Directors' Report 2025

Antibiotice

DIRECTORS'

REPORT

January - December 2025

Annual report in compliance with: IFRS Report date: 31.12.2025

Company name:

Antibiotice S.A.

Registered office: lasi, 1 Valea Lupului Street Telephone number: 0232/209000; fax: 0372065633

VAT no.:

RO1973096

Trade register number:

J1991000285223

The regulated market on which the issued

securities are traded

Bucharest Stock Exchange

Subscribed and paid-up share capital:

67.133.804 RON

Main characteristics of securities issued by the company: Registered shares, nominal value:

0.10 RON

Content

1. Antibiotice, a performance-oriented company 3

2. Shareholding structure at 31 December 2025 4

   1. About share performance 5

   2. Dividends 7

3. Strategic alignment of human resources 7

   1. Modern HR management 8

   2. Modernization of organizational culture 8

4. Strategic adaptation of the product portfolio 9

   1. Portfolio management 9

   2. Promotional activity 10

   3. Portfolio development 14

5. Continuous improvement of the integrated management system (Quality, Environment, Occupational Health and Safety) 15

   1. Environmental Responsibility 16

   2. Occupational Health and Safety 18

6. Operational performance 19

   1. Antibiotice in the Romanian market 20

   2. Antibiotice on the international market 21

   3. Management of financial flows and operational expenditures 22

   4. Investments 31

7. Corporate Governance 33

8. Sustainability Statement Antibiotice S.A. 40

   1. General information 40

   2. Environment 118

   3. Social 165

8.4. Governance, ethical conduct and transparency 237

Independent Auditor's Limited Assurance Report on the Sustainability Statement for the Financial

Year 2025 253

ANNEX 1: Apply or Explain Declaration 259

ANNEX 2: Disclosure requirements for information covered by the sustainability statement 284

ANNEX 3: List of datapoints that derive from other EU legislation 288

1. ‌Antibiotice, a performance-oriented company

   The main results achieved by Antibiotice S.A. in 2025 were as follows:

   • total revenues of RON 685.8 million

   • revenues from sales on international markets for finished products and active substances of RON 266.3 million

     • representing an increase of 5.2% compared to 2024

   • consolidation of the 4th position in terms of consumption in units on the Romanian generics market, both prescription and non-prescription medicines

     • with a market share of 4.9%, according to Cegedim Sell Out Romania, December

   • maintaining the leading position by value in the hospital segment for generic medicines, both prescription and non-prescription

     • with a market share of 13.4%, according to Cegedim Sell Out Romania, December

   • business profitability of 15.4%

     (gross profit combined with the value of the claw back tax)

   • current liquidity ratio of 5.03

     (above 1.2, the benchmark agreed with financial institutions)

   • total bank debt to EBITDA ratio of 1.88

     (below 3.5, the benchmark agreed with financial institutions)

   • total bank debt to equity ratio of 0.25

     (below 1, the benchmark agreed with financial institutions)

   • the average share price was RON 2.3536 per share
2. ‌Shareholding structure at 31 December 2025

   Other pension funds (privately managed funds) 9.01%

   Privately administered pension fund

   Metropolitan Life 5.03%

   Individuals

   16.20%

   Ministry of Health 53.02%

   Infinity Capital Investments S.A.

   13.03%

   Other legal entities

   3.71%

   Shareholding structure	December 31, 2025	December 31, 2024
   Ministry of Health	53.02%	53.02%
   Infinity Capital Investments S.A.	13.03%	13.03%
   Metropolitan Life Privately Managed Pension Fund	5.03%	4.94%
   Legal entities and individuals, of which:	28.92%	29.01%
   Pension funds and privately managed funds	9.01%	6.52%
   Other legal entities	3.71%	5.73%
   Individuals	16.20%	16.76%

   1. ‌About share performance

      Antibiotice S.A. has been listed on the Bucharest Stock Exchange under the symbol ATB, in the Premium category, since 16 April 1997.

      The shares of Antibiotice S.A. are included in the composition of the following indices: BET, ROTX, BET TR, BET TRN, BET XT, BET XT TR, BET XT TRN, BET Plus and BET BK.

      The BET Index is a free float market capitalization weighted index that tracks the most liquid Romanian companies listed on the regulated market of the Bucharest Stock Exchange (BVB) and that meet the highest qualitative standards. The index was designed to serve as a benchmark for the performance and transparency of the regulated market administered by the BVB.

      The ATB share closed the last trading session of 2025 at RON 2.45.

      Evolution of the share price during the period January-December 2025

      2.4500

      2.4700 2.2000 2.4300 2.4600 2.4850 2.4300 2.6800 2.5800 2.0350 2.0800 2.3750
      
      

      3.5000

      3.0000

      2.5000

      2.0000

      1.5000

      1.0000

      0.5000

      Jan-25

      Feb-25

      Mar-25

      Apr-25

      May-25

      Jun-25

      Jul-25

      Aug-25

      Sep-25

      Oct-25

      Nov-25

      Dec-25

      0.0000

      The market capitalization of Antibiotice S.A. as of 31 December 2025 was 1,644,778 thousand RON.

      During 2025, a total of 50,080,813 shares were traded, with a total trading value of 117,872,512.72 RON (23,364,815.73 EUR/26,460,886.48 USD) and an average price of 2.3536 RON per share.

      8,107,345.51

      5,000,000

      7,344,376.96 5,491,041

      2,866,761

      5,997,387

      3,435,310

      3,499,456

      5,466,207

      3,853,345

      4,088,621

      0

      2,612,179

      2,933,181

      3,310,692

      traded volume

      value (RON)

      6,526,633

      8,456,927.60

      10,000,000

      9,810,061.68

      6,324,350.10

      8,649,299.24

      15,000,000

      10,378,537.53

      6,160,741.02 12,826,799.62

      12,390,153.26

      12,379,173.75

      20,000,000

      15,044,746.45

      25,000,000

      Value (RON) and volume of shares traded during the period January-December 2025

      Jan-25

      Feb-25

      Mar-25

      Apr-25

      May-25

      Jun-25

      Jul-25

      Aug-25

      Sep-25

      Oct-25

      Nov-25

      Dec-25

      Antibiotice S.A. Shares - (ATB)/Regular List

      	2021	2022	2023	2024	2025
      Number of shares	671,338,040	671,338,040	671,338,040	671,338,040	671,338,040
      Market capitalization* (thousand RON)	406,831	379,977	936,517	1,718,625	1,644,778
      Market capitalization* (thousand euro)	82,211	76,803	188,260	345,355	322,740
      Market capitalization* (thousand $)	93,022	81,987	208,309	360,669	379,979
      Total traded value (million RON)	44	8	41	447	118
      Number of shares traded	80,534,368	14,651,742	49,531,258	172,950,251	50,080,813
      Opening price (RON/share)	0.4940	0.6060	0.5660	1.3950	2.5500
      Maximum price (RON/share)	0.6080	0.6100	1.5500	3.4400	2.7250
      Minimum price (RON/share)	0.4800	0.4800	0.5400	1.3600	1.7500
      Price at the end of the period (RON/share)	0.6060	0.5660	1.3950	2.5600	2.4500
      Average price (RON/share)	0.5913	0.5408	0.8301	2.5852	2.3536
      Earning/share*** (RON/share)	0.0446	0.0574	0.1214	0.1522	0.0771

