Biocon Limited — Q4 FY26

Biocon Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-gkOeUpsYeU Published: 5 days ago

0:01 1 second Thank you Michelle and uh good morning everyone. Thank you for joining us today to discuss Bioon's fourth quarter and fullear results for financial year 2026. 0:11 11 seconds A press release and the investor presentation relating to today's results have been filed with the exchanges and are also available on our website for 0:18 18 seconds your reference. Uh as a reminder in fiscal 25 we had certain one-time uh benefits including contributions from 0:26 26 seconds generic lenolumide in the US and divestment of our India branded formulations business. Uh to enable a like forlike comparison uh we have 0:34 34 seconds provided adjusted financials excluding these items in our fact sheet and presentation. Uh let me now introduce the management team on today's call. We are joined by Bioon chairperson Dr. 0:44 44 seconds Kiran Bazundar Shaw. Mr. Shrihas Tame CEO and managing director of Bioon Limited. uh Mr. Karupad, CFO of Bioon 0:52 52 seconds Limited along with other senior members of our management team. We will begin with opening remarks from Kiran. Uh following which we will open the call 0:59 59 seconds for an interactive Q&A session. Please note that this call is being recorded. 1:04 1 minute, 4 seconds The recording will be made available on our website within a day and the transcript will be shared shortly thereafter. Before we begin, I would 1:11 1 minute, 11 seconds also want to remind everyone about the safe harbor related to today's call. uh comments made during the call may be forward-looking in nature and must be 1:18 1 minute, 18 seconds viewed in relation to the risks that our business faces that could cause our future results, performance or achievements to differ significantly 1:26 1 minute, 26 seconds from what is expressed or implied by such forward-looking statements. And now I would like to hand over the call to Kiran for opening remarks. Over to you Kiran. 1:34 1 minute, 34 seconds Thank you Prashant and good morning everyone. Um I would like to start by saying that Q4 marked a strong close to 1:43 1 minute, 43 seconds an important year for Bioon. We delivered a resilient performance uh operating performance despite a very 1:51 1 minute, 51 seconds volatile macro environment while also completing one of the most significant strategic transitions in our journey. 2:00 2 minutes The external environment remained challenging throughout the quarter with geopolitical uncertaintity continuing to 2:08 2 minutes, 8 seconds impact supply chains, logistics, and energy costs. What stands out for me is the way our team stayed focused on 2:16 2 minutes, 16 seconds execution and delivered a good performance reinforcing the underlying resilience of our business. 2:24 2 minutes, 24 seconds I want to particularly acknowledge our team for the way the integration of our biosimilars and generics business uh was 2:33 2 minutes, 33 seconds concluded seamlessly in under 100 days with no disruption to business operations, customers or patients. It 2:42 2 minutes, 42 seconds reflects the strength of our execution engine and the discipline with which we run this organization. 2:48 2 minutes, 48 seconds This was a very complex organizational and financial undertaking and it has 2:55 2 minutes, 55 seconds been delivered with speed, discipline and clarity of intent. 3:01 3 minutes, 1 second With this we are now operating as one unified biioarma entity with a stronger 3:08 3 minutes, 8 seconds balance sheet, improved leverage metrics and a more integrated global commercial footprint. 3:16 3 minutes, 16 seconds As I've said before, this is a value accretive step that creates a simpler, stronger, and more efficient operating 3:23 3 minutes, 23 seconds model, unlocking synergies across our supply chain, commercial engine, and capital allocation. 3:31 3 minutes, 31 seconds We are now moving from a phase of integration and investment to one focused on execution, operating leverage, and value creation. 3:42 3 minutes, 42 seconds From a capital and investment perspective, the heavy lifting is largely done and behind us. Over the 3:49 3 minutes, 49 seconds past few years, we have invested materially to build global scale capabilities and capacity particularly 3:57 3 minutes, 57 seconds in biosimilars, insulins, peptides and complex genetics. 4:03 4 minutes, 3 seconds As we stand today, this major investment phase is substantially complete. The emphasis now is on improving 4:10 4 minutes, 10 seconds utilization, expanding margins and driving steady improvement in return on capital employed. 4:19 4 minutes, 19 seconds A key pillar of this transition has been the continued strengthening of our balance sheet. During the year, we made 4:27 4 minutes, 27 seconds further progress on deleveraging and improving financial flexibility. 4:32 4 minutes, 32 seconds With the buyout of minority shareholders in Bioon Biologics and the repayment and refinancing actions already taken, we 4:41 4 minutes, 41 seconds now have full economic ownership of our largest growth engine. Importantly, interest cost savings have begun to 4:48 4 minutes, 48 seconds acrewue and the full annualized benefit will be visible from FY27 further supporting profitability and cash generation. 4:59 4 minutes, 59 seconds Now let me come to key business developments. 5:03 5 minutes, 3 seconds Uh now before moving to the financial performance, let me highlight a few business developments that reinforce the 5:11 5 minutes, 11 seconds strategic progress we are making across our portfolio. 5:15 5 minutes, 15 seconds We achieved important product approvals in biosimilars and generics further strengthening our presence in regulated markets. 5:26 5 minutes, 26 seconds We received Health Canada approvals for Bosaya and Vezu, our denosumab 5:33 5 minutes, 33 seconds bioimilars to Prolia and XGA, expanding our footprint in bone health and uh 5:41 5 minutes, 41 seconds oncology and adding momentum to this important franchise. 5:46 5 minutes, 46 seconds After the close of the quarter, we als we announced the US commercial launch of Bosaya and Oko, our Denisum map bear 5:55 5 minutes, 55 seconds similars in the US. We also received USFTD approvals for luggage glutide during the quarter covering both 6:02 6 minutes, 2 seconds diabetes and weight management indications. 6:06 6 minutes, 6 seconds Taken together, these developments reflect continued progress in advancing our portfolio across oncology, 6:13 6 minutes, 13 seconds immunology, and metabolic diseases while steadily translating approvals into commercial scaleup. 6:22 6 minutes, 22 seconds Let me now walk you through the financial highlights. 6:28 6 minutes, 28 seconds In FY26, the group delivered a bioimilars le 10% year-on-year growth in operating revenue 6:36 6 minutes, 36 seconds excluding the one-time bolus of generic lenolumide in Q4 FY24 6:44 6 minutes, 44 seconds 25 bioimilars grew 12% yearonear and generics excluding lenolumide was 13% growth year on year. 6:56 6 minutes, 56 seconds CRDMO business grew 2% yearonear. 7:01 7 minutes, 1 second Eida was at 1,073 crores with a margin of 23%. 7:08 7 minutes, 8 seconds Adjusted for generic lenomide in the base. This was up 29% yearonear. 7:15 7 minutes, 15 seconds The improvement was primarily driven by favorable revenue mix and operating leverage benefits in bio similars. 7:23 7 minutes, 23 seconds The reported net profit for the quarter before exceptionals was 179 crores. For 7:31 7 minutes, 31 seconds FY26 adjusted for generic Lenel demi operating revenues and EBIDA grew at 13% 7:41 7 minutes, 41 seconds and 25% respectively. Eida margins stood at 22% which is up around 200 basis points yearonar on a liketo-like basis. 7:52 7 minutes, 52 seconds Reported net profit for FY26 before exceptional stood at 436 crores. I would 8:01 8 minutes, 1 second now like to discuss our business performance in a segmental manner. Let me start with bioimilars. 