antibiotic Resistance Breakers (ARBs), its broader strategy remains rooted in improving existing treatment paradigms and fostering innovation to combat AMR.

AMR-Specific Initiatives in FY25: The VMRCs most notable achievement in AMR innovation during FY25 was the development of Renal Guard Technology (RGT), a proprietary platform engineered to reduce the nephrotoxicity associated with potent antibiotics such as polymyxin B, colistin, and amikacin. VMRC also began early-stage studies using gene-editing tools to design new antimicrobial agents that can target and overcome resistance mechanisms in pathogens. Furthermore, the global recognition ofVMRCs AMR work was reinforced when three drug candidates were featured in the WHOs : latest Global Antibacterial Pipeline Report. Of the nine AMR candidates listed from India, three originated from VMRC, demonstrating the VMRCs significant contribution to national and global efforts against AMR.

Nephrology R&D Focus: In addition to its work in infectious disease,

VMRC has remained committed to advancing treatments in nephrology. The VMRC has made important progress in developing and optimising its Renal Guard Technology (RGT),

which mitigates the adverse renal effects of antibiotics frequently, used in critical care and infectious disease scenarios. This initiative aligns with VMRCs broader strategy to enhance the therapeutic index of essential drugs by incorporating kidney- protective mechanisms. In terms of pipeline advancement, VRP-034 successfully completed its pre- clinical development, and two other candidates- VRP-044 and VRP-035- continue progressing through active development stages.These programs reflect VMRCs sustained focus on enhancing renal outcomes and offering safer therapeutic alternatives to conventional treatments.

2) Functional and strategic divisions supporting R&D excellence

A robust and well-integrated R&D ecosystem at VMRC is made possible by the synergistic functioning of key scientific and strategic divisions. These teams directly support the drug development lifecycle from formulation to global regulatory filing.

Functional Divisions Directly Aiding R&D Efforts:The Formulation & Development (F&D) division atVMRC is dedicated to developing advanced pharmaceutical products. Leveraging cutting-edge technologies, including Novel Drug Delivery Systems (NDDS) and nanotechnology, the teams research primarily encompasses targeted drug delivery. A particular area of emphasis is the development of Antibiotic Resistance Breakers (ARBs). F&D also plays a vital role in process development, technology transfer, and the creation of non- infringing formulations, all essential for ensuring product differentiation, improved drug safety, and better bioavailability.The division also maintains a strong generics pipeline to ensure a steady flow of high- quality, cost-effective medications.

The Analytical Research division specialises in developing and validating robust analytical methods for pharmaceutical compounds and bio-analytical assays. The team works extensively on drug interaction studies, stability assessments, and physio-chemical characterisation of both drug substances and finished products. Their laboratory capabilities span spectroscopic, electrochemical, chromatographic, and other analytical techniques tailored for parenteral and oral dosage forms. The divisions expertise includes Liquid

Chromatography with tandem mass spectrometry (LC-MS/MS), High- performance liquid chromatography (HPLC), Gas Chromatography (GC) for residual solvent and organic volatile impurity testing, as well as dissolution and assay testing. This team is pivotal in maintaining quality and regulatory compliance by ensuring data precision and integrity.

The Pre-clinical & DMPK (Drug Metabolism & Pharmacokinetics) division undertakes comprehensive pre-clinical testing to assess drug safety and efficacy in various animal models. Their work includes single- and repeated-dose toxicity studies, repeated-dose toxicokinetic studies, and in vivo PK/PD evaluations.

The team also conducts proof-of- concept investigations and safety pharmacology assessments, including QTc studies to evaluate cardiac safety. Their in-depth pathology evaluations offer a granular understanding of drug effects at the tissue level, making this division critical to the successful advancement of pre-clinical candidates.

Within the Cell Culture and Microbial Biotechnology division, VMRC harnesses advanced drug research and development techniques. This includes the genetic characterisation of microbial strains, applying hollow fibre infection models for studying

infectious diseases, and using micro-imaging to observe cellular interactions. Additional capabilities involve molecular imaging, gene expression profiling, and cytotoxicity assays, all of which help elucidate drug mechanisms and assess efficacy. A noteworthy development in FY25 was initiating gene-editing programs to combat antimicrobial resistance at a genetic level. The division also continues its work on validating microbial testing methodologies to ensure product safety.

