Biocon Limited — Q3 FY26

Biocon Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LqjzTZBLgDM Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Bioon Limited's Q3 FI26 earnings conference call. As a reminder, 0:09 9 seconds all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. If you 0:17 17 seconds would like to ask question, please click on the raise hand option. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:26 26 seconds Prashant Nay from Bioon Investor relations. Thank you and over to you Mr. NY. 0:32 32 seconds Uh thank you Michelle. Uh good morning everyone. Thank you for joining us today to discuss Bioon's third quarter results 0:39 39 seconds for financial year 26. A press release and presentation related to the same have been sent to the exchanges and are uploaded on our website for your 0:47 47 seconds reference. Uh before we get started uh let me introduce the management team on this call. Uh we have Bioon chairperson Dr. Kiran Mazunzar Shaw. Uh Mr. Mr. 0:57 57 seconds Shihas Tambbe, CEO and managing director of Bioon Biologics. Uh Mr. Kdar Upad, CFO of Bioon Biologics 1:05 1 minute, 5 seconds and along with other senior management colleagues across our business segments. 1:08 1 minute, 8 seconds Uh we will start the call with opening remarks from Kiran which will be followed by an interactive Q&A session. 1:14 1 minute, 14 seconds Please note that this webinar is being recorded. Uh the recording will be made available on our website within a day and a call transcript will be made available subsequently. 1:25 1 minute, 25 seconds Before we begin, uh I would also want to remind everyone about the safe harbor related to today's call. Uh comments made during the call may be 1:33 1 minute, 33 seconds forward-looking in nature and must be viewed in relation to the risks that our business faces that could cause our future results, performance or 1:41 1 minute, 41 seconds achievements to differ significantly from what is expressed or implied by such forwardlooking statements. 1:47 1 minute, 47 seconds Uh and now I would like to hand over the call to Kiran for opening remarks. Over to you Kiran. Thank you uh Prashant and 1:55 1 minute, 55 seconds I would also like to mention that Siddhhat Mittal CEO of Bioon and his senior colleagues will also be uh on this call. 2:04 2 minutes, 4 seconds Um good morning everyone. The strategic transformation we set in motion with Bioon Biologics acquisition of Viatra 2:13 2 minutes, 13 seconds Biosimilar Business is now reaching its conclusion through the planned merger of Bioon Biologics with Bioon. 2:22 2 minutes, 22 seconds This milestone transaction valued Bioon Biologics at 5.5 billion USD and will 2:31 2 minutes, 31 seconds establish an integrated biioarma enterprise with global reach and scale combining worldclass capabilities in 2:39 2 minutes, 39 seconds biosimilars with our established strength in specialty generics. 2:45 2 minutes, 45 seconds As we bring these businesses together, we are creating a platform positioned to accelerate growth, drive operational 2:53 2 minutes, 53 seconds synergies, and unlock significant long long-term value for all our stakeholders. 3:01 3 minutes, 1 second This resonates with the finance minister's recent emphasis on strengthening the biologics and biosimilars ecosystem in India through the biioarma shaky initiative. 3:14 3 minutes, 14 seconds Bioon has been leading this agenda since the early 2000s, investing steadily in R&D talent and globally benchmarked manufacturing. 3:25 3 minutes, 25 seconds These long-term commitments have enabled us not only to become a global leader in biioarma from India but also to drive 3:34 3 minutes, 34 seconds India's emergence as a credible global biofarma hub delivering affordable 3:41 3 minutes, 41 seconds highquality complex therapies at scale for non-communicable diseases. 3:49 3 minutes, 49 seconds Alongside this long-term strategic agenda, we have taken decisive steps over the past year to strengthen Bioon's 3:58 3 minutes, 58 seconds balance sheet and simplify its corporate structure. 4:02 4 minutes, 2 seconds These actions have transformed Bioon into a fundamentally stronger, simpler, and more investable global biioarma 4:11 4 minutes, 11 seconds platform. Over the past year, we proactively addressed acquisition related leverage through two successive 4:20 4 minutes, 20 seconds QIPs, cumulatively raising nearly $1 billion. 4:25 4 minutes, 25 seconds This enabled the full retirement of the structured debt associated with the viatrist transaction 4:32 4 minutes, 32 seconds materially derisking our capital structure enhancing financial flexibility 4:39 4 minutes, 39 seconds and removing a key overhang that had weighed on investor sentiment. 4:46 4 minutes, 46 seconds The integration of Bioon Biologics into Bioon is a strategic step that brings together our bioimilars and specialty 4:55 4 minutes, 55 seconds generics business into a single globally scaled platform. 5:01 5 minutes, 1 second This creates a differentiated business model with greater diversification across therapy areas, geographies, and 5:10 5 minutes, 10 seconds product life cycles while also enabling unified governance, disciplined capital allocation, and consolidated cash flows 5:20 5 minutes, 20 seconds within one listed entity. Importantly, Bioon is uniquely positioned at the 5:27 5 minutes, 27 seconds intersection of two of the fastest growing global metabolic segments. 5:34 5 minutes, 34 seconds Interchangeable biosimilar insulins and generic GLP-1 peptides 5:41 5 minutes, 41 seconds combined with our deep link biosimilar pipeline in oncology um and immunology. This positioned us 5:50 5 minutes, 50 seconds well and truly at the forefront of affordable innovation in chronic and specialty care. 5:58 5 minutes, 58 seconds Q3 FY26 represents an important operational inflection point for Bioon. 6:05 6 minutes, 5 seconds With major capex now largely behind us and operating leverage beginning to play out, we are progressing from a phase of 6:15 6 minutes, 15 seconds balance sheet resilience into a cycle of sustainable growth, margin expansion and a cash flowled value creation. 6:27 6 minutes, 27 seconds With this strategic foundation in place, let me now share the key business and performance highlights for the group. 6:35 6 minutes, 35 seconds this quarter portfolio and pipeline updates. 6:41 6 minutes, 41 seconds During this quarter, we delivered significant milestones 6:48 6 minutes, 48 seconds um enhancing the depth and reach of our global bioimilars and generics portfolio. 6:56 6 minutes, 56 seconds We recently disclosed three new bioimilar oncology assets. 7:03 7 minutes, 3 seconds Transtoumab, subq, nolimumab and pebblyumab. 7:08 7 minutes, 8 seconds These are among the largest oncology biologics scheduled to lose exclusivity over the next 5 years. 7:17 7 minutes, 17 seconds These are part of our existing portfolio of 17 oncology medications which includes pertusumab 7:25 7 minutes, 25 seconds or peretta that was recently submitted to the US FDA as well as several small molecu small molecule cancer therapies. 7:36 7 minutes, 36 seconds Our oncology portfolio including undisclosed products represents 7:43 7 minutes, 43 seconds almost 7 $75 billion opportunity or approximately 35% of the global oncology pharma market. 7:54 7 minutes, 54 seconds We launched generic laglutide for diabetes and obesity in the 8:02 8 minutes, 2 seconds Netherlands as our first direct to market GLP1 in the EU. 8:08 8 minutes, 8 seconds We also signed an outlicicensing agreement with Ajanta Pharma to market our vertically integrated drug product 8:16 8 minutes, 16 seconds Semagile in 26 countries across Africa, Middle East and Central Asia. 8:24 8 minutes, 24 seconds On 27th January, S&P Global Ratings upgraded Bioon Biologics's long-term 8:32 8 minutes, 32 seconds issuer credit rating from BB to BB+ with a stable outlook. As SS as S SNP noted, 8:42 8 minutes, 42 seconds the stable outlook reflects its view that Bioon will sustain good earnings momentum over the next 12 to 18 months, 8:51 8 minutes, 51 seconds enabling it to maintain its improved financial position. 8:56 8 minutes, 56 seconds More recently, Fitch Ratings also revised its outlook on Bioon Biologics long-term foreign currency issuer 9:04 9 minutes, 4 seconds default rating or IDR from stable to positive, citing expectations of a sustained reduction in Bioin Limited's financial leverage. 9:16 9 minutes, 16 seconds These upgrades serve as strong external validation of the progress we have made in strengthening the balance sheet 9:24 9 minutes, 24 seconds interest balance sheets interest cost has already started coming down and as indicated earlier we should see 9:33 9 minutes, 33 seconds annualized savings of approximately 300 crores from FY27. 