8:09 8 minutes, 9 seconds The biosimilars business enters FY27 on a strong footing with a broader 8:16 8 minutes, 16 seconds portfolio expanding global footprint and improving profitability positioning it well for the next phase of growth 8:26 8 minutes, 26 seconds in North America. Yes continued to gain traction in the US market. This is our bio similar usab 8:35 8 minutes, 35 seconds with growth supported by expanding formulary coverage and increasing physician confidence. The brand 8:43 8 minutes, 43 seconds continues to build momentum in line with expectations reinforcing our confidence in its longerterm potential. 8:50 8 minutes, 50 seconds We also made progress with the launches of Bosaya and Okelso which is our bioimilar denisumu in the US. Now moving 8:59 8 minutes, 59 seconds to Europe during the quarter we broadened our immunology footprint with the launch of Yes across multiple 9:07 9 minutes, 7 seconds markets expanded our opthalmology presence with Yafili which is our bioimilar aphibcept in the UK and other 9:14 9 minutes, 14 seconds key countries and continued to expand our oncology franchise with ABMI which 9:20 9 minutes, 20 seconds is our bioimilar beveris and bioimilar trust to Zumat. We also launched FRA 9:29 9 minutes, 29 seconds which is our bioimilar denosum map for bone health in Germany. On the regulatory front, Swiss medic approved 9:36 9 minutes, 36 seconds our rustinom bioimilar yesintech and in the UK and M the MH granted approval for 9:44 9 minutes, 44 seconds the Yes auto injector enhancing patient convenience and supporting broader uptake. 9:51 9 minutes, 51 seconds Coming to emerging markets, execution during the period was driven by tender wins, new product filings and selective 9:59 9 minutes, 59 seconds launches across priority markets. We continue to scale the business through a mix of self-led operations in key countries and partnerships in others. 10:10 10 minutes, 10 seconds Coming to U segment financials, uh, Biosimilar's revenue for Q4 FY26 10:17 10 minutes, 17 seconds stood at 2756 crores, representing a 12% year-on-year increase driven primarily by advanced markets. 10:28 10 minutes, 28 seconds EIDA for the quarter stood at 720 crores, representing growth of 33% on a year-on-year basis. This translates into an EITA margin of 26%. 10:40 10 minutes, 40 seconds Margins in this segment continue to reflect the benefits of improved revenue mix as well as operating leverage. R&D 10:49 10 minutes, 49 seconds investments for the quarter stood at 7% of revenues reaffirming our ongoing commitment to innovation and pipeline advancement. 10:58 10 minutes, 58 seconds For FY26, biosimilar revenues and embita grew at 16% and 40% respectively on a like to-like basis. 11:11 11 minutes, 11 seconds Now coming to generics, we secured multiple approvals across key markets led by products in diabetes, oncology and immunology. 11:22 11 minutes, 22 seconds This included laglutide across the US in the form of which is generic vtosa and 11:30 11 minutes, 30 seconds generic succender Europe generic vtosa and Australia generic succender. In 11:37 11 minutes, 37 seconds addition, we received approval for everolimus tablets in the US and for tacrolymus across Latin American markets. 11:46 11 minutes, 46 seconds When it comes to segment financials for generics revenue stood at 847 crores and adjusted for the one-time generic 11:55 11 minutes, 55 seconds lenolumide supplies in Q4 of FY25 revenues grew 13% yearonear dri uh 12:03 12 minutes, 3 seconds driven by generic u uh laglutide sales in Europe. 12:10 12 minutes, 10 seconds Eida stood at 75 crores. ETA margins were at 8% improved nearly 300 basis 12:17 12 minutes, 17 seconds points over Q3 of this fiscal um driven by higher volumes and 12:23 12 minutes, 23 seconds operating leverage for FY26 adjusted for generic leneri generic revenues and eida 12:31 12 minutes, 31 seconds grew 17% and 73% yearonear respectively 12:37 12 minutes, 37 seconds and now coming to our uh final uh part of our my presentation which is our 12:43 12 minutes, 43 seconds CRDMO business in Q4 FI26 revenues from operations 12:49 12 minutes, 49 seconds um at were were at 1,037 crores up 2% yearonear and up 13% quarteron quarter 12:58 12 minutes, 58 seconds FY26 revenue from operations were at 3,739 crores up 3% yearonear 13:06 13 minutes, 6 seconds operating eida margin at 25% for the year was in line with Singene's revised fullear guidance. Overall numbers 13:15 13 minutes, 15 seconds reflected the specific impact from a single large molecule biologics client with the underlying business showing 13:22 13 minutes, 22 seconds steady momentum. Singing completed 14 client and regulatory audits during the quarter bringing the full year total to 13:30 13 minutes, 30 seconds 85. It also obtained the GCP NABL accredititation during the quarter reinforcing adherence to globally 13:39 13 minutes, 39 seconds recognized standards for clinical research and data quality. 13:44 13 minutes, 44 seconds I now would like to wrap up with my concluding remarks. To conclude, FY26 marked a pivotal year for Bioon. With 13:53 13 minutes, 53 seconds the integration complete, the major investment phase behind us and the balance sheet significantly strengthened, we have entered the next 14:01 14 minutes, 1 second phase of our journey. Our focus now is firmly on disciplined execution, driving growth, expanding margins, and 14:09 14 minutes, 9 seconds delivering a sustained improvement in return on capital. As we look ahead to FY27, 14:16 14 minutes, 16 seconds we expect to increasingly benefit from the foundations that have been laid with performance improving progressively as 14:23 14 minutes, 23 seconds the year unfolds, especially as our new products scale up meaningfully in the second half. In bioimilars, recent 14:31 14 minutes, 31 seconds launches across markets are beginning to scale, which should support continued growth and operating leverage. In 14:38 14 minutes, 38 seconds generics, the emphasis will be on improving profitability as newer assets stabilize and utilization improves. And 14:45 14 minutes, 45 seconds at Singene, following the challenges seen in FI26, the focus remains on execution and translating recent 14:52 14 minutes, 52 seconds investments in CRDMO capabilities into more stable performance. With a stronger foundation in place, we believe Bioon is 15:01 15 minutes, 1 second well positioned to deliver consistent performance and long-term value creation. And with that I now invite questions. 15:12 15 minutes, 12 seconds Thank you very much ma'am. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may please click 15:20 15 minutes, 20 seconds on the raise hand icon. Before asking the questions to the management, please introduce yourself providing your name 15:26 15 minutes, 26 seconds and your organization name. Please limit yourself to maximum of two questions so we can accommodate as many participants 15:34 15 minutes, 34 seconds as possible. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 15:47 15 minutes, 47 seconds The first question is from Niha Manpurya. Please introduce yourself and proceed with your question ma'am. Yeah, thanks for taking my question. 15:55 15 minutes, 55 seconds This is Niha from Bank of America. Um uh two questions from me. First on the biosimilar revenue um given that we 16:02 16 minutes, 2 seconds spoke about execution in the opening remarks how should we think about FI27 FI28 given we have had some launches uh 16:11 16 minutes, 11 seconds you know in the back end of uh 26 also uh you know uh there was an impact of uh the planned uh you know shutdown that we 16:19 16 minutes, 19 seconds took in third quarter and a bunch of launches but we haven't really seen material improvement in biosimilar revenue you know fourth quarter versus 16:28 16 minutes, 28 seconds second quarter If that is the comparable number given we have also seen market share increases. So is it fair to assume that full stabilization of that 16:36 16 minutes, 36 seconds disruption that we saw in the third quarter is not uh not yet done. 16:45 16 minutes, 45 seconds Let me answer that is can I let me respond to that deha I think 16:53 16 minutes, 53 seconds thank you for your question. I think this is uh uh important to look at. When we did the Q3 last quarter, we had 17:00 17 minutes indicated like you rightly said that we are uh you know slowing down some of these things to get ready for a for a 17:07 17 minutes, 7 seconds greater supply capability in the coming fiscal. And I think if you look at the numbers between Q3 and Q4, you are 17:16 17 minutes, 16 seconds seeing a sequential change where we moved from a from a quarter which was uh 279 to $80 million to about $30 plus 17:25 17 minutes, 25 seconds million this quarter. So there's a sequential growth of 12% that you are seeing on a rupee basis in the revenues. 