      Gross dividend/share** (RON/share)	0.0031980923	0.00792224	0.0829228506	0.020557268	0.035778913
      Dividend yield****	0.65%	1.31%	8.1%	1.47%	1.40%
      Dividend distribution rate*****	7.2%	13.8%	38.1%	13.50%	46.39%

      * Calculated on the basis of the share price on the last trading day of that year;

      ** Dividends proposed and approved;

      *** The calculation of earnings per share is based on the net profit for each year;

      **** Dividend per share/share price on the first trading day of each year;

      ***** Dividend payout ratio = (total number of shares x gross dividend per share)/total net profit.

   2. ‌Dividends

      The General Meeting of Shareholders approved on 15 April 2025 the distribution of a gross dividend per share related to the 2024 financial year, amounting to 0.020557268 lei.

      During 2025, dividends related to the 2021, 2022, 2023 and 2024 financial years were paid, totaling 11,747,140.35 lei, as follows:

      Dividend history - 2021-2022-2023-2024

      Period	Net dividends
      	Due	Settled				Not taken until 31 December 2025		Dividend payment limitation date
      		RON			% total paid
      		01.01 ÷ 31 December 2025	Until 31 December 2024	Total		RON	%
      0	1	2	3	4	5	6	7=6/1	8
      2021	2,136,257.01	2,359.91	1,958,955.57	1,961,315.48	91.81	174,941.53	8.19	suspended
      2022	5,025,047.00	8,882.97	4,611,146.85	4,620,029.82	91.94	405,017.18	8.06	in progress
      2023	52,587,208.00	148,931	48,143,098.65	48,292,029.65	91.83	4,295,178.35	8.17	in progress
      2024	12,657,296.97	11,586,966.47	-	11,586,966.47	91.54	1,070,330.50	8.46	in progress

3. ‌Strategic alignment of human resources

   The objectives pursued include the implementation and development of strategies aimed at motivating and retaining valuable employees, as well as attracting staff with competencies adapted to the pharmaceutical industry, aligned with current labour market trends.

   1. ‌Modern HR management

      In 2025, the employee retention rate at company level was 97.57%, compared with a 95% target and 97.05% in the same period of 2024.

      The annual training plan for 2025, developed as part of the Academia a+ project, supports the development of employees' competencies and is adapted to the needs and dynamics of the training requirements identified across organizational structures and employees. Thus, in 2025 an average of 46 hours of professional training per employee was planned, while an average of 48.91 hours per employee was achieved. Competency development programs were organized in areas with legal training requirements, as well as sessions delivered by internal trainers, external providers and through the e learning platform on relevant topics.

      The mentoring program launched in 2022 has so far recorded 44 employees who have been trained and certified as trainers, 30 colleagues recognized with mentor certification and 115 colleagues who participated in public speaking courses and obtained certification.

      Within the a+ Technical College, specific activities were carried out in 2025 to strengthen collaboration with the university and pre university educational environment. These included the organization of internship programs for 156 students (fields of study: pharmacy, chemistry, electronic engineering, automation engineering, chemical engineering, economics, biomedical engineering), the organization of educational visits for 346 students (fields: pharmacy, economics, engineering, biomedical engineering, chemistry, biology), the provision of practical training placements for 159 high school students enrolled in the qualifications agreed within the partnerships signed with technological high schools as part of the Academia a+ program (chemical operator, automation technician, mechatronics technician, chemical laboratory technician), as well as the support of educational activities through study visits for 938 students within the "Școala Altfel" program and other initiatives.

      In 2025, the ninth edition of the Perform a+ program, initiated in 2016, took place. Conducted between October and December with 43 participants on the company's platform, the students successfully completed the program, having been selected from a total of 78 applicants with specializations in biomedical engineering, biology, chemistry, pharmacy and chemical engineering.

      Within Academia a+, two PEO funded projects are also being implemented: "Education in Action: Improving the accessibility and relevance of vocational and technical education through internship placements within Antibiotice S.A." and "Antibiotice Skills: Enhancing students' competencies and facilitating their integration into the labour market".

   2. ‌Modernization of organizational culture

      According to the work plan on organizational climate, in 2025 a series of initiatives, programs and activities with a sporting, recreational, social and cultural character were organized. Among these, the most significant were "Family Day", a special event organized on 24 June 2025, attended by more than 500 participants (employees together with their families and children), the Trail at the Cabin sports event (with the participation of 14 employees), the planning of health prevention and monitoring campaigns, as well as a festive event marking the 70th anniversary of the company's

      activity, which included artistic moments and the recognition of employees with outstanding achievements during 2025.

      Further details regarding the programs and specific actions related to human resources are presented in the ESRS - Social chapter of the Sustainability Statement.

4. ‌Strategic adaptation of the product portfolio
   1. ‌Portfolio management

      The expansion of the product portfolio represents an essential factor in the development of Antibiotice S.A. on both the domestic and international markets and is achieved through the company's own research and development activities, as well as through strategic business development initiatives.

      The criteria considered in portfolio management are:

      • market consumption potential;

      • therapeutic trends;

      • performance achieved per therapeutic unit;

      • compatibility with existing production flows.

        The products in the current portfolio are closely monitored, with specific actions carried out to ensure alignment with the requirements of the national market and with international regulations.

        The current portfolio comprises 199 marketed products and includes:

      • generic medicines for human use (prescription medicines - RX and non-prescription medicines

        - over-the-counter/OTC);

      • food supplements, cosmetics and medical devices;

      • active substances obtained by biosynthesis process by cultivation of the microorganism

        Streptomyces noursei;

      • veterinary products (prescription medicines and food supplements);

      • biofertilizers.

        The portfolio of human prescription medicines (RX) is structured into the following therapeutic classes: anti-infectives, including medicines intended for the treatment of tuberculosis, cardiovascular medicines, digestive tract and metabolism medicines, preparations for the treatment of gynecological conditions, dermatological preparations and central nervous system medicines.

        The portfolio of human non-prescription products (non-RX) includes OTC medicines, food supplements, cosmetic products and medical devices. These are intended for maintaining health,

        prevention or use as adjuvant treatments in certain high incidence conditions and complement the prescription medicine portfolio.