9:40 9 minutes, 40 seconds Now let me work you walk you through the financial highlights. 9:46 9 minutes, 46 seconds In Q3 FY26, the group delivered 9% year-on-year growth in operating revenue, led by 9:55 9 minutes, 55 seconds steady growth in biosimilars and generics that offset challenges in the CRDMO segment. 10:03 10 minutes, 3 seconds Operating revenue stood at 4,173 crores, up 9% yearonear. 10:10 10 minutes, 10 seconds Bioimilars grew 9% yearonear. Generics had a strong showing at 24% year-on-year growth. 10:19 10 minutes, 19 seconds Uh whereas our CRDMO business had a decline of 3% yearonear. 10:26 10 minutes, 26 seconds Core Eida was 1,221 crores up 21% yearonear with a margin of 29%. 10:38 10 minutes, 38 seconds This improvement was primarily driven by favorable revenue mix and operating leverage benefits in bioimilars. 10:46 10 minutes, 46 seconds Our R&D investment was 249 crores or 8% of revenues excluding Singene reflecting 10:56 10 minutes, 56 seconds continued pipeline investments across generics and biosimilars. 11:01 11 minutes, 1 second EBIDA grew 21% yearonear to 951 crores with a margin of 22%. 11:11 11 minutes, 11 seconds Profit before tax excluding exceptionals rose 64% year-onear to 226 crores. 11:19 11 minutes, 19 seconds Reported net profit for the quarter was 144 crores. 11:25 11 minutes, 25 seconds For the nine months of FY26, operating revenues and EIDA grew at 14% and 24% respectively on a life-forlife basis. 11:36 11 minutes, 36 seconds Core Eida margin stood at 27% versus 26% in the same period last year. 11:45 11 minutes, 45 seconds Reported net profit for the 9 months stood at 260 crores. 11:51 11 minutes, 51 seconds I would now like to discuss our business performance in a segmental manner and let me start with bioimilars. 12:00 12 minutes Our fully integrated global biosimilars business has been consistently delivering healthy growth backed by 12:07 12 minutes, 7 seconds market share gains across regions and new launches. 12:12 12 minutes, 12 seconds Over the last nine months we have successfully launched Yesente which is our bioimilarum 12:19 12 minutes, 19 seconds Kirsty our bioimilar aspart Jovni or our bioimilar beverisum and 12:30 12 minutes, 30 seconds yesafilli which is our bioimilar aphibcept across geographies and expect an imminent launch of Bevu and Bosiah 12:40 12 minutes, 40 seconds which is our bioimilar than a sumo map. As we look to scale up these products, we have taken some steps 12:47 12 minutes, 47 seconds this quarter to upgrade our operational manufacturing and quality backbone in line with best-in-class standards. 12:56 12 minutes, 56 seconds While this moderated the pace of growth in Q3, it positioned us very well for a more efficient and sustained ramp up ahead. 13:06 13 minutes, 6 seconds We also prioritize supply towards higher margin market which along with stable demand and pricing ensured higher 13:15 13 minutes, 15 seconds profitability as you will see in the financial details covered later. 13:21 13 minutes, 21 seconds We expect to continue our growth trajectory and are well positioned for stronger growth in the next financial year. 13:30 13 minutes, 30 seconds In terms of pipeline updates, we finalized patent settlements with regeneron buyer and amgen clearing the 13:38 13 minutes, 38 seconds way for the global launches of yailly which is biosimilar aphibcept and vezu and bossaya which is our biosimilar derosum map respectively. 13:50 13 minutes, 50 seconds With these developments, we have clear visibility on market entry and are well positioned to capture meaningful share 13:58 13 minutes, 58 seconds in two large fast growing therapeutic categories. 14:03 14 minutes, 3 seconds Another strategic move that enhances flexibility and cost efficiency is that we have secured full and exclusive 14:12 14 minutes, 12 seconds global rights for Julio which is our very successful biosimilar adelimum 14:18 14 minutes, 18 seconds from Fujifilm Kova Kirin Biologics Company Limited or SKB Japan. 14:26 14 minutes, 26 seconds Bioon Biologics will assume end-toend responsibility for manufacturing and commercialization 14:33 14 minutes, 33 seconds along with rights for any additional development activities. 14:38 14 minutes, 38 seconds Now coming to key highlights by geography starting with North America the business delivered another strong performance in 14:47 14 minutes, 47 seconds Q3. Our established oncology portfolio of ogiviri and fulfill continue uh to 14:54 14 minutes, 54 seconds hold nearly a fourth of the market in the US. Yes continued to gain meaningful 15:01 15 minutes, 1 second traction in the bioimilarumab category maintaining leading market share among biosimilars and over 70% market access commercial coverage. 15:13 15 minutes, 13 seconds We expanded our strategic collaboration with the government of California through Civika Inc. during the quarter 15:20 15 minutes, 20 seconds and this multi-year transformational agreement enabled Civica to launch affordable 15:27 15 minutes, 27 seconds insulin glardian in California to expand access under the Cal RX initiative. 15:35 15 minutes, 35 seconds Moving to Europe, we maintain stable market shares across products with the 15:41 15 minutes, 41 seconds oncology franchise led by ABMI and OGI delivering strong growth supported by 15:48 15 minutes, 48 seconds robust tender and contracting performance. 15:52 15 minutes, 52 seconds Yes continues to receive strong reception in key EU markets. We also achieved two important regulatory 16:00 16 minutes milestones which were the MHE approval for Yeshelli prefilled syringe and the EMA approval for Yintentech auto injector. 16:12 16 minutes, 12 seconds When it comes to emerging markets, our business delivered a stable performance supported by steady demand in high impact self-led markets. 16:22 16 minutes, 22 seconds We successfully launched Philly in Turkey achieving almost 20% market share. We secured key tender wings 16:30 16 minutes, 30 seconds across APAC, Middle East, North Africa and Latin America for insulins and MAS. 16:38 16 minutes, 38 seconds Moving to the financials, biosimilar revenues for Q3 stood at 2,497 16:46 16 minutes, 46 seconds crores, representing a 9% year-on-year increase driven primarily by North America market. 16:54 16 minutes, 54 seconds Aida for the quarter stood at 700 crores, representing growth of 44% on a year-over-year basis. This translates into an AIDA margin of 28%. 17:07 17 minutes, 7 seconds Margin improvement in this quarter reflects better product and geography mix as well as operating leverage 17:14 17 minutes, 14 seconds benefits as we continue to realize the benefits of economies of scale. 17:20 17 minutes, 20 seconds R&D investments for the quarter stood at 7% of revenues, reaffirming our ongoing commitment to innovation and pipeline advancement. 17:30 17 minutes, 30 seconds And for the third consecutive quarter, profit before tax exceeded 100 crores. 17:38 17 minutes, 38 seconds For the 9 months FY26, Biosimilar's revenue and EITA grew at 17% and 42% respectively on a life-forlife basis. 17:50 17 minutes, 50 seconds Now coming to generics, the generics business continued to see momentum in the third quarter, 17:57 17 minutes, 57 seconds delivering a year-on-year revenue growth of 24%. 18:02 18 minutes, 2 seconds This performance was supported by an on ongoing launches of generic laglutide across EU markets and an improved 18:10 18 minutes, 10 seconds performance in the generic formulations based business. 18:15 18 minutes, 15 seconds In terms of R&D and operational updates, we achieved strong regulatory progress with multiple market filings including 18:24 18 minutes, 24 seconds 10 generic formulations and nine API DMFs across US, EU, UK and key rest of the world markets. 18:34 18 minutes, 34 seconds In the US, we received final approval for TOACT extended release tablets and Everolimus tablets for oral suspension. 18:44 18 minutes, 44 seconds On the operations front, we successfully completed the first commercial dispatch produced under the phase 2 expansion at 18:52 18 minutes, 52 seconds Cranbury, New Jersey. In terms of regulatory updates, we received an EIR with VI status from the US FDA for a OSD 19:02 19 minutes, 2 seconds facility in Cranbury, USA followed following an audit conducted in October 2025. 19:10 19 minutes, 10 seconds The API plant in Vishaka Patnam also received an EI from US FDA with the VI status following a GMP inspection 19:18 19 minutes, 18 seconds conducted in November 2025. Our API plant in Bangalore received a GMP certification from NVisa Brazil post an audit conducted in July 2025. 