17:33 17 minutes, 33 seconds So that's the first indication. You're also seeing the margins stable uh for the fullear basis which has been consistent. So that's I think the first 17:42 17 minutes, 42 seconds indication that the business has ramped up in the right direction. The second question that you asked is that how is 17:48 17 minutes, 48 seconds it from an outlook perspective for 2728 and while we've not guided specifically on any numbers I think the uh the fact 17:57 17 minutes, 57 seconds that we've got several products launching in the coming fiscal which is 2728 the the ramp up starts moving uh from 18:07 18 minutes, 7 seconds the the coming uh financial year in 2728 towards the later part of the year and that's why you set yourself up building 18:15 18 minutes, 15 seconds capac capacity increasing scale and that is what you will see going through the year. Last quarter it also said that 18:22 18 minutes, 22 seconds aspart we'll start seeing a ramp up which will come in towards the the second half of the current fiscal year 18:29 18 minutes, 29 seconds and we'll see that happen. We've uh publicly stated we have a uh a negotiated uh settlement date with the 18:37 18 minutes, 37 seconds originator for our afford launch in the United States and you will see that play out in the in the coming fiscal year. uh 18:46 18 minutes, 46 seconds we've seen tremendous success with our biosimilar acoustic map which continues to uh to gain market share and in fact 18:54 18 minutes, 54 seconds if you've seen the IQVR numbers as of February in the overall market it's close to a fifth already which is a very 19:01 19 minutes, 1 second strong showing for a product uh which has several competitors there recent news of uh of payers have also shown 19:09 19 minutes, 9 seconds that we've been able to secure good formulary placement so we are quite uh bullish about how our products are 19:16 19 minutes, 16 seconds shaping up and uh you know we've uh we've said that this 2728 as we get towards the the later part of the year 19:24 19 minutes, 24 seconds we'll start seeing the the ramp up that we've prepared ourselves for in uh trace but I understand you don't want 19:32 19 minutes, 32 seconds to give specific guidance but uh if I were to think about fourth quarter FI27 exit run rate you know given uh the 19:40 19 minutes, 40 seconds launches that we have you know what in your mind would be a comfortable number uh you know based on the launch pipeline. 19:49 19 minutes, 49 seconds Yes, I know that you you've asked that question in different ways. Uh but I think the the important thing and I've again if you go back to what I've said 19:58 19 minutes, 58 seconds in previous uh conversations as well that this is not a quarteronquarter conversation. Uh look at it on a broader 20:06 20 minutes, 6 seconds window. If you've looked at the business that we've built over the last eight quarters or even four quarters, you will 20:13 20 minutes, 13 seconds see a substantial shift. If you seen uh just this year's numbers that we've posted on a on a rookie basis, there's 20:20 20 minutes, 20 seconds been a 16% growth over last year and you've just seen yes in tech which is our similar stellar starting to show 20:29 20 minutes, 29 seconds numbers in in the PL. you will start seeing that flow through in the second half of physical 27 as more products 20:37 20 minutes, 37 seconds come in. So I can only point you towards how we've done in the past which is a strong show already uh and and tell you 20:44 20 minutes, 44 seconds that look at the four quarters going forward which will be a good way to to see how the business ramps up. 20:53 20 minutes, 53 seconds Understood. Uh and Kada uh how should we think about deleveraging in fiscal 27 uh now that you know Bon the merger bonic 21:01 21 minutes, 1 second merger is done and is it fair to assume that all of the free capital generation that we have uh you know would be 21:08 21 minutes, 8 seconds largely used for uh deleveraging any color there yeah that's true nha I think uh every 21:16 21 minutes, 16 seconds dollar that we generate out of free cash the first claim is going to be to reduce the debt and uh we are pretty serious 21:24 21 minutes, 24 seconds about it. If you remember in March 25, including structured instruments, we had in fact more than $1.5 billion of net 21:30 21 minutes, 30 seconds debt. That's down to 1.1 now. So it will hover between 1.1 to 1.2 subject to working capital and the free cash that 21:38 21 minutes, 38 seconds we generate here after will go towards reduction of net debt. Yeah, that's right. 21:44 21 minutes, 44 seconds We also interest reduction. If you remember first quarter of this year, we had booked 280 crores in that quarter. It 21:52 21 minutes, 52 seconds was trending upwards to 300 cr and from those levels now we are down to about 210 220. It will have some currency 22:00 22 minutes impact because large part of our debt is in dollars but in that sense about 70 75 crores per quarter of interest cost 22:07 22 minutes, 7 seconds reduction is being reflected in the P&L now. Got it. Thank you so much. 22:20 22 minutes, 20 seconds Thank you. The next question is from Surya. 22:30 22 minutes, 30 seconds Please introduce yourself and proceed with your question. 22:39 22 minutes, 39 seconds Mr. Surya, I have unmuted your line. Please please proceed sir. 22:55 22 minutes, 55 seconds As there is no response we will move on to the next question which is from Damyanti Kerai. Please introduce yourself and proceed with the question. 23:04 23 minutes, 4 seconds Ma'am. 23:05 23 minutes, 5 seconds Hello. Uh good morning all. Uh thank you for the opportunity. My first question is again on bioimilus. So first if you 23:13 23 minutes, 13 seconds can give us split uh for fi26 sales between developed market and uh rest of the world and then if you can comment on 23:22 23 minutes, 22 seconds uh two specific product where you will be coming soon in the market as per your settlement date. So 23:29 23 minutes, 29 seconds there we have seen uh one of the earlier entrant going very aggressive uh in terms of taking market share etc. So how 23:38 23 minutes, 38 seconds do you see that opportunity and uh second question is on Aspire uh which you indicated is a key product for FI27. 