        Portfolio structure by manufacturing divisions	Number of products	Of which new products in 2025
        Oral Solid Forms	99	13
        Topical Products	56	1
        Injectable Products	40	-
        Active Substances	4	-

        New products

        In 2025, the company's portfolio was expanded with 14 new products, of which 8 were prescription medicines: Hydrocortisone tablets 10 mg (3 presentations), Almacor Duo intended for the treatment of arterial hypertension, Ranolazine ATB (2 presentations) intended for the symptomatic treatment of patients with stable angina pectoris and Sinflu (2 presentations), an antiviral intended for the prevention and treatment of influenza.

        The non-prescription portfolio was expanded with 6 new products: 3 food supplements (Zifelle® meno, intended for women's health during menopause, Urexpert® Prostate, intended for men's health and Soriso® Focus, intended for maintaining cognitive function), 1 topical product (Cutaden® Repair, adjuvant therapy in atopic dermatitis) and 2 medical devices (completing the Faguria® range - Faguria® Cough for Adults and Faguria® Cough for Children).

   2. ‌Promotional activity
      1. Communication to healthcare professionals (PDS)

         Communication to healthcare professionals is carried out through direct medical promotion visits, group presentations, roundtables and workshops intended for specialist physicians, general practitioners and pharmacists, as well as through various other specific projects conducted by the medical representatives' team.

         Another promotional tool is participation in national congresses and conferences organized by the main professional, academic and scientific societies and associations in Romania.

         In 2025, Antibiotice S.A. participated in events dedicated to the medical specialties of Dermatology, Infectious Diseases and Tuberculosis, Pulmonology, ENT, Urology, Anesthesiology and Intensive Care, Gynecology, Cardiology, Emergency Medicine, Family Medicine and Pharmacy, with the following objectives: increasing the visibility of the corporate brand and product brands, launching and promoting products, networking and strengthening relationships with partners, as well as gaining a better understanding of the market and competition.

         The promotion of the veterinary product portfolio to professionals in the field was carried out through a coherent mix of dedicated actions focused on scientific information, professional development and

         the strengthening of partnership relations. These initiatives targeted distributor partners, veterinary clinics and pharmacies, breeders, canine clubs and training schools through product presentation sessions, specialized training, technical support materials and expert consultancy.

         Professional communication was strengthened through partnerships with the main professional associations, including the Romanian Association of Companion Animal Veterinarians (AMVAC), the Romanian Society of Veterinary Dermatology (SRDV), the Romanian Society of Feline Medicine (SRMF) and the "Ion Ionescu de la Brad" University of Life Sciences in Iași (USV Iași). In addition, the regional VetAria+ symposia were organized with more than 600 participants across Iași, Bucharest, Cluj and Timișoara. These events facilitated the exchange of best practices, the update of scientific information and the positioning of the company as a partner within the veterinary medical community.

         Brand visibility was further expanded through participation in dedicated events such as PET EXPO, Animal Fest, Pet Event and Pet Care Fest, as well as through digital campaigns and collaborations with influencers from the pet care sector.

      2. Communication to the public

      → Online Communication - Human use portfolio

      » Social media

      In 2025, the communication projects carried out on social media aimed primarily at increasing the awareness and visibility of the following brands: Cutaden®, Tinero®, Zifelle®meno, Simbiflora®, Soriso®, TriOli®, Urexpert®, Equilibra®, Fluxiv®, Lejer®, Enzistim®and Silithor®.

      Starting in September, the sponsored campaigns run on Meta platforms (Facebook and Instagram) were expanded to support the generation of purchases on the e-commerce platform (https://www.comenzionline.antibiotice.ro).

      » Product websites

      In the first part of the year, dedicated websites were launched for the OTC products Zinba®and Saliform®Forte, as well as for the food supplement Zifelle®meno. Their main objective was to strengthen digital presence, increase the level of consumer information and support brand awareness.

      » Influencer marketing campaigns

      These played an important role in increasing the awareness and credibility of the brands, contributing to the delivery of key messages to the target audience in an authentic and relevant way. Brands such as Cutaden®Bebe, Urexpert®, Zifelle®meno and Tinero®benefited from promotion through word-of-mouth campaigns, megabuzz initiatives and collaborations with influencers and micro influencers, helping to amplify the visibility and credibility of the communicated messages.

      » Google Ads campaigns

      In 2025, the brand websites Zinba®(www.zinba.ro), Clafen®(www.clafen.ro) and Saliform®Forte (www.saliform.ro) were promoted through Google Search campaigns, with the objective of ensuring constant visibility during key user search moments.

      » E-mail marketing campaigns

      Starting in September 2025, an e mail marketing project dedicated to general practitioners from the CRM database was initiated. The campaigns aim to increase the level of information regarding the product portfolio and to strengthen the company's positioning as a trusted partner in the medical field.

      » E-commerce

      The online shop was further developed through the implementation of periodic offers and promotions, as well as the creation of customized packages based on patient profiles (Junior, Senior), size and lifestyle or special needs (Advanced Care, Prevention). The integration of a blog section with educational articles, practical guides and care recommendations supported the proper information of pet owners and strengthened the brand's positioning as a relevant source of expertise in the field.

      → Online Communication - Veterinary use portfolio

      » Social media

      With the objective of increasing the awareness of the VetAria+ brand through community development, integrated digital campaigns were carried out, including the creation of educational content, thematic contests and community engagement initiatives aimed at increasing the level of engagement and supporting product recommendations.

      » Collaborations with influencers in the pet care sector

      These initiatives were complemented by collaborations with influencers in the pet care sector, involving product testing, content creation featuring recommendations of VetAria+ nutraceuticals and their integration into the daily care routines of pets, as well as post administration reviews. These actions contributed to increasing trust and expanding the brand's audience.

      » E-commerce

      In 2025, the platform https://www.comenzionline.antibiotice.ro was launched as a strategic extension of the company's digital presence and a direct sales channel for the portfolio of food supplements, cosmetic products, medical devices and the VetAria+ veterinary nutraceutical range. The platform contributes to increasing national accessibility and strengthening the visibility of the brands in the online environment.

      To support the launch, the Facebook and Instagram pages "Un bine în plus" were developed, aiming to increase brand awareness, educate consumers and direct traffic to the website. Paid advertising campaigns through Google Ads and Meta Ads were designed to attract qualified traffic and generate conversions for both the human health portfolio and the VetAria+ range.

      In addition, the blog section integrated within the website supports the proper information of consumers through educational articles and thematic content, contributing to increased trust, SEO optimization and improved organic performance of the platform.