19:32 19 minutes, 32 seconds Now coming to segmental financials revenue of the generics division 19:38 19 minutes, 38 seconds recorded 851 crores which is a 24% year-on-year increase. Sequentially revenues grew 10%. 19:48 19 minutes, 48 seconds R&D investment stood at 76 crores or 9% of segment revenue with continued 19:54 19 minutes, 54 seconds progress across our GLP1 and injectables portfolio. 20:00 20 minutes Eida stood at 47 crores an improvement over last year and the previous quarter driven largely by higher revenue. 20:09 20 minutes, 9 seconds For the 9 months FY26, generics revenue grew at 18% yearonear while Eida declined by 32% 20:18 20 minutes, 18 seconds attributable to higher costs related to the new facilities we have commissioned uh in the in in the recent past. 20:28 20 minutes, 28 seconds Now coming to the CRDMO business. Um FY26 9 months revenue from operations 20:37 20 minutes, 37 seconds stood at 272 crores up 3% year on year. Third quarter 20:44 20 minutes, 44 seconds revenues from operations were at 917 crores down 3% year on year. 20:52 20 minutes, 52 seconds As has already been disclosed, the business has been impacted by challenges faced due to one customer. While this 21:01 21 minutes, 1 second pressure will take some time to fully ease, it is transient. 21:08 21 minutes, 8 seconds Sing's differentiated scientific capabilities, longstanding client relationships, and diversified model 21:16 21 minutes, 16 seconds across research services and CDMO continue to underpin the business and give us strong confidence in its medium to long-term growth trajectory. 21:27 21 minutes, 27 seconds During the year, Singene extended its long-standing partnership with Bristol Meers Squim or BMS, 21:35 21 minutes, 35 seconds which runs through 2035, broadening the scope of its integrated services across discovery, translational 21:43 21 minutes, 43 seconds sciences, pharmaceutical development, manufacturing, and clinical trials. The 21:50 21 minutes, 50 seconds company commissioned a commercial scale facility for liquid fil hard gelatin capsules strengthening its oral solid 21:58 21 minutes, 58 seconds dosage platform and enabling precise reliable manufacturing of complex medicines. 22:06 22 minutes, 6 seconds Singene also expanded its advanced chemistry capabilities at Hyderabad with catalytic screening and flow chemistry 22:14 22 minutes, 14 seconds labs enabling faster safer safer and scalable synthesis of highquality drug substances. 22:22 22 minutes, 22 seconds With a renewed focus on diversifying its customer base in CDMO, Shinjin expects to increase capacity utilization of its 22:30 22 minutes, 30 seconds manufacturing facilities both in India and the US. 22:36 22 minutes, 36 seconds Now to wrap up I would like to emphasize the progress we have made on multiple 22:43 22 minutes, 43 seconds fronts including our product basket and pipeline go to market execution and 22:50 22 minutes, 50 seconds building a strong long-term operating model. Today we are well positioned globally across high growth segments of 22:59 22 minutes, 59 seconds diabetes, oncology and immunology supported by a differentiated portfolio spanning biosimilars, insulins, generics, peptides including GLP1s. 23:12 23 minutes, 12 seconds As we look ahead, our focus remains clear. Driving steady, sustainable 23:18 23 minutes, 18 seconds growth, expanding margins, and consistently improving return on capital employed. 23:26 23 minutes, 26 seconds We are confident in our ability to drive and deliver long-term value for our stakeholders through the Bioon one 23:36 23 minutes, 36 seconds strategy. With that, I now invite your questions. 23:42 23 minutes, 42 seconds Thank you very much ma'am. We will now begin the question and answer session. 23:46 23 minutes, 46 seconds Anyone who wishes to ask questions may click on the raise hand icon. Before asking the questions to the management, please introduce yourself providing your 23:55 23 minutes, 55 seconds name and your organization name. Please limit yourself to maximum of two questions so we can accommodate as many 24:02 24 minutes, 2 seconds participants as possible. Ladies and gentlemen, we will wait for a moment while the question cue assemble. 24:15 24 minutes, 15 seconds The first question is from Niha Manpurya. Please introduce yourself and proceed with your question. Ma'am. 24:22 24 minutes, 22 seconds Yeah. Hi, this is Niha from Buffa Securities. Uh first question on the biosimilar business. Um the upgrade of production and quality that you 24:30 24 minutes, 30 seconds mentioned um uh is it fair to assume that uh this is largely done and behind us? Um and second what led to this u you 24:39 24 minutes, 39 seconds know need for this updation of production because you know these um approvals were expected you know um to 24:46 24 minutes, 46 seconds come through this year. So uh any specific reason that drove um you know this upgradation at this point of time. 24:53 24 minutes, 53 seconds So maybe I will ask to answer that question. 24:59 24 minutes, 59 seconds Yeah. Uh thank you uh K and thank you na for the for the question. I think that question is fair and as you've seen us 25:08 25 minutes, 8 seconds talk to over the last few quarters you would have seen us receive several approvals of uh new products across 25:15 25 minutes, 15 seconds geographies. Uh we are also launching several products. You heard Kieran uh in her opening remarks talk about several 25:22 25 minutes, 22 seconds launches that are upcoming. We're also seeing a very uh you know substantial demand for our products uh across uh the 25:30 25 minutes, 30 seconds US and in Europe. So what we've done in the current quarter which was a planned operation where we've upgraded our 25:37 25 minutes, 37 seconds facilities to be able to scale up uh and uh be able to deliver on this increased demand uh as we go along. So in the 25:45 25 minutes, 45 seconds coming quarter of course it continues in our growth trajectory like we had projected and as we focused on this current 25:54 25 minutes, 54 seconds quarter which you saw in our financials uh we were able to also given that we had a good demand for our product 26:02 26 minutes, 2 seconds prioritized high margin markets which uh preserved the margins. In fact you will see that those margins have been higher 26:10 26 minutes, 10 seconds than what our guidance has been in the mid20s. U so we believe that this is uh gone as we had projected and on a full 26:19 26 minutes, 19 seconds year basis uh we'll of course be uh in the mid20s on our margins as well. 26:27 26 minutes, 27 seconds uh shares then how should we think about growth from uh here u like you said that you know for the full year we're still guiding mid20s next year given we have a 26:37 26 minutes, 37 seconds bunch of these launches that will slow through should we get back to uh you know the 20 plus% growth trajectory for the bios business with the mid20s margin 26:46 26 minutes, 46 seconds or should that margin also improve going into next year yeah I mean as I've said we've refrained from giving specific guidance uh for the 26:54 26 minutes, 54 seconds future uh we did say that we will have the mid20s for the current financial year. 27:02 27 minutes, 2 seconds I think if you look back at what growth has been, it's been strong growth in the last several quarters that we've had. Um 27:09 27 minutes, 9 seconds and uh with the launches now set up which we've just talked about um with demand growing across geographies uh it 27:17 27 minutes, 17 seconds is uh it's you know obvious that some of these things are expected to improve but I'll refrain from giving any specifics 27:25 27 minutes, 25 seconds on how the margins are expected to improve but clearly the future is more exciting than than what the past is is a fair way to look at it. 27:34 27 minutes, 34 seconds Understood. Uh and sorry if I may please in one one more question. Uh I think we mentioned about capeex being largely be 27:40 27 minutes, 40 seconds behind um and a lot of the focus now on cash flow generation. Um you know could you uh help us through what the cape 27:48 27 minutes, 48 seconds would look like uh for the consolidated entity in uh you know fiscal 20 26 and 27 uh and should we expect that to 27:56 27 minutes, 56 seconds moderate uh as we look at the next two three years? 