23:47 23 minutes, 47 seconds So what kind of uh visibility we have in terms of uh higher uh demand or uh like your capability to supply this product 23:56 23 minutes, 56 seconds to gain meaningful market share from here on. Thank you. 24:01 24 minutes, 1 second I think let me uh respond to the first one and Kedar can come in. In the past also we've said our distribution is 24:08 24 minutes, 8 seconds pretty diversified between advanced markets emerging markets. If you if I give you a split it's been roughly norm 24:16 24 minutes, 16 seconds at 40 35 in with Europe and 25 emerging markets. You see sometimes a little bit of a shift between North America and 24:24 24 minutes, 24 seconds Europe. You see sometimes North America slightly higher but uh but roughly 7525 if you're asking advanced markets and 24:32 24 minutes, 32 seconds and emerging markets could be between 7822 in a particular quarter but that's the broad split tendi 24:40 24 minutes, 40 seconds can give any specifics if there's anything uh the other question that you asked uh in terms of our product launches I as I said we are looking to 24:49 24 minutes, 49 seconds bring our bio similar a few it's branded DSI uh to the United States in the second 24:56 24 minutes, 56 seconds half of this year. Uh I think what you've rightly cited is that the uh there is a biosimulator today and it's 25:05 25 minutes, 5 seconds been quite successful is a very encouraging sign because this is a a niche product a specialty one which is injected in the eyeball. So one of the 25:14 25 minutes, 14 seconds one of the questions around it was will a will opthologist be comfortable using a bio similar? I think that myth's been 25:22 25 minutes, 22 seconds busted that uh that there is comfort in using that and there is willingness to use bio similar. So it's paved that path 25:30 25 minutes, 30 seconds for us given our track record of high quality products. We believe that there will be a significant interest as we 25:38 25 minutes, 38 seconds move forward. So we feel good about our yes launch and as the product ramps up in fiscal 27 uh we'll lead our position 25:47 25 minutes, 47 seconds to talk to you more about that. Your other question was related to bioimilar aspart insulin aspart that we talked about. Our brand name there is kirsty. 25:57 25 minutes, 57 seconds Uh again it's a it's a product we've discussed several times with you. We see a a tremendous opportunity. We've been very careful as it's a chronic product. 26:07 26 minutes, 7 seconds We've said multiple times both for peptides and for insulin that we are very uniquely placed as the only company 26:14 26 minutes, 14 seconds with a bioidal insulin and a peptide portfolio. Uh so we've never looked at it as a sprint. It's a marathon for us. 26:22 26 minutes, 22 seconds We have 100% share in certain closeddoor uh networks that uh that are there in the US already and we built our 26:29 26 minutes, 29 seconds credibility there and we're looking to expand that to the commercial play in the second half of uh this fiscal year 26:38 26 minutes, 38 seconds fiscal 27. So uh watch this space. We will uh keep you posted on how ramps up in the current fiscal year. 26:48 26 minutes, 48 seconds Thanks Ryas. Uh and uh the second question I wanted to ask is on your uh capital allocation going ahead. So as 26:58 26 minutes, 58 seconds you mentioned you are done with majority of investment in capex etc and uh focus ahead will be on uh cash generation. uh 27:07 27 minutes, 7 seconds but just wanted to have uh some more color on your uh focus in R&D uh what kind of products uh you can add onto 27:16 27 minutes, 16 seconds your portfolio say 2 to 3 years down the line and uh apart from the Malaysia plant do you have any other uh like 27:24 27 minutes, 24 seconds capex uh remaining from your end at the beginning of the conversation Kiran called out very clearly that u 27:32 27 minutes, 32 seconds that we are in a space where capital allocation is largely behind behind us or capital investments are largely behind us and uh given that we've now 27:42 27 minutes, 42 seconds merged the biosimilar businesses and the generics business it's trended our balance sheet right away immediately straight out of the market that's 27:50 27 minutes, 50 seconds happened operating leverage starting to kick in which you'll see flow through the first quarter that that will come out you will start seeing it uh you 27:59 27 minutes, 59 seconds heard Kedar talk about uh the fact the the use of proceeds has allowed us to to bring in 300 crores of interest savings 28:08 28 minutes, 8 seconds uh over the year which will mean 75 W per quarter. So you are seeing a strengthening on the P&L. Now coming to 28:17 28 minutes, 17 seconds the portfolio side that allows you to do a lot of other things outside of this because you're no longer making investments in capex. You're trying to 28:26 28 minutes, 26 seconds now see how you can get those assets to deliver maximum profitability for you. 28:32 28 minutes, 32 seconds And that's what we've done with the biosimilars business. if you tracked us which I know you have for the last three years where uh we've starting to see 28:40 28 minutes, 40 seconds that play out as operating leverage and you will see that in our generics business as well because we have a very strong portfolio that we've built in the 28:48 28 minutes, 48 seconds generics uh business as well which is very complimentary to our biosimilar business and that will kind of feed off 28:55 28 minutes, 55 seconds the uh the biosimilar capability we've built across several countries. So that is what we expect to do. We consolidate 29:04 29 minutes, 4 seconds the business in the next four quarters and set it up for acceleration in the coming fiscal 29:12 29 minutes, 12 seconds shares. I'll get back in the queue. All the best. Thank you. 29:18 29 minutes, 18 seconds Thank you. The next question is from Sanjay Kohli. 29:24 29 minutes, 24 seconds Please introduce yourself and proceed sir. 29:28 29 minutes, 28 seconds Yeah, this is uh Sanjay from Goldstone Capital. We are based we are private investment group based out of the NCR 29:35 29 minutes, 35 seconds region. Um I have a specific question on the reported numbers in the income statement. uh not being able to figure 29:44 29 minutes, 44 seconds out uh under the head um uh this items that will be classified 29:52 29 minutes, 52 seconds to reclassify to P&L uh uh later there's a large number of uh 29:59 29 minutes, 59 seconds 760 for the quarter and then uh uh which will not which will be reclassified and which will not be reclassified 30:08 30 minutes, 8 seconds about 210 crores. So uh what exactly is this? 30:15 30 minutes, 15 seconds Yeah Sanjay the items which go to if you're referring to what is captured in the other comprehensive income there are some adjustments that you do there which 30:22 30 minutes, 22 seconds don't appear in the normal P&L. I'll take it offline. Why don't you take it offline? Uh how do I do that? 30:30 30 minutes, 30 seconds No no let's get in touch after the call. 30:32 30 minutes, 32 seconds Let's speak and we'll explain. We have full backup. Okay. Thank you. Thank you. 30:41 30 minutes, 41 seconds Thank you. A reminder to all the participants that you may please click on the raise hand option to ask questions. 30:49 30 minutes, 49 seconds We'll take the next question from Anishh Bman. 30:54 30 minutes, 54 seconds Please introduce yourself and proceed with your question. 30:59 30 minutes, 59 seconds Yeah. Hi, good morning. This is Anishh Bman from Varia. Uh Shia sir, just one question for you. Um in March I think we 31:07 31 minutes, 7 seconds saw some draft guidelines coming from the FDA which talked about significantly reducing the R&D cost to get like um new 31:15 31 minutes, 15 seconds biosimilars in the market. So I just wanted your opinion on how that impacts one bioon's existing products 31:23 31 minutes, 23 seconds commercialized products and second the pipeline. Thanks. 31:27 31 minutes, 27 seconds Well thanks for your question. I think we've been cracking this well. We've been talking about this for a while where we believe that the the uh the FDA 31:36 31 minutes, 36 seconds it has led the way in uh and it's saying that you uh do not need a phase three clinical trial to uh to approve these 31:45 31 minutes, 45 seconds high quality bioimilars and that has significantly allowed us to do two things. One is it has you know reduced 31:54 31 minutes, 54 seconds the development cost by 50%. So it's half the development cost and it's accelerated products from a development 32:01 32 minutes, 1 second standpoint by at least 3 to four years which is again cutting down time for products which can get into market. uh 32:09 32 minutes, 9 seconds the common belief then is that it's lowered the bar to the market which uh is incidentally not accurate because 32:18 32 minutes, 18 seconds what has happened is while the clinical phase three trial requirement has been taken away there has been a expectation 32:27 32 minutes, 27 seconds of uh higher uh comparability standards analytical comparability standards uh 32:34 32 minutes, 34 seconds that have been set up so that you know you prove before you get to the clinical stage that your product is highly 32:41 32 minutes, 41 seconds similar to the originator drug. So the companies who've been developing this are clearly at an advantage. While it 32:49 32 minutes, 49 seconds does look attractive to get into this market and which is why you're seeing also lots of interest in this uh which is again another thing we've said for a 32:57 32 minutes, 57 seconds while that bios is the next growth area uh and you're seeing investments happen again uh with a lot of interest. It does 33:05 33 minutes, 5 seconds give companies like Bioon uh an advantage given our proven track record in CMC compatibility and analytical 33:14 33 minutes, 14 seconds characterization which will be brought to bear as um as we go forward. 