Onesource Specialty Pharma Ltd — Q4 FY26

Onesource Specialty Pharma Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=EB-6xK1-WOI

0:03 3 seconds Ladies and gentlemen, good day and welcome to One Source Speciality Pharma Limited Q4 FI26 earnings conference 0:12 12 seconds call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:35 35 seconds Abhishek Singh. Thank you and over to you sir. Thank you Nero and thank you all for joining us today for earnings 0:43 43 seconds conference call of one source speciality farmer limited for the fourth quarter and financial year 2026. 0:48 48 seconds We're pleased to have with us Arun founder and non-executive chairperson needed co and MD and Anra CFO of the company who will walk you through the 0:56 56 seconds key business and financial highlights of the quarter and full financial year. I trust you've had the opportunity to review our results release and the investor presentation both of which are 1:05 1 minute, 5 seconds available on our website as well as on our stock exchange website. The transcript for this call will be posted on the company's website within the next week. Please know that today's 1:14 1 minute, 14 seconds discussion may contain forward-looking statement which should be viewed in context of the risk inherent in our business. Should you have any further questions after this call, our investor 1:23 1 minute, 23 seconds relation team will be happy to assist you. I now hand over the call to Arun for his opening remarks. 1:30 1 minute, 30 seconds Thank you Aishek. Good afternoon everybody. Thank you for joining us today. Uh I'm happy to report uh one 1:39 1 minute, 39 seconds source's Q4 results uh with a strong comeback from our previous quarter. This is obviously because we've been able to 1:46 1 minute, 46 seconds start invoicing our drug device combinations. Uh most importantly, we have since then uh received approvals 1:54 1 minute, 54 seconds for Canada and one of our partners have got approvals both for Canada and for the US which is a tentative approval. uh 2:02 2 minutes, 2 seconds giving uh setting the background for very strong compliance track record capability and getting ready for what we 2:10 2 minutes, 10 seconds think would be an exciting couple of quarters going forward. Um it's important to note that we had a few days 2:17 2 minutes, 17 seconds uh postpart expiring the coter but having said that we were able to start shipping some goods uh on the GPS 2:25 2 minutes, 25 seconds and as guided earlier in our conversations we you would see an uptick on our quarterly performances going 2:32 2 minutes, 32 seconds forward and u we're also using the opportunity today to reaffirm a long-term guidance of FI28 which is a 2:40 2 minutes, 40 seconds $400 million of organic revenue with over 40 with around 40% of Ableton margins. Um important to note is uh also 2:50 2 minutes, 50 seconds that our capacity expenses are going on track. Our second line is now at site and is going engineering and 2:57 2 minutes, 57 seconds qualification trials and we expect that capacity to be available to us in Q2 in 3:04 3 minutes, 4 seconds time with uh increasing demands for the product from emerging markets. At this time we are servicing uh the Indian 3:11 3 minutes, 11 seconds market through multiple labels and also the Canadian market where we have now commenced shipments to both partners. Uh 3:20 3 minutes, 20 seconds all of this will play through over time and then we expect uh post um the Indian approval several emerging markets will 3:28 3 minutes, 28 seconds grant approvals to various partners in the other larger emerging markets. 3:33 3 minutes, 33 seconds Consequently, we expect volume uptake to be uh serviced in line with our capacity expansion. At this time, we are fully 3:41 3 minutes, 41 seconds committed to our capacity and uh we're very delighted with the progress that the company's made not only on the DDC's but across the modalities that we 3:49 3 minutes, 49 seconds operate in. And before I let uh Nirj and Arag um uh take over the call, I just 3:57 3 minutes, 57 seconds wanted to give you uh an update on on the scheme that we had originally announced where we had intended to bring 4:04 4 minutes, 4 seconds the injectables business of Ster Science which is a related uh party transaction uh which the family owns along with TPG 4:13 4 minutes, 13 seconds uh and uh the the the business of Brooks where TT science owns 51% where publicly 4:21 4 minutes, 21 seconds listed company groups uh which makes a cover penance. Uh we um we we in terms you would have probably read our um 4:30 4 minutes, 30 seconds releases where we said that on 20 26th of February the the stock exchanges and they said we had approved our scheme 4:38 4 minutes, 38 seconds validating the uh the process and the board's independent committee decision. 4:43 4 minutes, 43 seconds Having said that, uh we've had several conversations with investors. Uh most of our large ticket investors and 4:51 4 minutes, 51 seconds shareholders are fully committed to this transaction and we would have got this across the board without difficulty. But 4:58 4 minutes, 58 seconds having said that, we had a long tale of smaller investors who believed that there would be concerns on the valuation. Having said that and also 5:07 5 minutes, 7 seconds because the the the the pricing of both I mean the pricing of the listed company uh significantly dropped from the 5:15 5 minutes, 15 seconds intended valuation price of approximately 2,200 rupees a share. Um we uh we decided that it's best that we 5:24 5 minutes, 24 seconds defer the this transaction until such time both one source delivers on its 400 million 160 and the incoming assess 5:34 5 minutes, 34 seconds deliver on his 40 million of uh EBIT. Uh and then we'll continue to look at opportunities independently uh to see 5:42 5 minutes, 42 seconds how we can progress uh the business beyond the 400 million and the 160 million guidance. uh and I think uh in 5:50 5 minutes, 50 seconds all it's in the best interest uh that as a group we are very focused on governance and we're also focused on 5:57 5 minutes, 57 seconds taking all our shareholders together. Uh we haven't had any significant RPG transactions which has been gone through 6:05 6 minutes, 5 seconds with at least a 95% and above um shareholders