28:00 28 minutes starting maybe Kedar can uh can uh come in on this one. Uh at at Bif for Biologics NEA as you know the uh most of our investments were uh were behind us. 28:10 28 minutes, 10 seconds The only real investment that we were focused on was our insulin capacity that we were looking to double the product 28:18 28 minutes, 18 seconds capacity comes online in the in the coming fiscal year. So we expect to double our capacity. So that investment 28:25 28 minutes, 25 seconds is clearly behind us and capacity will will significantly increase uh in the coming fiscal. The only other thing 28:32 28 minutes, 32 seconds which was going on was our insulin drug substance. So there is nothing new that that we are investing on capex. But maybe Kar if you want to add some some 28:41 28 minutes, 41 seconds more color on. Yeah. No, that's right Shias. At a group level, we were tracking roughly $275 million plus NIH 28:49 28 minutes, 49 seconds to recollect uh of capex every year that has been moderated to less than 225 and going forward as the Malaysian capacity 28:58 28 minutes, 58 seconds buildup gets over I think we will see further moderation because largely hereafter it will be uh maintenance capex across three companies. 29:08 29 minutes, 8 seconds I think Siddhad if you want to mention also that our investments in the peptides also is largely behind us. 29:16 29 minutes, 16 seconds Yeah. So I think uh we have invested of course in many facilities including peptides expanding our drug substance 29:24 29 minutes, 24 seconds facility and uh last year we commissioned our drug product facility. 29:29 29 minutes, 29 seconds So large part of capex in generics is over and now it'll be mainly the maintenance capex which will be there 29:36 29 minutes, 36 seconds which is going to be very uh small compared to the previous investments. Understood. Thank you so much. 29:46 29 minutes, 46 seconds Thank you. The next question is from Damyanti Keral. Please introduce yourself and proceed with the question ma'am. 29:54 29 minutes, 54 seconds Hi uh good morning all. Uh thank you for the opportunity. This is Damyanti from HSBC securities. So my first question is 30:01 30 minutes, 1 second uh just want to understand your uh other operating expense during the quarter. So last time when we were discussing we 30:09 30 minutes, 9 seconds understood most of your uh costs are in base. Uh but sequency here also we saw 10% jump. Uh if you can help uh 30:18 30 minutes, 18 seconds understand that and how should we look at operating expense uh trajectory in coming quarters? Yes, would you like to take that? Yeah. 30:27 30 minutes, 27 seconds Yeah. So Damanti I think if you are referring to this other expense row which is about 1178 crores that comprises the expenditure across manufacturing facilities, quality 30:36 30 minutes, 36 seconds expenses, commercial expenses across three entities and uh that is largely fixed in nature. There is some element 30:43 30 minutes, 43 seconds which is linked to the sales uh across all the three companies and uh the growth of that particular line uh will 30:51 30 minutes, 51 seconds be lower than the revenue growth. That's how I think it's going to trend here after the M because most of the base spends on commercial setup, regulatory 30:59 30 minutes, 59 seconds setup, all the global infrastructure for manufacturing, quality enabling functions all that is already in. 31:07 31 minutes, 7 seconds Okay. So the current quarter number is uh new base if uh if we have to look at and it will be mostly linked to the 31:16 31 minutes, 16 seconds topline movement the variable part industry. Yeah. 31:21 31 minutes, 21 seconds Okay. So Kar uh can you also uh update us on the net pos net debt position as of uh December 31st or as of say current? 31:31 31 minutes, 31 seconds Yeah. Yeah. So the net debt that we owe to the bond holders and the banks it's in a very shift in a narrow range of 1.1 to 1.2 billion uh you know we have said 31:40 31 minutes, 40 seconds that all the structured debt uh you know have been retired. So end of June the Goldman instrument got retired. uh 1st October the Kotak uh instrument got 31:49 31 minutes, 49 seconds retired and first week of January we have retired AD wise as well. So all that is over this quarter you have seen a decrease in the finance costs by more 31:58 31 minutes, 58 seconds than 62 cr uh sequentially and if you if you could recollect before we started this exercise you know the annualized 32:05 32 minutes, 5 seconds run rate of interest cost was trending upwards of 1150 to 1200 crores and that we have been able to substantially bring 32:13 32 minutes, 13 seconds it down uh do the mainly okay sure uh my last question is uh what is your rational to acquire the full 32:22 32 minutes, 22 seconds glob global rights for Julio Adalimab given it was a challenge uh challenging uh market in the US right and then uh 32:30 32 minutes, 30 seconds that was a key market we were looking forward but if you can just uh discuss that as well sure you might want to take that 32:38 32 minutes, 38 seconds yeah yeah thanks Kiran uh thank you for the question see for us is you know contrary to the perception how you've 32:47 32 minutes, 47 seconds qualified it has been a a very very successful franchise we've uh consistently for the last five and this 32:54 32 minutes, 54 seconds is probably the sixth year that we've grown that franchise in Europe. It continues to be one of our products that 33:00 33 minutes delivers in excess of $200 million for us on an annual basis. So, Adelimo Mab Julio is a very successful franchise for 33:09 33 minutes, 9 seconds for us in the portfolio and given that that was a product that we've continued to invest in, we've wanted to always be 33:18 33 minutes, 18 seconds a fully integrated player. So this was a product we developed very closely with our partners in Japan. Uh it's been very 33:25 33 minutes, 25 seconds successful and as we take it forward and increase our uh portfolio in the uh enco 33:32 33 minutes, 32 seconds space it made a lot of sense for us to to integrate that product as well. So which is why that's the rational and the 33:39 33 minutes, 39 seconds thinking behind bringing uh pulio uh into the fold as a fully integrated play. 33:47 33 minutes, 47 seconds So styas will that also improve our uh expectation for the US market or it will be mostly for ex US market uh which 33:56 33 minutes, 56 seconds which will be meaningful it would be meaningful for global markets the mainly it'll also give us 34:03 34 minutes, 3 seconds the opportunity to um to also widen our offerings as you know we've uh we've had 34:09 34 minutes, 9 seconds currently a a product which has only the low concentration product in the market we will also have the opport opportunity 34:17 34 minutes, 17 seconds to develop beyond that and those are things we've talked about uh in the past as well with the community and uh 34:24 34 minutes, 24 seconds clearly now Bioon has the ability to uh to determine its its future and the destiny with this. 34:32 34 minutes, 32 seconds Okay, thank you. Thank you everyone. 34:39 34 minutes, 39 seconds Thank you. A reminder to all the participants that you may please click on the raise hand option to ask questions at this time. The next 34:47 34 minutes, 47 seconds question is from Surya Patra. Please introduce yourself and proceed with your question. 34:55 34 minutes, 55 seconds Yeah. 34:56 34 minutes, 56 seconds Uh thank you. Thanks for this opportunity sir. Uh so first clarification to the earlier commentary that you have made. Uh ID map is a Julio 35:06 35 minutes, 6 seconds is a 200 plus million dollar business for us. Uh is that correct? Uh and a couple of quarterback that you had 35:14 35 minutes, 14 seconds mentioned you have three molecule which have crossed $200 million. So whether this is one of that. 35:22 35 minutes, 22 seconds Yes. Yes. In fact we had four molecules surya who are in the zone of 200 million annualized as of last year and yes is one of those. 35:31 35 minutes, 31 seconds I believe you're mute. 35:34 35 minutes, 34 seconds Yeah. Can you hear me Surya? What I was saying is that yes, we had four molecules in the zone of 200 million annualized revenues and Adal Moab was one of that. 35:46 35 minutes, 46 seconds Sorry Kadar, I cannot hear you. 35:48 35 minutes, 48 seconds No, let me let me if you can't hear Kedar let me say that Kedar was saying that it's not three but four molecules 35:55 35 minutes, 55 seconds which are $200 million plus and Adelimab is one of them. 36:05 36 minutes, 5 seconds Can you hear what's 36:12 36 minutes, 12 seconds uh yes ma'am Mr. Padra I would request you to kindly check your network and your setup. Uh I think there is a 36:19 36 minutes, 19 seconds network issue or maybe the audio issue at your end. 36:24 36 minutes, 24 seconds I would request you to kindly rejoin the meeting. In the meanwhile, we'll take the next participant, Sham Shri Nasan. 