Wockhardt Ltd Management Discussions

GLOBAL ECONOMIC OUTLOOK

After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027. Global headline ination is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in ination are expected to be particularly pronounced in emerging market and developing economies. Downside risks dominate the outlook. A longer or broader conict, worsening geopolitical fragmentation, a reassessment of expectations surrounding articial-intelligence-driven productivity, or renewed trade tensions could signicantly weaken growth and destabilize financial markets. Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialize more rapidly or trade tensions ease on a sustained basis. Fostering adaptability, maintaining credible policy frameworks, and reinforcing international cooperation are essential to navigating the current shock while preparing for future disruptions in an increasingly uncertain global environment. Scaling up of defence spending prompted by a rise in geopolitical tensions could boost economic activity in the short term but also bring about inationary pressures, weaken scal and external sustainability, and risk crowding out social spending, which could in turn ignite discontent and social unrest. Tensions are likely to increase between the superpowers due to alliance security commitments. The conict will also have broader ramications for future cooperation on critical issues like arms control; cybersecurity; nuclear non-proliferation; global economic stability; energy security; counterterrorism and destabilize the global energy and resource markets. Growth could suer in both the near and medium term, but at varying degrees as economies are on the brink of Perfect storm of crisis. It has set in motion a three dimensional crisis on Food, Energy and Finance that is producing alarming cascading eects to an ecosystem which is already battered by Ination & Shortages, Energy and commodity price increase, Debt distress, Blackouts and Climate change.

The overall risks around the outlook remains high with substantial uncertainty. High geopolitical tensions remain a signicant near-term adverse risk, particularly with the evolving conicts across countries if they intensify and disrupt energy and financial markets, pushing up ination and reducing growth.

GLOBAL USE OF MEDICINES AND PROJECTED TRENDS

Signicant usage shifts and spending growth acceleration across geographies became apparent in 2024 and have contributed to an increase in the outlook for medicine spending through 2028 of two percentage points to 5-8% CAGR, bringing global spending on medicines at list prices to $2.4Tn.

Global spending and growth, const $USBn, 2019-2029, excluding COVID-19 vaccines and therapeutics

Source: IQVIA Market Prognosis, May 2025; IQVIA Institute, May 2025.

Global medicine spending is expected to slow to 5–8% through 2029, reaching $2.4Tn excluding COVID-19 vaccines and therapeutics. The ongoing impacts of the pandemic continued to eect medicine spending and usage patterns through 2023 and are expected to return to pre-pandemic trends over the next ve years. North America medicine spending is expected to grow at an elevated rate of 6–9% through 2029, driven by continued growth of new brands and older brands and oset by losses of exclusivity. Western Europe has had four straight years of 8% spending growth through 2024 and is expected to slow to 4.5–7.5% through 2029 as a combination of expiry events and payer pressure partly oset by the wider use of novel medicines. Eastern Europe has the highest growth outlook with a range from 7 to 10%, although slowing through the forecast period. Latin America spending growth was especially high in the first two years of the pandemic, including patients use of established and generic medicines as symptom management for COVID-19. Growth will average 6–9% through 2029 led by Brazil, Mexico, Argentina, and Colombia.

Japans spending growth is expected to average -0.5 to 2.5% with relatively at trends despite strong uptake of branded medicines resulting from a shift to annual price cuts in place of the historic biennial price cut policy. Chinas spending swung wildly during the pandemic partly inuenced by zero tolerance pandemic policies. Medicine spending in China has risen from $103Bn in 2015 to $166Bn in 2024, but is expected to return to more moderate 1–4% growth through 2029.

Medicine use for specic therapy areas has been growing since 2018, with notably high growth in immunology, endocrinology, and oncology. These areas of rising usage have been driven more by wider adoption of older therapies compared to newer medicines. Immunology treatments have seen a steady 12% rise in utilization but the rates of per capita usage have varied considerably even within wealthier developed countries. Overall, nearly half of immunology biologic volume is facing biosimilar competition in developed markets, which has led to an incremental 5% in usage as more patients use treatments as costs decline. GLP-1 agonist medicines have been approved for both diabetes and obesity indications and have seen rapid uptake since 2021, coinciding with U.S. obesity approvals. Another area of notable medicine use shifts has been the use of antibacterials, which was signicantly disrupted by the COVID-19 pandemic but returned to historic levels in 2022 and 2023.

SPENDING AND GROWTH BY REGIONS AND KEY COUNTRIES

		Spending in USD Bn
	2024	2020-2024	2029	2025-2029
Regions		CAGR		CAGR
Global	1750	7.7%	2355-2385	5-8%
Developed	1422	8.2%	1945-1975	5.5-8.5%
10 Developed	1195	8.2%	1635-1665	5-8%
Other Developed	227	7.8%	295-325	5.5-8.5%
Pharmerging	312	6.0%	375-405	3.5-6.5%
Lower Income Countries	16	1.0%	18-22	2-5%

The global medicine market using list price levels is expected to grow at 5-8% CAGR through 2029, reaching about $2.4Tn in total market size.

Spending and volume growth following diverging trends by region with larger established markets growing more rapidly, driven by new and existing branded products, while Pharmerging markets will grow more slowly and be driven more by volume than the mix of more expensive therapies.

The U.S. market, on a net price basis, is forecast to grow 3-6% CAGR over the next ve years, down from 6.8% CAGR for the past ve years.

Spending in Europe is expected to increase by $85Bn through 2029, driven by new brands and oset by generics and biosimilars.

Japan medicine spending growth is projected at -0.5 to 2.5% through 2029 as robust brand growth is oset by a shift annual price cuts and ongoing shifts to generics.

Spending growth in China is expected to slow, with positives driven by greater uptake and use of new original medicines and oset by pressures on o-patent and generic pricing.

KEY THERAPY AREAS BASEBUILDING FOR FUTURE GROWTH

The key growth area for medicines in the next ve years is biotech, which will represent 34% of global spending and will include many of the areas of greatest activity for novel medicines. Global biotech spending is set to exceed $820Bn by 2029, with growth slowing to 7–10% due to the impact of biosimilars.

Specialty medicines will represent 46% of global spending in 2029 and 54% of total spending in leading developed markets, continuing the shift from more traditional medicines underway for over a decade.

