Claris Lifesciences Limited Un-Audited Financial Results for the Quarter Ended 30th September 2014

Claris Lifesciences Ltd. (CLL) announced its quarterly un-audited financial results for the quarter ended 30^th September 2014 at its board meeting held at its registered office in Ahmedabad.

On the 31^st of October, after the receipt of the Board and Shareholder’s approval the Speciality Injectable Business has been transferred to a wholly owned subsidiary; Claris Injectables Limited (CIL). CLL is now a holding company having three segments, (i) 100% ownership of CIL (ii) 20% stake in COL (JV Company) and (iii) Investments and Cash management of CLL.

Key financial highlights of the consolidated financials of Claris Lifesciences Ltd.:

• The revenues of CLL also include the pass through sales of COL for the international markets. The Net Revenues for Q3CY14 stood at Rs. 1,621 mn as compared to Rs. 1,511 mn in the previous quarter. The consolidated revenues have grown by 7% over the previous quarter.

• The Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) for Q3CY14 stood at Rs. 515 mn, as compared to Rs. 414 mn in the previous quarter. The EBITDA margin for quarter stood at 32% of the Net Revenues. The EBITDA for Q3 has grown by 24% over the previous quarter.

• The net profit (PAT) for Q3CY14 stood at Rs. 204 mn as compared to Rs. 155 mn in the previous quarter.

The PAT margin for Q3CY14 stood at 13% of the Net Revenues. The Q3 profits have grown by 32% over the previous quarter.

Management Representation of the Financial of the Speciality Injectable Business:

(Values in Rupees Mn)

PARTICULARS	Q1CY14	Q2CY14	QoQ Change	H1CY14	Q3CY14	QoQ Change	9MCY14
Net Sales	723	985	36%	1,708	1,156	17%	2,864
EBITDA	223	365	64%	588	433	19%	1,021
EBITDA Margin (%age)	31%	37%		34%	37%		36%

Region wise Net Sales:

Region	Q1CY14	Q2CY14	QoQ Change	H1CY14	Q3CY14	QoQ Change	9MCY14
USA	93	198	113%	291	304	54%	595
Other Regulated (Ex US)	195	320	64%	515	291	-9%	806
Emerging Markets	435	467	7%	902	561	20%	1463

Key financial highlights of the Specialty Injectable Business:

• Net Sales has grown by 36% in Q2 vs. Q1 and by 17% in Q3 vs. Q2.

• EBITDA has grown by 64% in Q2 vs. Q1 and by 19% in Q3 vs. Q2. The EBITDA Margin as a %age to Total Revenues stood at 36% for the 9 months ended on 30^th September 2014

• US has been the key growth driver this year, with sales having grown by 113% in Q2 vs. Q1 and by 54% in Q3 vs. Q2, the Other Regulated Markets (ex US) have grown by 64% in Q2 vs. Q1 and by (-9%) in Q3 vs. Q2, Emerging Markets have grown by 7% in Q2 vs. Q1 and by 20% in Q3 vs. Q2.

• The US is the most important region and the Company has filed at total of 36 ANDAs in the US, out of which 13 ANDAs have been approved and another 23 are under approval. The total addressable market size of the 36 ANDAs is approximately US$ 2,000 million, out of which the market size of approved ANDAs and under approval ANDAs stood at approximately US$ 200 million and US$ 1,800 million respectively.

• The Company has invested in capacity expansion in the new facility; which is now up and running, with one out of the two lines; planed in this stage; operational for commercial production and also having received approval from the MHRA(UK). The second line is expected to be operational by March 2015.

Other Updates

The Board of Directors of the Company have duly approved to change the financial year of the Company from January – December (calendar year) to April – March (financial year as per Indian GAAP). Accordingly, the Company’s current financial year shall be for a period of fifteen month ie. from January 01st, 2014 to March 31st, 2015

Disclaimer

This press release may include “forward-looking statements” which involve a number of risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future. Claris Lifesciences Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Market information mentioned in the press release is based on IMS Data and/or internal estimates of the company. The press release also contains the carved out financials of the business transferred to Claris Injectables Limited (CIL), these carved out business are management representations and are not audited numbers.