BLAU3

Blau Farmacêutica S.A. is a Brazilian pharmaceutical company whose common shares are traded on B3 under the ticker BLAU3. Founded on December 16, 1987, by Marcelo Rodolfo Hahn, the current CEO and vice-chairman of the board of directors, it began operations as a distributor of cosmetics, health products, related items, and pharmaceuticals. Throughout the 1990s and 2000s, the company went through a process of verticalization and industrialization, with the inauguration of manufacturing units in Cotia (SP) and Caucaia do Alto, initially focused on the production of oncology and injectable drugs. In 2011, the company adopted the form of a corporation and was renamed Blau Farmacêutica S.A., consolidating a governance structure with a statutory executive board and a board of directors. In 2019, it obtained registration as a publicly held company in category A and, in 2021, completed a global share offering, becoming part of the Brazilian capital markets.

Blau Farmacêutica’s growth trajectory includes organic expansion of production capacity and a series of acquisitions and international moves. In Brazil, notable steps include the incorporation of the unit acquired from Ariston Indústrias Farmacêuticas in São Paulo, focused on antibiotics, and the acquisition of Pharma Limirio in Anápolis (GO), later integrated as Blau Goiás. In 2022, the company entered into an agreement to acquire 100% of Laboratório Farmacêutico Bergamo Ltda., a traditional manufacturer of injectable oncology products, increasing its share in onco-hemato drugs. Abroad, Blau built a regional presence in Latin America through Blaufarma Uruguay S.A. and subsidiaries in Peru, Chile, Argentina, Colombia, and Ecuador, operating mainly in the distribution of drugs produced in Brazil. In parallel, it entered the plasma collection segment in the United States with the creation of Plex – Plasma Expert Corp. and Hemarus joint ventures, setting up collection centers in Florida.

Blau Farmacêutica’s business model is centered on research, development, manufacturing, and commercialization of complex drugs, with a focus on biotechnology and hospital-use products. The company has consolidated a leading position in Brazil’s institutional pharmaceutical segment, especially in injectable biological and biosimilar drugs aimed at therapeutic classes such as oncology, onco-hematology, immunology, nephrology, infectious diseases, and other highly complex specialties. Its portfolio combines higher value-added recombinant biological drugs, with greater technological barriers, and synthetic drugs that complement treatment protocols and contribute to optimizing plant capacity. In 2024, the company posted net revenue of around R$ 1.75 billion, supported by expansion of production capacity and growth of its addressable market.

The operating structure in Brazil is organized into three business units: Onco-hematology & Specialties, Pharma/OTC, and Blau Aesthetics. The Onco-hematology & Specialties unit comprises drugs used to treat cancer and hematological diseases, as well as medicines routinely used in hospital settings, such as antibiotics, antivirals, blood derivatives, anticoagulants, analgesics, anesthetics, muscle relaxants, and drugs for intensive care and surgical procedures. The Pharma/OTC unit includes prescription and over-the-counter drugs sold in the retail pharmacy channel, focusing on chronic diseases such as rheumatoid arthritis and anemia, as well as oncology, gynecology, anticoagulant, gastroenterology, infectious disease lines, gels, and male condoms. Blau Aesthetics operates in solutions for the medical aesthetics market, with products for minimally invasive procedures aimed at specialized professionals.

From an accounting standpoint, Blau Farmacêutica discloses two operating segments: Hospital and Retail+Aesthetics+Plasma. The Hospital segment, which concentrates most of the business, includes drugs used in specific treatments in public or private hospitals and clinics, including the onco-hemato and specialties portfolio. In 2024, this segment accounted for approximately 84% of the company’s net revenue and the largest share of profit before tax. The Retail+Aesthetics+Plasma segment encompasses the Pharma/OTC operation in the pharmacy channel, the aesthetics line, and plasma collection activities in the United States under the Hemarus brand, representing about 16% of net revenue in 2024. This composition highlights the predominance of the institutional channel and high-complexity drugs in revenue and profit generation.

Blau Farmacêutica’s client base is diversified, with no material concentration in a single buyer, as no customer accounted for more than 10% of net revenue in 2024. In Brazil, the company’s products reach approximately 62,500 pharmacies and 9,000 institutions, including around 3,200 private hospitals, 2,100 clinics, 620 public entities, and other healthcare organizations. The company operates in an addressable market estimated at over R$ 11.1 billion, participating with its own brands in various therapeutic niches. In its reference markets, Blau is among the leading domestically owned pharmaceutical manufacturers in the institutional segment, with leadership in several molecules and a strong presence in oncology and biotech drugs.

Blau’s industrial infrastructure is concentrated mainly in the states of São Paulo and Goiás, in addition to plasma collection operations abroad. In Cotia, the P200/P210 industrial complex is dedicated to biological, biotechnological, and synthetic injectable drugs, while the P400 plant focuses on the production of biotechnological Active Pharmaceutical Ingredients (APIs) from prokaryotic and eukaryotic cells. The Caucaia do Alto unit produces solid oral oncology drugs and cytotoxic injectables. The São Paulo plant manufactures injectable antibiotics, semisolid products, health products, and condoms, with lines segregated by therapeutic classes. In Anápolis, Blau Goiás produces sterile cephalosporin and carbapenem powders, such as ceftriaxone and meropenem. The Bergamo plant in Taboão da Serra focuses on injectable oncology drugs, nasal sprays, and hormones, expanding capacity in the onco-hemato segment.

Blau Farmacêutica’s activities are subject to strict health regulation and drug price controls. In Brazil, the company operates under the supervision of the Brazilian Health Regulatory Agency (ANVISA), which grants operating authorization, approves good manufacturing practices, and registers biological, generic, similar, and reference drugs. The company’s plants are periodically audited by ANVISA and, in the case of the São Paulo units, also by the Colombian health agency INVIMA, to verify compliance with good manufacturing and laboratory practices. Additionally, the pharmaceutical sector is economically regulated by the Drug Market Regulation Chamber (CMED), which sets price caps, annual adjustments, and commercialization rules in the public and private markets. In the U.S. plasma segment, operations follow standards and quality requirements set by the Food and Drug Administration (FDA). The company states that it complies with applicable labor and environmental laws and maintains a dedicated quality structure for controlling production processes, which is linked to governance practices and risk management relevant to its regulation-intensive industrial operations.

Blau Farmacêutica’s strategy combines production verticalization, recurring investments in research, development, and innovation, and international expansion. The Blau Inventta R&D&I center, inaugurated in Cotia, works on the development of biotechnological APIs and complex synthetic drugs, including biosimilar monoclonal antibodies and other recombinant proteins, in line with the goal of reducing dependence on imported inputs. The company invested a relevant share of its net revenue in R&D&I in 2024 and maintains a pipeline of new products focused on biotechnology and next-generation treatments. This approach reinforces Blau’s position in the pharma and biotech segment on B3, with the BLAU3 ticker representing a pharmaceutical operation with a domestic production base, geared primarily toward the high-complexity institutional market.