Lupin Ltd — Q3 FY26

Lupin Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8kHWHffSbT8 Published: 3 months ago

0:00 Evening and welcome welcome to Lupin Limited Q3 FY26 0:07 7 seconds earnings conference call. Thank you for your participation in the call today. 0:12 12 seconds Please note that all participants line will be in listenon mode and there will be an opportunity for you to ask questions after the opening remarks. 0:21 21 seconds Please also note that this conference is on recording mode. I now hand over the conference to the management. Thank you and over to you. 0:30 30 seconds Good evening everyone and thank you for joining us. I'm pleased to welcome you to Q3 facilia 26 earnings call. Join me 0:39 39 seconds today are our managing director Nesh AF for Romesh and our head of investor relations Ravi. We look forward to 0:47 47 seconds sharing our Q3 performance and our outlook for the year ahead. 0:53 53 seconds We are pleased to report another quarter of strong execution with revenues passing last quarter performance. 1:01 1 minute, 1 second This marks our 14th consecutive quarter of yearon-year growth. 1:07 1 minute, 7 seconds While the US continued to perform well, I would like to highlight that growth this quarter was broad-based. Most of 1:14 1 minute, 14 seconds our regions including India prescription business, Europe, LATAM and other emerging markets deliver doubledigit year growth. 1:25 1 minute, 25 seconds Turn businesses was particularly strong for us in the US the highest sales in the region so far. 1:47 1 minute, 47 seconds exclusivity. Our first product from the proprietary Naomi long-acting injector 2:05 2 minutes, 5 seconds milestone this quarter was the successful US FDA inspection of a biologics facility in Pune followed by the approval of grass. 2:14 2 minutes, 14 seconds They can't hear us and some issue with the internet connections. Yeah, even mind they can't hear at all. 2:23 2 minutes, 23 seconds Yeah, we losing you ma'am. Yeah, there's a connection issue. Please continue. 2:32 2 minutes, 32 seconds Yeah, you can continue ma'am. A minute. 2:34 2 minutes, 34 seconds Yeah. Uh you can hear me? Yeah. Yeah. No, we can. 2:39 2 minutes, 39 seconds Okay. So, so an important was a successful inspection of 2:49 2 minutes, 49 seconds A first for the US market. We have entered into an exclusive licensing. 3:10 3 minutes, 10 seconds Can we just pause? 3:14 3 minutes, 14 seconds Okay, we'll just pause for a couple of connected issues that try to let me change to another device. 3:41 3 minutes, 41 seconds They can't hear us at all. 3:44 3 minutes, 44 seconds We can but we losing the speech. I mean the staggered speech and dial from Zoom again. 3:52 3 minutes, 52 seconds What should we do from Zoom? 3:54 3 minutes, 54 seconds Yeah, we we'll restart. I think okay. 3:58 3 minutes, 58 seconds We'll keep the connection on use the device. 4:07 4 minutes, 7 seconds Recording progress. muted. 4:20 4 minutes, 20 seconds Yeah. Can you hear us now? We can, sir. Okay. Okay. Is this clear? Yeah, it's clear. 4:27 4 minutes, 27 seconds Okay. And um um could they hear us in the beginning or should we start from the beginning? 4:34 4 minutes, 34 seconds It's better if we start from the beginning now. 4:36 4 minutes, 36 seconds Okay. So, thank you. So, welcome everyone. We are pleased to report another quarter of strong execution with revenues 4:44 4 minutes, 44 seconds surpassing last quarter's record performance. This marks our 14th consecutive quarter of year-on-year 4:51 4 minutes, 51 seconds growth. While the US continued to perform well, I would like to highlight the growth this quarter was broad-based. 4:58 4 minutes, 58 seconds Most of our regions including India prescription business, Europe, LATAM and other emerging markets delivered double-digit year-on-year growth. 5:08 5 minutes, 8 seconds Turning to individual business segments, this quarter was a particularly strong one for us in the US where we recorded the highest sales in the region so far. 5:18 5 minutes, 18 seconds Growth was driven by new products such as Tolvapin where we benefited from being the only generic on the market. We 5:25 5 minutes, 25 seconds also launched generic respirone concept with CGT exclusivity, first product from our proprietary Nomi PL long-acting 5:33 5 minutes, 33 seconds injectable platform. A base business also grew supported by higher volumes and seasonal tailwinds more than 5:41 5 minutes, 41 seconds offsetting low singledigit price erosion. 5:45 5 minutes, 45 seconds An important milestone this quarter was the successful US FDA inspection of our biologics facility in Pune followed by 5:52 5 minutes, 52 seconds the approval of Pville grassim our first biosimilar for the US market. We have entered into an exclusive licensing 6:00 6 minutes agreement with Valerum to commercialize the product with an expected launch before the end of this quarter. We see 6:07 6 minutes, 7 seconds meaningful tailwinds in this segment driven by favorable regulatory and commercial developments. As mentioned 6:14 6 minutes, 14 seconds earlier, we remain focused on doubling the share of complex products in our US business over the next few years while 6:21 6 minutes, 21 seconds continuing to expand our specialty portfolio through a mix of organic initiatives and targeted acquisitions. 6:29 6 minutes, 29 seconds Moving to India, revenues grew 5.6% 6% yearonear with a core prescription business growing 10.9% 6:39 6 minutes, 39 seconds partially offset by lower local tender sales in our global institutional business on a 9-month basis prescription 6:46 6 minutes, 46 seconds growth stood at 9.4% broadly in line with IPM growth of 9.3%. 6:53 6 minutes, 53 seconds Excluding the impact of loss of exclusivity on products such as Giblio and Ajadua domestic growth was 11.2% 2% year-on-year for the 9 months. 7:05 7 minutes, 5 seconds Volume growth remains strong at 5.6% and the chronic segment now accounts for 7:11 7 minutes, 11 seconds 67% of our portfolio up from 65% last quarter. 7:17 7 minutes, 17 seconds Both cardiac and respiratory therapies continued their strong momentum growing at 1.4 times and 1.6 times their respective market growth. 7:28 7 minutes, 28 seconds During the quarter, we also launched two new divisions, including one focused on obesity. This division will engage 7:35 7 minutes, 35 seconds diabetists, cardiologists, and gastroenterologists ahead of the planned day one launch of injectable semaglutide while we continue 7:44 7 minutes, 44 seconds parallel development of the oral formulation. 7:48 7 minutes, 48 seconds In addition, we entered into a strategic partnership with Ganon Lee of China for buffanglutide, 7:55 7 minutes, 55 seconds a novel fortnightly GLP-1 agonist, further strengthening our diabetes and obesity portfolio in India. 8:04 8 minutes, 4 seconds We remain confident that our India formulations business will continue to outperform IPM by 1.2 2 to 1.3 times 8:13 8 minutes, 13 seconds supported by our strong sales force of over 11,000 people and pipeline of more than 80 new product launches over the 8:21 8 minutes, 21 seconds coming years including innovative in-house and inlicensed products. 8:26 8 minutes, 26 seconds Our other developed markets Europe, Canada, and Australia accounted for 11% of our total sales and delivered 11% 8:35 8 minutes, 35 seconds year-on-year growth this quarter. We expect this contribution to increase as we roll out our pipeline of complex 8:43 8 minutes, 43 seconds products and complete the acquisition of Vizioarma which we expect to close this quarter. 8:51 8 minutes, 51 seconds Emerging markets delivered an impressive 42% year-on-year growth led by Brazil, Mexico, and Philippines. Brazil in 9:00 9 minutes particular maintained strong momentum post the turnaround last quarter growing 99% year-onear in local currency driven 9:08 9 minutes, 8 seconds by successful commercialization of depalle flowen on R&D spend was 7.5% of sales this 9:18 9 minutes, 18 seconds quarter among the highest in the Indian farmer sector reflecting our continued focus on complex and specialty platforms 9:26 9 minutes, 26 seconds we have over 50 active products in the pipeline line with near-term emphasis on respiratory complex injectables and biosimilars. 