The top three leading global therapy areas — oncology, Diabetes and immunology — are forecast to grow 11–14%, 6-9% and 4–7% CAGR, respectively, through 2029, reecting diverging trends with one still driven by novel medicines and the other facing biosimilar competition. Oncology is projected to contribute to an increase in spending by USD 189bn to a total of more than $440Bn in 2029. Immunology therapy is forecast to reach $234 Bn globally by 2029, driven by steadily increasing numbers of treated patients and new products. Diabetes spending is expected to reach $259 Bn globally. It is notable that in 2023 and 2024, diabetes invoice and net spending has increased, largely driven by adoption of novel GIP/GLP-1 medicines with both diabetes and obesity approved uses. New therapies contribute to growth of neurology markets, including greater use of novel migraine therapies, potential treatments for rare diseases, and the potential for therapies for Alzheimers and Parkinsons. The outlook for next generation biotherapeutics includes signicantly uncertain clinical and commercial prospects for cell, gene, and RNA therapies.

COMPANY PERFORMANCE

With the tightening of monetary condition across the globe, soaring ination, Geo-political tensions, tari Wars across economies, managing liquidity and scaling the business operations has been the key priority during the year. Your company has eectively managed its liquidity position and continued with its sustainable business model without compromising on the overall long term vision of the organization.

Your Company started the year with focus on aligning operations with the long term goals and its vision statement. Primary objectives were to drive robust revenue growth and Protability, cost containment, de-leveraging the balance sheet to achieve operational eciency, ensuring reasonable flow of working capital into the Business, gradually shifting to higher chronic presence in overall portfolio mix, concluding global trials and ling for crucial regulatory approvals for NCE ZAYNICH (WCK 5222) and launching MIQNAF (WCK 4873) in India. During the year your company was focused on deployment of funds and setting its investments priorities to ensure maximum return. Signicant eorts to identify new revenue streams and enhance protability and cash flow also translated into new partnerships into international geographies. Amidst turbulent time your company stood steady and delivered its key priorities thus paving the way for long term sustainability. The below image represents the business ecosystem in which your company operates which can also be interpreted as the near to long term growth drivers for the company.

Key developments that took place in your company during the year have been summarized below:

1) Paediatric US Cancer Patient with Recalcitrant Blood and Liver Infection Successfully Treated with Zaynich™ (Zidebactam/ Cefepime, WCK 5222)

2) Wockhardt Initiated Strategic Realignment of US Operations to Focus on Innovative Portfolio. As part of this transition, the Company has taken decision to exit the US generic pharmaceutical segment, paving the way for deeper focus and investment in its advanced product portfolio. This strategic reset aligns with Wockhardts sharpened focus on building a future-ready business anchored in two key pillars: 1. New Antibiotic Drug Discovery – where Wockhardt has established a leadership position globally, with a strong pipeline of dierentiated assets. 2. Biologicals Portfolio in Insulin – leveraging advanced technologies to address critical unmet needs in diabetes care.

3) Leading U.K. Medical Journal publishes a Complex Case of Severe Pandrug Resistant Infection in U.S. Liver Transplant Patient Successfully Treated with Zaynich® (Zidebactam/Cefepime, WCK 5222).

4) Prestigious Medical and Public Health Journal THE LANCET Regional Health Publishes Pivotal Phase 3 Clinical Study on Miqnaf® (Nathromycin) – A Landmark for Indias Antibiotic Innovation

5) Wockhardt Submits New Drug Application to U.S. FDA for Zidebactam-Cefepime (WCK 5222) for Treatment of Serious GramNegative Infections

6) USFDA accepts Wockhardts New drug application for breakthrough Antibiotic Zaynich. This is the first time in history that an NDA for a New Chemical Entity from an Indian Pharmaceutical company has been led and accepted by the USFDA.

7) European Medicines Agency Grants Accelerated Assessment to WCK 5222. The Accelerated Assessment designation reects EMAs view that WCK 5222 has the potential to address an unmet medical need by providing an eective therapeutic option for the treatment of following serious and life-threatening infections, particularly those caused by multi-drug-resistant (MDR) and extremely drugresistant (XDR) Gram negative pathogens.

8) Wockhardt Files Marketing Authorisation Application for WCK 5222 with European Medicines Agency. Based on the comprehensive clinical and regulatory data included in the application, Wockhardt expects WCK 5222 approval for treatment of resistant Gram negative infections across all countries under the EMAs jurisdiction. The priority review status granted to WCK 5222 underscores the global urgency to make eective treatment options available for patients suering from life-threatening multi-drug resistant infections.

9) Wockhardts Fifth Novel Antibiotic, Foviscu TM (WCK 4282), matches Gold-Standard Meropenem in pivotal Phase 3 Trial as First-Line therapies fail against Rising Resistance.

10) Wockhardts Zaynich® (Zidebactam/Cefepime) Receives Favourable Recommendation from CDSCOs Subject Expert Committee for Treatment of Gram-Negative Infections. The Subject Expert Committee (SEC) of the Central Drugs Standard Control Organization (CDSCO), has granted a favourable recommendation for marketing permission of Wockhardts novel antibiotic, Zaynich® (Zidebactam/Cefepime), for the treatment of Gram-negative infections. This positive opinion paves the way for nal approval of Zaynich® by the Drugs Controller General of India (DCGI).

BUSINESS PERFORMANCE

The Domestic Business contributed 22% of revenue from operations during the year and grew at 10%. ROW business recorded robust 35% growth and contributed to 28% of revenue from operations as your company commits itself to new geographic expansion and strengthening of existing portfolio which is in line with vision of the organization. UK operations reected healthy 13% growth and contributed 39% of revenue from operations mainly on account of robust volumes across its Business channels. EU operations contributed to 11% of revenue from operations.

During the year, the Companys research & development expenses continued to grow keeping in view its strategic focus in Pharma, Biotechnology & NCE segment and was approx. 10% of consolidated total revenue.

REVENUES

Revenue from Operations during the year was 3,373 crore compared to 3,012 crore in the previous year with a annual growth of 12%.

