Blau Farmacêutica (BLAU3) investor relations material

Investment highlights

• Structural growth driven by patent expirations, aging population, and hospital expansion.

• Leadership in complex hospital drugs, with 34% share in top 15 products and local biotech production.

• Robust pipeline with over 80 projects, especially monoclonal antibodies (mAbs), and international expansion in 9 countries.

• Margin expansion from differentiated product mix, plant efficiency, and tax incentives.

• Strong cash generation, disciplined investments, and low leverage support growth.

Market and sector fundamentals

• Pharmaceutical sector in Brazil is resilient, with low economic sensitivity and consistent growth.

• Biosimilars and mAbs are key growth drivers, with hospital market CAGR of 14% and mAbs at 26%.

• Patent expirations create opportunities for biosimilars, with global biosimilar market projected to reach $85B by 2030.

• Immunotherapy is the largest hospital segment, and early diagnosis increases demand for specialized therapies.

Strategic drivers and growth initiatives

• Focus on biosimilars, especially mAbs, with four major mAb projects targeting large addressable markets.

• Expansion of production capacity, including the new Pernambuco plant with significant tax incentives and global regulatory compliance.

• International expansion replicates the domestic portfolio in Latin America, with Uruguay as a logistics hub.

• Investments in R&D and innovation, with over 100 projects and a dedicated RD&I center.