9:35 9 minutes, 35 seconds Over time, we expect a growing share of R&D investment to flow into specialty programs and value added medicines 9:44 9 minutes, 44 seconds including long-acting injectables, green propellant products and 505B2 assets. 9:51 9 minutes, 51 seconds We are also strengthening our India innovation portfolio through both in-house development and inlicensing of latestage assets. 10:01 10 minutes, 1 second On the compliance front, we received NI status with zero observations for our Nagpur unit one facility along with EIR 10:11 10 minutes, 11 seconds for Nagpur unit 2 injectables and the Orurangabad facility. We remain fully committed to maintaining the highest 10:19 10 minutes, 19 seconds global quality and regulatory standards across all our sites. 10:24 10 minutes, 24 seconds Before I hand it over to Romesh, I would like to reiterate that we remain optimistic about our growth prospects. 10:31 10 minutes, 31 seconds We have clear strategic drivers in place to d to deliver sustainable long-term growth across our businesses. 10:39 10 minutes, 39 seconds Innovation will be a key differentiator supported by continued investments in technology including AI to make the 10:47 10 minutes, 47 seconds company company future ready and resilient as we navigate opportunities and challenges ahead. With that, I'll 10:55 10 minutes, 55 seconds now hand it over to Romesh to walk you through a detailed review of our financial performance. 11:03 11 minutes, 3 seconds Thank you, Venita. Friends, I welcome you all to our Q3 FI26 earnings call. As you may have seen from the results, we 11:12 11 minutes, 12 seconds have again delivered a very strong quarter, continuing the momentum of the last few quarters. Revenue from operations in EITA scaled a new high, 11:20 11 minutes, 20 seconds exceeding the record performance we had delivered last quarter. EITA margins reached 31.1% 681 basis points higher than the similar 11:29 11 minutes, 29 seconds period last year. sales. Diving to the numbers, total revenues from operations the quarter came in at 7,168 crores as 11:38 11 minutes, 38 seconds compared to 5,768 crores in Q3 FI25 last year, a growth of 24% year-on-year. 11:44 11 minutes, 44 seconds Amongst the key markets, the US grew by 46% yearonear. India grew 5.6% yearonear. Other developed markets have 11:52 11 minutes, 52 seconds grown 11% yearonear and and emerging markets have grown 42% year-on-year. 11:57 11 minutes, 57 seconds During this quarter, our GIB business grew by 7% yearonear. The US business, coming to the US business, this quarter, 12:05 12 minutes, 5 seconds the US business recorded sales of USD 350 million, a growth of 46% year-on-year and 11% quarteron quarter 12:13 12 minutes, 13 seconds on constant currency basis. The highest sales ever recorded for this business. 12:18 12 minutes, 18 seconds This growth has been due to new product launches including Tolvatin and growth in base number base business led by higher volumes and seasonality offset by 12:27 12 minutes, 27 seconds low singledigit price declines. We're pleased with the recent approval of PE PEG Philimilar 12:35 12 minutes, 35 seconds appro for the US by which we launch which we expect to launch shortly. We have a very exciting pipeline of products in this segment which 12:43 12 minutes, 43 seconds reinforces our growth prospects in the US going forward. 12:47 12 minutes, 47 seconds Turning to India, the India region business grew by 5.6% yearon year during the year. I'd like to highlight that the core prescription business grew by 10.9% yearonear during Q3 FI26. 12:59 12 minutes, 59 seconds For 9th month period, our prescription business has grown 9.4% against IPM growth of 9.3%. 13:06 13 minutes, 6 seconds In fact, if you normalize to the loss of exclusivity on some of our diabetes products, the growth would have been 11.2% in the 9 months period. Key 13:15 13 minutes, 15 seconds segments like respiratory and cardiovascular grew 1.6 and 1.3 times IPM respectively during the 9-month 13:22 13 minutes, 22 seconds period. Chronic share has increased to 67% from the 65% levels in Q2 and share 13:29 13 minutes, 29 seconds of inlicensed products is only 6% as compared to around 12% in FI25 which also has a positive impact on our 13:37 13 minutes, 37 seconds profitability going ahead. other developed markets as as far as other developed markets are concerned which includes markets in Europe, Canada and 13:45 13 minutes, 45 seconds Australia. Revenues in these geographies was 812 crores representing a growth of 11% yearonear 13:52 13 minutes, 52 seconds other developed markets constitute around 11% of our total sales and their share is expected to increase going ahead with the anticipated closure of 14:00 14 minutes the acquisition of Visu Farmer during this quarter. 14:05 14 minutes, 5 seconds Emerging markets grew at 42% year-onear with strong growth in Brazil, Mexico, and Philippines offsetting tempered 14:12 14 minutes, 12 seconds performance in South Africa. Brazil has another strong quarter growing at 99% yearon-year in local currency terms. 14:21 14 minutes, 21 seconds Getting on to the P&L other operating income. Other operating income for the quarter was at rupees 67 crores as 14:29 14 minutes, 29 seconds against 149 crores in Q3 FI25 and 216 crores in Q2 FI26 largely impacted by 14:37 14 minutes, 37 seconds lower export benefits from the PLI scheme during the quarter. Gross margins gross margins continued upward 14:43 14 minutes, 43 seconds trajectory during the quarter at 73.5% up from 69.4% 4% in Q3 last year and up 14:50 14 minutes, 50 seconds from 73.3% in Q2 FI26. This 420 basis points yearon-year improvement is driven 14:57 14 minutes, 57 seconds by multiple factors which includes better product mix, lower share of inlicens products in uh including higher 15:04 15 minutes, 4 seconds profitability and loss of exclusivity products in India, increased volumes and other cost improvements and efficiencies which you have undertaken over the last 15:12 15 minutes, 12 seconds several quarters. employee benefit expenses. This looks at 1,143 crores, an 15:20 15 minutes, 20 seconds increase of 16.1% yearonear from 984 crores in Q325, translating to 16.1% of sales as 15:28 15 minutes, 28 seconds compared to 17.5% in Q3 last year. This change is largely attributable to higher cost due to regular annual increments and business growth during the period. 15:39 15 minutes, 39 seconds Manufacturing and other expenses. Q3 FI26 manufacturing other expenses came in at rupees 1,937 crores increasing 15:48 15 minutes, 48 seconds 14.2% yearonear from rupees 1696 crores in Q3 FI25 translate to translating to 15:55 15 minutes, 55 seconds 27.3% of sales we service 30.2% last year the expenses were higher mainly due 16:02 16 minutes, 2 seconds to higher volumes in the normal course of business. R&D at rupees 535 crores is 7 and a half% of sales as compared to 16:11 16 minutes, 11 seconds 441 crores in Q3 last year with almost 70% of our R&D directed towards complex portfolio for the 9 months ended 9 16:20 16 minutes, 20 seconds months FI26 R&D spend at rupees 1,555 crores is 7% 7.7% of sales for the full 16:30 16 minutes, 30 seconds year as indicated we expect R&D to be around 7 and a half% to 8 and a half% % EIA EIA excluding forex and other income 16:38 16 minutes, 38 seconds during the quarter was 2210 crores visav 166 crores to the same period last year 16:45 16 minutes, 45 seconds an increase of 62% yearonear with a margin of 31.1% we have 24.3% last year 16:52 16 minutes, 52 seconds the same period and increase of 681 basis points over the last year on a 9-month basis aa was 5,88 crores an 17:01 17 minutes, 1 second increase of 50% year-on-year with margins of 29 39.8% we service 24% over over the same period last year. We 17:09 17 minutes, 9 seconds expect fullear EITA margins to be in the range of 27 to 28% higher than our earlier guidance of 25 to 26%. Whilst we 17:18 17 minutes, 18 seconds expect business to continue to exhibit robust performance overall margins in Q4 would be tempered by high higher higher R&D expenditure and a lower PLI income. 