      → Offline communication

      » TV communication campaign: Zinba®

      Zinba®benefited from an integrated communication campaign carried out between November and December 2024, which included exposure across a mix of channels: TV, radio and the HBO MAX video streaming platform. In 2025, the TV campaign addressed to the general public was continued through three communication flights conducted during the following periods: 6 January - 30 March; 14 July - 31 August; 17 November - 31 December.

      » Radio communication campaigns

      Radio campaigns were carried out for the following brands: Zinba®, Saliform®Forte, Cutaden®Bebe, Tri Oli®, Simbiflora, Urexpert®and Faguria®. The radio communication mix included the top three national radio stations in terms of audience: Europa FM, Kiss FM and Radio ZU.

      → Public events

      In the first part of the year, promotional campaigns aimed at the general public were carried out for the Tinero® range through healthcare professionals and influencers, ensuring broad exposure tailored to different audience segments. In addition, the brands Cutaden®Bebe, Simbiflora, Faguria®and Zifelle®meno were promoted to the general public through their presence at high visibility events, which facilitated direct interaction with consumers and the presentation of product benefits in a relevant context.

      On World Menopause Day (18 October), Antibiotice organized in Iași, on 17 October, a hybrid event dedicated to the public launch of the Zifelle®meno food supplement, bringing together scientific perspectives and authentic testimonies about the changes that occur throughout a woman's life.

      All these initiatives significantly contributed to increasing brand visibility and strengthening the relationship with the target audience. By combining exposure across multiple channels with direct interaction with consumers, the brands managed to remain relevant and maintain a constant presence in consumers' attention.

      During the reporting period, the company also participated in a series of public events dedicated to the veterinary field and pet lovers, bringing together a diverse audience consisting of pet owners, veterinarians, producers and suppliers of products and services for animal health and wellbeing, representatives of institutions with specialized canine units, as well as students and academic staff.

      The activities included presentations, demonstrations, interactive workshops and professional training sessions, with the main objectives of increasing the visibility of the company's brand and the VetAria+ product range, developing and diversifying partnerships with veterinarians and strengthening the online community.

      » Events, fairs, exhibitions

      The initiatives dedicated to the general public aimed to increase brand awareness and strengthen the relationship with pet owners. Participation in specialized events such as PET EXPO Bucharest, Animal Fest Iași, Pet Event Iași and Pet Care Fest Iași included product demonstrations, information sessions, educational activities and promotional campaigns addressed directly to end consumers.

   3. ‌Portfolio development

      In line with the strategic directions established through the business plan "The Future Together 2030", research and development activities represent an essential pillar of the company's growth strategy and portfolio consolidation. The development of the product portfolio is carried out both through projects implemented within the INOVA a+ Research and Development Center and through the acquisition of licenses for products that the company intends to include in its portfolio, but which are not compatible with the existing manufacturing flows.

      In 2025, research stages were planned for a total of 54 projects within the INOVA a+ Research Center. The complexity of the pharmaceutical product development process, combined with the requirements imposed by the international regulations applicable to the sector, gives research and development activities a multi-year character. Thus, out of the total projects planned for 2025, 38 projects represent continuations of activities initiated in the previous year.

      The distribution of research projects in 2025 by divisions was as follows:

      • Topical Products Division: 28 projects;

      • Oral Solid Dosage Forms Division: 11 projects;

      • Sterile Injectable Products Division: 15 projects.

        In 2025, research and development activities were completed for two generic medicines, for which the marketing authorization dossiers were prepared and submitted to the European authorities. In addition, the research for four cosmetic products and two food supplements was completed, these products being developed in accordance with the applicable safety and quality requirements.

        At the same time, in 2025 technological scaling and validation activities were carried out for nine projects, with the objective of ensuring the reproducibility of technological processes and the consistency of finished product quality.

        Within the Clinical Studies Center, stages for three clinical studies were conducted during 2025. Two of these studies were completed, while the third will continue in 2026. The results obtained from clinical studies represent a mandatory component of the marketing authorization documentation and an important advantage in communicating the benefits of Antibiotice branded products to healthcare professionals.

        Concurrently with the ongoing research and development activities, during 2025 specific actions were carried out to prepare and submit the documentation for the project "INOVA a+ Research and Development Center and Critical Medicines Production", a project financed through the European Union's STEP program (The Strategic Technologies for Europe Platform). The objective of this initiative is to develop research infrastructure, stimulate pharmaceutical innovation and facilitate the transfer of technology to manufacturing activities.

        The actions undertaken focused on the technical and scientific substantiation of the project, the evaluation and sizing of the consumables required for research activities, as well as the training needs and skills development for the personnel involved.

        During 2025, 9 portfolio assimilation projects for veterinary use were carried out, at different stages of development:

      • Veterinary nutraceutical portfolio: seven projects addressing conditions in the following therapeutic areas: urinary, renal, cardiovascular, central nervous system and musculoskeletal.

      • Veterinary antiparasitic portfolio: two projects.

        Through in-licensing activities, 17 new products were contracted in 2025 from the following categories:

        → 6 human use products (4 molecules), including:

        • 4 oral products from class C (Cardiovascular);

        • 1 injectable product from class J (Anti-infectives);

        • 1 injectable product from class H (Hormonal products).

          → 11 veterinary use products (8 molecules), including:

          • 4 antiparasitic medicines;

          • 7 supplements that will expand the VetAria+ product range with advanced formulations intended for the treatment of common conditions in dogs and cats:

            • 3 products in soft chew form;

            • 1 prefilled syringe with palatable paste;

            • 1 palatable gel in a bottle with a dosing syringe;

            • 1 suspension in a bottle with a dosing syringe.

          These products are expected to contribute to sales starting in 2026 in the case of veterinary supplements, while the veterinary antiparasitic products are planned to be launched in 2027. Human use products are expected to be launched on the market starting in 2028, when the marketing authorizations are anticipated to be obtained.

5. ‌Continuous improvement of the integrated management system

   (Quality, Environment, Occupational Health and Safety)

   Ensuring product quality and reducing quality incidents, as well as incidents of any kind that may have repercussions on human health and the environment, represent a primary ethical, moral and professional concern at the company level.

   In the context of its continuous strategic development, Antibiotice remains permanently focused on improving its processes and aligning with the continuously evolving legislation. In this regard, during 2025, the following inspections related to major change authorizations and GLP/GMP certification were conducted from a quality perspective:

   • On 28 January 2025, the ANMDMR conducted a GLP recertification inspection (Good Laboratory Practice) at the Clinical Studies Center.

   • On 29 January 2025, an ANMDMR inspection took place for the authorization of the new finished products warehouse.

   • On 6 February 2025, ANMDMR carried out an inspection to authorize the installation of the RABS system (Restricted Access Barrier Systems for aseptic processes) on the existing lines within the Parenteral Products section, in order to comply with the revised Annex 1 of the Good Manufacturing Practice (GMP) Guidelines.