33:20 33 minutes, 20 seconds So I understand it being beneficial for Bioon in terms of the products that you are still yet to bring in the market. 33:26 33 minutes, 26 seconds But what about the products where you know Bioon has a good position in the market? I mean where you are the incumbent and uh you might be facing 33:34 33 minutes, 34 seconds some incremental challenges in in those products. 33:38 33 minutes, 38 seconds We do not see an incremental challenge because the products that we already have brought to market and uh if you were to look at the products that have 33:47 33 minutes, 47 seconds been in the market have got a very strong leadership position. If you look at the ones in the US which we usually all collectively track on this call our 33:56 33 minutes, 56 seconds oncology portfolio which is in the medical benefit space have fourth of the US market today and it uh one is to get 34:04 34 minutes, 4 seconds an approval. The other is to be able to reliably supply it. Third is to do it consistently and fourth is to be able to 34:12 34 minutes, 12 seconds be a reliable partner to the physicians to the health caregivers and be a reliable supplier to the patient who's 34:19 34 minutes, 19 seconds looking forward to these products and that takes time. Credibility uh is built over a period of time. Uh I think we've 34:26 34 minutes, 26 seconds been fortunate it was uh it is something that we worked hard towards being a fully integrated player 34:34 34 minutes, 34 seconds uh has given a lot of levers to baton to uh to operate and be successful in this space. So we do not see a challenge 34:42 34 minutes, 42 seconds because of these uh revised guideline in fact it's a it's a advantage by upon the way I see. 34:50 34 minutes, 50 seconds Thanks. Thanks a lot. 34:56 34 minutes, 56 seconds Thank you. The next question is from Sedhart Nandhi. Please introduce yourself and proceed. 35:04 35 minutes, 4 seconds Hi, thanks for the opportunity. Uh this is Sedat N Gandhi from CWC. Couple of questions. One, could you give us uh an 35:13 35 minutes, 13 seconds understanding of the constant currency sales in uh each of the uh divisions? Uh 35:22 35 minutes, 22 seconds the second one was if you could give us some color in terms of market shares uh and the dollar20 million uh benchmark 35:32 35 minutes, 32 seconds that you had shared last year if you could give us an update on both of those the market shares as well as the number 35:38 35 minutes, 38 seconds of products that are above $200 million um in bioimilars. 35:44 35 minutes, 44 seconds Yeah, maybe I can take that. So see that the uh the growth numbers in rupees that we have reported if you could roughly 35:50 35 minutes, 50 seconds take about 3 4% out you'll get a dollar number for example biosimilars we are saying it's 12% growth uh year on year 35:58 35 minutes, 58 seconds in this quarter uh the dollar growth will be about 7% or so. So that's the constant currency uh number in terms of 36:06 36 minutes, 6 seconds the uh products that were beyond 200 billion. We have done good progress insulin now has cost 300 million actually this year. So that's the that's 36:14 36 minutes, 14 seconds the bracket that it has cost crossed and that includes clarene aspart human insulin DSDP. So total insulin franchise 36:22 36 minutes, 22 seconds is now beyond 300 million. uh Adali mumab is now beyond 250 million and pilgrim trasu zumab are hovering around 36:32 36 minutes, 32 seconds 200 million or slightly lower than that beasumap has crossed 100 million now this is without uh contribution from us 36:39 36 minutes, 39 seconds because a launch had just been made and then there are products like intercept uh yesintech is inching up now so that's 36:46 36 minutes, 46 seconds how sedat the progress on the uh these four products that we had spoken last Yeah, 36:55 36 minutes, 55 seconds great. And and Kedar, if you could also help with uh any update on the market shares uh uh that that you had shared 37:03 37 minutes, 3 seconds last year uh and and the uh the margin improvement that we are seeing in the 37:10 37 minutes, 10 seconds generics business adjusted for uh for Revlimate. Uh just wanted to understand is that a function of the change in the 37:17 37 minutes, 17 seconds API and formulation makes or is there something else there? 37:22 37 minutes, 22 seconds Yeah. So the sorry your first question Sedat was about the uh the you know the bioimulous margin. Sorry I I missed that. 37:33 37 minutes, 33 seconds I think he wanted market share. Market share. Yeah market share. 37:37 37 minutes, 37 seconds So market shares are steady. Uh I think the oncology market shares are steady around 23 to 25%. Clarene market shares 37:46 37 minutes, 46 seconds is also what's reported about 11. So that's fine. And uh the next question was in terms of generics margins we are 37:53 37 minutes, 53 seconds guided for the fact that from the first quarter till fourth quarter sequentially as the sales do inch up there will be a margin improvement. So I think quarter 38:02 38 minutes, 2 seconds four you are seeing uh more than 10% uh roughly 10% uh a beta margin and that's 38:09 38 minutes, 9 seconds because of both uh you know overall sales have gone up so you have operating leverage benefit as the facilities uh 38:16 38 minutes, 16 seconds get utilized and there is a positive product mix as well. Thanks. Thanks K. 38:24 38 minutes, 24 seconds Thank you. 38:27 38 minutes, 27 seconds Thank you participants to ask questions please click on the raise hand option available on your screen. 38:35 38 minutes, 35 seconds The next question is from Tushar Manuhan. Please introduce yourself and proceed. 38:42 38 minutes, 42 seconds Thanks for the opportunity. Please Tushar from Motilan. 38:46 38 minutes, 46 seconds Um uh just on the bio similars uh what could be the capacity utilization uh currently? 38:57 38 minutes, 57 seconds Um do you want to take that? 39:01 39 minutes, 1 second Yeah, I think Tushar it will obviously vary plan by plan. So there is no one number that uh we could uh give it to 39:08 39 minutes, 8 seconds you now but I think capacities do remain healthy and uh like what we mentioned last quarter in terms of upgrades and 39:16 39 minutes, 16 seconds things like that we are getting ready for the growth now but uh there's no one number that we can basically Malaysia 39:22 39 minutes, 22 seconds and you know uh Bangalore uh two and within each location like for example Malaysia now we have two lines in 39:30 39 minutes, 30 seconds Bangalore there are multiple suits as we have been speaking so there's no one number but I think utilizations are healthy. 39:38 39 minutes, 38 seconds The the uh the the direction which I'm trying to get through is that while we have a very robust portfolio and subsequent new approals that might come 39:46 39 minutes, 46 seconds through but from a capacity standpoint uh do we really need further capacity expansion or the current capacity would 39:56 39 minutes, 56 seconds be good enough to drive growth for FI2728 in particular? 