17:28 17 minutes, 28 seconds ETR turning to the tax rate ETR is expected to be about 21.4% and 4% for the 9 months FI 9 months FI26 for the full 17:37 17 minutes, 37 seconds year we expect ATR to be about 21 to 22% operating working capital which stands 17:45 17 minutes, 45 seconds at 7,948 crores as of 31st December against 6,821 crores as of 31st December 25 which translates to 101 days of 17:54 17 minutes, 54 seconds working capital against 103 days in the previous quarter. 17:59 17 minutes, 59 seconds Net cash net cash stood at 2,879 crores as against 310 crores as of 31st March 18:06 18 minutes, 6 seconds 205. Whilst we focus on increased cash generation for our business, we would like to highlight that we continue to explore strategic allocation of our 18:13 18 minutes, 13 seconds capital to ensure the long-term mission of the company including on the specialtity front ESG. On the 18:20 18 minutes, 20 seconds sustainability front, Lupin has achieved the highest A leadership rating from CDP for both climate change and water security, placing us amongst the select 18:29 18 minutes, 29 seconds group of group of global companies recognized for excellence in sustainability performance and transparency of disclosures. In 18:36 18 minutes, 36 seconds addition, Lupin's greenhouse gases emissions reduction targets have been formally approved by the year is BTI, reinforcing the scientific rigor and credibility of our climate ambitions. 18:47 18 minutes, 47 seconds Together, these recognitions reflect the strength of our climate strategy, disciplined execution, and our unwavering commitment to creating 18:55 18 minutes, 55 seconds long-term sustainable value for all our stakeholders. 18:59 18 minutes, 59 seconds With this, we open the floor for discussions. 19:03 19 minutes, 3 seconds Thank you very much, sir. We will now begin the question and answer session. 19:08 19 minutes, 8 seconds Requested all the participants who wish to ask questions to raise your hands on the participant tab on the screen. We will wait for 30 seconds for the queue to assemble. Thank you. 19:53 19 minutes, 53 seconds Thank you for your patience. Uh we'll take the first question from Nikl Matusi. 19:58 19 minutes, 58 seconds Yeah. Hi, good evening. This is Nikil from SDFC mutual fund. Um I have two questions. Uh first and foremost, congrats on the continued great 20:06 20 minutes, 6 seconds performance. Um now my first question is on the US outlook, let's say in going into FI 29 as well. Uh now obviously 20:15 20 minutes, 15 seconds with the Mirabon settlement it seems that Mirabon should continue into FI27 and and certain part of FI28 as well. Uh 20:24 20 minutes, 24 seconds but ma'am can you highlight what will be the drivers of the US business once tollapan and mira start tapering off. Um 20:31 20 minutes, 31 seconds I believe you have I mean you have praium approval we have talked about other respiratory assets. Um so any help on uh how should we look at launches 20:40 20 minutes, 40 seconds meaningful launches over the next two years so that once mira come off uh and you go back to a growth part in the US that will be helpful any color on this 20:50 20 minutes, 50 seconds sure yeah so um you know we very pleased that we have mirac 21:00 21 minutes um hopefully tool also continues just given the size of the product and uh the share we have so far maybe we have 35% 21:08 21 minutes, 8 seconds share of that market given that it's a specialty product so we continue to build um uh share um on on tollvapin 21:17 21 minutes, 17 seconds having said that you know we have multiple new product appro u you know launches planned over the next couple of years in particular on the injectables 21:26 21 minutes, 26 seconds front some on the respiratory front as well as the bioimilars front um so as I 21:33 21 minutes, 33 seconds look at um um you know The last couple of quarters we've got approvals for injectable products like glucagon, 21:40 21 minutes, 40 seconds lagglutide, resperadone, consta and with the peg peg grass approval getting into the biosimilars market as well to build the 21:49 21 minutes, 49 seconds institutional business. So the institutional business will be a material build over the next three years and we see see it u really ramping up 21:58 21 minutes, 58 seconds very nicely over the next three to five years to be a material contributor to the US business. 22:04 22 minutes, 4 seconds Likewise, the biosimilar business in particular will also be um a material contributor to the US um with Pegville 22:12 22 minutes, 12 seconds grassim then reanab hopefully will be able to launch in fiscal year 27 and uh then the onbody um 22:21 22 minutes, 21 seconds pegville grassim which is making good progress and then f laborerscept and um uh eternept in um 29 calendar 29 that 22:31 22 minutes, 31 seconds will be actually fiscal year 30 Um and then we have other products that we planned as well like mealismab that are 22:38 22 minutes, 38 seconds in the pipeline. So pretty rich pipeline of bioimilars that um we believe uh given the current uh uh momentum in the 22:47 22 minutes, 47 seconds marketplace access um into the market will be a material growth driver for the organization. The um additional um I'd 22:56 22 minutes, 56 seconds say um uh growth driver which uh so far has not featured into our business is 505B2s. The company has been working on 23:05 23 minutes, 5 seconds 505B2s for the past couple of years especially on the injectable front in fiscal year 27. We will start our first 23:12 23 minutes, 12 seconds 505B2 and that's going to ramp up in the next couple of years as a material contributor as well. So um we have 23:20 23 minutes, 20 seconds multiple growth drivers at this point for the organization and feel fairly confident that um uh you know we can one 23:27 23 minutes, 27 seconds sustain this billion plus revenue level over the next couple of years and build from there as we bring u you know 23:34 23 minutes, 34 seconds material uh biosimilars respiratory products as well as um injectables um including the other first two files that we have in our portfolio to market. 23:47 23 minutes, 47 seconds Yep. Um so if I look at the three bio similars that we have talked about in the more near-term which are pectilstim plus renip zuma plus aphibbus app um now 23:56 23 minutes, 56 seconds assuming that approvals come through in fi27 uh in fi 28 and 29 the combined these three products uh can they contribute 24:04 24 minutes, 4 seconds let's say $und00 million or around about that kind of a number in in next two three years the combined uh basket of these three products 24:12 24 minutes, 12 seconds yeah the potential is there understood u also I wanted to check you have tentative approval for this product 24:19 24 minutes, 19 seconds Zywave. Um I guess the litigation is ongoing. Um any probabilistic launch timing of this product and I sus I 24:26 24 minutes, 26 seconds suppose Lupin could be sole FTF in this product. 24:30 24 minutes, 30 seconds Yeah, we that we are exclusive uh first to file on that product. Um the launch date I believe is fiscal year 29 if I'm not mistaken. 24:40 24 minutes, 40 seconds Got it. Understood. 24:42 24 minutes, 42 seconds And one final question I have on the India business. Um um I think u the Jan IQ data is is uh showing good growth. Uh 24:50 24 minutes, 50 seconds also last quarter X of the tender business I think the growth has come in good um so are we in a good uh let's say 24:58 24 minutes, 58 seconds 12 13% growth environment for the company um and and with all the IL issues in the base now and insulin. 25:06 25 minutes, 6 seconds Yeah. So I I I think 20 to 30% ahead of the market is what we would see ourselves at. Um the market is growing 25:13 25 minutes, 13 seconds strong. So double digit growth is is assured and I think not just for you know the next couple of quarters but I 25:20 25 minutes, 20 seconds think for the next couple of years we would expect to continue growth. I think a lot of the exclusivities are behind us the insulin opportunity is there. 