The revenue split of European Union Business contributed 11% (compared to 12% in FY 2025). UK operations contributed 39% and grew at 13%. India and Rest of the world contributed 50% (vs 46% in FY 2025).

PROFITABILITY

EBITDA recorded an impressive 51% growth on Y-o-Y basis. It has been growing steadily higher vs previous year quarters due to robust all round growth in operations and improved business hygiene, thanks to the cost containment measures and rightful allocation of resources. Improved business mix accompanied with portfolio swings in favour of high margin segment continues to be of key focus for your organisation. The Companys strategic focus on R&D initiatives that are futuristic in nature, continue to impact the EBITDA as they are expensed.

Particulars	FY 25	FY 26	Change %
Material Consumption	37.3%	33.4%	3.8%
Personnel Cost	20.3%	20.3%	0.1%
R&D	3.9%	3.6%	0.3%
Other Expenditure	24.7%	24.0%	0.7%
Interest	8.4%	6.3%	2.1%
Depreciation	7.2%	6.7%	0.4%
Impairment / Loss on Asset	0.0%	0.0%	0.0%
Exchange loss/ (Gain)	0.1%	-0.7%	0.8%
Other Income	-1.4%	-3.3%	1.9%
Exceptional Item Prot/(Loss)	0.0%	-2.5%	2.5%
Tax	1.4%	1.2%	0.2%
Prots (Before NCI)	-1.9%	5.9%	7.8%
NCI	-0.3%	-0.4%	0.1%
Prots (After NCI)	-1.5%	6.3%	7.9%

Material consumption for FY 2026 stood at ~ 33% vs 37% for PY.

The companys emphasis on R&D continued during the year while adopting selective strategy for rationalizing R&D spends which is reected in spends for FY 2026 at ~ 9.8 % including Capital and Revenue expenditure vs 11.2% in PY.

Personnel costs in absolute terms was higher by 11%. This included one-time adjustment for gratuity changes as per the new labour laws.

Other expenses for FY 2026 was lower than the previous year at ~24%. Interest cost as % to sales was lower by 2.1% compared to previous year.

Prot for the year showed remarkable improvement from ~ -1.5 % to ~6.3%

The EBITDA and corresponding margins improved signicantly. Outcome of cost rationalisation initiatives and revenue growth from high margin segments enabled to strike the appropriate balance while countering the market challenges in revenue growth.

Expanding market and therapeutic presence across all the Businesses, Realignment of portfolio mix to high margin segment, exploring new revenue generation streams and cost rationalisation measures remains the key focus in the near to mid-term.

DEBT AND LEVERAGE

The Net Debt to Equity ratio stood at 0.28 as on March 31, 2026.

DEBT POSITION

	FY 26	FY 25	Change	% Change
Secured	1,166	678	488.2	72%
Unsecured	750	979	(229.2)	(23%)
Total	1,916	1,657	259	16%

• Excludes accrued interest.

RESEARCH & DEVELOPMENT & NEW LAUNCHES: COMPANYS STRATEGIC CORE

The research and development pipeline remained robust. Total R&D expenditure of large pharmaceutical companies continued to increase, both in absolute terms (reaching $190Bn in 2024, up from $163Bn in 2023) and as a percentage of sales. Oncology, immunology, metabolic/endocrinology, obesity and neurology remained the areas of core R&D focus which declined less as compared to other therapeutic class.

Rare disease focus continues with more than 1,800 molecules targeting one of the growing number of rare disorders for which there are often no or very limited therapeutics available. Half of these focus on oncology, and next-generation biotherapeutics account for at least a quarter of the rare-oncology products, with increased activity in CAR T and NK cell therapies, as well as gene editing and nucleic acid vaccines.

A total of estimated 73 novel active substances (NAS) was launched globally in 2025. A growing share of new launches in 2025 were rst-in class, reecting the increasing availability of novel science for patients.

Global biotech spending to exceed $820Bn by 2029, with growth slowing to 7-10% from biosimilar savings

Source: IQVIA Institute, May 2025.

Global spending on biotech drugs — those created through recombinant DNA technology — are expected to reach $820 Bn by 2029, about 34% of global medicine spending. Biotech covers a range of therapies, including traditional therapies such as insulin analogues and more complex specialty medicines and cell and gene therapies.

Your company also believes that robust R&D spend is a key strategy to sustain in the long run and its continuous focus in complex research in Pharma, Biosimilars & NCEs for past couple of years have shown encouraging results particularly in the eld of Break through Anti-infective space and Biotechnology.

ANTIMICROBIAL RESISTANCE AMR: A GLOBAL HEALTH CRISIS AND THE ROLE OF INNOVATIVE SOLUTIONS

Antimicrobial Resistance (AMR) is a rapidly escalating global health crisis threatening to dismantle a century of medical achievements. Often described as a silent pandemic, AMR impairs our ability to treat routine infections caused by bacteria, parasites, viruses, and fungi. Left unchecked, previously curable diseases may become untreatable, potentially bringing about a post-antibiotic era. Data highlights the staggering reality of this public health emergency:

• Global Mortality 1 : In 2019, bacterial AMR was directly responsible for 1.27 million deaths and associated with 4.95 million deaths globally. Three infection types—lower respiratory, bloodstream, and intra-abdominal—accounted for nearly 79% of these fatalities.

• Future Projections 1 : Drug-resistant diseases currently cause at least 700,000 global deaths annually, including 230,000 deaths from multidrug-resistant tuberculosis without a sustained intervention, this gure is projected to reach 10 million deaths per year by 2050, with infections in India alone expected to claim 2 million lives annually.

• The COVID-19 Impact: The intersection of COVID-19 and AMR exacerbated the crisis. Over 98% of COVID-19, patients received antibiotics, yet 50% of mortalities in COVID-19 cases were actually linked to secondary bacterial infections, underscoring the urgent need for novel therapeutics.

• Economic Consequences 1 : The World Bank projects that unchecked AMR could trigger a 3.8% reduction in global GDP and push up to 28 million people into extreme poverty by 2050. Cumulatively, lost economic output could hit US $100 trillion , while global healthcare burdens could reach US $1 trillion annually.