   • On 9 May 2025, an ANMDMR inspection was conducted to authorize the second microbiological testing laboratory (Microbiological activity determination).

   • During 15-19 September 2025, ANMDMR conducted a GMP recertification inspection (Good Manufacturing Practice) covering:

     • all manufacturing flows for human medicines and investigational medicinal products, including partial manufacturing (secondary packaging), together with the related utilities for each production flow;

     • the active pharmaceutical ingredients manufacturing flow;

     • testing laboratories responsible for releasing medicinal products to the market;

     • warehouses for raw materials, packaging materials and finished products within the company;

     • the import flows of medicinal products and intermediates from third countries.

   In addition, in 2025 five audits were conducted by partners regarding the contract manufacturing of parenteral products, oral solid dosage forms and active pharmaceutical ingredients. The audits were completed successfully, and Antibiotice continued the partnerships already established.

   Regarding periodic training on GMP specific topics, internal training sessions were conducted in accordance with the approved annual training plan. Externally, members of the Quality Assurance department participated in five workshops organized by external providers, addressing current topics relevant to the pharmaceutical industry.

   1. ‌Environmental Responsibility

      In 2025, Antibiotice S.A. conducted its activities in full compliance with the applicable legal requirements and regulations regarding environmental protection, continuing the implementation of the commitments assumed through its sustainability policy and integrated management system.

      During the reporting period, no complaints or notifications related to environmental protection issues were recorded.

      Compliance with environmental regulations

      The following environmental permits were maintained and renewed annually, as applicable:

      • the Integrated Environmental Permit, issued by the Iași Environmental Protection Agency;

      • the Water Management Permit, issued by the Prut-Bârlad Water Basin Administration.

        In January 2025, representatives of the Prut-Bârlad Water Basin Administration - Romanian Waters

        Iași carried out a specialized inspection, following which no non-conformities were identified.

        In 2025, the drilling works for the wells included in the project "Reducing potable water consumption through the use of groundwater for water treatment and irrigation", regulated by Screening Decision no. 55/03.04.2023, were completed. At the same time, the technical documentation of the groundwater abstraction system was prepared in accordance with Annex no. 4, Section 3, Article 9 of Order no. 3147/2023 issued by the Ministry of Environment, Waters and Forests.

        In accordance with the Environmental Impact Assessment Procedure for certain public and private projects, regulated by Law no. 292/2018, the following projects were notified through specific technical documentation submitted to the Iași County Environmental Directorate:

      • "Green Park landscaping project", for which it was determined that the works do not fall under the environmental impact assessment procedure. The project is currently underway, with works in progress.
      • "INOVA a+ Research and Development Center and Critical Medicines Production", a project regulated from an environmental protection perspective.
      • "Modernization and functional conversion - sterile solutions manufacturing building", regulated from an environmental protection perspective through the classification of the notification, as the proposed project is not subject to the environmental impact assessment procedure.
      • "Rehabilitation of building C2 (garage), partial change of use from garage to fire station and construction of roof structure, demolition of building C1 (weighbridge cabin)", regulated from an environmental protection perspective through the classification of the notification, as the proposed project is not subject to the environmental impact assessment procedure.

        Transparency and reporting

        The company ensured the fulfilment of all reporting obligations stipulated in the regulatory acts, submitting the required information to the competent authorities, including the Iași Environmental Protection Agency (APM Iași) and the Prut-Bârlad Water Basin Administration (ABA Prut-Bârlad). In addition, the Annual Environmental Report for 2024 was prepared and published on the company's website, in accordance with the requirements of the Integrated Environmental Permit.

        Between 25 and 28 June 2025, Antibiotice S.A. organized the "Open Doors Day" event, an initiative aimed at facilitating open and constructive dialogue by offering members of the community the opportunity to become familiar with the company's activities and projects.

        Further details on how the interests of authorities, local communities and other relevant stakeholders are considered in establishing and implementing the pollution prevention and control policy are presented in the Sustainability Statement.

        Resource management and protection of environmental factors

        The periodic monitoring of environmental quality factors was carried out in accordance with the legal requirements and the provisions of the Integrated Environmental Permit. For this purpose, the company conducted water analyses both in its own laboratory and in third party laboratories to control the quality of the waters introduced into the pretreatment station, the wastewater discharged into the municipal sewerage system, as well as rainwater and drainage water discharged

        into the natural receiver. Measurements regarding air emissions were performed in accordance with the applicable legal provisions.

        During the reporting period, no exceedances of the permitted limit values were recorded. The monitoring activities implemented for the management of environmental factors are detailed in the Sustainability Statement.

        Sustainable waste management

        Antibiotice continues to implement an efficient and sustainable waste management system based on the principles of selective collection, recovery and traceability.

      • The internal audit regarding waste management for the year 2024 was completed within the established deadline.

      • Waste is collected separately and transferred to authorized operators for recovery or final disposal. Certain types of waste are treated through incineration in the company's own installation.

      • The Waste Prevention and Reduction Program was prepared and is available for consultation

        on the company's official website.

      • In April 2024, a second party audit was conducted at the service provider responsible for waste disposal through incineration, focusing on waste traceability and compliance with ISO 14001, ISO 9001, as well as with legal and contractual requirements. The audit was completed without identifying critical non-conformities that could generate risks for the activities of Antibiotice.

      • The obligations related to Extended Producer Responsibility (EPR) were fulfilled through a contract with an authorized organization implementing Extended Producer Responsibility obligations (OIREP). The company has no outstanding liabilities towards the Environmental Fund Administration.

        Climate change and decarbonization

        As part of its commitment to reducing greenhouse gas (GHG) emissions, Antibiotice S.A. continued its collaboration with external experts to assess Scope 3 emissions related to the supply chain and other associated activities.

        Based on the results obtained, the process of developing a Decarbonization Strategy was initiated, aligned with international regulations and the company's climate related commitments. In this context, detailed information regarding the commitment to establish emission reduction targets under the Science Based Targets initiative (SBTi) is presented in the Sustainability Statement.

   2. Occupational Health and Safety

      In order to comply with the legal provisions regarding the protection of employees' health, in 2025 the following documents were prepared: the 2025 Prevention and Protection Plan (revised in accordance with the applicable legislation), the Annual Training and Testing Program / Topics for

      periodic training in the field of Occupational Health and Safety, the Annual Program for periodic medical examinations, and the Annual Program for monitoring exposure to occupational hazards.

      The technical measures included in the 2025 Prevention and Protection Plan were implemented and covered actions aimed at reducing physical effort, improving working conditions and ensuring compliance with legal requirements.

      Periodic staff training was carried out in accordance with the Annual Training and Testing Program in Occupational Health and Safety, on a monthly, quarterly or semi-annual basis, depending on the specific nature of each activity.