25:28 25 minutes, 28 seconds Semaglutide will will come in as well. 25:30 25 minutes, 30 seconds So um lots of positive growth drivers for India. Got it. This helps. Thank you so much. 25:39 25 minutes, 39 seconds Thanks Nin for your question. Uh we'll take the next question from Tushar Mani. 25:46 25 minutes, 46 seconds Yeah, thanks for the opportunity and congrats on the good of me numbers. So just on your uh comments on use of AI. 25:54 25 minutes, 54 seconds So if you could elaborate which geography or which divisions have we sort of started implementing use of AI 26:01 26 minutes, 1 second and how faster or or difficult whichever way the use of AI has been on the development side on the manufacturing side. 26:11 26 minutes, 11 seconds Yeah you know we have made some good progress on AI and this is across the entire company. We started off with it sales and marketing but clearly we are 26:19 26 minutes, 19 seconds looking at other other divisions also manufacturing and maintenance is one of the part the other is of course quality 26:27 26 minutes, 27 seconds and the like you're working with multiple you know consultants um the first most important thing is the fact that we need to bring all of this data 26:35 26 minutes, 35 seconds together you know u you know over time we've actually created several repositories and it's important to actually bring everything together in 26:42 26 minutes, 42 seconds under one um you know architectural roof And that's that's exactly what we're trying to do at this stage. But clearly 26:49 26 minutes, 49 seconds we have set our eyes on AI for all our functions including finance, HR, legal um and uh and procurement and the like 26:57 26 minutes, 57 seconds and we expect a lot of these pilot projects that you have been working on uh to be kind of implemented over the next 9 to 12 months. 27:06 27 minutes, 6 seconds Got it sir. And secondly uh the opening removal also alluded to forming a new division for semaglutide 27:14 27 minutes, 14 seconds with respect to catering to diabetist cardiologist gastroentertologist. So how many pe MRS is like sort of getting focused for this particular product? 27:25 27 minutes, 25 seconds It's about 200 people but I think we'll scale it up up as as needed. 27:32 27 minutes, 32 seconds So how do you see this you know because given that there are going to be multiple players of course there will be a pricing impact but volumes scaling up 27:40 27 minutes, 40 seconds again how the demand is expected to shape up that is something really interesting to watch out but but uh if you could you know throw you know your 27:48 27 minutes, 48 seconds insights on this uh opportunities for Indians. Yeah, I think many companies are going to launch it. Um, but the fact 27:56 27 minutes, 56 seconds that we are a large cardio metabolic player will make sure that we are able to get the right kind of prescription share in this product. Um, there's 28:05 28 minutes, 5 seconds there's a lot planned and you know again what we're saying is not unique. 28:08 28 minutes, 8 seconds Everybody else is planning extra bells and whistles from that perspective but I think we have a very deep patient support program that we intend to engage 28:17 28 minutes, 17 seconds into this as well. Um, we believe that we'll be there on day one. Um and uh you know again as a large cardio metabolic 28:25 28 minutes, 25 seconds player it should be a nice opportunity um we uh while we have created this division we have the ability to scale up we have the ability to add it into other 28:33 28 minutes, 33 seconds divisions as well so you know I think the it would be interesting um let's see 28:40 28 minutes, 40 seconds I think it's just a month away great all the thank you thank you Tushar uh we'll take the next 28:48 28 minutes, 48 seconds question from Bino Pipar Hi um good morning and good afternoon. 28:56 28 minutes, 56 seconds Um just a follow up on um Mirabekon settlement. Uh from your notes I see that you have taken a um a a provision 29:06 29 minutes, 6 seconds of $15 million whereas the total payout is $90 million. So why only $15 million provision? 29:16 29 minutes, 16 seconds Yeah, 15 is essentially what relates to as they very the past whilst um 75 is linked to in fact future you know being 29:24 29 minutes, 24 seconds in the market. So um clearly it it relates to the future and that's the reason why you finally 15 at this stage the balance 75 would be spread over the next up to September 27. 29:36 29 minutes, 36 seconds Okay. So that will come in other expenses later on in quarters. 29:40 29 minutes, 40 seconds It's actually um you know would not impact the AITA because it's actually you know a license that we need to kind of amortize over a period of time. 29:48 29 minutes, 48 seconds Got it. Um second now that we have a license in place uh is there room to improve our Mirabon 29:57 29 minutes, 57 seconds market share because I believe we were uh selling much lower quantity than uh the other generic competitor. Um is there a chance to equalize this? 30:09 30 minutes, 9 seconds Well, so we have uh 40% generic share and generics um you know between us and Zyus uh we also have 40% of the overall 30:19 30 minutes, 19 seconds molecule. So um you know we'll see what makes sense. Um it's a really good 30:26 30 minutes, 26 seconds contributor to our P&L and uh um we'll determine if it makes sense to take take on additional share. 30:34 30 minutes, 34 seconds Got it. And why this end date of September 27? Because the next orange book patent of Mirabon expires only in 30:42 30 minutes, 42 seconds uh 2030. So what prevents you from being exclusive in the market till then? 30:50 30 minutes, 50 seconds Uh till 2030 you mean? Yeah. Till the next. 30:56 30 minutes, 56 seconds Yeah. We believe majority of the settlements um uh that the brand has entered with other companies are to uh you know that date in 27 September 27. 31:07 31 minutes, 7 seconds Okay. And one last question on what how do you see the competitive scenario panning out? Why hasn't a potex launched 31:15 31 minutes, 15 seconds till now and do you expect more approvals? 31:19 31 minutes, 19 seconds Yeah, we're not certain why they haven't launched. um you know uh we know that uh IP u uh is certainly a hurdle that we have crossed and um the others haven't. 31:30 31 minutes, 30 seconds So that could be a consideration. 31:33 31 minutes, 33 seconds Um it's not the easiest product to manufacture. That could be another consideration. Um we don't have any um 31:41 31 minutes, 41 seconds intelligence on um um you know teas approval. And then we know that um um 31:49 31 minutes, 49 seconds other competitors have uh November 26, 30-month uh stay date and um into 27. 31:58 31 minutes, 58 seconds So we think that you know if competition comes in it's likely going to be staggered. 32:04 32 minutes, 4 seconds Got it. And one last if I may add in uh any update on Elixa in your pipeline? 32:12 32 minutes, 12 seconds Yeah, we're still making progress with the development. U we we were hoping to have it filed by now, but uh I'd say 32:20 32 minutes, 20 seconds that um it's still u uh actively in our um you know um our respiratory pipeline. 32:27 32 minutes, 27 seconds We hope to really make material progress this calendar year. Thank you. Thank you. 32:34 32 minutes, 34 seconds Thanks, Ben. Uh we'll have the next question from Kunal Damesha. Hey. Hi. Uh can you hear me? 32:42 32 minutes, 42 seconds Yes. 32:43 32 minutes, 43 seconds Yeah. Thank you for the opportunity. Uh first one just uh trying to understand the mirror background settlement little more. So uh we have this licensing uh 32:53 32 minutes, 53 seconds outgo 75 billion plus we have a uh per unit licensing fees that we'll pay 33:00 33 minutes right. So uh are those separate? Are those uh same thing? Uh uh how to think about that? 33:09 33 minutes, 9 seconds They're separate. Can you still hear us? 33:20 33 minutes, 20 seconds Uh taken off from the revenue uh or you know your um can you repeat your question please? 