Krka

M&A Activity • Jan 26, 2024

PRESS RELEASE

Establishment of a joint venture in India

Novo mesto, 25 January 2024 – Krka and Laurus Labs Ltd. from India (hereinafter Laurus) have reached an agreement to establish a joint venture company Krka Pharma Pvt. Ltd. in Hyderabad, India. Krka will hold 51% and Laurus 49% share in the joint venture. The registered capital of the newly founded company amounts to up to 50 million euros in Indian rupees. The joint venture will enable the production of finished products for the new markets, including the Indian market.

Krka and Laurus have been working together contractually for many years and their businesses complement each other. The partners have discussed opportunities to strengthen co-operation and create synergies by combining their knowledge and resources. Krka and Laurus have agreed to establish a joint venture company Krka Pharma Pvt. Ltd. with registered seat in Hyderabad, India. Krka will hold 51% and Laurus 49% share in the joint venture company. It is expected that the necessary procedures and documentation for the registration of the new joint venture company will be finalised by the end of March 2024.

The parties have agreed on a step-by-step development of the joint venture company. The newly formed company will develop a plan to enter the Indian market and other markets outside the European Union where neither party is currently present with its finished products.

The registered capital of the newly established company is up to 50 million euros in Indian rupees. Krka and Laurus have agreed to subscribe to the registered capital in stages, depending on the financing needs of the gradual development of the joint venture's business activities.

Mr. Jože Colarič, President of the Management Board and CEO of Krka, d. d., Novo mesto, commented on this development: "Krka has successful cooperation with Laurus for many years. Both companies are dedicated to deliver products of the highest quality. We believe that the joint company will have synergistic effects for both companies, and would enable them to explore all opportunities, enter new markets and remain among leading suppliers of pharmaceutical products on the international market."

Dr. Satyanarayana Chava, Executive Director and CEO of Laurus Labs Ltd., commented: "Our business relationship with Krka is very matured over the years and growing year on year. This JV further cement our relationship to enhance product portfolio and markets. The JV also have plans to service quality products to India market over period of time."

About Krka

Krka is an innovative generics producer known for its strong vertical integration of all business processes and its state-of-the-art products that not only meet the highest quality standards but are also affordable. With 70 years of experience, the company offers a wide range of prescription and non-prescription medicines and animal health products, serving customers in more than 70 markets. Krka specialises in solid dosage pharmaceuticals for the treatment of chronic diseases. The company is the market leader in the domestic market and has established a strong presence in Eastern, Central and South Eastern Europe as well as Western Europe. The company is also expanding its presence in overseas markets. Krka employs over 12,500 dedicated professionals and operates in many countries through subsidiaries and representative offices. The company's shares are listed on the Ljubljana Stock Exchange (LJSE) and the Warsaw Stock Exchange (WSE). Krka is committed to corporate social responsibility and the well-being of patients by providing them with access to high-quality, safe and effective medicines. Particular emphasis is placed on protecting the environment and reducing environmental impact. The company adheres to the highest standards of business ethics, integrity and transparency in all its activities. On 24

November 2023, Krka received an S&P Global CSA score of 50/100, placing it in the top 10% of companies in the pharmaceutical industry on that day.

For more information visit: www.krka.biz

About Laurus

Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with an aim to improve the quality of life for millions of people around the world. Laurus has a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, oncology drugs (incl High Potent APIs), Cardiovascular, and Gastro therapeutics. Laurus also offers integrated Contract Development and Manufacturing Organization (CDMO) services to Global Innovators from Clinical phase drug development to commercial manufacturing. Laurus is passionate about continuous technological advances for Smart and Green chemistry technologies to drive efficiencies and sustainable manufacturing backed by proven regulatory and quality foundation. Laurus employs 6500+ people, including around 1250+ scientists at more than 11 facilities approved by global agencies USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, TGA etc. During FY2023 Laurus generated ₹ 6,041 crore in annual revenue and is listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. Laurus' proactive stance to conduct business with utmost Transparency, Integrity and Respect for environment & communities have earned it a place in Governance benchmark, consistently Certified Great Place to Work and Rated "BBB" by leading MSCI ESG Ratings.

For more information visit www.lauruslabs.com