      During 2025, additional training activities were also conducted, including postgraduate courses for risk assessors (three persons from the Occupational Health and Safety Department), authorization courses for personnel responsible for technical equipment and installations in areas with explosive atmospheres (ten persons), professional training courses in occupational health and safety (thirty three persons), first aid training, as well as specific training sessions for certain professions or activities requiring authorization.

      Periodic medical examinations were carried out in accordance with the Annual Program for Periodic Medical Examinations (100%). Through the medical staff of the a+ Medical Center within the company, periodic occupational health examinations were conducted, and no employees were identified as medically unfit for work.

      In 2025, in order to assess and improve the health status of the company's personnel, screening

      programs for Vitamin D deficiency (conducted in two stages) and PSA screening were performed.

      Monitoring of exposure to occupational hazards was carried out in accordance with the Annual Program for Monitoring Exposure to Occupational Hazards (100%).

      During 2025, an inspection for GANEX authorization at the Biosynthesis site and Solvent Warehouse was conducted by INSEMEX, and the ISO 45001 recertification audit performed by TÜV Rheinland was completed without identifying critical non-conformities with negative impact on Antibiotice.

      In October 2025, the compliance of the integrated management system (quality, environment, occupational health and safety) with the standards ISO 9001, ISO 14001 and ISO 45001 was verified by TÜV Rheinland against the audit criteria, with the objective of recertification. Following the audit, new certificates were issue.

6. Operational performance

   In 2025, total reported revenues amounted to 687 million lei. During the first twelve months, the inflation rate exceeded 9%, according to public data, which was also reflected in purchasing power. As a result, the consumption of medicines was reprioritized within the consumer basket.

   Revenue from international sales amounted to 266.3 million RON, representing an increase of 5.2% compared to 2024:

   • Finished products and services totaled 171.32 million RON, an increase of 9.6% compared to 2024 (156.29 million RON).

   • Active substances totaled 94.95 million RON, a decrease of 2% compared to 2024 (96.94 million RON). The decrease is correlated with reduced demand following the impact of tariff policies announced by the United States of America.

   The company's strategy for the coming period focuses on rebalancing sales geographically through

   commercial policies developed with partners.

   1. Antibiotice in the Romanian market1

      During the analyzed period, the sales of Antibiotice Iași on the domestic market recorded an increase of 0.3%, supported by a rise in sales volumes of approximately 2%, compared to the same period of the previous year. This result is determined by a combination of external and internal factors that influenced commercial performance. The main drivers contributing to this outcome are detailed below:

      Unfavorable market conditions

      → The domestic pharmaceutical market recorded stagnation in key segments in which the company operates, including generic antibiotics, ointments and topical products.

      → In the context of economic uncertainty, visible changes in consumer behavior occurred, leading to a decline in demand for products from the company's portfolio. Many patients interrupted or postponed certain therapies, prioritizing urgent medical interventions. This cautious behavior translated into reduced adherence to preventive and maintenance therapies. In addition, consumers avoided purchasing over the counter products considered non-essential, preferring to tolerate minor symptoms rather than invest in preventive treatments.

      → A decrease in the incidence of certain conditions, including a reduction in respiratory infections as well as other pathologies treated with Antibiotice Iași medicines, resulted in lower than anticipated consumption levels.

      Legislative and economic pressures

      → The fiscal measures announced created a climate of uncertainty and caution, which influenced patients' consumption behavior. This was reflected in reduced traffic in pharmacies, a lower average receipt value, a smaller number of products per receipt, and a stronger focus on purchasing chronic treatments.

      → Rising inflation and declining purchasing power had a direct impact on the demand for medicines, particularly in the context of repeated price increases for certain pharmaceutical products, especially in the OTC segment. In addition, limitations in hospital budget allocations led to reduced purchases of medicines, including products from the Antibiotice Iași portfolio. This situation is further amplified by the underfunding of certain national programs (for example, the national tuberculosis program) and by the fact that procurement

      ‌1Data source: Cegedim Sell-Out Romania December 2025

      through tenders is carried out strictly within the limits of the budgets approved for each hospital.

      → Reimbursements from the National Health Insurance House (CNAS) to pharmacies were delayed, creating financial instability among pharmacies. This was also reflected in the lower volume of orders, significantly reduced compared to previous periods.

      → The increase in the VAT rate starting in August 2025 generated cascading effects across the entire value chain, from the manufacturer to the final patient.

      → Reduced household spending on health and the decline in real wages in Romania also contributed to the decrease in medicine consumption.

      Competitive factors

      → Increased competition in the domestic pharmaceutical market: Strong competition from other companies, particularly those offering generic medicines at lower prices, required greater commercial efforts to maintain and stabilize sales. An intensification of promotions and discounts among competitors was observed, especially in the generic segments in which the company operates, particularly within national pharmacy chains and regional mini chains.

      Despite the aspects mentioned above, in 2025, on the domestic market, Antibiotice:

      • maintained 4th place (out of a total of 379 companies) in terms of consumption measured in number of boxes on the segment of generic prescription and non-prescription medicines, with a 4.9% market share;

      • remained the value leader in the segment of generic prescription and non-prescription medicines sold in hospitals, with a 13.4% market share, in a market where 258 companies are active;

      • ranked 1st by volume (international units) in the total market for the pharmaceutical forms of ointments (19.8% of 133 companies), suppositories and ovules (32.6% of 56 companies), and injectable powders (59.9% of 60 companies);

      • ranked 1st by number of boxes sold in the total anti-infectives market, with a 20.8% market share, in a market where 73 companies operate.

   2. Antibiotice on the international market

      In 2025, revenues from the sales of finished products and active substances on the international market amounted to 266.3 million RON, representing an increase of 5.2% compared to 2024.

      Evolution of Net Turnover on International Markets during the period 2021-2025

      (currency: million RON)

      218.4

      184.5

      143.4

      300 253.2 266.3

      250

      200

      150

      100

      50

      0

      2021 2022 2023 2024 2025

      The main markets where Antibiotice products were exported are Europe (43%), Asia Pacific (27%), the Americas (22%), and the Middle East and Africa (8%).

      With regard to the export of finished products, revenues increased by 10% compared to the previous year. Sales of finished products followed an upward trend across all international territories where these products are marketed, except for the United States, where sales were consolidated at the average level of the last five years.

      In 2025, medicines manufactured by Antibiotice reached 40 international territories, of which 28 are in Europe, which remains the company's main market. Sales growth of over 40% was generated both by markets where the company already has an established presence (the United Kingdom, the Nordic countries, the Netherlands, Hungary, Serbia and Moldova) and by new territories where projects have been initiated in the last two years (Germany, Italy, France, Poland, the Czech Republic and Bulgaria).