36:33 36 minutes, 33 seconds Please introduce yourself and proceed to your question, sir. 36:37 36 minutes, 37 seconds Uh, hi, good morning. Uh, this is Sham Shinasan from Goldman Sachs Research. 36:41 36 minutes, 41 seconds Uh, just first question is just on the trajectory of the um the bio biologics business. Um, you know, maybe I'm I'm 36:49 36 minutes, 49 seconds not looking at like quarterly variations, but yes, there's been a slight slowdown in growth. Um uh I think 36:56 36 minutes, 56 seconds sh you alluded to you know higher growth going forward. So what are some of the drivers of that um uh that gives us 37:03 37 minutes, 3 seconds confidence? I know I'm not asking for a quantitative number but just what drives revenue up. So 9 month is also 17%. 37:11 37 minutes, 11 seconds Um and I'm assuming very difficult to see what the underlying constant currency growth is right there has been a rupee depreciation impact as well. So just want to see when are we moving to a 37:20 37 minutes, 20 seconds slightly faster trajectory of revenue growth in the biologics business. 37:27 37 minutes, 27 seconds Thanks Sham for your question. I think let me respond to you in a in a couple of uh points that you made and and and let's uh look at what uh what data 37:35 37 minutes, 35 seconds points we will refer. I think the first step being the that if you look back almost seven or eight quarters I think 37:43 37 minutes, 43 seconds uh there's been yearon-year growth that we can uh look at and we'll also look at sequential growth that we've had quarter on quarter. Now we know that the last 37:52 37 minutes, 52 seconds full year we didn't have any new launches and yet we saw that there was significant increase in revenues year on 38:00 38 minutes year as well. So we can go through the numbers, we can look up that data for you, but I think characterizing it as a slowing down of growth is probably 38:09 38 minutes, 9 seconds something we'll have to sit down and look at. Now coming to where it is headed when I was responding to a question which Nia had asked earlier. 38:19 38 minutes, 19 seconds We've clearly bought five new products. 38:22 38 minutes, 22 seconds Some of them we've launched. You've seen the uptick of Yeshu in the US seeing a tremendous response. We've seen over 70% 38:31 38 minutes, 31 seconds formulary coverage. We've been amongst those few biosimilars in the US. It has now got double digit market shares. So 38:41 38 minutes, 41 seconds clearly there's a there's a step up from where it was and growth will obviously be expected when you have new product 38:49 38 minutes, 49 seconds launches which would have then also higher uh knock-on effect on the margins that uh that we were talking about earlier. We've refrained from giving 38:58 38 minutes, 58 seconds specifics because uh there would also be some erosion in the uh legacy products which have been in there in the market. 39:06 39 minutes, 6 seconds So we'll have to wait and watch but uh we clearly feel very good about how things are trending. SH 39:13 39 minutes, 13 seconds helpful helpful shares just a second question on the generics business. I think very solid performance this quarter. uh if you could kind of break 39:20 39 minutes, 20 seconds it down into just the new what is traction on the new launches including the JLP ones and how should we look at 39:26 39 minutes, 26 seconds say again outlook for this business yeah so Sham I think as Kiran mentioned 39:35 39 minutes, 35 seconds in her opening comments the growth was driven primarily by LRA glutide launch 39:42 39 minutes, 42 seconds in European markets which was through our partners Antiva as well as a direct to market in couple of countries countries and I think that traction 39:51 39 minutes, 51 seconds would continue. We will be launching this product in few more European countries. In fourth quarter we will 39:57 39 minutes, 57 seconds also be supplying more product to our partner and apart from Europe we are of course uh looking at other markets. So 40:05 40 minutes, 5 seconds you know our filing is under advanced stages of review in various markets including the US and depending on of 40:12 40 minutes, 12 seconds course the FD action. We are hopeful that we should be able to launch the product in US uh and other Latin American markets in the coming quarters. 40:22 40 minutes, 22 seconds So you know the the demand is still very solid. uh of course it's a degrowing market uh because a lot of patients over 40:30 40 minutes, 30 seconds the last couple of years have moved to ampic but we still see that there is a lot of demand there is limited 40:37 40 minutes, 37 seconds competition and we have a very good play uh that we will that which will drive the growth now apart from lraide we had 40:45 40 minutes, 45 seconds couple of other products also that were launched uh these are OSDs um and we have couple of more launches coming up u 40:55 40 minutes, 55 seconds and uh the based business also is doing good. The market share of our products uh is holding up in the US. So I think 41:02 41 minutes, 2 seconds overall you know things are looking good uh primarily contributed by LAR but other 41:10 41 minutes, 10 seconds products also will continue to drive the growth. 41:14 41 minutes, 14 seconds Uh helpful SA just one sub question on the GLP1 and semaglutide in Canada elsewhere. Uh if you could give us an update thank you all the best. 41:23 41 minutes, 23 seconds So we uh we had mentioned in quarter two that the filings have begun. We have filed in uh Canada, Brazil, Saudi, 41:32 41 minutes, 32 seconds Turkey and we continue to file in other markets. Of course uh it's uh the review cycle is long drawn especially in 41:40 41 minutes, 40 seconds markets such as Canada which where we have not seen a single generic GLP being approved including LRA glutide which has not been approved by health Canada. So 41:48 41 minutes, 48 seconds we we are hoping uh that sometime next calendar year we should be in a position uh where we uh at least make advanced uh 41:57 41 minutes, 57 seconds progress uh on semaglutide and uh I think the market still is very 42:04 42 minutes, 4 seconds attractive. We have seen the actions uh taken by health Canada on some of the earlier filers and uh it continues to be 42:12 42 minutes, 12 seconds bit complex but uh we are hopeful that next year we should be able to make a good progress uh with health Canada. 42:19 42 minutes, 19 seconds Got it. Thank you. All the best. Thank you. 42:24 42 minutes, 24 seconds Thank you. The next question is from Tushar Manuhan. Please introduce yourself and proceed with the question. 42:31 42 minutes, 31 seconds Yeah, myself Kushar Mane from Moal mentions. 42:36 42 minutes, 36 seconds Uh so firstly just uh extending uh Sham's question on Canada per se if you could you know share your perspective in terms of what's holding on Canada as a 42:45 42 minutes, 45 seconds regulatory authority for uh approving the GLP uh bioimilars or generics that that's my first question. 42:54 42 minutes, 54 seconds So biosimilar of course the I mean shares can comment on it. We have seen many approvals of biosimilars in Canada. 43:01 43 minutes, 1 second I think the GLP1 of course has a separate guideline path that Health Canada follows and it is bit different 43:09 43 minutes, 9 seconds compared to what a European regulator or US FDA follows and I think as I mentioned that despite filings multiple 43:17 43 minutes, 17 seconds filings on laglutide and other GLPs the health Canada has not approved a single file they are I think still trying to 43:24 43 minutes, 24 seconds understand the risk associated with this product and the develop uh the the preclinical 43:32 43 minutes, 32 seconds uh work that the generic filers have to do and I think we have done back and forth with health Canada on our previous filing of LIA glutide. So we do 43:40 43 minutes, 40 seconds understand a bit of what they are expecting and uh I think we are hopeful that uh you know over a period of uh 43:50 43 minutes, 50 seconds this year they should be able to you know be very fixed and firm in terms of what they're looking at and that's why we have a confidence that by next year 43:58 43 minutes, 58 seconds that we should be able to get the approval. I think we have mentioned in the past we know we are a vertically integrated player on GPS. So we have 44:07 44 minutes, 7 seconds very strong characterization and development uh capabilities. We have our own drug uh product facility. We have 44:14 44 minutes, 14 seconds our own device facility. So we understand the science behind it. And I think we are we have to work with the regulator to explain that why it's a 44:23 44 minutes, 23 seconds high quality product, why it's a comparable product and you know as I said navigate the challenges and it's not 44:31 44 minutes, 31 seconds the uh the generic filers. I mean we have seen other very credible companies who've also filed and have had challenges and I think it's the working 44:38 44 minutes, 38 seconds with the regulators what's required and I think they also understand that they have to approve it. If you look at Canadian market which is $25 billion 44:46 44 minutes, 46 seconds today was and goi is give or take 8 to 10% of that market. So bringing down the cost and making the drug affordable is 44:55 44 minutes, 55 seconds of course a priority for the regulator as well. And I I'm sure that you know they we will along with other filers navigate that challenge uh soon. 45:06 45 minutes, 6 seconds So here is this because innovators manufacturing through biological groups where filers we have done it through shindu root is that something 45:15 45 minutes, 15 seconds no area of concern? 