Jubilant Pharmova Limited , a diversified pharmaceutical company, has announced its financial results for the quarter and half-year ended September 30, 2025, along with significant corporate developments.

Financial Results and Business Transfer

The company's Board of Directors has approved the unaudited financial results for Q2 and H1 FY26. A major highlight is the completion of the sale and transfer of its Active Pharmaceutical Ingredients (API) business to Jubilant Biosys Limited, a wholly-owned subsidiary, on September 1, 2025. This transfer follows board approval in June and shareholder approval in July of the same year.

Accounting Changes and Financial Impact

As a result of the API business transfer:

• The API business has been classified as discontinued operations in the standalone results.
• The transaction was primarily discharged through share issuance.
• A reversal of deferred tax liability amounting to ₹840.00 million was recorded.
• A tax provision of ₹436.00 million was created.

Continuing Operations

Following the API business transfer, Jubilant Pharmova's continuing operations now primarily comprise management and other support services.

Consolidated Results and Exceptional Items

The consolidated results for the half-year include several exceptional items:

1. A gain of ₹217.00 million from asset sales in Maryland, USA.
2. Expenses of ₹179.00 million related to the temporary suspension of operations at the Montreal facility.
3. Amortization of debt initiation costs amounting to ₹96.00 million.

Revenue and Segment Performance

While specific revenue figures for Q2 FY26 were not provided, the company had previously reported strong performances across various segments:

• Radiopharma
• Allergy Immunotherapy
• CDMO Sterile Injectables
• Contract Research, Development and Manufacturing Organisation (CRDMO)

Strategic Developments

The completion of the API business transfer to Jubilant Biosys Limited is a significant strategic move, expected to improve operational efficiency and brand recall.

Outlook

Jubilant Pharmova continues to focus on its core businesses and strategic initiatives. The company's decision to transfer its API business and focus on other segments indicates a strategic shift in its operations and portfolio management.

The company remains committed to creating long-term value for its stakeholders through its diversified business model and focus on high-growth segments in the pharmaceutical industry.

Jubilant Pharmova 's wholly-owned subsidiary, Jubilant HollisterStier LLC, has announced plans to invest $300 million by FY28 in its Spokane, Washington facility to double its sterile injectable manufacturing capacity. This significant expansion comes as part of a multi-phase strategy to strengthen the company's position in the North American pharmaceutical contract manufacturing sector.

Key Highlights of the Expansion

• Total Investment: $300 million by FY28
• Capacity Increase: From 50 million to 100 million vials annually
• Location: Spokane, Washington, USA
• First Phase Investment: $132 million for third sterile fill and finish line

Strategic Implications

The expansion addresses a significant demand-supply gap in the US sterile vials market. Currently, there is a 700 million unit gap between demand and supply, with total global demand at 6.8 billion units versus 6.1 billion supply. The increased capacity will serve approximately 350 million patient doses, potentially reaching nearly the entire US population.

Market Drivers and Government Support

Several factors have accelerated Jubilant HollisterStier's expansion plans:

1. Increased demand for US-based manufacturing, partly due to Trump's tariffs
2. A $150 million US government grant following the company's success in scaling Covid therapeutics manufacturing

Technological Advancements

The newly launched third line features cutting-edge isolator technology, designed to provide:

1. Enhanced sterility assurance
2. Increased throughput
3. Improved operational precision

Market Position and Future Outlook

Chris Preti, CEO of CDMO Sterile Injectables at Jubilant HollisterStier, emphasized the strategic importance of this expansion, stating, "With Third Line now operational and Fourth Line on the horizon, we are not just doubling our capacity, we're building a future that will create hundreds of new jobs, strengthen the US pharmaceutical supply chain and reaffirm our role as a trusted partner in delivering life-saving therapies to patients around the world."

Regulatory Compliance and Customer Trust

Jubilant HollisterStier's expansion aligns with its track record of regulatory compliance, having received approvals from organizations such as the US FDA, EMA, PMDA Japan, and Health Canada. The company boasts a 92% customer retention rate and partnerships with 5 of the top 20 global pharmaceutical companies, underscoring its reputation for quality and reliability in the industry.

This strategic investment not only enhances Jubilant Pharmova's manufacturing capabilities but also contributes to the resilience of the US pharmaceutical supply chain, positioning the company for sustained growth in the evolving healthcare landscape.