Our Modern Slavery and Human Trafficking Statement

Introduction

This statement is made in accordance with the United Kingdom’s Modern Slavery Act 2015. It covers the reporting period 01 July 2023 to 30 June 2024. This is a joint statement made on behalf of the UK based Essential Pharma group entities listed below and aims to set out the actions we have taken to ensure that modern slavery is not occurring within our business or within our supply chain.

Essential Pharma believes in the fundamental respect for human rights of all stakeholders and local communities in all countries in which we operate, whether directly or through third parties. We oppose modern slavery (including slavery, servitude, forced or compulsory labour and human trafficking). We are committed to taking appropriate steps to tackle human trafficking and slavery in all forms, and to continuous improvement of our governance, risk and compliance framework.

We will take a zero-tolerance approach to those who deliberately support or are found to be involved in any human rights violations.

Our Structure and Business

Essential Pharma’s aim is to improve patients’ lives by reinvigorating and ensuring the long-term, cost-effective and sustainable supply of Essential medicines. We are leaders in acquiring, integrating, optimising and maintaining Essential medicines. We specialise in the acquisition of clinically-differentiated branded medicines and we are an important partner to healthcare providers by ensuring access to many medicines that otherwise would not be available in the mid-to-long term.

We are privately owned, and our group of pharmaceutical companies is backed by Gyrus Capital, an investment firm dedicated to transformational investments in sectors with long-term sustainable growth.

A single entity within our group, namely Chemidex Pharma Limited (Chemidex), falls within the ambit of the Modern Slavery Act. This statement is made on behalf of Chemidex by Essential Holdings Limited, which is the parent company of this entity. Whilst the obligation to publish this statement only applies to one entity, we apply the same approach to modern slavery across our whole group.

Our Supply Chain

Our supply chain is broadly divided into three areas:

1. The global procurement of active pharmaceutical ingredients, excipients and components;
2. The manufacture and supply of finished medicinal products and devices within the European Union and the United States of America; and
3. The global sale and distribution of finished medicinal products and devices, including where necessary, promotional activities.

We are committed to integrity, transparency, accountability and respect in our dealings with all business partners and customers. We seek to obtain mutual value from the relationship, and work in the best interests of the patients and their carers who rely on our products. At the same time, we strive to ensure that human rights are held in high regard and that applicable laws and regulations are respected.

When working with business partners, we expect them to meet a range of criteria including:

• Committing to treating workers with dignity and respect and upholding their human rights.
• Providing a workplace free of harassment and discrimination.
• Paying workers according to applicable labour laws, including minimum wages, overtime hours and mandated benefits.

Our Policies

Essential Pharma is committed to conducting all our business activities in an ethical and transparent manner. Our Code of Business Ethics and workplace policies encompass topics such as anti-bullying and harassment, equal opportunities, diversity and inclusion, and how we interact with third parties.

We expect our staff to uphold our values and to act with integrity and respect at all times. Anyone who violates our policies will be subject to disciplinary action, up to and including termination of employment.

Due Diligence Process

The pharmaceutical industry is a highly regulated sector. The territories in which we operate require that those who supply our products are subject to a qualification process that is deemed satisfactory by the presiding competent authorities. Initial qualification of our primary suppliers and subsequent risk-based auditing contributes to transparency in our supply chain.

We have implemented a Know Your Business Partner (KYBP) process that ensures we screen and conduct an appropriate level of due diligence on all new business partners before they are onboarded. This includes flagging of adverse media reports. All our material suppliers are subject to continuous monitoring through this system. Subject to any legal or contractual provisions that may exist, we reserve the right to terminate relationships with suppliers, or with any of our other business partners, who conduct business in a manner that conflicts with our policies or is contrary to respect for human rights.

Any exceptions or anomalies to our predefined criteria that are flagged during initial screening or monitoring are escalated to our Compliance and Ethics Committee for further risk assessment and, where relevant, approval.

Awareness

Each year, this statement will be provided to all staff and contractors by email to communicate our commitment in the fight against modern slavery. Individuals will also be reminded of our Speak Up process which includes provision for the confidential, and where necessary anonymous, reporting of any concern or issue without fear of retaliation.

Training

All our employees have received training on our Code of Business Ethics, which applies to every area of business conduct and includes information concerning labour laws, human rights and other ethical considerations in managing our supply chain, distribution network and our broader business partners. We commit to providing appropriate training and updates to our staff to ensure a high level of understanding of the risks of modern slavery and human trafficking in general, and the potential for it to occur within the pharmaceutical industry.

Measuring How We’re Performing

For the financial year July 2023 to June 2024, we have not been made aware of any allegations of human trafficking/slavery activities against any of our suppliers. In the event that a report is received, we are committed to promptly investigating all possible misconduct and any unethical, illegal or inappropriate activity.

Approval

This statement has been prepared after consulting with appropriate functional stakeholders within the organisation.

The Board of Directors of Essential Holdings Limited approved this statement on behalf of the Essential Pharma group of companies on 12 September 2024.