45:17 45 minutes, 17 seconds No I think that is very clear globally that everywhere including US and Europe everybody is uh developing with a 45:25 45 minutes, 25 seconds synthetic root. So that is not a concern. 45:27 45 minutes, 27 seconds So I think if I may just jump in touch lagide has been approved by Europe. 45:35 45 minutes, 35 seconds So if you look at that as a case in point then um you know I don't think uh you know that is the issue. I think 45:43 45 minutes, 43 seconds Health Canada really has to have a regulatory uh you know final view on what it 45:50 45 minutes, 50 seconds requires to approve and I think that is not very clear on all GSP ones. So I think that is where the real issue is 45:58 45 minutes, 58 seconds but I think it should be resolved soon is our expectation. 46:04 46 minutes, 4 seconds Got it ma'am. Got it. And just on the progress on the insulin aspect you could share. So insulin aspart has 46:13 46 minutes, 13 seconds been approved both in the US as you know as the first interchangeable insulin aspart it is already approved in Europe 46:21 46 minutes, 21 seconds and maybe I'll askers to comment on what is it that you exactly want to know how the commercial scaleup is you know 46:29 46 minutes, 29 seconds expected to happen over next 12 to 15 months. 46:34 46 minutes, 34 seconds Yeah, thanks uh thanks Kiran. Thanks Susant for the question and and we can add more color to to what we were just 46:41 46 minutes, 41 seconds saying when Kiran commented on it. We're very proud of the fact that we the first interchangeable rapid acting analog that 46:48 46 minutes, 48 seconds the FDA has approved. We've got approval prior in other jurisdictions as well. Um we've said in the past that we are a 46:56 46 minutes, 56 seconds very responsible insulin company where uh clearly there's tremendous opportunity here again like some of our other products. Uh we see that there's 47:05 47 minutes, 5 seconds just the originator and us that that are looking to target this uh we've had a very very successful uh entry into the 47:14 47 minutes, 14 seconds US market with the closed door hospital networks. That chain has already been very successful. we see close to 100% 47:24 47 minutes, 24 seconds conversion to our product. So that's been very good response that we've seen and now you know as Matt who is our 47:32 47 minutes, 32 seconds chief commercial officer for advanced market and Josh Saly who leads the North America team uh deal with the responses 47:40 47 minutes, 40 seconds coming up you will see more progress into a wider group of customers as we expand our presence in the North America market with this asset. 47:52 47 minutes, 52 seconds So effectively let convert into let's say the business in let's say starting of this calendar year or this process 48:01 48 minutes, 1 second will you know sort of has its own destination period and accordingly the business scale up will be somewhere maybe like um 3 to 5 months down the 48:11 48 minutes, 11 seconds line how to think about it we would certainly look to uh move this product into this financial year as you 48:18 48 minutes, 18 seconds know our demand for insulin pushar has in growing and uh we are looking to add more capacity. I just talked about 48:25 48 minutes, 25 seconds doubling our drug product capacity this fiscal our insulin larging capacity demand continues to expand. So we are 48:34 48 minutes, 34 seconds looking to now bring more product in so that we can be a reliable uh supplier and a and a partner to our customers and 48:42 48 minutes, 42 seconds patients uh as we bring more products in the insulin franchise. So this should happen in the current fiscal and we look 48:49 48 minutes, 49 seconds to expand that to more customers uh beyond what we've done uh so far. All in that thank you. 48:58 48 minutes, 58 seconds Thanks. 49:01 49 minutes, 1 second Anyone who wishes to ask questions may please click on the raise hand icon available on their screens. We'll take 49:08 49 minutes, 8 seconds the next question from Surya. Please introduce yourself and proceed with the question. Yeah, thanks for the opportunity. Uh this is Suga from 49:18 49 minutes, 18 seconds Philip. Uh my uh sorry for the repetition of the question question. I could not hear last time. So I was 49:27 49 minutes, 27 seconds asking that whether we business for us and is it one of the top three products which have crossed 200 million for us. 49:38 49 minutes, 38 seconds So let me answer that by saying that Kada said it's not three but four molecules which have got over $200 49:46 49 minutes, 46 seconds million in revenue and Adelimo is one of them. 49:55 49 minutes, 55 seconds Can you hear? 50:00 50 minutes I think you'll have to take this off the line offline because he cannot hear for some reason. Yes, ma'am. 50:08 50 minutes, 8 seconds We'll move on to the next question from Harshett Dud. Please introduce yourself and proceed with the question. 50:15 50 minutes, 15 seconds Uh thanks a lot for the opportunity ma'am. Hershit Dut here from Diamond Asia Capital. Just one book bookkeeping question. Uh Rabbit of 700 KES in bio 50:22 50 minutes, 22 seconds similar business. Is there any uh inclusion of the exceptional gain which you have uh put in a notes to accounts in this 700 crores number? 50:31 50 minutes, 31 seconds Uh no harsh that gain is in the exceptional line. It's not part of the ordinary business. So that gain that uh we have realized by virtue of the 50:40 50 minutes, 40 seconds integration transaction is not in the AIDA line. So 700 cr is the clean aida kada. Yes. 50:46 50 minutes, 46 seconds For bio similars. So can you please elaborate what what has changed because sequentially topline was down and abida shoot up. So what were the improvements 50:55 50 minutes, 55 seconds that drove this uh the good number in biosimulates business. 50:59 50 minutes, 59 seconds Yeah. So Shrias clarified that uh this quarter we have prioritized high margin markets. So usually the North American 51:06 51 minutes, 6 seconds geography mix of total biosumas is roughly 40. This quarter is you know it's beyond 46 47 and that's the reason 51:14 51 minutes, 14 seconds we have been able to get both higher gross margin and aida as a percentage terms uh for for your simulation and 51:21 51 minutes, 21 seconds modeling you should consider uh let's say full year average because uh you know the other regions will shape up in the coming quarters. So maybe you should 51:30 51 minutes, 30 seconds go around with with the our usual margin and a fullear average margin and not this quarter's margin. 51:36 51 minutes, 36 seconds Okay. Thanks Kada. Thanks a lot. 51:42 51 minutes, 42 seconds Thank you. The next question is from Sachin Jen. Please introduce yourself and proceed with your question. 51:50 51 minutes, 50 seconds My audio. 51:52 51 minutes, 52 seconds Yeah, your audio is low. Uh if you could be a little bit louder. I want your view on the insulin market. Uh 52:01 52 minutes, 1 second are is it now is a supply constraint market? Uh particularly when innovator move their uh capacity towards uh weight loss drug. How is the current scenario? 52:10 52 minutes, 10 seconds Uh can you just give some overview on that? Yes, you might want to answer. 52:19 52 minutes, 19 seconds Yeah, but I I only could hear you such briefly. You said is it a supply constraint or a demand constraint 52:26 52 minutes, 26 seconds market? Did you refer any specific product or product? 