Laurus Labs Limited — Capital/Financing Update 2020

Nov 25, 2020

Laurus Labs Limited Corporate Office 2nd Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 50003~ . Telangana, India T +91 ~0 6659 ~333, 3980 333, 232 0500 I 501 F +91 ~0 6659 ~320 I 3980 ~320

November 25, 2020

To	To
The Corporate Relations DepartmentBSE LimitedPhiroz Jeejeebhoy Towers, 251h Floor,Dalal StreetMumbai-400001	The Listing DepartmentNational Stock Exchange of India LimitedExchange Plaza,Bandra Kurla Complex, Bandra (East)Mumbai -400 051
Code: 540222	Code: LAURUSLABS

Dear Sirs,

Sub: Press Release titled - "Laurus Labs enters the rapidly growing biotechnology segment by acquiring a majority stake in Richcore Lifesciences".

The Company is pleased to announce that it has signed definitive agreements with the sellers i.e. Eight Roads Ventures and V enturEast Proactive Fund and V enturEast Life Fund III, to acquire 72.55% stake in Richcore Lifesciences Private Limited ("Richcore"), a Biotechnology Company, subject to completion of conditions precedent, by way of cash consideration of Rs. 246.67 Crores.

This acquisition marks the Company entry into the broader biologics and biotechnology segments. Post this acquisition, Richcore shall become a Subsidiary Company of the Company and the Company will drive scale and operations at Richcore to enable it to become a dominant player in the biotechnology segment.

A press release to this extent is also attached for your information and records.

Thanking you,

Yours sincerely, For Laurus Labs Limited

G. Venkateswar Reddy Company Secretary

Encl: As above

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & Intermediates Finished Dosage Forms Contract Development & Manufacturing Services Specialty Ingredients for Nutraceutical & Allied Industry

Laurus Labs enters the rapidly growing biotechnology segment by acquiring a majority stake in Richcore Lifesciences

Hyderabad, November 25, 2020, Laurus Labs Ltd. (Laurus BSE: 540222, NSE: Lauruslabs, ISIN: INE947Q01028)

Laurus Labs has signed a definitive agreement to acquire a majority stake in Richcore Lifesciences Pvt Ltd (Richcore). Richcore, a fast-growing biotech company based in Bengaluru with its advanced R&D and manufacturing facilities, develops and manufactures biotech products critical for manufacturing biological drugs. Richcore also helps its global customers to develop and scale-up their bioprocesses by providing contract research, development, and manufacturing services.

This acquisition marks Laurus Labs' entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India. Laurus Labs will help and drive Richcore to achieve scale and improve product offerings. With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions - API, Formulations and Synthesis. Following the successful closure of the transaction, Richcore will be renamed to Laurus Bio Pvt Ltd.

Richcore has large scale fermentation capabilities and manufactures animal origin free (AOF) recombinant products. These products help vaccine, insulin, stem-cell based regenerative medicine and other biopharma companies eliminate dependency on animal and human blood derived products and in turn produce safer medicines. Richcore is currently in its growth phase and its second manufacturing plant near Bengaluru is expected to be completed by 31 March 2021. Richcore has raised early and growth stage funding from Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III.

Laurus Labs has signed a definitive agreement to acquire 72.55% of Richcore's shares from Eight Roads Ventures and VenturEast for a value of Rs. 246.7 crores. The current promoters of Richcore led by Mr. Subramani Ramachandrappa will continue as promoters of Richcore and will be responsible for its management and operations. Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive.

Commenting on the development, CEO of Laurus Labs Dr. Satyanarayana Chava said, "we are very excited on this acquisition, as this gives us entry into high barrier biotechnology segment. Laurus Labs will bring scale to Richcore' s operations and can become a major player in the biotech CDMO space . This will also help Laurus in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications"

NOVEMBER 25, 2020

Press Release

Subramani Ramchandrappa, Chairman & Managing Director, Richcore Lifesciences said, "Richcore and Laurus Labs coming together marks the convergence of Biotechnology and Chemistry faculties. Leveraging the synergies arising from Laurus's experience and Richcore's innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments. We welcome Laurus Labs on board and thank our customers and team members for their continued patronage and trust in our shared vision. We also thank our existing investors Eight Roads Ventures and VenturEast for their support since our inception."