In a WHO report on Antimicrobial Resistance: Global Report on Surveillance (2014) , the yearly cost to the US health system alone has been estimated at US $21 to $34 billion 3 dollars, accompanied by more than 8 million additional days in hospital 4 Because AMR has eects far beyond the health sector, it was projected, nearly 10 years ago, to cause a fall in real gross domestic product (GDP) of 0.4% to 1.6%, which translates into many billions of todays dollars globally 3 . The CDC in its 2019 report on Antibiotic Resistance Threats in the United States estimates that 2.8 million antibiotic-resistant infections occur each year in US alone 4 .

Antimicrobial resistance (AMR) is a major threat to human development as it aects our ability to treat a range of infections caused by bacteria, parasites, viruses and fungi. Treatments for a growing list of infections, including urinary tract infections, tuberculosis (TB), sepsis, gonorrhoea and food borne diseases, have become less eective in many parts of the world because of resistance. In the absence of an eective antibiotics modern medical procedures, such as major surgery, organ transplantation, diabetes management and cancer chemotherapy will become a very high risk 1, 2 .

Burden of resistance to antibacterial drugs

The WHO declared that AMR is one of the top 10 global health threats and, although often more silent than the COVID-19 pandemic, it can have equally devastating consequences. 17 WHO Global Antibiotic Resistance Surveillance (GLASS) Report 2025: One in six laboratory-conrmed bacterial infections causing common infections (urinary tract, gastrointestinal, bloodstream, and gonorrhoea) worldwide in 2023 were resistant to antibiotics. The report also highlights the increasing extent of resistance in 93 infection type-pathogen-antibiotic combinations, which indicates a global pattern of increasing resistance to current first line, second line as well as last resort treatment options available with the physician community. Resistance rose in over 40% of monitored pathogen-antibiotic combinations between 2018 and 2023, with an average annual increase of 5–15%. Resistance is particularly increasing to carbapenems and uoroquinolones used in the treatment of key Gram negative pathogens, including Acinetobacter spp., E. coli, K. pneumoniae and Salmonella spp. 28 The evidence obtained shows that AMR has a signicant adverse impact on clinical outcomes and leads to higher costs due to consumption of health-care resources. Infections caused by antimicrobial resistant strains of bacteria are unlikely to respond to standard treatments resulting in prolonged illness and a greater risk to health. For example, MRSA (Methicillin-resistant Staphylococcus aureus) is estimated to cause 64% more deaths than infections caused by a non-resistant strain of the bacteria 5 as per a report published in 2015 ( The Antibiotic Resistance Crisis- by C.Lee Ventola ) Antimicrobial resistant strains of bacteria are also more likely to be passed on to other people because those infected are sick for longer. The rise in resistance not only impedes our ability to treat infections, but has broader societal and economic eects, and endangers the achievement of the Sustainable Development Goals 1,7 . The direct and indirect impact of AMR will mostly fall on low and middle-income countries, which often lack the infrastructure, and human and financial resources to adequately counter drug resistance epidemics 7 . The consequences of AMR are aggravated in volatile situations such as civil unrest, violence, famine and natural disasters, as well as in settings with poor health care services or without access to health care 2. At the same time, millions of people lack access to much needed antimicrobial medicines for curable infections, which is evident by the 445,000 community-acquired pneumonia deaths that occur in children under ve 9 . The issue of AMR and lack of access must be addressed in tandem. Steps to increase access must include measures to prevent resistance, and steps to curb resistance must include measures to enable appropriate access. Addressing both requires a coordinated eort from various stakeholders, not least in government, but also across the healthcare and farming industries, and the development and global health communities

The worst-case scenario in the coming would be, world might be left without any potent antimicrobial agent to treat bacterial infections. The global economic burden would be about US $120 trillion (US $3 trillion per annum), which is approximately equal to the total existing annual budget of the US health care. In general, the world population would be hugely aected as of the year 2050, and birth rates would rapidly decline in this scenario 8, 10 . Organization for Economic Cooperation and Development (OECD) anticipates two fold surge in resistance to last resort antibiotics by 2035 as compared to 2005 levels 20 .

GROWINGDEMAND

The global antibiotic market was valued at USD 41 Bn in 2020 and is projected to reach approximately USD 64 billion by 2028, with a compounded annual growth rate of 4.5% from 2021 to 2028 11 .

This growth is driven by increased infectious disease prevalence, aging populations, healthcare infrastructure expansion in emerging markets, and rising awareness about antimicrobial resistance (AMR). However, the demand surge, especially in BRICS nations, has been paired with inadequate stewardship and unregulated access to antibiotics, further accelerating resistance 24 . Between 2002 and 2010, global consumption of antibiotics increased by 36%, and three quarters of this increase was accounted for by Brazil, Russia, India, China and South Africa (BRICS) 5 . Growing demand coupled with poor surveillance and stewardship is likely to further drive the emergence of resistant strains, particularly in high-burden areas.

In addition to death and disability, AMR has signicant economic costs.

Signicant Decline in Antibacterial Drug Approvals 3,12

ANTIBIOTIC PIPELINE CHALLENGES

The pipeline remains insucient despite some shift toward Gram-negatives:

WHO 2025 analysis: Only 90 antibacterial in clinical development (down from 97 in 2023); just 15 truly innovative, and only 5 eective against critical Gram-negative priority pathogens.

Focus is heavily on Gram-negatives (e.g., novel ß-lactam/ß-lactamase inhibitors, siderophore antibiotics like Cederocol), but innovation is fragile, dominated by small biotechs with high failure risk and poor commercial returns.

Recent approvals (e.g., Cederocol, sulbactam-durlobactam) help against specic CRE/CRAB, but gaps persist for pan-resistant strains. 26 Demand for Gram-negative-targeted therapies contributes to overall antibiotic market growth (projected ~USD 55–70 Bn by 2026–2030+), driven by rising resistant infections. However, low returns on investment for new narrow-spectrum agents targeting resistant Gram-negatives hinder R&D. Unchecked resistance could add trillions in global economic losses by 2050. 27 Facts about Antibiotic Resistance 13 (Antibiotic Resistance Threats in the United States, 2013- by Centers for Disease Control and Prevention -USA)

• Antibiotic resistance is one of the most urgent threats to the publics health.