52:30 52 minutes, 30 seconds No, he said he the question he asked was is it given that GLP1 is where the 52:37 52 minutes, 37 seconds innovators have been focusing on is insulin the supply constraint market or what is happening? He wants to know. 52:46 52 minutes, 46 seconds Well, well, I think I the way I would classify this is that the insulin demand has continued to be robust such in uh 52:54 52 minutes, 54 seconds given that there is just the innovators and bioon uh it is it is a very unique 53:02 53 minutes, 2 seconds situation to be in. We've made significant investments in our unique technology platform. So we have a proprietary platform on which we make 53:11 53 minutes, 11 seconds our insulins which is innovative in that sense and we also have very large scale manufacturing capacities device 53:18 53 minutes, 18 seconds capabilities which is needed for insulin. So demand is is absolutely not a challenge here at all and uh it is as 53:27 53 minutes, 27 seconds much as we can make which is why uh you know when I was responding to Tushar we've been very responsible in taking on 53:34 53 minutes, 34 seconds more patients because this is something uh when you take on a chronic therapy you do it for life and we are doubling 53:42 53 minutes, 42 seconds our capacity in the drug product insulin capacity and you will see that franchise 53:48 53 minutes, 48 seconds grow in the coming quarters as we as we take on more market share we do not um we do not expect uh that the insulin 53:57 53 minutes, 57 seconds demand globally will um will uh will reduce and we expect us to be a very very significant player in the insulin 54:06 54 minutes, 6 seconds space s when you believe likely believe Malaysia expansion will uh come 54:13 54 minutes, 13 seconds commercialized u sorry if if you sorry very feeble but my understanding of Your question is 54:21 54 minutes, 21 seconds when do you see the Malaysia expansion uh go commercial? If that is your question then then the drug product is 54:29 54 minutes, 29 seconds expected to go commercial in the in the coming fiscal which is fiscal 27 and the drug substance expansion which is also 54:38 54 minutes, 38 seconds expected to double our capacity will come in uh a year uh or year and a half uh after this. 54:47 54 minutes, 47 seconds Thank you. Thank you so much. 54:52 54 minutes, 52 seconds Thank you. The next question is from Sedhhat Nandhi. Please introduce yourself and proceed with your question. 55:01 55 minutes, 1 second Hi, this is Sedhhat N Gandhi from Chanaka. Thanks uh thanks for the opportunity. Just a couple of uh uh 55:08 55 minutes, 8 seconds nuances on the biosimlars business given uh we launched new products uh in this 55:14 55 minutes, 14 seconds quarter and the previous quarter. uh could you give us a sense of how the year-on-year and uh quarteronquarter 55:23 55 minutes, 23 seconds uh growth plays out between the existing products and you know the new launches that is question uh that was the first 55:31 55 minutes, 31 seconds part to the question uh and similarly uh would it be fair to assume given the higher salance in the US that we've seen 55:39 55 minutes, 39 seconds a yearon-year or quarteronquarter uh decline in uh EU uh so that was one. 55:47 55 minutes, 47 seconds The second was uh if you could share some color on the market share of uh the 55:54 55 minutes, 54 seconds products both the legacy products uh uh and some of the new products uh and instruments. 56:06 56 minutes, 6 seconds So I think multiple questions in that uh the uh the first one is how do you look at quarter-wise 56:15 56 minutes, 15 seconds progress of of these numbers? My my sense is I think Ketar responded previously is uh the way to look at this 56:22 56 minutes, 22 seconds is a is a wider window of four quarters and um as new products launch uh and and 56:30 56 minutes, 30 seconds get to market we've said even in the past that some of these take four to six quarters some of them take maybe up to six to eight quarters to reach their 56:38 56 minutes, 38 seconds peak sales but you'll start seeing the ramp up you'll start seeing the the the you know the the numbers play in into 56:46 56 minutes, 46 seconds the PNL as products start taking traction. Fiscal 27 is the first time that you will see some of these launches 56:54 56 minutes, 54 seconds that we did in 26 begin to play out as the numbers uh you know get into the quarter. So that is as far as we can go 57:03 57 minutes, 3 seconds because it's it's hard to give a quarterby prediction on on how every launch in every market will play out. 57:10 57 minutes, 10 seconds It's number one. I didn't quite follow your question on the European uh piece. uh we're looking to to grow the European market as well. 57:20 57 minutes, 20 seconds This particular quarter you heard KDA say that we've uh we've prioritized profitability. We've looked at higher 57:28 57 minutes, 28 seconds margins which is reflected in the financials. Uh but we see demand across regions and um as uh as more um products 57:37 57 minutes, 37 seconds come online you will see all our regions North America, Europe and even the rest of the world emerging markets show a 57:45 57 minutes, 45 seconds very strong growth. there is that expected to happen. And the third piece which you were referring to in terms of 57:53 57 minutes, 53 seconds what our markets have been, I think they've been very strong. Kiran in her opening remarks mentioned that are um and and we we can refer to them as 58:02 58 minutes, 2 seconds legacy product continue to have over a fourth of a of the market in oncology products that we launched back in 2018. 58:11 58 minutes, 11 seconds So I think we've we've continued to hold that market share continued to be profitable again reflected in the numbers and uh if you look at the 58:19 58 minutes, 19 seconds European trends again in oncology we were under 6% now those are trending in double digits again so clearly demands 58:29 58 minutes, 29 seconds strong and as we look at the coming quarters supply will will grow as well as we 58:36 58 minutes, 36 seconds qualify more facilities. So all in all uh quite promising um uh when the coming quarters look like I hope I responded to all your questions. 58:46 58 minutes, 46 seconds Thanks Ryas. Uh just one followup uh on that uh sorry one additional question on 58:54 58 minutes, 54 seconds semlutide in India right given the prior transactions with etc. what is the uh 59:01 59 minutes, 1 second what is the play in India looking like from bioon's perspective for semlutai maybe sed you would come in and respond 59:10 59 minutes, 10 seconds to that yeah so I think uh you know what we have heard uh other companies talk that of 59:18 59 minutes, 18 seconds course there have been approvals and they're going to launch the product soon and the pricing uh here will be very competitive compared to global pricing 59:26 59 minutes, 26 seconds so we do have our clinical approval or approval to start our phase three clinical in India and our strategy uh 59:35 59 minutes, 35 seconds typically in India is through a partner since we had divested our uh business the branded formulations business to er 59:43 59 minutes, 43 seconds you know our uh we did tie up for LAR glutide with two other companies in India one of the partners had launched 59:51 59 minutes, 51 seconds the product uh last year through a reusable pen and if we do a clinical trial in India and if we to still see a 1:00:00 1 hour good economical value and return on the clinical investment then of course the go-to market strategy will be through a 1:00:08 1 hour, 8 seconds partner but I think uh let me uh tell you that India is one of the only markets in the world where you need a 1:00:15 1 hour, 15 seconds full-blown clinical trial unlike uh Europe US and other markets where you don't need clinical trial that's why 1:00:22 1 hour, 22 seconds it's a uh uh it's a decision whether we wait for one of the country approval and 1:00:29 1 hour, 29 seconds then apply for a clinical waiver like we did for liter glutide versus spending that money which is not small it's a 1:00:37 1 hour, 37 seconds significant investment in phase three clinical so that decision will be taken and if one way or the other we will 1:00:44 1 hour, 44 seconds apply for marketing approval in India in due course and the commercialization will be through a B2B partner 1:00:52 1 hour, 52 seconds thanks that was helpful can we take The last two questions please uh in the Sure sir. 1:01:02 1 hour, 1 minute, 2 seconds Yes. Yes sir. Ladies and gentlemen, we'll be taking last two questions in the interest of time. The next question is from Vishal Manchandanda. Please 1:01:10 1 hour, 1 minute, 10 seconds introduce yourself and proceed with your question. 