PHARMA GENERICS - Other Regulated Markets

For Strides, the other regulated market segment comprises of all regulated markets outside of the United States, Japan and Australia. Considering our current expansion, Strides other regulated markets contains the opportunities that we capitalise in Europe, Canada and South Africa.

Europe

The European pharmaceutical market is over $177b of which the generic opportunity contributes to over $50b. It is a highly diverse market given the macroeconomic diversity of regions within Europe. It is unlikely that any product commercialisation favouring Western Europe will also have the same advantage in the Eastern or Southern Europe. Hence, our presence in Europe is specific to the regions we operate.

United Kingdom(UK) is the anchor market for us in the European continent. This $11b generic opportunity is operated by our subsidiary Strides Pharma UK Limited, and we have been servicing reliably supplying high-quality generics to Tier 1 & Tier 2 wholesalers in the retail sector as well as National Health Service(NHS) through Commercial Medicines Unit (CMU) tenders. We also have heritage OTC brands in the retail space and are looking at expanding our presence in products with integration advantage given our manufacturing capabilities in India and Italy. Our UK operations continue to be the springboard for Strides to penetrate into the other European opportunities.

In Europe, outside of UK, we have an emerging presence predominantly in the Nordics and Western Europe. The business is mostly built on IP-led partnerships and B2B focussed strategy around niche molecules with limited competition. As we make further inroads, we are capitalising on the expanding opportunity with our portfolio maximisation drive and market expansion through partnerships in Central and Eastern Europe(CEE) and the Mediterranean region

South Africa

The South African market, valued at $3.4b, is the largest market in the Sub-Sahara Africa. Unlike, the other African market, which is mostly semi-regulated, South Africa follows a stringent regulatory framework and the market is not readily accessible to players. Strides forayed this market through the acquisition of Trinity Pharma and are incubating its strategy on a combination of businesses. While we are leveraging the distribution of products through pharmacy chains and mail order systems, we are also building a strong base with portfolio maximisation to improve our IP landscape and participate in the local ARV and Non-ARV opportunities through a steady regional footprint.

Canada

The Canadian opportunity of $7b is an organic lever for Strides. We believe this market benefits the most from our learning curve of development and commercialisation in the regulated markets. Strides is building a greenfield business in Canada across the generics, private label OTCs and the branded OTC extension from its portfolios in several markets.

In the other regulated markets, our focus remains on leveraging our portfolio developed for the US and Australia to build out a low investment high return opportunity. We are likely to benefit as the cost of organic strategy in these markets will be minimum for us as we are leveraging the R&D heads up for the US and Australia. We continue to steadily accelerate hybrid R&D model with future development aimed to be responsive to global regulatory needs while staying focused on quality compliance and manufacturing flexibility.