The Clinical Research division supports VMRCs mission by managing the complete clinical trial cycle- from feasibility assessments and trial execution to regulatory submissions and post-trial archival. Under stringent ethical standards and regulatory guidelines, the team ensures study participants rights, safety, and well-being across Phase I to Phase IV studies.Their capabilities include bridging studies, bioavailability/ bioequivalence (BA/BE) trials, and PK studies designed to evaluate drug compoundsabsorption, distribution, metabolism, and excretion.The divisions robust infrastructure allows VMRC to efficiently transition drug candidates from bench to bedside.

MAJOR STRATEGIC & SUPPORT DIVISIONS

The Natural Product Research Lab (NPRL) continues to focus on the therapeutic potential of plant-based compounds and herbal medicines. NPRL scientists combine traditional herbal wisdom with modern drug delivery science to create novel treatments for various diseases. Their research has resulted in important breakthroughs in Indias herbal medicine landscape, positioning NPRL as a leader in phytopharmaceutical innovation.

The Intellectual Property Rights (IPR) division safeguards the Companys R&D output by managing strategic patent portfolios, filing and prosecuting patent/copyright/ trademark applications, and supporting legal matters related to infringement and litigation. This team plays a vital role in preserving the Companys innovations, enabling long-term exclusivity and commercial success.

Strategic Business Development (SBD) is tasked with building long-term value by identifying new business opportunities, partnerships, and co-development arrangements.

The division scouts emerging technologies, negotiates in-licensing deals, and evaluates market trends and product valuation strategies that align with VMRCs global growth ambitions.

Drug Regulatory Affairs is responsible for preparing detailed regulatory dossiers in CTD and eCTD formats for submission to domestic (e.g., DCGI) and international (over 90 countries) regulatory bodies. The team oversees clinical trial approvals, marketing authorisations, and all variation filings, ensuring compliance across the drug lifecycle.

The Pharmacovigilance division upholds product safety by monitoring Adverse Drug Reactions (ADRs) during

clinical and commercial development. Responsibilities include processing Individual Case Safety Reports (ICSRs), conducting causality assessments, and submitting expedited reports to health authorities. The team also prepares comprehensive safety documents such as DSURs, PSURs, and pharma covigilance plans in accordance with global regulations.

Overall, our diverse expertise and comprehensive capabilities encompass every stage of the pharmaceutical research and development process, from early- stage discovery to regulatory approval and commercialisation. By leveraging advanced technologies, interdisciplinary collaboration, and a commitment to scientific excellence, we aim to drive innovation in the pharmaceutical industry and improve patient outcomes by developing safe and effective therapeutics.

In FY 2024-25, VMRC significantly strengthened its position as a global research-driven pharmaceutical organisation through strategic initiatives that advanced its innovation capabilities, expanded global collaborations, and reinforced its leadership in Anti-Microbial Resistance (AMR) research and drug development.

Strategic In-Licensing ofMET-X: A landmark achievement during the year was the successful in-licensing of MET-X, a novel p-lactamase inhibitor. This strategic move substantially enriched VMRCs resistance-focused pipeline and demonstrated the Centres proactive approach to

identifying and acquiring high- potential therapeutic assets aligned with global AMR priorities.The MET-X program is expected to be pivotal in overcoming p-lactamase-mediated resistance, a growing concern worldwide, especially in hospital- acquired infections.

Regulatory Excellence: VM RC continued to make strides in regulatory advancement with the United States Food & Drug Administration (USFDA) granting Qualified Infectious Disease Product (QIDP) designation to VRP-034. This designation affirms the molecules global clinical relevance and offers multiple regulatory benefits, including

priority review and extended market exclusivity in the United States. It reflects the scientific rigour and therapeutic promise embedded in VMRCs AMR-focused innovations.