      Higher sales were also achieved in other territories where the company is present, including Vietnam, South Africa, the United Arab Emirates, Azerbaijan, Georgia and Ukraine. In the Middle East region, the company aims to expand its operational footprint into new territories such as Saudi Arabia, the United Arab Emirates, Jordan and Kuwait.

      In 2025, new product registration procedures were initiated in several European countries, including Germany, Italy, Poland, Spain, the Netherlands, the Czech Republic and Slovakia, as well as in Saudi Arabia and Jordan. Sales in some of these territories are expected to begin in the second half of 2026, when the first registration procedures are anticipated to be completed.

      Also in 2025, the company began international sales of the VetAria+ brand, with the first markets accessed being Moldova, Turkey and Kuwait.

      Export of nystatin based active substances in non-micronized and micronized forms

      The activities carried out in 2025 followed the trend of recent years and aligned with the strategy to consolidate the company's global leadership position in the nystatin active substance market for the 2025-2030 period. The Antibiotice nystatin active substance portfolio was marketed across all major markets worldwide.

      The company maintained its presence in key markets, including Asia, Europe, North America and Latin America, while also making progress in development projects, thereby strengthening the foundation for the expansion of export markets for this range of active substances.

   3. Management of financial flows and operational expenditures

In an economic context marked by uncertainty, cost pressures and intense competition, financial results recorded a decline compared to the previous year.

On the domestic market, changes in consumer behavior led to decreases in the over-the-counter medicines segment and oral anti-infectives, combined with efficiency and differentiation strategies adopted by major pharmacy chains.

At the international level, discussions regarding regional tariff changes and market volatility created additional challenges. The company adapted quickly by offsetting the decline in sales in the United States through strengthening its presence in Western Europe, at prices lower by 40 to 50 percent, while maintaining a stable trend in the active substances portfolio.

Overall, these factors led to a decrease in gross profit in 2025 compared to 2024, amounting to 43 million RON.

The net profit as at 31 December 2025 amounted to 51.8 million RON.

In 2025, total revenues amounted to 685.83 million RON, 1% lower compared to the level recorded in 2024 of 693 million RON.

The generation of revenues led to total expenses of 625.68 million RON, 6% higher compared to

589.87 million RON in 2024.

At the end of 2025, a gross profit of 60.15 million RON was recorded, with the company taking measures to efficiently manage costs in a challenging market context, partially mitigating the impact of declining revenues.

Within total revenues, operating revenues amounted to 669.27 million RON, 2% lower compared to

685.37 million RON in 2024.

Turnover

In 2025, the company recorded a turnover of 645.28 million RON, 29.7 million RON lower compared to 675.01 million RON in 2024. This result reflects:

→ turnover on the domestic market amounting to 379.02 million RON;

→ turnover on international markets amounting to 266.26 million RON.

Overall, the factors mentioned above led to a decrease in turnover, with the impact driven by:

→ 68% from the decline in sales on the US market;

→ 13% from the decrease in consumption of oral antibiotics;

→ 4% from the contraction in demand for food supplements based on plant extracts, subject to Law 81/2022.

In the context of Law 81 on the commercialization of food supplements, it is important to note that Antibiotice Iași operates within an extended compliance framework specific to pharmaceutical manufacturers, which entails strict limitations on offering certain benefits, incentives or commercial policies commonly used in the food supplements market. By comparison, other producers not subject to the same requirements may apply more flexible promotional mechanisms and commercial tools, with a direct impact on sales dynamics and market share. Consequently, this difference in commercial regime may influence the competitiveness of the supplements segment within the company's portfolio and should be analyzed in correlation with the evolution of revenues and margins for this category.

Within the turnover structure:

→ revenues from the sale of products through own channels represent 76%, amounting to 492.26 million RON, 7% lower compared to 530.47 million RON in 2024;

→ revenues from the sale of products through partner channels represent 23.4% of net turnover, amounting to 150.98 million RON, 5% higher compared to 143.65 million RON in 2024.

Other operating income

In 2025, other operating income amounted to 2.23 million RON and includes bonuses granted for local taxes and duties, income from investment subsidies recognized in line with asset depreciation, as well as income from the lapse of shareholders' rights to dividends related to the 2020 financial year, in accordance with legal provisions.

Revenue related to the cost of inventories of finished goods - The production and sales structure achieved in 2025 resulted in revenue related to the cost of inventories of finished goods (reflecting the production cost of stored products and their variation) amounting to 8.97 million RON, compared to -3.5 million RON in 2024.

Revenue from research and development projects - Investments in research and development amounted to 12.79 million RON, compared to 11.12 million RON in 2024. In 2025, research stages were carried out for a total of 54 projects, distributed across divisions as follows:

→ Topical Products Division, 28 projects;

→ Oral Solid Dosage Forms Division, 11 projects;

→ Sterile Injectable Products Division, 15 projects.

Cost structure

Within total expenses, operating expenses amounted to 598.24 million RON, higher compared to

577.98 million RON in 2024.

The production structure, adapted to demand on both domestic and international markets, led to raw materials and materials expenses of 152.11 million RON, 5% higher compared to 145.35 million RON in 2024. This increase was driven by additional production of active substances and injectable powders for export.

Expenses related to electricity, natural gas and potable water amounted to 21.97 million RON, above the level recorded in 2024. The variation was driven both by changes in consumption volumes (higher for electricity and natural gas and lower for potable and wastewater) and by higher prices compared to the previous year.

The operation of photovoltaic plants in 2025 generated savings of 15% in electricity consumption, amounting to 2 million RON.

Personnel expenses amounted to 176.21 million RON, 6.5% higher than in 2024, reflecting the full implementation of salary increases granted under the 2024 collective labor agreement.

Within operating expenses, other operating expenses are also included, as presented below:

These expenses include:

• taxes and duties amounting to 53.86 million RON, above the 2024 level of 52.14 million RON. Of these, the claw-back tax accounts for 73.43%, exerting pressure on the company's profitability;
• expenses related to third party services and the promotion of the company's product portfolio, amounting to 40.43 million RON, 12% lower compared to 2024. The main categories of promotional activities include:

  • merchandising and shelf positioning of products;

  • media promotion campaigns, including TV and radio;

  • promotion to healthcare professionals for both human and veterinary products;

  • promotion in media publications, such as brochures and magazines for the general public, as well as online;

  • market studies and marketing research;

  • medicine serialization services;

  • maintenance services for equipment and working spaces.

