Divis Laboratories Ltd

In the dynamic landscape of the pharmaceutical industry, marked by significant transformations and evolving challenges, Divi's stands firm, leading with purpose, proactively managing risks, and expanding frontiers. As we reflect on FY 2024, full to the brim with volatile market conditions, and numerous geopolitical crises - particularly in the Red Sea, it is worth noting that Divi's remained steadfast in its role as an ideal global partner, meeting customer requirements through strategic supply chain management and operational proficiency.

With shifting trends such as the increasing demand for affordable products, evolving healthcare and security policies, technological advancements, and the emergence of newer innovative therapies, we continue to see great opportunities.

Against an overall neutral year characterised by both challenges and expanding market opportunities, Divi's proactively demonstrated resilience and adaptability, navigating through adversities with agility and foresight. Amidst these circumstances, our commitment to excellence was recognised by the USFDA Commissioner and his team during their visit, applauding the magnitude of our Company's operations and quality systems. We have consistently adhered to Good Manufacturing Practices (cGMP) for the past 25 years, evident in several global regulatory inspections.

Building upon the leadership position in our core products, Divi's is focused on unlocking higher growth potential by strategically expanding on emerging opportunities across various portfolios.

Our generics portfolio maintained stability throughout the year, leveraging sustained demand for established products while actively pursuing opportunities in newer generics. While the impact of pricing pressure continues across generic markets, the broader trajectory remains vibrant with numerous opportunities, particularly the loss of exclusivity (LOE) for patent-expiry products that are expected to fuel our growth beyond FY 2025.

The custom synthesis portfolio witnessed significant progress, specifically with contributions from the two major Big Pharma Projects that have entered full-scale production and are poised to contribute significantly in subsequent years. With expanded production capacity for both large and small-volume products and several molecules at various regulatory stages, the custom synthesis portfolio will continue to fuel our growth.

We made significant strides in the contrast media portfolio, leveraging our expertise and presence in Iodine-based contrast media. We successfully scaled up high-value contrast media projects and made advancements in Gadolinium compounds for MRI contrast media.

Our strength lies in our cost-effective capacity, and Iodine recovery resulting in sustainable production.

We are actively involved in the manufacturing of peptide building blocks with a strategic focus on developing this portfolio and capitalising on the promising opportunity in this space. I would also like to emphasise that along with manufacturing PAAs, we are forward integrating into the fragments required for various GLP-1 drugs.

In Unit III's Greenfield project, an investment of C1,500 crores have led to notable advancements and infrastructural development. The upcoming production activity in this 200-acre Phase I project is expected to commence gradually during

FY 2025. This strategic move aims to increase capacity, freeing the two established Units (I and II) for new opportunities in custom synthesis and generic products. Moreover, with 300 acres of additional available land for future development, substantial potential exists for further investment and expansion.

In addition to our “People First” culture, we are committed to providing a safe and healthy environment for our employees to flourish. We are grateful for their consistent efforts in delivering the best results over the years.

Divi's remains committed to responsible business practices and making meaningful contributions to the communities we operate in. Throughout the year, Divi's has actively undertaken several initiatives aimed at empowering the lives of rural communities with long-lasting impacts. In conclusion, I express my sincere appreciation to all our stakeholders for their unwavering trust and support.

Your confidence in Divi's has played a vital role in our achievements, and it is your trust in us that strengthens our commitment to excellence.