Sai Parenterals gains after arm renews 204 cr OTC supply agreement

Sai Parenterals rallied 3.33% to Rs 544.15 after the company announced that its subsidiary, Noumed Pharmaceuticals, has renewed its OTC Medicines Supply Agreement with one of Australia's leading multi-billion-dollar pharmacy chains.

The renewed agreement carries an expanded product portfolio, an extended tenure and a higher contract value of AUD 30 million (approximately Rs 204 crore) over a three-year period, effective immediately. The agreement translates to about AUD 10 million of contracted supply annually and provides for further growth through new product development and line extensions during its term.

Noumed will continue to manage the full value chain ? manufacturing, product sourcing, regulatory compliance, TGA registrations, warehousing, quality assurance and nationwide distribution ? entrusted to a single accountable partner. Noumed owns the product registrations and holds the marketing authorization, while the pharmacy chain retails the product under its own consumer brand.

Currently, volumes under the agreements are largely sourced from third-party manufacturers, with Noumed earning a distribution margin. As the company's Adelaide facility is commissioned and its Indian manufacturing capacity expands, production is expected to progressively move in-house, potentially converting the distribution margin into a manufacturing margin on the same contracted revenue.

Together with the 7.5-year agreement renewed on 1 July 2026, valued at AUD 202 million (approximately Rs 1,300 crore), the company's Australian OTC contracted supply book now stands at AUD 232 million, equivalent to approximately Rs 1,506 crore.

Anil Kumar Karusala, chairman and managing director, Sai Parenterals, said: Noumed has renewed two supply agreements in the space of two months. Together they take our contracted OTC book in Australia to AUD 232 million, close to Rs1,506 crore in aggregate. These are renewals earned over years of consistent delivery in one of the most tightly regulated markets in the world and they are the reason we acquired the Noumed Platform.

Mark Thulborne, chief executive officer(CEO), Noumed Pharmaceuticals, said, ?This renewal reflects the depth of our product range and the confidence our customers place in our ability to supply without interruption. We hold the registrations, we hold the inventory and we shall manage everything from sourcing and regulatory compliance through to nationwide distribution. Our customers value having that entire chain with one accountable partner and they have chosen to extend it.?

Sai Parenterals is an integrated, IP-led pharmaceutical enterprise operating across two complementary verticals ? contract development and manufacturing for Indian and multinational customers, and branded generic formulations sold domestically and exported into regulated and semi-regulated markets.

On a consolidated basis, adjusted net profit surged 457.75% year on year but declined 39.82% quarter on quarter to Rs 7.92 crore in Q1 FY27. Net sales jumped 435.10% YoY but declined 9.73% QoQ to Rs 178.67 crore in Q1 FY27.

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