• Every time a person takes antibiotics, sensitive bacteria are killed, but resistant ones may be left to grow and multiply.

• Overuse of antibiotics is a major cause of increases in drug-resistant bacteria.

• Overuse and misuse of antibiotics threatens the usefulness of these important drugs. Decreasing inappropriate antibiotic use is a key strategy to control antibiotic resistance.

• Antibiotic resistance in children and older adults is of particular concern because these age groups have the highest rates of antibiotic use.

• Antibiotic resistance can cause signicant suering for people who have common infections that once were easily treatable with antibiotics.

• When antibiotics do not work, infections often last longer, cause more severe illness, require more doctor visits or longer hospital stays, and involve more expensive and toxic medications. Some resistant infections can even cause death.

AMR is a global health security threat that requires concerted cross-sectional action by governments and society as a whole. The overuse of antibiotics clearly drives the evolution of resistance. Epidemiological studies have demonstrated a direct relationship between antibiotic consumption and the emergence and dissemination of resistant bacteria strains. In emerging economies like Middle East, Latin America, Asia – Pacic are important for the future growth drivers and one can expect the rising trend to continue for the next decade amidst unanimous shift in focus to put issues pertaining to AMR and Antibiotic access on the world priority list.

Reference:

1. WHO Antimicrobial resistance (WHO Fact sheet). Geneva: World Health Organization; February 2018 (http:// www.who. int/en/news-room/fact-sheets/detail/antimicrobial-resistance, accessed 25 September 2018); https://amr-review.org/ sites/default/les/160525Final%20paperwith%20cover.pdf

2. Laxminarayan R, Duse A, Wattal C, Zaidi AK, Wertheim HF, Sumpradit N, et al. Antibiotic resistance-the need for global solutions. Lancet Infect Dis. 2013;13:1057– 98. doi:10.1016/S1473-3099(13)70318-9 3. https://iris.who.int/server/api/core/bitstreams/139d068a-1086-43f7-a47d-575d0118d034/content

4. Antimicrobial resistance: global report on surveillance.2014

5. CDC report ANTIBIOTIC RESISTANCE THREATS IN THE UNITED STATES 2019 on https://www.cdc.gov/drugresistance/pdf/ threats-report/2019-ar-threats-report-508.pdf

6. The Antibiotic Resistance Crisis PMCID: PMC4378521; PMID: 25859123

7. The Review on Antimicrobial Resistance, Chaired by Jim ONeill

8. Ayukekbong JA, Ntemgwa M, Atabe AN. The threat of antimicrobial resistance in developing countries: causes and control strategies. Antimicrob Resist Infect Control. 2017;6:47. doi:10.1186/ s13756-017-0208-x

9. Gould IM, Bal AM. New antibiotic agents in the pipeline and how they can help overcome microbial resistance. Virulence. 2013;4(2):185–191. [PMC free article] [PubMed] [Google Scholar]

10. Anti-microbial – Resistance – Benchmark 2018

11. Bartlett JG, Gilbert DN, Spellberg B. Seven ways to preserve the miracle of antibiotics. Clin Infect Dis. 2013;56(10):1445–1450. [PubMed] [Google Scholar] 12. Overview on Antibiotics market on https://www.grandviewresearch.com/industry-analysis/antibiotic-market 13. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7086080/ 14. Antibiotic Resistance Threats in the United States, 2013- by Centers for Disease Control and Prevention (USA) 15. Antimicrobial resistance. Tackling a crisis for the health and wealth of nations- https://www.who.int/antimicrobial-resistance/news/amr-newsletter-no13-july2016.pdf (2014) 16. R. Nieuwlaat, L. Mbuagbaw, D. Mertz, L.L. Burrows, D.M. Bowdish, L. Moja, H.J. Schünemann Coronavirus Disease 2019 and antimicrobial resistance: parallel and interacting health emergencies- Clin. Infect. Dis., 72 (9) (2021), pp. 1657-1659 17. G. Kaul, M. Shukla, A. Dasgupta, S. Chopra Update on Drug-repurposing: Is it Useful for Tackling Antimicrobial Resistance? (2019), 10.2217/fmb-2019-0122 18. WHO Global Action Plan on Antimicrobial Resistance. https://www.who.int/publications/i/item/9789241509763.

19. https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(22)00087-3/fulltext20. https://www.who.int/news-room/fact-sheets/detail/antimicrobial-resistance#:~:text=It%20is%20estimated%20that%20bacterial%2cdevelopment%20of%20drug-resistant%20pathogens 20. The Lancet. Global burden of bacterial antimicrobial resistance in 2019: a systematic analysis. https://www.thelancet.com/ journals/lancet/article/PIIS0140-6736(22)00087-3/fulltext 21. Interagency coordination group on Antimicrobial Resistance: No time to wait: securing the future from Drug-Resistant Infection 2019 22. World Bank. Drug-Resistant Infections: A Threat to Our Economic Future, 2017 23. WHO. Fact sheet on Antimicrobial Resistance. https://www.who.int/news-room/fact-sheets/detail/antimicrobial-resistance 24. WHO. Global Action Plan on Antimicrobial Resistance. https://www.who.int/publications/i/item/9789241509763 25. WHO. 2023 antibacterial agents in clinical and preclinical development: An overview and analysis. https://www.who.int/ publications/i/item/9789240072480 26. https://www.who.int/news/item/02-10-2025-who-releases-new-reports-on-new-tests-and-treatments-in-development-for-bacterial-infections 27. https://www.grandviewresearch.com/industry-analysis/antibiotic-market 28. https://www.who.int/news/item/13-10-2025-who-warns-of-widespread-resistance-to-common-antibiotics-worldwide

OPPORTUNITIES

Global markets continue to oer opportunities because of transition in the form of lifestyle shift & related diseases in these countries. Because of the existing presence of operations in these economies your Company is well poised to capitalise and tap these growth opportunities. Your company is striving in all aspects to establish its brand and ramp up its presence and operations in larger GCC countries, Latam Countries and Asia. Today, your company has its products marketed in ~ 40+ countries globally. Two utmost priority areas which has the bulk of focus in terms of resources, eorts and time are the Biosimilar Insulin and Insulin Analog segment and then the Anti-Infective NCE segment. The reason for this is the enormous and unlimited revenue growth opportunity which would propel your company to scale new limits and place it in league of competing with larger global players.