33:29 33 minutes, 29 seconds We can't hear you. Can you hear me now? Yes. Yes. 33:33 33 minutes, 33 seconds Yeah. So so basically the prepaid per unit licensing fee uh how will we account for that? Will it be uh offset 33:40 33 minutes, 40 seconds from the revenue or will it be recognized in uh cogs or how to think about that? 33:48 33 minutes, 48 seconds There are two portions as uh we were just mentioning. Uh there is a smaller portion which actually has to be knocked off from uh you know the overall 33:56 33 minutes, 56 seconds operating profit and there's an element which will actually get amotized over a period of time. So both will actually hit the P&L. 34:04 34 minutes, 4 seconds Okay. One above EIA, one below EIA. 34:06 34 minutes, 6 seconds Yeah. and and would you say that with this settlement the uh profitability of this product changes materially if you 34:14 34 minutes, 14 seconds just look at from an above ebita perspective the fact of the matter is it will impact profits but we still think it's still 34:22 34 minutes, 22 seconds going to be attractive enough sure and uh second question on the uh 34:29 34 minutes, 29 seconds overall profitability outlook uh let's say beyond fi26 I think earlier we had suggested for fi 27 uh ITA margin range of around 24 to 25%. 34:40 34 minutes, 40 seconds So how do we think uh that is going to play out now uh with the kind of products that we have in US and India 34:48 34 minutes, 48 seconds etc. So clearly the topline BNC would continue um and we you know we just mentioned about the fact that Mabron 34:55 34 minutes, 55 seconds will have a fresh lease of life so to speak to we are not seeing competition though of course we do expect that to enter at some point of time and Venita 35:04 35 minutes, 4 seconds alluded to a number of new product launches uh that could potentially happen next year and there's some prototype opportunities and and the like 35:11 35 minutes, 11 seconds and of course there are opportunities in emerging markets. So clearly we are very bullish about in fact keeping the topline buoyancy going. Uh there is tremendous focus on on costs as well. 35:21 35 minutes, 21 seconds There are number of initiatives that we've taken up in recent times. All of this would also you know kind of help us to kind of maintain the gross margins 35:29 35 minutes, 29 seconds and thereafter the margins also whilst there would be a dip in terms of margins we service the current year because of certain you know because of sheer 35:36 35 minutes, 36 seconds competition for some other products. We still believe that you' be good for actually looking at 24 to 25% next year. Sure. 35:45 35 minutes, 45 seconds And last one uh for nles sir on the uh semutite jandic launch uh you know what 35:53 35 minutes, 53 seconds is your expectation let's say from a year one market perspective uh how much it can grow and uh did we allude to uh 36:02 36 minutes, 2 seconds you know potential uh revenue size in year one in in one of the media interviews uh if I heard it correctly? 36:11 36 minutes, 11 seconds Um yes we did. um uh the uh I think the internal modeling that we have at this point of time um seems to suggest that 36:19 36 minutes, 19 seconds this will be a 15 odd 1500 cr odd opportunity in the in the first year. Um 36:27 36 minutes, 27 seconds and we talked about you know maybe doing 50 60 crores something like that in in the first year. Um but we'll see. I I think there's just too many variables 36:36 36 minutes, 36 seconds right now. How much is the pricing going to go down? How much is the pent up demand? I mean you've seen how Marjaro went in the first five months since 36:44 36 minutes, 44 seconds launch right so when this happens the price point what it means and we want to be responsible we want to do this the 36:51 36 minutes, 51 seconds right way you know we don't want to just sell this for the heck of it so I think the intent would be to do it um in as 36:58 36 minutes, 58 seconds responsible a manner but I think it it should be a nice opportunity and s wouldn't be an issue uh let's say 37:05 37 minutes, 5 seconds if we think about you know equitable market share or whatever we are currently having in cardio diabetic space. Uh if you want to achieve that 37:14 37 minutes, 14 seconds kind of market share uh we are uh we have good enough supplies right for the market. 37:18 37 minutes, 18 seconds Yes, we don't see a concern at this point. Sure sir. Thank you and all the best. 37:25 37 minutes, 25 seconds Thanks. Uh before we proceed uh this is a gentle reminder to request all the participants to raise their hands from the participants tab for more questions. 37:33 37 minutes, 33 seconds Uh can we have Nha Manpurya for the next question please? 37:37 37 minutes, 37 seconds Yeah thanks for taking my question. um rais on the 25% margin that you've mentioned for uh fiscal 27 given that we 37:46 37 minutes, 46 seconds have a fair bit of visibility and may be background on also to lap at least for you know next few quarters um how should 37:53 37 minutes, 53 seconds I think about the cost you know u other than the investment in the field force expansion that you talked about um you 38:00 38 minutes know what should be the you know R&D increase or investments in other areas that you're looking at yeah clearly u you know there is a lot 38:08 38 minutes, 8 seconds of focus on costs and whilst that will certainly continue um there would also be you know spends for R&D which may 38:15 38 minutes, 15 seconds increase um given the fact that we are focusing on a number of things out there. So uh clearly you know combined 38:23 38 minutes, 23 seconds with the fact that there would be some tapering off of topline products uh and the fact that you might have to provide for extra expenditure on the R&D. You're 38:32 38 minutes, 32 seconds just being conservative and saying about 24 to 25% would be um you know part of for the course. 38:38 38 minutes, 38 seconds So the R&D next year would be in the 7 and a half 8 and a half% range. Uh or or would it be lower as a percentage of sales? I think 7 and half 8 and a half% 38:47 38 minutes, 47 seconds is clearly a good um number to look at at this stage. 38:52 38 minutes, 52 seconds Okay, understood. Uh and you called out seasonality as one of the factors for the strong growth that we saw uh in the 38:59 38 minutes, 59 seconds US. Um was that a meaningful contributor to the quote unquote improvement in the uh in the US sales or was a large part 39:06 39 minutes, 6 seconds of that driven by tool and miraculium 39:16 39 minutes, 16 seconds osel tamavir have grown quarteron quarter because of the seasonality. 39:23 39 minutes, 23 seconds So that that should normalize a little bit right as we go into the next two quarters. Yes. 39:30 39 minutes, 30 seconds Okay, thank you so much. Thanks. 39:33 39 minutes, 33 seconds Thanks, dear. Uh, can we reiterate our reminder to request all the participants to raise the hands from the tab? We'll 39:41 39 minutes, 41 seconds uh wait for a few moment to few seconds to uh for the queue to line up, please. Thank you. 39:56 39 minutes, 56 seconds Go ahead. Hello. 40:01 40 minutes, 1 second Yeah. Can we have the next question from Shashang Krishna Kumar? 40:06 40 minutes, 6 seconds Yeah. Hi. Uh thanks for taking my question. Uh Ben, I just wanted to get your thoughts around some of the recent regulations that we've seen around PBMs 40:15 40 minutes, 15 seconds in the US. Uh now my understanding is a large part of the benefit will probably flow down to the end customers the pay 40:23 40 minutes, 23 seconds and this is largely neutral from a generic manufacturer standpoint. uh now uh is that how you also probably look at 40:30 40 minutes, 30 seconds it and uh or could there be any change in terms of theamics rating levels etc which you probably foresee? 40:37 40 minutes, 37 seconds Sorry I missed your question um the the front end of your question. Can you repeat it? 40:43 40 minutes, 43 seconds Yeah. Yeah. Uh so I just wanted to thoughts around the recent regulations around which you have seen in the US. Uh regulations around what? 40:52 40 minutes, 52 seconds PBM. PBMs in the US. Oh PBMs. Okay. Yeah. Yeah. 40:58 40 minutes, 58 seconds Understanding is part of the benefit will probably flow through to the end customers and players and this is largely neutral from a generic 41:06 41 minutes, 6 seconds manufacturer standpoint. Now is that you also probably there be some meaningful changes in 41:14 41 minutes, 14 seconds terms of industry dynamics or betting levels which you probably foresee. 