Sai Life Sciences · tone and specificity signals across the available quarters.
Language signals
We don't control stocking or destocking. We probably get to know it at the time when it actually happens and kind of lot of time gets blindsided. The only way that we can protect ourselves or minimize impacts against these stockings is to make sure that you have a slightly larger portfolio and we are not concentrated on one two products.
I know everybody talks about margin but the reality is we understand that pretty much every CDMO player is subscale compared to China who are operating at 28-30% margin and if you optimize for margin you potentially will be leaving market share and not never be able to scale and compete in the long term.
We would optimize margin. Can there be additional? Yes, there will be. Our internal targets are generally higher than the street targets. But I would leave the 28-30% as the margin from a street perspective while we internally work to do higher.
We continue to believe that our growth will be led by pharma driven by increasing outsourcing intensity, movement of biotech assets into pharma pipelines and strategic long-term partnerships.
Our approach to capex remains science-led rather than capacity heavy, ensuring flexibility and higher long-term returns.
The important part of being a CR and RP is to be a fast follower, be close enough to be able to change the trend but not be on the bleeding edge where you left with the dead investment.