Marksans Pharma Ltd

Steering forward with confidence

I am pleased to present the Annual Report for the financial year 2024-25—a truly defining year for Marksans Pharma. The past year stood as a testament to the strength of our core competencies and expertise in establishing a robust foundation for our onwards journey. Throughout the year, innovation, expansion and excellence remained our guiding principles, enabling us to deliver quality healthcare solutions that are actively redefining the care continuum.

We are particularly proud to report our best performance in both revenue and profitability. This achievement underscores the inherent resilience of our business model and the agility of our execution. A significant milestone has been our OTC business, which proudly crossed the _2,000 crore revenue mark, firmly cementing our position in the industry. While each geography contributed to our growth story, the U.S. market spearheaded our success, driven by new product launches and improved market share.

Following an unprecedented series of headwinds in the preceding years, global growth has now become stable. While the growth rate remains slightly below the long-term historical average of 3.7%, it reflects a phase of consolidation and stability across major economies. Further, global headline inflation is anticipated to decline, improving the business landscape and supporting consumption-led growth.

The global pharmaceutical market, in particular, stands at the threshold of transformative growth. The current operating landscape, coupled with an increasing focus on self-reliant healthcare systems and affordable medications, has unlocked varied opportunities for key market players, including Marksans Pharma. Our diversified portfolio, agile execution and disciplined capital allocation position us to thrive amid evolving global dynamics while delivering long-term value for all stakeholders.

In this dynamic market, maintaining a competitive advantage hinges on strategic capacity expansion. This year, we focused on strengthening our manufacturing prowess, particularly by scaling our Goa facility, which we acquired in 2022. With commercial production currently underway, we have crafted a clear roadmap to gradually increase utilisation over the next two years. Upon expansion, this site alone is anticipated to handle up to 8 billion units annually, bolstering our capabilities across various dosage forms, such as tablets, capsules, ointments, liquids and creams.

Currently, our overall manufacturing capacity stands at 26 billion units per annum, marking a fourfold increase achieved over the past several years. We are strategically expanding our efficiency through both organic and strategic acquisitions, particularly in the European Union. At Marksans Pharma, our focus is on building an organisation that caters to global healthcare needs with agility and efficiency.

Innovation unequivocally provides the competitive edge needed to stay ahead of the curve. We have made steady progress in expanding our research pipeline, which now includes over 100 products under development. These are strategically planned for phased filings over the next three to five years across key markets.

The U.S. remains a primary focus, with 79 products currently in development and multiple regulatory filings made during the year. Additionally, our commercial portfolio has grown to 58 marketed products, reflecting the increasing operational scale in the U.S. market.

A fully automated infrastructure seamlessly connects R&D, manufacturing and distribution, ensuring efficiency, consistent quality and better agility. We will continue to build a diverse, high-quality product portfolio that supports sustainable global growth.

With the global OTC market projected to reach $204 billion by 2025, we are fortifying our position in this growing space. The pharmaceutical industry is recording a shift towards OTC products, unlocking new avenues for innovation and improved patient access, particularly across key therapeutic areas.

Over the past eight years, our OTC business has grown nearly 4.6 times, recording a CAGR of 21% between FY2017 and FY2025. This growth can be primarily attributed to enduring partnerships with leading global retailers, where we serve as the preferred low-cost manufacturing partner for store brand products.

Our diversified portfolio encompasses solutions for pain management, respiratory health, digestive wellness and allergy care. Looking ahead, we aim to deepen our store brand penetration in North America and improve our U.S. OTC revenue, all while further expanding our product pipeline to align with evolving consumer needs in this high-growth segment.

We firmly believe that true success extends beyond mere profit, intrinsically linked to empowering communities and fostering collective growth. In FY 25, we concerted our efforts across key areas, including healthcare, education, environment, food security and the welfare of women and children. We organised free health camps, ensuring access to quality healthcare facilities for the underserved communities and provided crucial support to cancer research.

We remained attentive to the needs of the communities around us. We supported community well-being through health camps, the distribution of essential medicines, and financial aid to the Tata Memorial Centre. We promoted education for women and children, strengthened Anganwadi infrastructure, and participated in the National Nutrition Mission. Our efforts also included food distribution drives and tree plantation activities in Goa, addressing hunger and promoting environmental sustainability.

Our people are the bedrock of our success, playing a crucial role in upholding excellence, maintaining efficiency and consistently redefining possibilities. It is the steadfast dedication of our teams across research, manufacturing and corporate functions that enables us to deliver long-term value. As a responsible corporate citizen, we remain committed to fostering a culture of inclusion, growth and shared purpose. We constantly strive to build a holistic culture where individuals thrive and contribute meaningfully to our long-term vision.

FY25 has been a year of strategic clarity and steady progress. As we move ahead, we are accelerating our positive growth momentum by scaling capacity, deepening customer partnerships and diversifying our product pipeline across key markets.

We are targeting _3,000 crores in revenue over the next two years, with ambitious plans to double our U.S. OTC business and strengthen our position in the U.K. and Europe. Backed by a disciplined capital strategy and a robust manufacturing and R&D ecosystem, we are confident to embark on our next phase of growth.

Lastly, I extend my heartfelt gratitude to all our stakeholders. Your continued support and trust in Marksans Pharma consistently encourage us to innovate, expand and excel, enabling us to soar to new heights of success.