Publication & Scientific Outreach:

The year saw a strong focus on disseminating VMRCs research through peer-reviewed publications and high-impact scientific platforms. The organisation has contributed to renowned journals including the International Journal of Antimicrobial Agents (IJAA), Antimicrobial Agents and Chemotherapy (AAC), and Antibiotics. These publications detailed critical findings from VMRCs studies, including toxicokinetic

evaluations and nephrotoxicity reduction models. VMRC also enhanced its scientific presence by participating in key international conferences such as ASM/ESCMID 2024 in Portugal and Criticare 2024. These platforms provided a stage to share insights, forge collaborations, and position VMRC at the forefront of global scientific discourse in infectious diseases and critical care.

Cross-Sector Collaboration: VMRC took meaningful steps to expand its collaborative ecosystem by advancing co-development efforts with Adjutec Pharma for APC-148, a novel AMR- targeted inhibitor. These cross-sectoral partnerships provide access to complementary scientific expertise and novel mechanisms of action, thereby diversifying and de-risking VMRCs innovation portfolio. Such alliances underscore the importance of external innovation sourcing in accelerating drug discovery and translational research.

Translational Innovations:

Further pushing the boundaries of translational research, VMRC adopted gene-editing workflows and began pilot studies using CRISPR-Cas technology on resistant pathogen models. These cutting- edge approaches are expected to fast-track target validation, enhance understanding of drug mechanisms, and improve the success rates of drug candidates. Integrating CRISPR-based tools into VMRCs research platform marks a significant step forward in next-generation drug discovery.

AMR Vivli Onboarding:\/MRCs commitment to global scientific collaboration and open-access data sharing was recognised when it was formally onboarded to the Vivli AMR Surveillance and Register initiative. Participation in this prestigious international platform highlights

VMRCs expanding global footprint and underscores its contribution to the collective fight against antimicrobial resistance. Being part of the Vivli network enables VMRC to engage with a diverse community of stakeholders committed to transparency and innovation in AMR research.

Talent Development: Recognising that the success of research is inseparable from the capabilities of its people, VMRC invested heavily in talent development throughout the year. The organisation implemented structured training programs, hands-on skillbuilding workshops, and internal mentorship initiatives to foster technical excellence and leadership within its research teams.These initiatives empowered researchers to undertake high-impact projects with confidence and precision, ensuring that VMRC maintains its trajectory of innovation-driven growth.

OTHER ACHIEVEMENTS IN FY25

Global Recognition & Memberships: During the year, VMRC became an official member of the Vivli AMR Register, a prestigious global platform that champions transparency and collaborative data sharing in the field of antimicrobial resistance (AMR). This recognition further validated VMRCs commitment to open science and its leadership role in tackling global health threats.

Additionally, VMRC secured membership in the AMR Multi- Stakeholder Partnership Platform, an international consortium of academic, government, and industry stakeholders.This membership placed PLEA (Preserving Life of Existing

Antibiotics)- an initiative within VMRC- among globally recognised efforts to counter AMR. These global affiliations signify VMRCs increasing involvement in policy-level discussions and international initiatives that influence AMR strategies and solutions.

Conference Highlights:\/MRCs scientific achievements were also recognised on the global stage through prestigious conference participation. Two of its research studies- one on VRP-034 and another on VRP-044- were selected as Top- Rated Posters at ASM/ESCMID 2024, held in Portugal. This recognition from one of the worlds most respected infectious disease and microbiology

forums highlights the relevance and impact of VMRCs research outputs.

These recognitions also reflect the increasing visibility and acceptance of VMRCs scientific findings within international peer circles. Additionally, VMRC participated in Criticare 2025 in Kochi, further establishing its presence in Indias critical care research ecosystem.

Following its expansion in FY24, RESET emerged as a significant milestone in the journey towards integrating traditional herbal wisdom with modern pharmaceutical innovation, represents a new frontier in plant-based wellness, one that combines evidence-backed botanical formulations with advanced delivery systems to meet the growing consumer demand for clean, conscious, and effective solutions. Positioned as a premium holistic wellness brand, RESET offers a diverse range of formulations targeting multiple dimensions of well-being, including pain relief, mental wellness, sleep, detoxification, and nutritional support.