1 BIOLOGIC INSULIN AS GROWTH DRIVER

The global insulin market size was valued at USD 29.2 billion in 2025. The market size is estimated to grow from USD 30.7 billion in 2025 to USD 41.4 billion in 2035 growing at a CAGR of 3.4% from 2026 to 2035. The increasing prevalence of diabetes, particularly type 2 diabetes globally due to lack of physical activity, increased obesity, and aging population is a major growth factor for the market. Few other factors such as unhealthy lifestyle, increased calories and glycemic load, genetic predisposition, and stress also play a critical role in diabetes.

The International Diabetes Federation (IDF) identies diabetes as one of the rapidly growing non-communicable chronic diseases of the 21 st century. In 2021, it is estimated that 537 million people had diabetes, and this number is projected to reach 643 million by 2030, and 783 million by 2045. Such high prevalence of diabetes cases increases the demand for eective therapeutics, thereby driving market growth. The introduction of ultra-rapid-acting, long-acting, and biosimilar insulins has been made possible with the advancements in R&D which has improved treatment options for patients. These advancements in formulations enhance treatment options and patient adherence to treatment. There is also an increase in government and NGO spending in lower and mid-level economies, which boosts the purchase of insulin, which in turn expands the market further. Also, favorable reimbursement policies in developed countries are estimated to boost the overall market. The escalation of cases suering from diabetes has increased the need for insulin as a critical treatment plan to manage blood sugar levels, especially for patients with diabetes type 1 and advanced stage type 2 diabetes. Obesity signicantly increases the risk of diabetes. In 2024, the NCD Risk Factor Collaboration (NCD-RisC) published findings that estimate that more than one billion people in the world are now living with obesity, nearly 880 million adults and 159 million children and adolescents aged 5-19 years. Novel systems for the delivery of drugs such as insulin pumps, smart pens, and continuous glucose monitoring systems have made diabetes management simpler for patients. Based on type, the global market is segmented into human insulin and insulin analog. The insulin analog segment accounted for the highest market share and was valued at USD 22.3 billion in 2025. The market size of insulin analog segment was USD 18.3 billion in 2021, and USD 19.7 billion and USD 21 billion in 2022 and 2023, respectively. Based on product, the global insulin market is categorized into long-acting insulin, rapid-acting insulin, combination insulin, biosimilar, and other products. The long-acting insulin segment dominated the market with 45.3% market share in 2025.

The Asia Pacic region demonstrates signicant growth potential in the global insulin market. The market is poised for high growth owing to the rapid proliferation of diabetes, growing health expenditures, and enhanced scope of healthcare. Latam markets is experiencing robust growth with signicant focus on Brazil, Mexico. This growth will be propelled by the economic strength and the governments focus on improving diabetes treatment which includes subsidized insulin programs through the Unied Health System (SUS). Saudi Arabia insulin market is poised to witness rapid growth in the Middle East and Africa market due to increasing diabetes population which is projected to increase to 24.3% by 2026. The North America insulin market dominated the global market with market share of 40.1% in 2025. The U.S. market was valued at USD 10.6 billion in 2025. Europe insulin market is anticipated to witness signicant growth at a CAGR of 4% over the forecast years. High regional market growth is owing to its well-developed healthcare framework alongside strong governmental diabetes support and a high diabetes population.

Source: Insulin Market Size & Share 2026-2035 Report ID: GMI13194 Published Date: March 2026

2 ANTIINFECTIVE NCE AS GROWTH DRIVER

Global crisis of antibiotics availability continues to pose threat and the gap in Anti Infective segment has widened as relatively few drugs have been discovered in the last decade. However your Companys relentless focus for almost two decades in the Anti-Infective space has started showing recognition with consecutive approvals for QIDP in quick successions as well as approval from US FDA by granting abridged clinical trial for Phase III for its Superdrug antibiotic WCK 5222. This was based on the evaluation by US FDA of its preclinical and clinical data of Phase I establishing safety and clinical scope of ecacy for the drug. Notably your company has 6 molecules (NCE) as on date which are either at various stages of development including few at advanced stages or have already been launched in India or preparing for launch in other markets.

3 OTHER AREAS FOR DEVELOPMENT

Geo-political uncertainty and lack of stability has gone long way to disrupt the global supply chain. As a result of the disruption in supplies, economies have realised the importance of localisation and decentralisation. This has increased considerable opportunities for countries with dominant API manufacturing capabilities as well as robust CMO infrastructure. Importantly such initiatives are being backed by government incentive schemes and investment back up.

The rising costs and regulatory pressure in developed markets are forcing many global pharmaceutical companies to reduce their internal capacities in research and development (R&D), and manufacturing, and turn to contract manufacturing and research services (CRAMS), and outsourcing of research and clinical trials to developing countries. These strategies help multinational companies reduce costs, increase development capacity, and focus on their core prot makings activities, such as drug discoveries and marketing, rather than on manufacturing. India, with a large patient population and genetic pool, is fast emerging as a preferred destination for such multinationals seeking eciencies of cost and time. The countrys CRAM industry oers a signicant cost-quality proposition, with potential savings of about 30-40 percent compared to western markets such as the US and Europe.

43

Technology trends are driving a shift towards patient-centric healthcare, as evidenced by wearable biometric devices and telemedicine. This trend is resulting in more informed patients who are likely to take a more active role in any treatment plan their doctor may prescribe. Patient-centric care can provide challenges and rewards for the pharmaceutical industry. The rise of consumerism provides an interesting dynamic for competition in this industry. The pharmaceutical industry will be driven by three levels of integration: products and services as well as data and technology. These three aspects will have a positive impact on the patients experience, as they will allow to adapt the medicines and treatments to each patient. This will change the approach to Clinical R&D as it will be based on real time accurate information the result of which would not just be medicine but more than that.

Disruptive technologies and emerging trends such as robotics, articial intelligence, 3D printing, precision medicine or patient design will impact the manufacturing and distribution of pharmaceuticals. In order to prepare successfully for a better future of healthcare, the pharma industry has to embrace new technologies and focus on digital health.

