Highlights
- Noumed Pharmaceuticals renewed an exclusive OTC supply agreement valued at AUD 202 Million.
- The renewed agreement has a tenure of 7.5 years with a three-year extension option.
- The contract includes plans to add 12 new OTC products annually during the agreement period.
Sai Parenterals Limited (NSE:SAIPARENT) has announced that its Australian subsidiary, Noumed Pharmaceuticals Pty Ltd, has renewed its exclusive over-the-counter (OTC) medicines supply agreement with one of Australia's leading pharmacy networks. The company disclosed the development through a press release filed with the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the company, the renewed agreement is valued at AUD 202 Million, equivalent to approximately Rs. 1,300 Cr based on an exchange rate of 1 AUD = Rs. 64.5. The agreement became effective from July 1, 2026.
Agreement Extended for 7.5 Years
The renewed agreement will remain in force for 7.5 years and includes an option for a further three-year extension upon mutual consent. Sai Parenterals stated that the agreement translates to an average annual value of around AUD 27 Million over its tenure.
The company also noted that the agreement has been structured to include the addition of 12 new OTC products each year, allowing the product portfolio to expand during the contract period.
Noumed to Continue End-to-End Supply Responsibilities
Under the renewed agreement, Noumed Pharmaceuticals will continue serving as the exclusive supplier of a portfolio of OTC pharmaceutical products across Australia.
The company stated that Noumed will remain responsible for manufacturing, product sourcing, regulatory compliance, Therapeutic Goods Administration (TGA) registrations, warehousing, quality assurance and nationwide distribution. According to the company, the arrangement covers the entire supply chain under a single agreement.
Management Comments on Agreement Renewal
Commenting on the renewal, Mr. Anil Kumar Karusala, Managing Director, Sai Parenterals Limited, said:
"The renewal of this exclusive agreement reflects the confidence that Australia's leading pharmacy groups continue to place in our subsidiary, Noumed Pharmaceuticals. It also gives us a leap pad to our future expansion into the other highly regulated markets. We are confident this agreement will continue to generate sustainable, predictable revenues, support future product launches, and create long-term value for Sai Parenterals and its stakeholders. Our company and team will continue to strive to build upon this significant milestone."
Mr. Mark Thulborne, CEO, Noumed Pharmaceuticals Pty Ltd, said:
"The long tenure of this agreement signifies our capability to build lasting customer relationships, create certainty of forecasted revenues, and — above all — our customers' trust in our ability to deliver quality products on time. This partnership has grown meaningfully over the past few years, and this renewal, for a much longer period, further strengthens our presence in one of the world's most regulated pharmaceutical markets as a reliable partner for a complete value chain."
Company Highlights Strategic Benefits
Sai Parenterals stated that the renewed agreement is expected to support its international pharmaceutical operations through continued OTC product supplies in Australia. According to the company, the agreement is also intended to support manufacturing utilisation, expand its presence in regulated pharmaceutical markets and facilitate the launch of additional OTC products under Australian pharmacy brands over the contract period.
The company further stated that the agreement contributes to its international business through recurring OTC operations and provides a platform for expansion into additional regulated markets.
Key Risks
- Revenue depends on continued execution of the long-term supply agreement.
- Product additions remain subject to regulatory approvals and commercial requirements.
- Manufacturing and supply chain disruptions could affect product deliveries.
- Currency fluctuations may influence the agreement's value in rupee terms.
Summary
Sai Parenterals has announced that its Australian subsidiary, Noumed Pharmaceuticals, has renewed an exclusive OTC medicines supply agreement with a leading Australian pharmacy network. The agreement is valued at AUD 202 Million (approximately Rs. 1,300 Cr), will run for 7.5 years with an optional three-year extension, and includes plans to add 12 new products annually while continuing end-to-end supply responsibilities.
FAQs
Q: What agreement has Sai Parenterals announced?
A: Sai Parenterals announced the renewal of its subsidiary Noumed Pharmaceuticals' exclusive OTC medicines supply agreement in Australia valued at AUD 202 Million.
Q: How long is the renewed agreement valid?
A: The agreement is effective for 7.5 years from July 1, 2026, with an optional three-year extension subject to mutual consent.
Q: What responsibilities will Noumed Pharmaceuticals continue under the agreement?
A: Noumed will continue manufacturing, sourcing, regulatory compliance, TGA registrations, warehousing, quality assurance and nationwide distribution of OTC products.