The brand architecture spans five focused verticals:

RESET Pain Relief, RESET Wellness, RESET Vitals, and RESET Yoga, with each subcategory delivering tailored, purpose- driven products such as topical gels, sprays, emulsion roll on, gummies, candies, and tablets.

RESETs product development follows a "Dose of Good" design principle- a synergy of clean ingredient science, user-centric packaging, and sustainable choices. All products are formulated with high standards of efficacy and safety, incorporating responsibly sourced, non-toxic,

and para ben-free components. RESET also prioritises environmental stewardship, employing recyclable packaging and minimising the use of plastic materials.

In FY25, we further strengthened the RESET segment through consumer insight studies, wellness diagnostics, and targeted formulation enhancements aimed at addressing emerging health trends. The product line has gained traction among wellness-conscious consumers and is positioned for expansion into domestic and selected international markets.

With RESET, VMRC is not only expanding its herbal pipeline but also reshaping the narrative around preventive wellness- moving from reactive care to daily self-care practices backed by science. The segment remains a key pillar of VMRCs commitment to delivering safe, sustainable, and accessible wellness solutions for modern lifestyles.

STRETCH, SOOTHE, RESET: LAUNCH OF STRETCH EASY OIL & YOGA ESSENTIALS

2025 marked a meaningful new chapter in our wellness journey- a chapter where movement met recovery and rituals turned into restoration moments. At the heart of this evolution was the launch of our Stretch Easy Oil, a product designed to celebrate the bodys resilience and support its rhythm.

Blending science and ancient relief traditions, Stretch Easy Oil is more than just post-workout care- it is a moment of reset in every drop. Infused with soothing botanicals and formulated to ease muscle tension,

this oil empowers our community to move freely, stretch deeper, and recover naturally. Whether applied after yoga, a long day, or a spontaneous dance in the living room, it has become a ritual of self-kindness.

Complementing this was the launch of our Reset Yoga Mats, created to anchor these daily rituals. Crafted with signature goodness shapes and brand colours that echo calm and balance,

these mats offer more than grip- they offer grounding. Together, the mat and the oil form a dynamic duo for our growing tribe of mindful movers and everyday athletes.

With this launch, we didnt just introduce new products- we introduced a new rhythm to wellness: one that stretches, soothes, and strengthens from the inside out.

IPR WEALTH: PIONEERING INNOVATION AND PROTECTION

Venus Remedies has strategically cultivated a robust portfolio of Intellectual Property (IP) assets that not only address critical unmet medical needs but also propel technological advancement across diverse products and applications. These innovations have consistently delivered both substantial economic value and a distinct competitive advantage, firmly reinforcing Venuss position as a forward-thinking leader

in the global healthcare sector. A well-defined IP policy underpins our unwavering commitment to IP excellence and is vividly reflected in our impressive track record: over 130 patents granted globally, more than 125 registered trademarks, and 17 copyrights for our novel research outputs.

In a significant first for the Company, Venus has also successfully secured three design registrations for the distinctive packaging of its healthcare divisions flagship products- R3SET Gel, Emulsion, and Candy boxes.

This landmark achievement vividly underscores the Companys dedication to innovation and strong brand differentiation, while meticulously protecting the unique visual identity of its product offerings in the market.

FY25 marked a year of strategic consolidation and meaningful optimisation of VMRCs existing technological platforms. While no entirely new technologies were introduced during the year, the organisation significantly enhanced and utilised its advanced infrastructure to support and accelerate drug development across multiple therapeutic categories.

The Organ-on-a-Chip Laboratory- Indias first such facility in the pharmaceutical sector- was further strengthened through a partnership with Nortis Bio (USA). This collaboration led to the integration of dual-channel microfluidic chips, which were actively used in nephrotoxicity reduction studies and infection modelling forVRP-034. These enhancements enabled VMRC to conduct highly precise, organ-mimicking in vitro studies, significantly improving the predictability of renal safety outcomes.

