Middle East conflict - update on supply and logistics

Douglas Pharmaceuticals is deeply mindful of the impact the conflict in the Middle East is having on communities across the region. Our priority remains ensuring reliable access to essential medicines for patients worldwide.

Business Continuity

To date, we have not experienced any disruption to sourcing or manufacturing at our Douglas Manufacturing or CDMO sites. We have had minor delays in logistics activities due to transit through affected areas; however, these delays have been limited to a few days, and alternative routing options are in place and effective. We continue to work closely with our manufacturing partners, suppliers, and logistics providers to minimise supply interruptions.

Supply Chain and Logistics

Our sourcing and manufacturing network does not rely directly on supplies from the affected area. We have carried out a thorough risk assessment covering all materials, consumables, and utilities supporting our operations to ensure that any areas of increased risk have appropriate mitigation measures in place. As a precaution, we have implemented the following steps:

• Rerouted logistics activities away from conflict-affected areas to minimise potential disruptions.

• Made advanced purchases of certain critical materials and increased reserve stock levels.

• Conducted risk assessments for indirect impacts related to the global oil supply, e.g., dependency on petrochemical feedstocks.

• Worked closely with regional partners to manage the situation and ensure continuity.

We are also monitoring potential effects on material and transportation costs. Existing contractual arrangements help to contain cost volatility; however, constraints and rising global oil prices are reflected in freight and related industry expenses. Any sustained impacts will be managed transparently with affected partners.

Ongoing Communication

We remain committed to working together with our partners to support patients during this challenging time. As this situation is constantly changing, we kindly ask our customers to consider advancing purchase orders with Douglas by an additional two months.

Customers with any questions or concerns regarding your individual supply arrangements, please contact your Douglas Pharmaceuticals account manager or email ExportCustomerSupport@douglas.co.nz.