Dr. Prem Pavoor, Partner & Head of India, Eight Roads Venturessaid: "We are very excited and proud to see two of our partner companies come together to create the beginnings of a global lifesciences leader. There has been a distinct upsurge in demand for biologics and vaccine manufacturing as well as a move away from animal-derived biologic products over the past few years, and now accelerated by the Covid-19 pandemic. Richcore's capabilities in biologic development and manufacturing are synergistic with Laurus' track record of building global leadership and world-class manufacturing scale in important therapeutic categories. The combination of Dr. Satya and Subbu's leadership will definitely create a strong biopharmaceuticals development and manufacturing organisation."

Dr. Siddhartha Das, General Partner, VenturEastsaid: "Richcore is an innovation driven Biotechnology Company charting an exciting journey into new technologies with the potential to revolutionize areas of human health, food security and sustainability. The strategic partnership with Laurus Labs will create a strong platform for both innovation and rapid scaling." .

Sarath Naru, Managing Partner, VenturEast. said: "Richcore's Leadership has shown the tenacity and vision to create a high barrier complex "Animal Origin Free" category in the biotech space. We backed the founder and his team early on from the first round until the latest Series C round. We are extremely proud to have backed this pioneering team in a category that will grow multifold in the coming decade."

• ENDS -

About Laurus Labs Limited

Laurus Labs is a leading research driven Pharmaceutical Manufacturing Company in India. We have grown to become one of the leading manufacturers of API for Anti-Retroviral (ARV), Oncology, Cardiovascular, Anti-Diabetics, Anti-Asthma, and Gastroenterology. We are thriving on growth opportunities in formulation manufacturing to service all leading markets of North America, Europe and Low Middle-Income Countries (LMIC). We are driving growth opportunities in Contract Development and Manufacturing through our Synthesis business. Most of our manufacturing facilities are approved by major regulatory authorities USFDA, WHO-Geneva, UK-MHRA, etc. Our approach remains to identify and invest ahead of time with strategic investments in State-of-the-Art R&D and Manufacturing Infrastructure enabling us to become a quality supplier of high volume products. Corporate Identification No: L24239AP2005PLC047518

NOVEMBER 25, 2020

Press Release

For more information about us, please visit http://www.lauruslabs.com or Contact particulars:

Pavan Kumar N Laurus Labs Ltd. Tel: +91 40 3980 4380, 9246564666 Email: mediarelations@lauruslabs.com, pavankumar.n@lauruslabs.com

DISCLAIMER: Certain statements in this document may be forward-looking statements. Such forwardlooking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Laurus Labs Limited (Laurus) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

About Eight Roads Ventures:

Eight Roads Ventures is a global investment firm backed by Fidelity. The firm invests in high-quality, highgrowth companies in Asia, Europe and the US, with a focus on healthcare, technology and consumer. Eight Roads Ventures is committed to making the companies it invests in leaders in their industries through access to patient capital, a powerful network of resources and a team of investment professionals with a proven track record of success. Eight Roads Ventures' healthcare investments in India include Ashish Life Science, Caplin Steriles, Carestack, Cipla Health, Core Diagnostics, Ujjala Cygnus Hospitals, eKincare, Eywa Pharma, Immuneel Therapeutics, Laurus Labs, Medwell Ventures, Plasmagen Biosciences, Pharmeasy, Richcore Lifesciences, Specsmakers and Trivitron Healthcare.

For more information, visit www.eightroads.com

About VenturEast:

VenturEast is one of India's pioneering Venture capital fund managing ~$350 million AUM. The Fund is currently investing out of its fifth fund with a focus on enterprise tech and consumer tech. The fund has a thematic and a concentrated portfolio in Technology and Healthcare. Some of its past and current investments include Gland Pharma, MoEngage, Kissht, Acko, Portea, ekincare, 24 Mantra, etc. For more information, visit ventureast.net.

NOVEMBER 25, 2020

Press Release