RISK & CONCERNS OVERALL CHALLENGES WAY AHEAD

6

As we enter 2026, the above table summarizes in depth the list of al challenges which revolves around declining optimism, deepening geo-political and geo-economic tensions, growing sense of societal fragmentation, worsening humanitarian crisis, Environmental risks, Technological risk, Biological hazards, trade tari wars, Supply Chain disruptions, Workforce instability amongst many others. In the back drop of all the challenges and ongoing issues, there are seven ways in which the business landscape will shift, not only in India, but the world around. Leveraging these will certainly help navigate the economically and socially viable path to the next normal:

1) Continuous Innovations and think beyond the unexpected.

2) Shift towards localization

3) Push of Digital wave

4) Cash being new king for Businesses.

5) Shift towards variable cost models.

6) Supply Chain resilience

7) Building agility

Apart from the above, evolving cGMP regulations have become stringent and the industry is striving unanimously to create world class capabilities to adhere to the mandates with signicant automation, technology upgrades and rollout of best practices at all levels. Your Company is working with best of class consultants. Risk of regulatory quality compliance shall continue to remain critical for your Company in future. Pricing pressures in India continue to impact several organizations with latest NPPA circulars to include many critical drugs under the scope of price xation / reduction. This has impacted the earnings of many Indian companies including yours. Amidst such challenges the company has put remediation measures in place while ensuring growth and strengthening of its other business which consists of new product portfolio, new revenue streams and better brand management. Your company is a global player and is not insulated against such external risks despite wide range of measures being taken. This has also to some extent impacted the earnings w.r.t. to countries where your Company operates in the home currency of these nations or where it is exposed to international transactions. This inherent risk will continue to pose challenges to a Company like yours that has a signicant share of revenues from cross border operations.

New Drug Discovery Programme of Wockhardt

Advancing Access to Novel Antibiotics from Discovery to Delivery

During the Financial Year 2025–26, your Company reinforced its position as a pioneer in addressing the growing global unmet need for eective antibiotics amid rising antimicrobial resistance. Through its innovative Discovery Program, your Company continues to develop novel antibiotics designed to combat dicult-to-treat, drug-resistant pathogens of global concern. Demonstrating strong discovery to delivery capabilities, the Company has successfully advanced multiple rst-in-class and dierentiated antibiotic candidates from research through clinical development toward commercialization across India and key international markets.

Since their launch, approximately 140,000 patients have been treated with Emrok and Emrok O, underscoring their growing importance in managing serious infections caused by dicult-to-treat Gram-positive pathogens. Further strengthening its innovation-led portfolio, the Company has also enhanced access mechanisms for Miqnaf to reach a larger patient population and address critical unmet needs in the treatment of Community-Acquired Bacterial Pneumonia (CABP).

The Companys development pipeline continues to make strong progress. Following the successful completion of a global Phase 3 clinical trial for Zaynich, the Company has led a New Drug Application (NDA) with the US Food and Drug Administration (USFDA) and a Marketing Authorisation Application (MAA) with the European Medicines Agency (EMA). This represents a historic milestone as one of the first instances of a novel antibiotic discovered in India seeking marketing authorization in major global markets.

THE LANCET Regional Health Southeast Asia, a globally respected and peer-reviewed journal has published the full results of the pivotal Phase 3 clinical study of Miqnaf (nathromycin) for the treatment of community-acquired bacterial pneumonia (CABP). This marks the rst-ever publication in a LANCET journal for a novel drug discovered and developed in India, underlining the global relevance and scientic rigor of this study.

Importantly, the Companys portfolio targets infections caused by Multi-Drug-Resistant (MDR) and Extensively Drug-Resistant (XDR) pathogens. These novel antibiotics are designed to be eective against a broad spectrum of priority pathogens identied by global and national agencies, including the World Health Organization (WHO), the U.S. Centers for Disease Control and Prevention (CDC), and Indias Department of Biotechnology (DBT). Collectively, these advancements position your Company as a key contributor to addressing the global antimicrobial resistance challenge, with the potential to signicantly reduce morbidity and mortality worldwide.

Pipeline Progress and Key Assets

WCK 5222 (Zaynich): Zaynich has successfully completed a global, pivotal, registration-enabling Phase 3 study, along with an additional study in patients with documented carbapenem-resistant infections. To date, it has saved the lives of 85 patients under compassionate use. Regulatory lings have been completed across key geographies, including NDA submission to the USFDA and MAA submission to the EMA. In India, the NDA has been led and has received a favourable recommendation from the Subject Expert Committee (SEC) of CDSCO, paving the way for full approval in the coming months. Additionally, Zaynich has received Breakthrough Medicine designation in Saudi Arabia, where an NDA has also been led.

WCK 4282 (Foviscu TM ): Foviscu TM , the Companys fth novel antibiotic, has successfully met the primary endpoint in a Phase 3 clinical trial in patients with complicated urinary tract infections (cUTI) and acute pyelonephritis caused by Gram-negative bacteria, including extended-spectrum ß-lactamase (ESBL)-producing pathogens. In a randomized, double-blind Phase 3 study, Foviscu TM was compared with meropenem, a last-line carbapenem antibiotic, and demonstrated a clinical cure rate of 93.23% versus 92.31%, establishing therapeutic equivalence with a comparable safety prole. This marks the first Phase 3 head-to-head study of an antibiotic specically developed for ESBL infections against meropenem.

Given the high burden of ESBL infections and rising resistance to commonly used antibiotics, clinicians are increasingly dependent on carbapenems, accelerating resistance. With approximately 6.5 million treatment courses of such antibiotics used annually in India, Foviscu TM has the potential to reduce carbapenem usage and strengthen antibiotic stewardship. An NDA ling in India is planned for H1 2026.

WCK 4873 (Miqnaf): Miqnaf achieved a key regulatory milestone during the year with the removal of the supply condition by the Drugs Controller General of India (DCGI), enabling broader market access. The product is witnessing increasing acceptance within the clinical community, supported by its comprehensive pathogen coverage and shorter treatment duration, which contribute to improved antibiotic stewardship.

