Anthem Biosciences Limited has executed a First Amendment to its loan agreement with wholly owned subsidiary Neoanthem Lifesciences Private Limited, enabling the conversion of an additional Rs 275,00,00,000 into equity shares. The amendment was executed on February 23, 2026, as part of the company's ongoing financial restructuring with its subsidiary.

Amendment Details and Financial Structure

The First Amendment modifies the original loan agreement dated April 15, 2024, which initially provided for financial assistance of up to Rs 300,00,00,000 with an option to convert Rs 100,00,00,000 into equity shares. The overall financial assistance limit was subsequently enhanced to Rs 550,00,00,000 pursuant to a Board Resolution dated June 27, 2024.

Previous Conversion and Approvals

Under the original agreement terms, Rs 100,00,00,000 was successfully converted into equity shares on February 21, 2025, following requisite approvals from the Board and shareholders of Neoanthem. The current amendment provides for conversion of an additional Rs 275,00,00,000 at the company's discretion, subject to applicable approvals.

The transaction qualifies as a Material Related Party Transaction under the Companies Act, 2013 and SEBI LODR Regulations, 2015. Necessary approvals were obtained from the Audit Committee and Board of Directors on June 9, 2025, and from shareholders at the Annual General Meeting held on June 10, 2025.

Key Terms and Conditions

The amendment maintains the unsecured nature of the loan while providing flexibility for equity conversion. Key features include:

• Conversion at company's discretion within the sanctioned limit
• Valuation based on registered valuer's report at time of allotment
• Compliance with applicable laws and regulations
• No security required as it remains an unsecured facility

Corporate Governance and Related Party Disclosures

Neoanthem Lifesciences Private Limited is a wholly owned subsidiary of Anthem Biosciences, with common directors including Mr. Ajay Bhardwaj (Managing Director), Mr. Ganesh Sambasivam (Whole-time Director), and Mr. K. C. Ravindra (Whole-time Director) serving on both boards.

The transaction is conducted on an arm's length basis with no nominee directors appointed pursuant to the agreement. Upon exercise of the conversion option, the loan exposure of Rs 275,00,00,000 in the company's books would be reduced while investment in Neoanthem would increase correspondingly on a standalone basis, with no material impact expected on consolidated financial statements.

Anthem Biosciences Limited has released the official transcript of its earnings conference call for Q3 and 9M FY26, held on February 05, 2026, at 02:30 PM. The call was hosted by JM Financial Institutional Securities Limited and featured detailed discussions on the company's financial performance and strategic initiatives.

Management Participation and Key Highlights

The earnings call was led by Mr. Ajay Bhardwaj, Managing Director and Chief Executive Officer, and Mr. Gawir Baig, Chief Financial Officer. The session was moderated by Mr. Amey Chalke from JM Financial Institutional Securities Limited. The company filed the transcript with BSE Limited and National Stock Exchange of India Limited on February 09, 2026, pursuant to Regulation 30 of SEBI regulations.

Financial Performance Discussion

During the call, management provided comprehensive insights into the company's Q3FY26 and 9MFY26 performance. The consolidated revenue from operations for 9MFY26 was ₹1,513 crore, with CRDMO business contributing ₹1,260 crore and specialty ingredients delivering ₹254 crore. The company achieved strong EBITDA performance of ₹671 crore at 41.5% margins for the nine-month period.

For Q3FY26, the company reported consolidated revenue from operations of ₹423 crore, comprising ₹333 crore from CRDMO and ₹90 crore from specialty ingredients. EBITDA for the quarter stood at ₹191 crore, representing 41.8% margins.

Strategic Initiatives and Pipeline Updates

Management discussed the company's robust pipeline comprising 130-140 early-phase molecules and provided updates on Phase-3 programs. The company has successfully commercialized 4 new molecules during the period, with peak market sales estimates of approximately $10 billion across these four products. The management highlighted their backward integration strategy, particularly in peptide manufacturing including GLP-1 products.

The company's capacity utilization across different units was detailed, with Unit-1 operating at 75% capacity, Unit-2 at 75% utilization on 300 kiloliters capacity, and Neo Anthem in early-stage ramping mode. The fermentation facility operates at 46-47% capacity utilization, providing significant scope for growth.

Capacity Expansion and Future Outlook

Discussions covered the ongoing Unit-4 development with a planned ₹1,000 crore CAPEX over two years. The expansion will focus on small molecule manufacturing, peptides, fermentation, and oligonucleotides. Management expressed confidence in their ability to handle projected growth with current and planned capacity additions.

The company's peptide facility represents a significant competitive advantage, with complete backward integration capabilities from discovery to commercial manufacturing at 16 kiloliters scale. This positions the company well for both innovator partnerships and generic peptide opportunities.

Market Dynamics and Growth Drivers

Management addressed market challenges including customer destocking due to geopolitical uncertainties but noted improving biotech funding environment and increased RFQ activity. The company identified three key growth drivers for specialty ingredients: GLP-1 products, probiotics through import substitution, and biosimilar development for US markets.

The earnings call transcript provides comprehensive insights into the company's operational performance, strategic direction, and management's outlook for future growth across its CRDMO and specialty ingredients businesses.