Date: June 26, 2026

Investment / Strategic Actions

Zydus Lifesciences Limited (\"Zydus\") has entered into a Share Subscription and Shareholders' Agreement (\"SSSHA\") with Sunshine Healthcare Lanka Limited (\"Sunshine\") and Zydus Sunshine Lifesciences (Private) Limited (\"Zydus Sunshine\") to subscribe to 50% of the total paid-up equity share capital of Zydus Sunshine (\"Subscription Shares\").

Pursuant to this subscription, Zydus Sunshine will become a 50:50 joint venture between Zydus and Sunshine.

Investment Details:

  • Investment Amount: Up to USD 5 million (United States Dollar Five Million) in one or more tranches, subject to certain adjustments
  • Percentage Stake Acquired: 50% (Fifty percent)
  • Expected Completion Timeline: Within 90 working days from the date of execution of the SSSHA
  • Form of Consideration: Cash consideration

Target Entity Details:

  • Name: Zydus Sunshine Lifesciences (Private) Limited
  • Industry: Pharmaceuticals
  • Date of Incorporation: May 30, 2026
  • Country of Presence: Sri Lanka
  • Turnover: Nil (recently incorporated)
  • Business: Will primarily undertake manufacturing of pharmaceutical products in Sri Lanka

Strategic Rationale:

Zydus Sunshine will set up a state-of-the-art manufacturing facility in Horana Export Processing Zone in Sri Lanka to manufacture pharmaceutical products. This will strengthen local production and reduce import dependence, improve access to high-quality medicines, and support national supply chain resilience.

Governance Structure:

  • The Board of Zydus Sunshine shall comprise 6 (six) directors, with 3 (three) directors each representing Zydus and Sunshine
  • The Chairperson shall always be appointed by Zydus and shall have a casting vote on all matters, other than reserved matters
  • The capital structure of Zydus Sunshine can be amended with the approval of both Zydus and Sunshine

Regulatory and Relationship Status:

  • The subscription of Subscription Shares would not fall within related party transactions
  • None of the promoter/promoter group/group companies have any interest in the subscription
  • No potential conflict of interest arising out of the subscription