40:01 40 minutes, 1 second Yeah. So as the Malaysia doubles both for drug substance and drug product I think we are fine there plus we have 40:07 40 minutes, 7 seconds some external you know CMOS as well as you know and in Bangalore I think there could be minor D bottlenecking here and 40:15 40 minutes, 15 seconds there but as of now we don't see any need for a large green field capex to and this Malaysia doubling the timeline 40:24 40 minutes, 24 seconds for this the DP has happened the line two has been is getting qualified as we're speaking and will get operational soon 40:31 40 minutes, 31 seconds uh DS uh the drug options doubling will happen towards the end of this financial year. 40:41 40 minutes, 41 seconds So effectively um so for full year 27 compared to what we are in 26 the this DP Malaysia in particular is what will 40:49 40 minutes, 49 seconds drive and some amount of debuting at Bangalore from a capacity standpoint is what will drive uh growth for FI27 is that the safe assumption? 40:59 40 minutes, 59 seconds Yes. And after that as well. Correct. 41:04 41 minutes, 4 seconds Got it. And just to complete this point like considering the earlier commentary in terms of product launches largely second half FI27. 41:13 41 minutes, 13 seconds So is it that the first half is going to be largely stable maybe currency benefit is what will drive growth for bicimilers business. 41:23 41 minutes, 23 seconds Yeah. I mean we don't guide specifically Tushar but like what Shria said uh you should budget for incremental growth from new launches more towards second 41:31 41 minutes, 31 seconds half and yes there'll be a currency advantage in the first half just to add to what uh Kedar said Tushar 41:39 41 minutes, 39 seconds uh just now you asked about the capacity and then the linkage to aspart to that 41:45 41 minutes, 45 seconds Malaysia drug product line comes on screen this quarter and as you bring products as I uh to the market. This 41:54 41 minutes, 54 seconds line starts supplying product to the market which is why the ramp up you will see happen through the year and as product moves up you will see it uh you 42:03 42 minutes, 3 seconds know ramp up towards the later half hour. That's the that's the conversation we having. The capacities are already invested in and you will see that ramp 42:12 42 minutes, 12 seconds up as it goes. It's not uh it's not like there is uh there is no demand or capacity in the beginning. It just ramps 42:20 42 minutes, 20 seconds up because the demand is set up and capacity comes on stream starting Q1. 42:26 42 minutes, 26 seconds Great sir. And just lastly to connect on this particular aspect. So will this require reinspection or we are good to go in terms of commercials? 42:34 42 minutes, 34 seconds No no we are good to go on commercial. 42:38 42 minutes, 38 seconds Great. Great. So that's on bios on the generic side just to understand we know a good amount of investments largely 42:45 42 minutes, 45 seconds behind both in terms of Apex as well as product development and now we are scaling up uh in terms of business uh 42:54 42 minutes, 54 seconds without any uh let's say a niche product so to say how to think about the scale up of this business and subsequently the 43:01 43 minutes, 1 second margin improvement um uh maybe if you can just help us understand what's the gross margin currently and how the operating leverage will play out let's say in the coming time. 43:13 43 minutes, 13 seconds I I lost the question in detail. Can you step in? I can step in after that. Go ahead. 43:18 43 minutes, 18 seconds Yeah. Yeah. I think Tushar the gross margins are in early 40s and that's uh the 2/3 API 1/3 generics that's kind of 43:25 43 minutes, 25 seconds a split today and as you know uh you know the GLP1 revenues which were about less than 10% of the overall you know 43:34 43 minutes, 34 seconds business last year in FI26 that will scale up and multiple launches that we alluded that will scale up I think the 43:42 43 minutes, 42 seconds question was what's the direction on generics growth and margins yeah so tush I think uh if You heard the opening remarks that Kiran started with. 43:52 43 minutes, 52 seconds Uh if you were to look at the base business itself, I think that is where you're starting to see growth on a sequential basis which is the first good 44:01 44 minutes, 1 second indicator that you are seeing us out the exceptional that we saw on Lena mind. 44:07 44 minutes, 7 seconds The focus for us uh going forward is very clearly going to be on margin improvement because we built state-of-the-art facilities. These 44:15 44 minutes, 15 seconds facilities have now come on stream and as demand ramps up ramps up and capacity utilization is is there you will start 44:23 44 minutes, 23 seconds seeing the u uh the part in improvement flow through but the focus is clearly going to be on uh on making sure that 44:30 44 minutes, 30 seconds that operating leverage kicks in the coming quarters. 44:34 44 minutes, 34 seconds So that would be supported by the scale up of existing product or we will require new approvals to come through. 44:41 44 minutes, 41 seconds So it is a mix of both. Many of these products the approvals come in ahead of time unlike the biosimilars business 44:48 44 minutes, 48 seconds where product approval and launch are fairly close depending on the uh patent negotiations or the patent dance. the uh 44:56 44 minutes, 56 seconds the generics portfolio benefits from a earlier uh visibility and hence we are looking forward to launches uh in the 45:03 45 minutes, 3 seconds coming years which is why the capacity investment was done ahead of time allowing us to do a lot more things which he just referred to the peptide 45:13 45 minutes, 13 seconds portfolio. Now biocom would be set up in a very different way where you have fungibility for drug substance for the peptide portfolio as it gets into the 45:21 45 minutes, 21 seconds fermentation space which is again there hardly any competition there and then you have fungibility for the drug product facilities which have also been 45:29 45 minutes, 29 seconds set up. So as that demand wraps up in the coming quarters and coming years you will start seeing better utilization and 45:37 45 minutes, 37 seconds a better return on that investment that we get. 45:41 45 minutes, 41 seconds Got it sir. And just just lastly BS is where I missed the sales for FI26. If you could just repeat 45:48 45 minutes, 48 seconds it's 100 million uh Tusha it's entered in that bracket now. This is contribution from US geography. 45:57 45 minutes, 57 seconds Got it sir. Thanks a lot. That's it from you. The next question is from Mtia Sheffoden. 46:06 46 minutes, 6 seconds Please introduce yourself and proceed sir. 46:17 46 minutes, 17 seconds Mr. Shafoden, please proceed with a question. Can you hear me? Yes. 46:24 46 minutes, 24 seconds Yes. Hi, this is B uh MTS Shefferin from Barclays. Uh couple of questions for me uh with regards to your US dollar bonds. 46:33 46 minutes, 33 seconds Uh would you be able to provide some color on your hedging policy? I know you have benefits I mean currency benefits 46:40 46 minutes, 40 seconds but um any specific hedging policy you have on the US dollar bonds that's my first question 46:47 46 minutes, 47 seconds yeahas on the bonds we don't have to hedge because we have a natural hedge we are largely a dollarized company so we 46:54 46 minutes, 54 seconds have significant dollar cash flows so we don't hedge our uh loan book actually good stuff secondly uh also on your 47:04 47 minutes, 4 seconds dollar bonds I mean um your bonds become collable from October this year. Um although at a premium price but how are 47:13 47 minutes, 13 seconds you thinking on the bonds given that your um US dollar bonds are at 6.67% 47:19 47 minutes, 19 seconds coupon and you have talked about a focus on reducing your average cost of debt. 47:27 47 minutes, 27 seconds Yeah, Intas we are tracking the situation. We are happy that bonds are trading at a premium and you must have noted in the last few months both the 47:35 47 minutes, 35 seconds rating agencies have upgraded the rating. So we are watching the situation. I think we have to evaluate whether it makes sense to pay the call 47:42 47 minutes, 42 seconds premium uh in the first year. There is as you know this uh you know 50% call premium in the first year 25% in the 47:51 47 minutes, 51 seconds next year. So that's the five NC2 structure that we had. So at this point of time we are watching the situation. 