Concord Biotech Limited has successfully completed the acquisition of Celliimmune Biotech Private Limited for ₹66,00,000 on April 02, 2026. This strategic investment positions the company to advance pioneering research in DNA engineering for cancer therapeutics and develop innovative alternatives to conventional chemotherapy.

Acquisition Details

The acquisition involves 100% shareholding in Celliimmune Biotech Private Limited, making it a wholly owned subsidiary of Concord Biotech Limited. The transaction was completed through cash consideration and conducted on an arm's length basis.

Target Company Profile

Celliimmune Biotech Private Limited operates in the biopharmaceutical industry, specializing in the discovery, development, and commercialization of novel cell and gene therapy solutions. The company was incorporated under the Companies Act, 2013.

Strategic Objectives

The acquisition aligns with Concord Biotech's expansion into advanced therapeutic research. The primary objectives include:

• Advancing pioneering research in DNA engineering for cancer therapeutics
• Developing innovative alternatives to conventional chemotherapy
• Innovating new therapy for treatment of cancer
• Expanding capabilities in cell and gene therapy solutions

Related Party Transaction

The acquisition falls under the purview of Related Party Transaction as Celliimmune became a wholly owned subsidiary of Concord Biotech Limited. Prior to this acquisition, the promoter/promoter group held majority shareholding in the company, with Mr. Ankur Vaid and Ms. Sonal Kumra serving as directors of the company. The investment and subscription of shares was conducted at arm's length basis.

Regulatory Compliance

The company has made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No governmental or regulatory approvals were required for this acquisition. The announcement follows the company's earlier intimation dated November 13, 2025.

Concord Biotech Limited delivered steady performance during Q3 FY26, reporting revenues of ₹278 crores and demonstrating resilience amid earlier market challenges. The pharmaceutical company's quarterly results reflect a gradual recovery from first-half disruptions while positioning for stronger growth ahead.

Financial Performance Overview

The company's financial metrics for Q3 FY26 showed mixed results across different timeframes:

For the nine-month period, revenues declined 5% to ₹729 crores compared to ₹770 crores in the same period last year. The company attributed this decline to challenges in the first half, including U.S. tariff uncertainties, CDSCO approval delays, and deferred Middle East tender supplies.

API Business Drives Growth

The API segment emerged as the primary growth driver, with revenues reaching ₹219 crores in Q3 FY26, marking 24% year-on-year growth. This performance excluded interunit sales to the formulation business and reflected strong volume growth across existing products. The company's API business benefited from resumed supplies following CDSCO written confirmation approval received in early November, which had temporarily halted European market sales.

Joint Managing Director and CEO Ankur Vaid highlighted that the growth was primarily volume-driven rather than price-based, with the company maintaining its competitive position across its portfolio of 28-29 commercialized products. The API business maintained its historical contribution of approximately 70-75% from immunosuppressants, with growing traction in anti-infectives and other segments.

Injectable Facility Milestone

A significant development during the quarter was the injectable facility receiving WHO GMP certification, enabling domestic market sales through the company's own brand and contract manufacturing opportunities. The facility has peak revenue potential of approximately ₹600 crores and represents a key growth platform for the company.

The company established Concord Lifegen Limited as a wholly owned subsidiary to strengthen marketing, sales, and distribution capabilities in India, particularly targeting government institutions and smaller nursing homes previously untapped by the company.

Margin Impact and Outlook

EBITDA margins for Q3 FY26 stood at 35.60%, impacted by start-up costs associated with the injectable facility commercialization and expenses related to the U.S. subsidiary Stellon Biotech. Excluding these impacts, EBITDA margins remained at 40% for both Q3 and nine-month periods. Injectable facility-related costs were approximately ₹10-12 crores per quarter, while Stellon setup costs ranged between ₹5-10 crores quarterly.

CFO Raviraj Karia noted that profit after tax was also impacted by new labor code provisions of ₹3 crores and lower other income compared to the previous year. The company maintains a zero-debt position with cash and investments totaling ₹350 crores as of December 31, 2025.

Strategic Initiatives and Future Prospects

The company launched Stellon Biotech, its U.S. subsidiary, to drive marketing, distribution, and commercialization activities in the American market. This initiative creates a direct commercial footprint and supports global market expansion beyond current third-party distribution arrangements.

From a pipeline perspective, the company completed DMFs for Nystatin and Voclosporin and plans to launch two new products in the anti-infective segment during the current year. These products offer large volumes, niche positioning, and limited competition characteristics.

Management expressed optimism for Q4 FY26 performance and expects FY27 to reflect normalized performance returning to historical growth averages. The company remains well-positioned for sustained growth through injectables, CDMO opportunities, new product launches, and continued market share gains in its core fermentation API business.