1:01:13 1 hour, 1 minute, 13 seconds Hi, good morning. This is Vishal from systematics institutional equity. uh on Aaliub uh could you give a timeline as 1:01:20 1 hour, 1 minute, 20 seconds to when uh the regulatory process and tech transfer can get completed and 1:01:26 1 hour, 1 minute, 26 seconds broadly the rational for doing this deal um if if I may respond uh to that 1:01:35 1 hour, 1 minute, 35 seconds question. uh we you know Damante had probably a similar question and um and we just respond on the rationale so I 1:01:42 1 hour, 1 minute, 42 seconds can go through it if needed again but clearly we have much better control on the product now we shall uh we have end 1:01:49 1 hour, 1 minute, 49 seconds to- end integration that allows us to do more with uh with that asset than than we had or we were able to until now it's 1:01:58 1 hour, 1 minute, 58 seconds a very important product in our portfolio so that probably that rationale is is something that is very strong and continues to guide our 1:02:06 1 hour, 2 minutes, 6 seconds investment in the asset. Uh in terms of how it's going on, tech transfer is already initiated. It will happen in 1:02:14 1 hour, 2 minutes, 14 seconds phases because there's an element of the device, there's an element of the uh the syringe itself which is on these are on the drug product side and there's the uh 1:02:23 1 hour, 2 minutes, 23 seconds element which is related to tech transferring the clone and the and the drug substance and all of these are going on and we will work with 1:02:32 1 hour, 2 minutes, 32 seconds regulators globally to see that these things evolve. uh there's a close coordination and collaboration with FKB 1:02:40 1 hour, 2 minutes, 40 seconds in Japan and and this is a process that is more collaborative than hands- off. 1:02:45 1 hour, 2 minutes, 45 seconds So we expect this to to happen in a in a very collaborative manner. 1:02:51 1 hour, 2 minutes, 51 seconds Thank you. And just one uh more on affle bersv just wanted uh a clarification whether we own 100% of the rights share 1:02:59 1 hour, 2 minutes, 59 seconds or we'll have to give out some profit share to uh J&J or momenta maybe kar you want to come in on this 1:03:08 1 hour, 3 minutes, 8 seconds yeah vishal the whatever the royalty or what there's no profit share there's a small royalty we are not we are not public about the 1:03:16 1 hour, 3 minutes, 16 seconds quantum but uh it's uh not very significant understood thank Thank you. That's all from my sir. 1:03:25 1 hour, 3 minutes, 25 seconds Thank you. This will be the last question for today which is from Vipul Kumar Sha. Please introduce your I'm 1:03:32 1 hour, 3 minutes, 32 seconds sorry. Uh this will be the last question for today which is from Abdul Kadar Puran Wall. Please introduce yourself and proceed to the question sir. 1:03:42 1 hour, 3 minutes, 42 seconds Uh yeah hi thank you for the opportunity. Just two questions from my end. Uh first on the genre space. Uh so 1:03:49 1 hour, 3 minutes, 49 seconds no disk is now talking about uh launching wilds uh in in next year citing generic threads. So how do we 1:03:58 1 hour, 3 minutes, 58 seconds perceive this and you know versus the investments what we have done currently? 1:04:06 1 hour, 4 minutes, 6 seconds Well, if if the in if the innovator does launch a different format or or different form of uh formulation, we 1:04:14 1 hour, 4 minutes, 14 seconds will of course assess whether we need to uh develop it and for which market and I think um the disposable pen is what's 1:04:23 1 hour, 4 minutes, 23 seconds the standard in most uh developed markets US and Europe and they might have a different strategy for emerging markets and I think at this stage will 1:04:33 1 hour, 4 minutes, 33 seconds be difficult to comment but we will of course track What makes most sense? 1:04:39 1 hour, 4 minutes, 39 seconds Understood. And just a final one on uh you know on your biosimilar growth. So you know sorry for hampering on this but 1:04:46 1 hour, 4 minutes, 46 seconds if you look at the 9 monthly number of 17%. Would it be possible to split this across you know your older products 1:04:54 1 hour, 4 minutes, 54 seconds versus the new products what you have launched in the last 6 to9 months? 1:04:58 1 hour, 4 minutes, 58 seconds Yeah abdul the as we have explained in the past the scale up of biosimulus is a bit staggered over multiple quarters. So 1:05:07 1 hour, 5 minutes, 7 seconds large part of the growth that we have demonstrated in the 9 months is uh based upon the strength of existing franchise. 1:05:16 1 hour, 5 minutes, 16 seconds Uh got it kar thank you for the clarification. 1:05:18 1 hour, 5 minutes, 18 seconds Yeah we'll take one more last question for the day which is from Vipul Kumar Sha. 1:05:26 1 hour, 5 minutes, 26 seconds Please introduce yourself and proceed with your question. 1:05:31 1 hour, 5 minutes, 31 seconds I thanks for the opportunity. I'm an individual investor. So you named you have uh four molecules with $200 million 1:05:39 1 hour, 5 minutes, 39 seconds plus revenue. So can you name them? Is it possible to name them? And second question is uh we were pursuing uh oral 1:05:48 1 hour, 5 minutes, 48 seconds insulin program long back. So are we still pursuing it or we have dropped it? 1:05:56 1 hour, 5 minutes, 56 seconds So let me first answer the first question and then Kdar can answer the second your other question about which 1:06:03 1 hour, 6 minutes, 3 seconds are the four molecules that have crossed 200 million. Uh as far as oral insulin is concerned uh physiologically it 1:06:12 1 hour, 6 minutes, 12 seconds worked but financially it didn't make sense because insulin is a very lowc cost product from that point of view and 1:06:21 1 hour, 6 minutes, 21 seconds to make it work it was going to cost a lot more. So financially it was not viable and hence we dropped the program. 1:06:32 1 hour, 6 minutes, 32 seconds Thanks K. Uh we pulled the four molecules we have named last year. So I think zumap fake field grass team 1:06:39 1 hour, 6 minutes, 39 seconds insulin franchise including gladene and adali mumap. These are the four molecules which have crossed 200 million in fi25. 1:06:47 1 hour, 6 minutes, 47 seconds And what last question what is the debt reduction road map? 1:06:53 1 hour, 6 minutes, 53 seconds Yeah. So uh in the last uh uh two quarters from June till now you have seen all the structured debt uh getting 1:07:00 1 hour, 7 minutes retired and cumulatively that will be upwards of almost uh 550 to $600 million. Uh so that has happened the 1:07:09 1 hour, 7 minutes, 9 seconds debt ratios have improved. We have seen upgrade from both S&P and FIC. So we are happy about it and uh effectively what 1:07:16 1 hour, 7 minutes, 16 seconds remains is you know the debt that we owe to bond holders and uh syndicated loan that you know we are on a journey for 1:07:24 1 hour, 7 minutes, 24 seconds reduction in the subsequent quarters based upon uh organic cash flow generation. 1:07:31 1 hour, 7 minutes, 31 seconds Same same 500 million reduction can be expected in next financial year. See we are not quantifying uh and in one year 1:07:40 1 hour, 7 minutes, 40 seconds such a large quantum is not possible but look that's our uh one of the biggest and top priorities. 1:07:47 1 hour, 7 minutes, 47 seconds So net debt is how much last uh net like yeah like what I explained I think you 1:07:54 1 hour, 7 minutes, 54 seconds should g you should actually look at what is your reduction of debt eida 1:08:00 1 hour, 8 minutes ratio I think if you look at it it has come down substantially it is now below 2.5x 1:08:08 1 hour, 8 minutes, 8 seconds and I think what we will look at is to see how we can take that down further thank you madam 1:08:19 1 hour, 8 minutes, 19 seconds Thank you. As that was the last question for today, I would now like to hand the conference over to Mr. Prashant Na for closing comments. Thank you and over to you sir. 1:08:29 1 hour, 8 minutes, 29 seconds Thank you Michelle and thanks everyone for joining the call. If there are any uh questions unanswered, please get in touch with the IR team. Uh thank you. 1:08:38 1 hour, 8 minutes, 38 seconds Thank you members of the management. 1:08:40 1 hour, 8 minutes, 40 seconds Thank you ma'am. On behalf of Bioon Limited, that concludes this conference. 1:08:44 1 hour, 8 minutes, 44 seconds Thank you for joining us and you may exit the meeting now. Thank you.