41:20 41 minutes, 20 seconds Yes. So the new administration has been focusing hard uh on the PBMs and um you 41:27 41 minutes, 27 seconds know also the Trump RX has gone live in the past couple of days that uh really 41:34 41 minutes, 34 seconds nets out uh the pricing for a number of the brand companies as they've committed u you know in the the agreements that they have signed with the 41:43 41 minutes, 43 seconds administration. Um for the most part as we understand it um the companies have really given the benefit of the rebates 41:51 41 minutes, 51 seconds to PBMs um you know to the government so that um um that benefit can be um 41:58 41 minutes, 58 seconds offered to the consu to the patients and consumers. So we really don't see a material change in pricing. 42:09 42 minutes, 9 seconds Thank you. And just a second one you typically call out the growth figure for Europe. So if you could just share that for this quarter it was 11% growth. 42:18 42 minutes, 18 seconds Yeah got it. Thank you. That's it for now. 42:24 42 minutes, 24 seconds Thank you Shashank. Uh can we have the next question from uh Nikil Matur? 42:32 42 minutes, 32 seconds Yeah. Um thank you for the opportunity again. Um I just wanted to understand the injectable strategy uh let's say 42:38 42 minutes, 38 seconds from a toothyear perspective. Um so I mean great to have products like glucagon and um respon constra mtoa approvals and and having been launched. 42:49 42 minutes, 49 seconds Um but I I I suspect I mean none of these products would be big enough to kind of move the needle so much as far the overall injectable sp uh sales is 42:56 42 minutes, 56 seconds concerned. Um so how far are we from a big material launch on the injectable side? Uh so can you talk about what are 43:04 43 minutes, 4 seconds what what products have been filed? what are you looking at and and and which sort of products can give you let's say 100 $200 million kind of a sales base on 43:12 43 minutes, 12 seconds the injectables uh and over what time period can you achieve that yeah so apart from the products I 43:18 43 minutes, 18 seconds mentioned um um you know um um we also have um um Dalbaen that we have filed 43:26 43 minutes, 26 seconds that uh both u the um the injectable the generic version as well as a 505b2 43:34 43 minutes, 34 seconds version of the product. Um we have aribbulin smaller product. Uh um just uh 43:41 43 minutes, 41 seconds looking through the the major products that uh um iron sucrossse will be a 43:47 43 minutes, 47 seconds material one for us. Um and um um yeah 43:54 43 minutes, 54 seconds more 505b2s that we haven't announced but um you know we really see the injectables portfolio ramping up in the 44:01 44 minutes, 1 second next three years to 100 million plus with a multiple you know the tens of millions of dollars in individual products and then biosimilars adding to it. 44:12 44 minutes, 12 seconds Understood. Um and and on peekrol grasson um I mean uh it seems like uh while it's great to have uh the approval 44:21 44 minutes, 21 seconds in place uh but can it be a meaningful revenue driver uh because there is competition there I mean some of the bio 44:28 44 minutes, 28 seconds similars are pretty well established for a number of years now so what's going to what's the go-to market strategy on pil 44:35 44 minutes, 35 seconds grim now uh and when do we start numbers showing up uh for lupin in this product so we would launch this quarter but 44:44 44 minutes, 44 seconds you'll start seeing numbers really in the next fiscal year and uh we are um um you know very uh encouraged with what we 44:51 44 minutes, 51 seconds are hearing from the marketplace you know we've tied up with uh this company with strong experts across the bioimilars market from um you know the 45:00 45 minutes McKessan and otherosber and other uh specialty uh distribution 45:06 45 minutes, 6 seconds uh groups um and um we see a real place for uh a new pegful grass in the 45:14 45 minutes, 14 seconds marketplace. So um you know I'd say a couple of years ago we were not very gung-ho on bioimilars but today we see 45:23 45 minutes, 23 seconds significant potential with peel grass to start with but also the other biosimilars that we have in our pipeline. 45:32 45 minutes, 32 seconds Um but just curious I mean with so many biosimilars in this uh in this product being already there why would a mechan 45:40 45 minutes, 40 seconds tie up with lupin? I mean is is the cost going to be the proposition here? Um but if the cost comes off, would would the margins be lucrative enough for you to make money on this product? 45:50 45 minutes, 50 seconds Yeah, typically a new product uh is attractive from a reimbursement standpoint to the um you know payers. So 45:59 45 minutes, 59 seconds it that that itself will drive the initial uptake and uh beyond that u you know you've seen a number of companies 46:06 46 minutes, 6 seconds that have driven the price down actually get out of the market and potentially they will relaunch with uh a different pricing strategy into the marketplace. 46:16 46 minutes, 16 seconds So we really see the market for biosimilars and for peel grass shifting also we are the only truly integrated 46:24 46 minutes, 24 seconds player you know with the India cost uh advantage you know having our own API our own finished product um you know the 46:32 46 minutes, 32 seconds other companies don't have the advantage that we do understood okay got it okay thank you 46:41 46 minutes, 41 seconds thanks nil uh can we have uh the next question from Kunal and 46:48 46 minutes, 48 seconds Hi good hi good afternoon uh so my question is on R&D spends in the last couple of years uh your R&D budget has gone from around 1 14500 46:57 46 minutes, 57 seconds crores to around almost 2100 crores now uh so if you would like to share which area you spending in how much of this 47:04 47 minutes, 4 seconds would be on bio similars uh that you have budgeted because some of these spends I think you know would come off also in the you know years ahead so is 47:13 47 minutes, 13 seconds there a chance that maybe after FI 26 or 27 7 your R&D you know uh starts going down also 47:21 47 minutes, 21 seconds no I wouldn't think so uh clearly we are spending on the more complex stuff you know which includes the injectables piece the inhalations piece you know any 47:28 47 minutes, 28 seconds drug device combination always costs a lot of money with clinical trials and the like and of course we have a bio bio similars we've also always spoken about 47:37 47 minutes, 37 seconds specialty ambitions and the like so clearly the spends would keep going up but if a turnover keeps going up also you know as a percentage of sales you 47:45 47 minutes, 45 seconds know It might actually languish at a particular at a particular point but in absolute value terms it would certainly keep going up. 47:53 47 minutes, 53 seconds Sure. So if I understand correctly so you're not adding more projects it's just that you're expanding uh into a bit more high value high cost projects. 48:02 48 minutes, 2 seconds So it is adding more projects overall. You're pivoting to more complex stuff. Right. 48:07 48 minutes, 7 seconds Right. But but then okay let me put it this way. Is is your budget on genetics uh the usual par 3es and the par fours? 48:15 48 minutes, 15 seconds I mean the oral solids and all is that same or even that is going up actually in absolute terms and percentage terms it would be going down 48:22 48 minutes, 22 seconds it will okay okay that that's good to know uh second second question again you know you have now a healthy cash balance you are 48:29 48 minutes, 29 seconds generating cash so you know is specialty on your radar uh and you know exactly which therapies uh in which markets 48:38 48 minutes, 38 seconds would you be targeting I mean so it has been on our radar as we have shared in the past and the therapy 48:44 48 minutes, 44 seconds areas Also we've been um uh pretty vocal you know with the respiratory being um an area that we would like to build 48:52 48 minutes, 52 seconds given our current u uh position u as well as um um neurology where we have 48:58 48 minutes, 58 seconds namuscula to start with um we are planning to bring namuscula into the US uh and would like to get other products 49:06 49 minutes, 6 seconds in um um the therapy area and third now is opthalmology where we have a start in Europe with visoparma but we would like 49:14 49 minutes, 14 seconds to get additional assets both in Europe as well as um ideally US, Europe and other developed markets. 