47:58 47 minutes, 58 seconds We are happy with the way things have progressed and we are happy with the upgrades and the idea will be to continue on this journey. 48:06 48 minutes, 6 seconds Great. Thank you. Thanks. Thanks Indians. 48:11 48 minutes, 11 seconds Thank you. The next question is from Surya Patra. Please introduce yourself and proceed. 48:21 48 minutes, 21 seconds This is Surya uh from Tuliv Capital. Uh thank you for this opportunity. Uh couple of questions. First with uh the 48:29 48 minutes, 29 seconds ramp up that we are likely to see in the biosimilar portfolio although we have started seeing strong growth in the US 48:37 48 minutes, 37 seconds business front given the kind of products that has been launched uh during FI26 and the the products like uh 48:46 48 minutes, 46 seconds uh uh the Ilia that is there along with uh Dennis contribution in the current 48:52 48 minutes, 52 seconds financial year. So what is the kind of a uh kind of a momentum that we would see 49:00 49 minutes for the US business and uh what is the likely share of US business in FI27 49:07 49 minutes, 7 seconds versus FI26 because basically what we are seeing that okay uh so far it is the 49:14 49 minutes, 14 seconds non- US would have supported the growth meaningfully but now there is a strong labor for the ES to perform and really 49:22 49 minutes, 22 seconds contribute meaningfully to the margins also. So how the mix likely to see the sip? 49:30 49 minutes, 30 seconds Thanks. Thanks Surya for for your question and I think u this is this is very important if you uh two things that I will say one is in the past you heard 49:39 49 minutes, 39 seconds me say that uh that market share is not necessarily the only proxy for success and u the other thing that I've said is 49:48 49 minutes, 48 seconds that uh market share and ASP have always been inversely proportional in a medical benefit product and uh we've been uh 49:56 49 minutes, 56 seconds very clear about making sure that we will grow business profitably. Growth is only when it's profitable. So, we've 50:04 50 minutes, 4 seconds been very careful as we picked up market shares. Uh the the medical benefit products that you see today where we've 50:11 50 minutes, 11 seconds uh you know had a fourth of the market, we've focused on making sure that uh that we've retained that profitably. Uh 50:18 50 minutes, 18 seconds we would be fine if that uh that market share is not the proxy for where we are but we will grow that slowly. uh the 50:26 50 minutes, 26 seconds market has examples where you have tried to gain market share very quickly but then you crash out also very fast 50:34 50 minutes, 34 seconds because that's how the medical benefit space operates because you have a declining average selling price uh which is very contrary to how the pharmacy 50:43 50 minutes, 43 seconds benefit space operates. uh we can have an offline discussion to walk you through the model but last uh quarter 50:50 50 minutes, 50 seconds when we had a conversation on how we are approaching Denosuma which is another important asset that we've launched in the US it's branded Kiran just talked 50:59 50 minutes, 59 seconds about it uh in her opening remarks it's branded Bossaya and and Okelso we will be very careful in doing it because one 51:07 51 minutes, 7 seconds of the brands is in in the pharmacy benefit space and the other one is in medically benefit and last quarter as I 51:14 51 minutes, 14 seconds was saying our chief commercial officer Matt Eric walked the uh the uh the team 51:21 51 minutes, 21 seconds on the call about our strategy to commercialize them. So our focus is always profitable growth and not 51:28 51 minutes, 28 seconds necessarily market shares. So we'll be very careful in doing that. So I wouldn't necessarily look at market shares as the only proxy uh for success. 51:38 51 minutes, 38 seconds numbers will play out play out over the year and you will see them being more enduring uh over a period of time. So 51:46 51 minutes, 46 seconds yeah, I would advise you to look at that. My guidance would be look at a broader quarter rather than trying to look at this as a quarteronquarter 51:55 51 minutes, 55 seconds uh immediate launch and and an impact on market share kind of a business. Yeah, sir. uh is there any clarity on uh the 52:04 52 minutes, 4 seconds exclusivity that we could have for Ilia now for so foria when we've so our 52:13 52 minutes, 13 seconds biosimilar position that we got as I said at the beginning there is a bioimilar that is there in the market already 52:21 52 minutes, 21 seconds and we've seen encouraging numbers from there which tells us that we can actually commercialize that market very 52:28 52 minutes, 28 seconds well which is good news the Second part is we uh have our terms for negotiation and settlement are confidential. Uh and 52:36 52 minutes, 36 seconds likewise we wouldn't want to comment on others but we believe we will be in a good position when we get out of the 52:43 52 minutes, 43 seconds gates uh for the launch in the US. Uh as that plays out soon you can see it come through but it wouldn't be fair on my 52:51 52 minutes, 51 seconds part to comment on the terms of the settlement. 52:54 52 minutes, 54 seconds Okay. uh this insulin opportunity has been a kind of a uh or the kind of situation market 53:02 53 minutes, 2 seconds situation in the global market given the GLP play and all that. So this is making us or position us very strongly in the 53:10 53 minutes, 10 seconds insulin side and the doubling capacity what we are talking of also that is also complementing that uh story. So hence uh 53:20 53 minutes, 20 seconds now this expanded capacity what we are talking sir what is the kind of a uh liver that it is adding to the the 53:28 53 minutes, 28 seconds current insulin revenue of around $350 odd billion dollar what ka just mentioned. 53:34 53 minutes, 34 seconds So again uh we've been very clear right from the beginning that uh we are in in that sense the the only insulins company 53:42 53 minutes, 42 seconds which has a peptides portfolio and and that's something that we've heavily indexed on. Uh we've built a very strong 53:50 53 minutes, 50 seconds insulin franchise globally. uh there are several markets I know we discussed the US and and uh certain European countries 53:58 53 minutes, 58 seconds in this call but there are several countries in emerging markets where our market shares are in excess of 50%. Uh and we had a very responsible supplier. 54:07 54 minutes, 7 seconds We've continued to grow that franchise. 54:09 54 minutes, 9 seconds In dollar terms, we've we've refrained from giving numbers, but we see a a very encouraging response in terms of how the 54:18 54 minutes, 18 seconds products grown uh both for the long acting and the short acting insulin or even the reccominant human insulin uh 54:26 54 minutes, 26 seconds which I'm constantly reminded is a very large uh you know requirement in in several countries. So we remain 54:32 54 minutes, 32 seconds committed Surya and uh and we made these investments ahead of time. So you will see us uh you know get those products to 54:41 54 minutes, 41 seconds market. It'll start playing out in the numbers starting second half of this year is is our uh view. 54:48 54 minutes, 48 seconds Last one question from myself uh so having seen the integration well uh and also having done investment into the 54:57 54 minutes, 57 seconds generics uh in advance. So what should be the investment priorities for FI27 now for you? 55:06 55 minutes, 6 seconds the most like I think I think if you got Kiran in the beginning most of our investments are behind us surya and uh 55:13 55 minutes, 13 seconds our focus is always going to be now that you have a strong balance sheet and you're looking to have operating leverage that's come in the focus is 55:22 55 minutes, 22 seconds going to be capital allocation at this stage will only focus on saying how do you profitably sustainably grow the 55:28 55 minutes, 28 seconds business uh we're not looking at very big ticket green field kind of expansions because we don't need it to 55:36 55 minutes, 36 seconds support the business plan that's going forward. So focus is now on execution, consolidating the business and walking 55:43 55 minutes, 43 seconds it through the quarters as we bring the business up in a sustainable manner. You will see the the epitar growth that 55:50 55 minutes, 50 seconds you've seen already in the margin profile improvement. The focus will be to sustainably do that on a consistent basis. 