VMRCs proprietary PK/PD model, the FibreFlow Hollow Fibre Infection Model, underwent

additional validation in FY25. It was successfully employed for multiple drug candidates, offering dynamic, in vivo-like conditions to evaluate pharmacokinetics, pharmacodynamics, and overall antimicrobial efficacy.The model continues to serve as a cornerstone for infection research at VMRC.

Advanced Bioanalytical Platforms, particularly LC-MS/MS systems, were extensively utilised throughout the year for toxicokinetic and bioanalytical validation in IND-supporting studies. These platforms enabled accurate exposure-response evaluations, a crucial step in defining safe and effective dosing regimens for clinical advancement.

Regulatory readiness remained a core focus, with VMRC continuing its operations under accreditation from the Department of Scientific & Industrial Research (DSIR) and approval from the Committee for the Purpose of Control and Supervision of Experiments on Animals (CPCSEA). This infrastructure ensured full compliance with national standards for pre-clinical research and facilitated smooth regulatory engagement for development-stage molecules.

As part of its long-term vision,

VMRC has set ambitious goals for ongoing technology enhancement, aligning its scientific capabilities with evolving global benchmarks. Through rigorous upskilling programs, its scientists continually adopt the latest innovations and methodologies, driving improvements across discovery, development, manufacturing, and market readiness. Strong collaboration between scientific and manufacturing teams ensures seamless technology transfer and efficient scale-up of validated products.

Adhering to stringent GXP standards, VMRC maintains a high level of quality across its operations. These include Good Clinical Practice (GCP) and Good Manufacturing Practice (GMP) frameworks, which together ensure consistency, safety, and compliance throughout the product lifecycle. Additionally, the organisation invests in technology and product licensing opportunities while fostering strategic collaborations with academic and industry partners. These initiatives form the backbone of VMRCs mission to advance global health through responsible, innovation-led research to alleviate human suffering and improve treatment outcomes.

COLLABORATIONS AND THEIR BENEFITS

Collaborative research and strategic partnerships have become a central pillar of VMRCs innovation strategy. In FY25, the organisation engaged in several high-impact collaborations that strengthened its research pipeline, improved access to novel technologies, and expanded its global reach.

INFEX Therapeutics (UK):VMRC formalised an in-licensing and co-development agreement with INFEX Therapeutics, a UK-based biotechnology company, for MET-X, a novel p-lactamase inhibitor. This collaboration brings a globally promising AMR asset into VMRCs pipeline and exemplifies the organisations commitment to acquiring high-value, resistancebreaking molecules.

Through this partnership, VMRC gains access to cutting-edge science and development data, enabling rapid advancement of MET-X through pre-clinical and clinical phases.

The collaboration supports VMRCs long-term strategy of building a differentiated AMR portfolio. It contributes to the global push for new-generation p-lactamase

inhibitors to combat extended- spectrum and carbapenem-resistant pathogens.

Adjutec Pharma (Norway): In another key alliance, VMRC initiated joint pre-clinical studies and testing for APC-148 in collaboration with Adjutec Pharma, a Norway-based biopharmaceutical company. APC-148 is a novel inhibitor with significant potential in combating antimicrobial resistance by targeting unique enzymatic pathways.

Adjutec Research Collaboration has enabled both organisations to pool scientific expertise and research infrastructure to accelerate the development of APC-148.

By working closely with Adjutec Pharma, VMRC can diversify its AMR innovation pipeline and explore novel mechanisms of action that can address unmet clinical needs in resistant bacterial infections.

Veeda Clinical Research (India): VM RC also partnered with Veeda Clinical Research, one of Indias leading clinical research organisations, to execute a complex Phase 1 trial ofVRP-034. This trial included advanced features such as renal safety assessments and adaptive study design elements to ensure comprehensive evaluation of the molecules safety profile.

Veedas operational excellence in early-phase trials helped streamline study implementation, while VMRC provided scientific and regulatory oversight. The collaboration not only accelerated the clinical readiness ofVRP-034 but also established a robust model for future clinical trial partnerships. This joint effort highlights VMRCs commitment to rigorous, patient-centric clinical development that is aligned with global standards.