49:21 49 minutes, 21 seconds So would you be more comfortable buying assets which have been approved uh or ones where you perhaps have to do a phase three trial uh file it and then you know uh commercialize it. 49:33 49 minutes, 33 seconds Yes. So we've been looking uh across the board. I mean of course commercialized assets um would be uh very lucrative but they are far and few uh because companies don't part with them easily. 49:44 49 minutes, 44 seconds Um so we're also looking at assets that are uh in phase three or u have completed uh uh phase two successfully 49:52 49 minutes, 52 seconds and um you know are are ready to go into phase three. Sure. And just one more if I can please. 49:59 49 minutes, 59 seconds uh at last year you had announced that for Tiotropium you had tied up with someone a company in China uh do you 50:07 50 minutes, 7 seconds think that's a meaningful opportunity for you? 50:12 50 minutes, 12 seconds Oh you mean for the for the Chinese market? Yes. 50:15 50 minutes, 15 seconds Um yes I think it continues um not not very meaningful. 50:22 50 minutes, 22 seconds I mean it's not meaningful now or you don't expect it to be meaningful future too? 50:26 50 minutes, 26 seconds I mean it's not in the market right? is not approved. Okay. Okay. Got it. Thank you. Yeah. 50:32 50 minutes, 32 seconds Thanks, Gural. Uh we'll take the next question from Buni Desai. 50:39 50 minutes, 39 seconds Yeah. Hi. Uh thanks for taking my question. So uh you know the first question is on uh the overall biosimilar 50:46 50 minutes, 46 seconds uh you know landscape in the US. uh we see recent you know developments which are all aimed at improving affordability 50:53 50 minutes, 53 seconds and accessibility you know which is good you know structurally positive for us as well but at the same time you know it is also going to make market more 51:01 51 minutes, 1 second competitive so you know how should we think about you know what will be those key factors which will you know determine our success you mentioned 51:10 51 minutes, 10 seconds about you know having that cost advantage but I'm assuming you know a lot of Indian companies would have that so that's number one and the second is 51:17 51 minutes, 17 seconds We also see PBMs having their own brands or bringing their own labels, you know, uh in in the space. So, you know, uh 51:24 51 minutes, 24 seconds that adds to the competition, right? How do you think about that relationship? 51:29 51 minutes, 29 seconds So, I'll maybe take the second question first. Um you know, when it comes to the private labels, uh that's actually 51:36 51 minutes, 36 seconds avenue for us as well to gain share. Um when we see the Cordavis label for example um you know for uh uh Yumira 51:45 51 minutes, 45 seconds that really drove significant share for Sandos. Uh we certainly see that as a positive for a bio similar you know um 51:53 51 minutes, 53 seconds so you what we are we are starting to see is the block of the PBMs is actually going down. PBMs are you know partnering 52:02 52 minutes, 2 seconds now with biosimilars to uh gain you know to to uh really bring access to um uh 52:09 52 minutes, 9 seconds bioimilars um you know in the marketplace. So uh that is one. Second uh I mean we're very mindful of the fact 52:16 52 minutes, 16 seconds that uh with the market opening up the regulatory requirements um you know um um uh becoming less burdensome 52:25 52 minutes, 25 seconds competition can increase. So uh we are very selective in our portfolio um um you know um u short list in our 52:34 52 minutes, 34 seconds selection process of our pipeline. Uh we are selectively going after programs that uh we believe we can be in the 52:41 52 minutes, 41 seconds first wave. We believe we can be one of few based on technology advantage or otherwise. Um and third we also have a 52:51 52 minutes, 51 seconds lens of the three therapy areas that we want to build in the specialty front because we also you know are building commercial front end for the three areas 53:00 53 minutes that we can leverage across biosimilars as well as branded specialty products. 53:05 53 minutes, 5 seconds So we're kind of uh you know um um um carving our own therapeutic area strategy as well on the biosimilars 53:14 53 minutes, 14 seconds front. So all of those uh you know give us a confidence that we have u you know u we're not going after everything under 53:22 53 minutes, 22 seconds the sun you know from a portfolio standpoint we're being very selective around areas where we can truly make a difference. The other thing I will say 53:30 53 minutes, 30 seconds is you know um u while you hear about the cost advantage of India um you know 53:36 53 minutes, 36 seconds across the generic drug companies um just look at how many biosimilars companies are out there I mean there are 53:43 53 minutes, 43 seconds a handful of bio similar companies at scale across the world you know between India Europe as well as Korea so you 53:53 53 minutes, 53 seconds it's not the same level of competition as you see in the generic uh you know small mole molecule generic industry which also makes biosimilars a more 54:01 54 minutes, 1 second attractive area overall that's that's very helpful ma'am um and also just a second question uh you know 54:09 54 minutes, 9 seconds which is a clarification on mirror background uh if I think about $90 million of payment uh u is it more or 54:16 54 minutes, 16 seconds less what we have earned so far on this product or much lower than what would have made you know that's number one and second you know with the settlement uh 54:25 54 minutes, 25 seconds you know until September 27 does uh does it mean that you know we should not anticipate any generic players uh to 54:33 54 minutes, 33 seconds come in this period or they could come and settle you know with similar terms that is you know paying royalty etc on on the sales that they could do 54:42 54 minutes, 42 seconds so it's hard to predict what other generics will do for us it's given us certainty right I mean uh we have no 54:49 54 minutes, 49 seconds litigation burden anymore no no risk and no impediment to sell the product in the marketplace and um you know um we still 54:58 54 minutes, 58 seconds look at it as a very attractive contributor to a P&L all right 55:08 55 minutes, 8 seconds thanks merci uh we'll take the next question from Vive Agraal 55:16 55 minutes, 16 seconds hello Vive are you there hello yeah we can hear you yeah thanks uh couple of years back uh 55:24 55 minutes, 24 seconds you have highlighted that you developing a product uh it's a drug device combination called next plan on uh so just want to understand where the 55:32 55 minutes, 32 seconds product is uh is it still in the development or have you filed this product any status regarding this product thank you yeah it is in clinical development right 55:41 55 minutes, 41 seconds now okay but uh don't you think that it's quite long uh that is there is still in the clinical development and all so when 55:50 55 minutes, 50 seconds you expect to file this product I believe it is uh uh planned to be filed in fiscal year 28 fiscal year 28. 55:58 55 minutes, 58 seconds Yeah, it is a long development cycle also pretty complex development. 56:03 56 minutes, 3 seconds I understood and second question is related to India business where I think you have done uh the business quite well in the last couple of years and RX 56:11 56 minutes, 11 seconds business is doing phenomenally well right and the confidence is also there. 