55:58 55 minutes, 58 seconds Sure. That means cap capex is likely to subside. 56:02 56 minutes, 2 seconds Yes, we've already said that in Yeah. Okay, sure. Thank you sir. Wish you all the best. 56:10 56 minutes, 10 seconds Thank you. We'll take the next question from Vishal Mananda. 56:15 56 minutes, 15 seconds Please introduce yourself and proceed sir. 56:20 56 minutes, 20 seconds Hi, good morning. This is Vishal from systematics. Uh can you break up your biosimilar sales between US emerging US Europe and the rest of world? 56:31 56 minutes, 31 seconds Uh yeah vishal for the last two quarters the mix of North America is slightly higher. Uh in the past we have said 56:38 56 minutes, 38 seconds North America is about 40 Europe and uh little of Japan 35 and emerging market 25. Our hunch is over the long term 56:47 56 minutes, 47 seconds that's how it will stay last two quarters because of prioritization and higher growth. North America is higher and that helps us obviously in the 56:55 56 minutes, 55 seconds margins. So let's let's watch how this pans out. We we obviously want all three geographies to grow equally. 57:03 57 minutes, 3 seconds And which would be your largest product as of now within the biosimilar portfolio? 57:08 57 minutes, 8 seconds Yeah, within the biosimilars norm led by us is about 46% this quarter. Uh last 57:14 57 minutes, 14 seconds quarter is it was slightly higher and I think question was on products. I think you given the product which products. 57:25 57 minutes, 25 seconds Yeah. Yeah. So product wise globally visual we have already spoken uh the insurin franchise adal mum app now we 57:32 57 minutes, 32 seconds don't break products into geography that will be too much of a granularity but happy to talk I mean globally like globally which is 57:40 57 minutes, 40 seconds your largest bio similar code product yeah yeah we just spoke about vishal total insulin franchise globally is cross 300 million adali mumbai globally 57:48 57 minutes, 48 seconds again is beyond 250 million and then the other two key oncology assets are little less than 200 million basumab is now 100 57:56 57 minutes, 56 seconds million plus and then there is yes in tech there iscept that's the mix and are we seeing annual price decline 58:04 58 minutes, 4 seconds in the base portfolio and that or that is more or less flat and we'll uh if you could share some color on the base 58:12 58 minutes, 12 seconds business erosion or that remains flat yeah so subject to so I think each geography has its own pattern Europe is 58:19 58 minutes, 19 seconds usually very steady and North America because of the strategy that we deployed on the ASP for the last 3 years we are not seen much erogen but yes I think we 58:28 58 minutes, 28 seconds should budget for some aerosion visha but tough to tell you one specific number because it will vary depending upon the product life cycle 58:36 58 minutes, 36 seconds understood and just one final one what uh percentage of our biosimilar sales is manufactured inhouse 58:44 58 minutes, 44 seconds yeah I mean the uh the the whole portfolio is inhouse except Adali mumab and iter 58:52 58 minutes, 52 seconds uh yeah and we do take some help from CMOS in the human insulin but we can 58:59 58 minutes, 59 seconds come back to you with a specific number visha. Okay. Thank you very much. Thank you. 59:07 59 minutes, 7 seconds Okay. The next question is from Nitan Agarwal. 59:12 59 minutes, 12 seconds Please introduce yourself and proceed sir. 59:21 59 minutes, 21 seconds Mr. Agarwal please proceed with the question. Hello. 59:30 59 minutes, 30 seconds Yes sir. Please proceed. 59:31 59 minutes, 31 seconds Yeah. So on the insulin business, can you just give us a sense? You talked about you have now the short acting, long acting as well as the recumbent 59:39 59 minutes, 39 seconds insulin. What is the addressable market globally for you know across these three you know sort of instruments put together you know from from a from a size perspective? 59:49 59 minutes, 49 seconds From a from a dollar number perspective, I think we can get you the numbers, but will be around at 78 billion dollars overall. Insulin RHI is about a billion 59:59 59 minutes, 59 seconds and a half globally and you'll see the other two be in the region of about 3 billion. But the fact is that these 1:00:06 1 hour, 6 seconds numbers are not as reported by Iuvia. It changes significantly as you get towards Zimmer markets and tender businesses. uh 1:00:16 1 hour, 16 seconds but uh needless to say it is a significant business with uh just the originators and uh limited number of 1:00:23 1 hour, 23 seconds players in the US you have just us which has a bio similar insulin so uh that's a tremendous franchise to be focused on 1:00:31 1 hour, 31 seconds there are other attractive assets that uh that certain innovators are focused on which which interest them that leaves 1:00:38 1 hour, 38 seconds a very large playing field for uh for bioon and sh on that account you know they've been offered some recent approvals with Chinese companies which have come 1:00:47 1 hour, 47 seconds through. Uh how should one think about that? In the past, Chinese have had a tendency to disrupt markets. Uh so do 1:00:54 1 hour, 54 seconds you foresee some of those challenges for us in the broader incident space? I think the first indication of this is that it's it signals the fact that what 1:01:03 1 hour, 1 minute, 3 seconds we've been saying again in validates is that it's a extremely attractive market for people to come in and we've seen sort of European companies wanting to 1:01:11 1 hour, 1 minute, 11 seconds enter as well partnering with with other companies from China and this is clearly what we've been saying it's a tremendous 1:01:17 1 hour, 1 minute, 17 seconds opportunity the product remains uh in in business in requirement several decades after it's commercialized there are 1:01:26 1 hour, 1 minute, 26 seconds limited players and the product's going to be there forever. ever. So it kind of validates our thesis on insulin and uh 1:01:33 1 hour, 1 minute, 33 seconds again it also tells you that it takes a long time to develop it unless you're fully integrated and have the scale that we've built over decades. Being 1:01:42 1 hour, 1 minute, 42 seconds successful is uh is is not just having a product or an approval. You need to be consistent. you need to be in a position 1:01:48 1 hour, 1 minute, 48 seconds to to have fermentation capability, the drug product capability, device 1:01:55 1 hour, 1 minute, 55 seconds capability, navigate the IP space. So, it's a it's a long-term commitment which Bon has done over the decades and we are committed to this space. 1:02:06 1 hour, 2 minutes, 6 seconds Thank you so much. 1:02:11 1 hour, 2 minutes, 11 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference back to Mr. 1:02:18 1 hour, 2 minutes, 18 seconds Prashant Na for closing comments. Thank you and over to you sir. 1:02:22 1 hour, 2 minutes, 22 seconds Yeah, thanks Michelle. Uh thank you everyone for joining the call. Uh if you have any additional questions uh please get in touch with the IR team and we'll be happy to address them. Uh thank you. 1:02:34 1 hour, 2 minutes, 34 seconds Thank you members of the management. On behalf of Bioon Limited that concludes this conference. Thank you for joining us and you may exit the meeting now. 1:02:42 1 hour, 2 minutes, 42 seconds Thank you.