The agreement takes effect immediately and covers the supply of OTC medicines over three years, Sai Parenterals said in a regulatory filing on Tuesday. The company said the contract is worth about AU$10 million a year and provides for new product development and line extensions during the term.
The latest renewal comes less than two months after Noumed renewed another supply agreement in Australia. That agreement, renewed on July 1, is valued at AU$202 million (about ₹1,300 crore) over 7½ years.
Taken together, the two contracts represent AU$232 million of contracted OTC supply in Australia, according to the company.
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Two contracts, AU$232 million in supply commitments
Under the latest agreement, Noumed will continue to handle product sourcing, manufacturing, regulatory compliance, Therapeutic Goods Administration (TGA) registrations, warehousing, quality assurance and distribution across Australia.
Noumed owns the product registrations and holds the marketing authorisation, while the pharmacy chain sells the products under its own consumer brand, according to the company.
The contracts currently rely largely on third-party manufacturers. Noumed earns a distribution margin on these supplies, while production is expected to shift towards its own facilities as manufacturing capacity becomes available.
Commenting on the contracts, Anil Kumar Karusala, Chairman and Managing Director of Sai Parenterals, said, “Noumed has renewed two supply agreements in the space of two months. Together they take our contracted OTC book in Australia to AU$232 million, close to ₹1,506 crore in aggregate.”
Karusala said the products covered by the agreements are currently sourced largely from third-party manufacturers. He added, “As our Adelaide facility commissions and our Indian capacity expands, that production moves in-house — the same contracted revenue shall earn a manufacturing margin rather than a distribution margin.”
The company said the shift in production would involve its Adelaide facility as well as expanded manufacturing capacity in India. It did not provide a timeline in the release for when all volumes covered by the agreements would move to in-house manufacturing.
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Noumed to add products during contract term
The latest agreement is structured to allow additional products and line extensions to be introduced during its three-year term.Speaking on the renewal, Mark Thulborne, Chief Executive Officer of Noumed Pharmaceuticals, said, “This renewal reflects the depth of our product range and the confidence our customers place in our ability to supply without interruption.”
Thulborne said Noumed would continue to manage the supply chain under the agreement, adding, “We hold the registrations, we hold the inventory and we shall manage everything from sourcing and regulatory compliance through to nationwide distribution.”
He also said the agreement provides for new product development and line extensions. “The agreement is built to grow, with new product development and line extensions to be added over its term,” Thulborne said.
The company said Noumed’s Australian business currently has 15 long-term supply agreements covering 526 stock-keeping units (SKUs) and more than 451 TGA-approved dossiers. Sai Parenterals acquired Noumed Pharmaceuticals in November 2025.
Sai Parenterals said more than 50% of its consolidated revenue is contracted under long-term regulated-market agreements. The company has 302 commercial products across nine therapeutic areas, 599 approved registrations and 67 dossiers under development, with manufacturing facilities in India and Australia.
The company completed its initial public offering in March 2026 and its shares were listed on the BSE and NSE on April 2, 2026.
The renewed AU$30 million agreement is therefore the second contract renewal announced by Noumed in the Australian OTC business since July, taking the aggregate contracted value of the two agreements to AU$232 million.