56:15 56 minutes, 15 seconds So just to understand like the next uh three to four years uh uh how to look at the growth trends of India RX business 56:22 56 minutes, 22 seconds and if you can outline for example the uh the kind of initiatives that uh you are uh you are taking in terms of product launches in terms of market 56:30 56 minutes, 30 seconds penetration on salesforce etc. so that what gives you the confidence that confidence that you could continue to grow uh this business. Thank you. 56:38 56 minutes, 38 seconds Yeah. So our aspiration would be to continue to grow double digit. We believe that the market will grow 78% 56:45 56 minutes, 45 seconds and therefore we will grow double digit in this segment. Um that is linked with the fact that our focus is on chronic 56:52 56 minutes, 52 seconds therapy areas. As you know 65% of our revenues come from chronic side. Um we're doubling down. We had added 900 56:59 56 minutes, 59 seconds people to our sales force in the in the last 6 months. Um so we're doubling down 57:05 57 minutes, 5 seconds on the market. Um we have expanded into newer divisions into newer therapy areas as well. Um and we haven't even done the 57:14 57 minutes, 14 seconds innovation pipeline yet. I think that's something which has just started in the next three four years you'll start seeing more innovative products coming 57:22 57 minutes, 22 seconds from our portfolio as well. Um so I think a combination of the need for the market expanding our reach expanding uh 57:30 57 minutes, 30 seconds the breadth of our offering as well. All of these together will drive it you know and you know we've talked in the past about other things like patient support 57:38 57 minutes, 38 seconds and the like. I think all of these together will help deliver this growth. 57:43 57 minutes, 43 seconds Understood. And just last question if I can squeeze in in terms of capital allocation right apart from R&D investments that you are making and you are generating significant cash. So if 57:51 57 minutes, 51 seconds you can prioritize let's say a couple of I think top three areas where you want to spend money let's say in the next three to four years. Thank you. So 57:59 57 minutes, 59 seconds clearly we have the ability to borrow about 1.5 1.6 billion so to speak apart from of course what we have on on our balance sheet in terms of cash already. 58:09 58 minutes, 9 seconds Um you know so from a purchase perspective we would be looking at specialty assets you know so hitu 58:18 58 minutes, 18 seconds we've been looking at in pract critical you know something in the range of sweet spot being about 250 to 300. We might up it a little more based again on the 58:25 58 minutes, 25 seconds proposition on the table. So that's the most important part for us. Uh we have also clearly defined the threshold limits when it comes to in fact the adjacencies and so on. So we would uh 58:34 58 minutes, 34 seconds you know um you know invest only in so as much as the initial estimates were. So clearly that's again 58:42 58 minutes, 42 seconds a threshold limit. Uh and of course you'll be interested in actually looking at assets in India. Uh the sweet spot here again being about $250 to $300 million. 58:52 58 minutes, 52 seconds Understood. So when you talk about specialty assets right is it mainly related to US or are you also comfortable buying some assets for 58:59 58 minutes, 59 seconds example which might be making losses initially and can turn profitable over a period of time. 59:04 59 minutes, 4 seconds Yeah. So we are looking at US Europe developed markets like the vizoparma was Europe right and US as well and um as 59:12 59 minutes, 12 seconds you mentioned earlier we are looking at uh clinical stage assets too that will require investment before we bring it to market. 59:21 59 minutes, 21 seconds Understood. Thanks. Thanks. Uh that that's from my side. Maybe last two questions. 59:26 59 minutes, 26 seconds Yeah. Thanks Vik. We'll take the next question from Shams University. 59:31 59 minutes, 31 seconds Yeah. Hi, good evening. Thank you for taking my question. Just uh just on Visu Pharma again. Uh sorry I missed maybe 59:38 59 minutes, 38 seconds the opening remarks. Has it now closed the transaction? When are we starting to consolidate it? I remember 57 or 60 59:47 59 minutes, 47 seconds products 50 55 million euro was the annual expectation. So if you could just refresh those numbers please. Thank you. 59:54 59 minutes, 54 seconds Yeah. So uh we expect to close it in the next few weeks of this quarter basically. So we'll start um consolidating next quarter onwards. Um 1:00:04 1 hour, 4 seconds and uh the revenues very much stay on track um I believe 60 million plus close. Yeah. A little more in for the 1:00:12 1 hour, 12 seconds next fiscal but really for the um the numbers that he spoke about for this uh for this year. Yeah. 1:00:19 1 hour, 19 seconds Yeah. Sorry raos or dollar sorry just euros all of this is euros euros euro million right got it and margin I remember was also high 25% or 1:00:28 1 hour, 28 seconds 30% if I remember eventually based again on our cost synergies and all of that will actually get to that level it will actually more but 25% to start 1:00:37 1 hour, 37 seconds got it very helpful sec second question on emerging markets uh uh is there a base effect or something we had like 40% 1:00:44 1 hour, 44 seconds plus growth any geographies to call out uh is it Brazil that we called out you know 1:00:52 1 hour, 52 seconds Brazil had almost doubled in the quarter thanks to Dapaji flows in that we actually introduced out there and of course the lineup that we have for the 1:01:00 1 hour, 1 minute future that will kind of continue for some time. 1:01:04 1 hour, 1 minute, 4 seconds Sorry Romesh maybe constant currency growth like 40% seems odd. So is it is it like local currencies what are these growing at? 1:01:12 1 hour, 1 minute, 12 seconds Uh it actually nearly doubled in terms of turnover given the fact that this product was a is a big hitter out there. 1:01:20 1 hour, 1 minute, 20 seconds Got it. Got it. And lastly on India growth, I know the 5.6% volume growth is 9 month. Um, so what's the 11%? 1:01:30 1 hour, 1 minute, 30 seconds No, no, no. 5.6 is actually taking into account the fact that we actually had a you know 9 month volume growth. 1:01:36 1 hour, 1 minute, 36 seconds 9 month volume 9 volume growth. But I'm just looking at say Q3 in this 11% prescription growth. What is the price 1:01:44 1 hour, 1 minute, 44 seconds volume split? And how is chronic done? I think that that's my last question. Chronic has done extremely well. 1:01:49 1 hour, 1 minute, 49 seconds Chronic has done well. I I want to say it's similar on the on the volume in Q3 as well. 1:01:54 1 hour, 1 minute, 54 seconds Actually the share of Chronic has grown gone up to 67%. 6.5% and new products gave us 1.5%. Mhm. 1:02:02 1 hour, 2 minutes, 2 seconds Sorry, your voice is cutting. You can you volume growth was 6.5% for Q3 and it was 5.6 for 9 months. 1:02:10 1 hour, 2 minutes, 10 seconds Perfect. Thank you. Thank you and all the best. 1:02:13 1 hour, 2 minutes, 13 seconds Thank you. Thank you so much. Uh uh thank you very much for all your participation. I now hand the conference over to the management for the closing comments. 1:02:23 1 hour, 2 minutes, 23 seconds Thank you all. Sorry for the technical um uh glitches but hopefully we were able to respond to all your questions. 1:02:29 1 hour, 2 minutes, 29 seconds Um we um um are very optimistic uh at this point to close the year on a very strong note and equally um the the year 1:02:39 1 hour, 2 minutes, 39 seconds ahead looks uh pretty strong. uh we continue to work around our uh strategic growth drivers to build uh you know 1:02:48 1 hour, 2 minutes, 48 seconds specialty and complex platforms um to enable um uh us to grow sustainably over the next few years. So um thank you 1:02:57 1 hour, 2 minutes, 57 seconds again for joining us and we look forward to u interacting with you in the next couple of months. 1:03:04 1 hour, 3 minutes, 4 seconds Thank you ma'am. Uh on behalf of Lupin Limited that concludes this conference. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you for joining us and you may now exit the webinar.