• transport expenses amounted to 4.37 million RON, 3% lower compared to 2024. These costs relate to the delivery of finished products, free at destination, sold on both domestic and international markets. As a share of operating revenues, a decrease is observed in 2025;
• insurance expenses amounted to 3.41 million RON, 7% lower compared to 2024. These include insurance premiums for commercial risk coverage, voluntary health insurance granted to employees based on performance criteria, employee accident insurance, mandatory third party liability and casco insurance for company vehicles, insurance of goods in transit, liability insurance for the consumption of Antibiotice S.A. products marketed in the US, and insurance of the 2.5 MW photovoltaic park. As a share of operating revenues, these expenses decreased by 0.03%;
• maintenance and repair expenses amounted to 2.4 million RON, necessary to maintain production equipment in optimal condition, strengthen certain constructions, and ensure maintenance and repair of the vehicle fleet;
• travel expenses amounted to 1.45 million RON, below the 2024 level of 1.71 million RON. These expenses are necessary for travel to authorities and business partners, both domestically and internationally, to strengthen existing partnerships and develop new ones, as well as for

  participation in pharmaceutical industry conferences, international events and professional training courses. In 2025, the share of these expenses in operating revenues is lower compared to 2024;

• expenses related to green certificates and waste recycling amounted to 1.43 million RON, at a level comparable to 2024. The company applied the provisions of Emergency Ordinance no. 20/2025 regarding a state aid scheme granting exemptions for certain categories of final consumers from the application of Law no. 220/2008 on the promotion of energy production from renewable sources, resulting in a reduction of these expenses by 0.38 million RON in 2025;
• representation expenses in territories amounted to 0.9 million RON, at a level comparable to 2024, incurred to support sales in international markets;
• expenditure on vocational training amounted to 0.9 million RON, below the level recorded in

  the previous year, necessary for maintaining and improving employees' professional skills;

• the variation in 2025 regarding adjustments for current assets amounted to -10 million RON, resulting from the recognition and reversal of adjustments for current assets, driven by the sale of finished goods inventories produced on own and partner sites, for which adjustments had previously been recorded.

In 2025, a negative financial result of 10.9 million RON was recorded, although it improved by 6.6 million RON compared to 2024. This unfavorable result is mainly due to high volatility in the foreign exchange market, the appreciation of the euro (by 1.34% compared to the previous year's average), given that the company holds loans denominated in this currency, and the appreciation of the Romanian leu against the US dollar, while the company holds receivables exceeding its liabilities in USD.

Statement of financial position

Analysis of assets

At the end of 2025, Antibiotice S.A. reported total assets of 1,392.6 million RON. Within this structure, non-current assets accounted for 64% and current assets for 36%. Compared to the previous year, non-current assets increased by 9%, reflecting the positive impact of investments made in 2025 exceeding depreciation expenses.

Current assets increased by 7% compared to the beginning of 2025, mainly driven by a 7% increase in inventories.

The level of inventories increased in the context of global supply chain disruptions, which led to longer procurement lead times, as well as due to sales and production plans. Inventories of raw materials and finished goods produced at own and partner sites are monitored and aligned with stock norms. The main inventory categories are:

→ raw materials and materials, amounting to 69.3 million RON, 9% lower compared to the beginning of the year;

→ finished goods produced at own and partner sites, amounting to 113 million RON at the end of 2025, aligned with domestic and international sales plans and corresponding storage durations.

Within total current assets, receivables account for 61%, slightly below the 63% recorded at the beginning of the year. The main components of trade and other receivables are:

→ trade receivables, amounting to 294.6 million RON, 7% higher compared to the end of 2024;

→ advances paid to suppliers for inventories and services, amounting to 2.3 million RON as at 31 December 2025, higher compared to the level recorded at 31 December 2024.

To mitigate commercial risks, the company has in place receivables insurance policies covering both domestic and international markets.

Debt analysis

→ Current liabilities amounted to 250.36 million RON, 7% higher compared to the beginning of 2025. This category includes:

• trade payables, which decreased by 19% compared to the beginning of the year

  • liabilities to banking institutions for working capital financing, which increased compared to the beginning of 2025, following the contracting of a short-term loan in May 2025 from Banca Transilvania to finance operational suppliers

  • other liabilities, representing amounts due to the state budget with maturity on 25 January 2026, including value added tax payable, the contribution to the Solidarity Fund regulated by Law no. 448/2006 on the protection and promotion of the rights of persons with disabilities, and the claw-back tax for the fourth quarter (amounting to 10.145 million RON)

→ Long-term liabilities amounted to 210.1 million RON, increasing by 40% compared to the beginning of 2025, mainly due to investment financing through loans.

Investment grants represent amounts received from the Ministry of Energy under the National Recovery and Resilience Plan to finance the project "2.5 MW photovoltaic power plant", part of the project for production, packaging and storage capacity for sterile solutions and topical products. The Ministry of Public Finance issued Financing Agreement no. 538 dated 17 May 2023, under Government Decision no. 807/2014 establishing state aid schemes aimed at stimulating investments with a major impact on the economy.

The company does not record any outstanding obligations to the state budget; all liabilities being settled within the legal deadlines.

The cash flow statement, prepared using the indirect method, is based on gross profit, adjusted for the effects of non-cash operations (such as depreciation of non-current assets and adjustments of current assets), as well as changes in working capital, investment payments and their financing sources.

The net accounting assets as at 31 December 2025 amounted to 932 million RON, 4.2% higher than the value recorded at the beginning of the year.

Key financial indicators as at 31 December 2025 compared to 31 December 2024 are presented in the table below:

Total bank debt to EBITDA stands at 1.88, within the limits agreed with financial institutions (maximum accepted level of 3.5). The indicator is higher than the level recorded at 31 December 2024, as a result of increased borrowings used to finance investments.

The Earnings before interest, taxes, depreciation and amortization (EBITDA) indicator, which reflects profit before interest, taxes, depreciation and amortization, amounted to 124.03 million RON, representing a decrease of 19% compared to the end of 2024, when it stood at 152.45 million RON.

The ratio of total bank debt to equity stands at 0.25, within the limits agreed with financial institutions (maximum accepted level of 1). The increase compared to the end of 2024 is justified by the level of bank loans contracted in 2025.

During the reporting period, the company signed a financing agreement worth 75 million EUR with the Ministry of Investments and European Projects for the development of the project "INOVA a+ Research and Development Center and Critical Medicines Production", funded through the STEP Health Programme. The project aims to create a modern research and production infrastructure for critical medicines, strengthening the company's strategic positioning and contributing to the pharmaceutical autonomy of Romania and the European Union.

At the same time, investments supported through the InvestEU Programme contribute to the expansion of production capacities for sterile products, topical products and solutions, as well as to the development of logistics infrastructure, with the new storage facility authorized at the beginning of 2025.

The company's main priority in 2026 remains maintaining operational balance and financial stability, in an economic context characterized by persistent inflation and increased consumer caution, similar to 2025.