To expand the indication prole of Miqnaf, a 290-patient Phase 3 study in Acute Bacterial Rhinosinusitis (ABRS) has been initiated, with 189 patients already enrolled to date. Additionally, a 500-patient Phase 4 study in CABP, as mandated by CDSCO, is ongoing, with 308 patients enrolled so far.

WCK 771 & WCK 2349 (Emrok & Emrok O): These products continue to demonstrate good momentum, achieving growth of 52% in Q3 and 48% on a year-to-date basis. They address critical unmet needs in the treatment of dicult-to-manage Gram-positive infections, including bone and joint infections, diabetic foot infections, and pneumonia. With increasing adoption and a dierentiated clinical prole, the brands are on track to become leading therapies in the anti-MRSA segment. Further studies are being planned to expand their use in highly challenging indications such as bloodstream infections.

WCK 6777 (Odrate TM ): The Phase 2 clinical trial protocol for Odrate TM was approved by the CDSCO Subject Expert Committee on March 25, 2026. The study will evaluate the ecacy and safety of once-daily Odrate TM compared to the standard three-times-daily regimen of Ceftazidime + Avibactam in patients with complicated urinary tract infections (cUTI).

Your Company has strong focus in developing intellectual property and led 17 patents during the year under review. During the year 11 patents were granted. As on March 31, 2026, combined pool of Companys patent has reached 3,290 lings and 859 grants.

Biotechnology Research of the Company

Biotechnology is one of the major focus areas of Wockhardts Research. Biotechnology products have been identied, as the future in the treatment of diseases and your company has been an early entrant in this eld.

Our highly accomplished multidisciplinary team is capable to develop biological drugs from concept to product to address unmet clinical needs. The team has proven expertise in developing products using yeast, E. coli and mammalian cell culture expression platforms. The eorts of your company in Biotechnology space have been well recognized.

Biotechnology R&D team of the Company has succeeded in developing and commercializing Recombinant Hepatitis-B Vaccine (Biovac-B), Recombinant Human Erythropoietin (Wepox®), Recombinant Human Insulin (Wosulin®), Recombinant Insulin Glargine (Glaritus®), which have all been well received in the market. Out of these, Recombinant Interferon Alfa 2b and PEGylated G-CSF have already been approved for manufacturing and marketing in India in the year 2005 and 2015, respectively.

The company has a robust pipeline of recombinant therapeutic proteins for major healthcare needs. The overall focus is on development and commercialization of antidiabetic Biosimilar products, which includes Insulin analogues, GLP-1 agonists and novel combination drug products. Insulin Aspart Regular and Biphasic drug products are in advance stages of development. Development of various recombinant enzymes for captive use in Insulin and Insulin analogues manufacturing process are in early stage of development.

Your company has developed drug delivery device for insulin and launched its first generation Disposable Pen (DispoPen®) and Reusable Pen (Mypen®) in 2010. Subsequently, we had launched its second generation Disposable Pen (DispoPen®2) and Reusable Pen (mypen®2) in the year 2019 and 2023, respectively. The companys unique drug delivery devices are protected by two patents. Your company is working on next generation Disposable and Reusable Pens considering latest technology and trends in the market.

Your company has applied for 118 biotech product patents globally and holds 57 patents in biosimilar and bio-better development phase, out of which 23 patents are for the companys insulin pen globally. In FY25-26, the company has obtained patent in 10 European countries for its new combination drug product.

Enterprise Risk Management (ERM) framework encompasses practices relating to the identication, analysis, evaluation, mitigation and monitoring of the strategic, external and operational risks in achieving key business objectives. The Company follows an integrated and continuous risk monitoring approach, with periodic updates from business functions and focused oversight on key enterprise risks. Your Company identies and mitigates risks on an ongoing basis. Risk Management Policy approved by the Board is in place. Risk management is embedded in strategic business decision-making of the Company. The current key risk relates to regulatory risk on overseas operations and business. This is arising out of periodic regulatory audits at the Companys manufacturing locations, which are being adequately addressed through strengthening of the current processes and controls by the Companys internal quality assurance and manufacturing teams and through the help of reputed external consultants. There are no risks, which in the opinion of the Board, threaten the existence of your Company. Other details about Risk Management have also been elaborated in the Report on Corporate Governance forming part of this Annual Report.

HUMAN RESOURCES

Wockhardts talent base across its locations, as on March 31, 2026 stands at ~ 2,564 with signicant presence in India, UK, Ireland and other countries.

Wockhardt recognizes that Associates are the most valuable assets and always encourage them to meet business requirements while meeting their career aspirations. The Human Resource division mainly focus on supporting the business in achieving sustainable and responsible growth by building the right competencies and capabilities in the organization. It continues to emphasize on progressive Human Relations policies and building a high-performance ethos with a progressive mind-set where Associates are Empowered, Engaged, Ecient and Productive.

At Wockhardt, Life Wins is a simple yet profound theme that denes our eorts, reects our goals, highlights our aspirations and characterizes our business.

Our One Wockhardt motto creates a unique value driven, high performance and business driven work culture. At Wockhardt, HR plays a central role in implementing the organisations vision and strategy by aligning HR to the business. Better HR policies provide more innovative and forward looking HR focus and initiatives. Promoting diversity, learning environment and work-life balance establish a credible and integrated employee performance goal setting.

Our leadership values of Ownership, Respect, Trust, Integrity are the fundamental principles on which we have built our business. We truly believe that the progress of our associates and business are interlinked and thus created a work culture that oers a unique combination of our core values and functional prociency.

At Wockhardt, we believe that associates are the key players in business success and sustainable growth. In order to provide meaningful opportunities to our associates for learning and growth, we have strengthened our internal talent pool by launching various career programs for our eld associates, Saksham which provides career visibility to development to our sales force.

Using psychometric tests for senior level and AI based assessment tool for Field Force hiring has helped company to understand candidates, potential strengths and peculiar characteristics.

The companys Whistle Blower Policy encourages the Whistle Blower to report genuine concerns or grievances of illegal, unethical or inappropriate events (behaviour or practices) that aect Companys interest / image. It also provides adequate safeguard to the Whistle Blower against victimization. The policy is available on the companys website at www.wockhardt.com