voting in favor of a scheme. We don't we didn't get that same 6:12 6 minutes, 12 seconds comfort this time although we would have got through majority without difficulties and we decided to pause this for some more time and come back and discuss this further. Uh having said 6:22 6 minutes, 22 seconds that both both units will pursue its growth and and we will relook at these opportunities probably in about 2 years 6:30 6 minutes, 30 seconds from now if at all uh there is a need and the strategic intent is still valid at that time. So for now uh this is the 6:38 6 minutes, 38 seconds back burner and one source is very focused on building out his business to its 400 million target which was guided 6:45 6 minutes, 45 seconds for FI28. Uh with that I'll I'll let NRA and Anra take over the call and I'll be happy to address any questions which are specific to the opening comments I made. 6:55 6 minutes, 55 seconds Thank you. Thank you very much. 7:02 7 minutes, 2 seconds Wait um we'll have leaders doing his comment. repeat. Yeah. 7:08 7 minutes, 8 seconds Yeah. Thank you. Uh thank you Arun and very warm welcome to everyone joining us today for our quarter 4 and the full 7:15 7 minutes, 15 seconds year results. Um as Aron already mentioned uh you know the Q4 has really marked a strong recovery uh in line with 7:24 7 minutes, 24 seconds what we had anticipated in line with what we had mentioned you know with the revenues at almost 48 US uh 48 million 7:32 7 minutes, 32 seconds US uh up almost um you know 47% uh uh from the previous quarter um you know I 7:39 7 minutes, 39 seconds beta also recovered sharply versus the previous quarter uh which you which you which you saw uh And this recovery, you 7:47 7 minutes, 47 seconds know, what really gladdens um us is that this recovery was fairly broad-based. 7:52 7 minutes, 52 seconds You know, all our uh service offerings really supported this recovery and uh including the the really much 8:00 8 minutes anticipated generic summer route India launches um and Aron already mentioned that it's we were able to do get only a 8:09 8 minutes, 9 seconds uh this launch is only at the end of the quarter. So uh you know the impact was was limited but still you know it's 8:16 8 minutes, 16 seconds a precursor to a uh to a strong um uh improvement going forward and this sequential improvement which we have 8:25 8 minutes, 25 seconds seen uh in this quarter is is you know we are expecting it to continue and in fact strengthen as we as we ramp up our 8:32 8 minutes, 32 seconds commercial uh launches across all markets. Um specifically on Seamagra and I know you know many of your uh 8:41 8 minutes, 41 seconds questions would be around that. Uh so you know specifically here we have moved in this quarter from uh from pipeline to 8:49 8 minutes, 49 seconds real proof. Um and you know when India opened up um our partners were there on day uh day one you know and across 8:58 8 minutes, 58 seconds multiple customer brands which is what is really really heartening and today as we speak you know our our customer base 9:06 9 minutes, 6 seconds total as on end of April holds almost 2/3 of the of the Indian market uh market share by value of of the generic 9:15 9 minutes, 15 seconds of the generic market uh as it is further improving uh also the you know the approvals which have come across 9:22 9 minutes, 22 seconds other markets you know it really they are the ones who are really reflecting this momentum. Um we are the first and 9:29 9 minutes, 29 seconds the only CDMO partner for the first three generic SEMR approvals uh in all the highly regulated markets US and 9:38 9 minutes, 38 seconds Canada. um as as you saw and Canada specifically I'll say you know with these backto-back uh two approvals uh 9:46 9 minutes, 46 seconds both our partners are all set to bring generic sema to the Canadian patients um and also you know with multiple other 9:55 9 minutes, 55 seconds customers who are due to get approval uh across various emerging markets we see a really strong visibility on the on the 10:03 10 minutes, 3 seconds commercial ramp up uh throughout F FY27 and while you know the demand demand itself is uh very very robust and we 10:12 10 minutes, 12 seconds have a clear visibility on it. Uh we are at the same time ramping up our capacities as you're well aware and 10:19 10 minutes, 19 seconds happy to share um Aron already alluded happy to share that our capacity expansion remains very much on track. uh 10:26 10 minutes, 26 seconds our current line which is uh today running is you know fully um uh committed back to back uh and as a part 10:36 10 minutes, 36 seconds of the 100 million capex which we are doing. The new line which is which has been installed already um couple of months back is currently undergoing 10:44 10 minutes, 44 seconds qualification and will be due for available for commercialization in the in the next quarter. So which would 10:52 10 minutes, 52 seconds really you know give us that additional additional boost and help. Um at the same time our nent biologic business 11:00 11 minutes which is which also uh I mentioned last time it continues to generate a very significant customer interest. You know 11:06 11 minutes, 6 seconds our our biologics funnel is at an historic high. You know in fact in this year we have expanded the funnel almost 11:14 11 minutes, 14 seconds four times uh versus previous year. And uh you know during the year we saw you know a European biosimilar partner 11:21 11 minutes, 21 seconds getting added a a US uh biosimilar major uh coming on on board and um uh we also 11:30 11 minutes, 30 seconds secured the second project from one of the top uh three global animal health companies. So basically a really a 11:37 11 minutes, 37 seconds strong set of additions which reinforces you know the momentum we are building uh in biologics. uh apart from you know 11:45 11 minutes, 45 seconds these uh DDC and biologics I would also say our our base business of injectables and soft gelatine here also there is a 11:52 11 minutes, 52 seconds significant uh movement which happened during the year you know whether in terms of uh the 10 new licenses we signed uh licensing and CDMO deals we 12:01 12 minutes, 1 second launched 15 plus products really added customers uh you know which together with our expanding capabilities in our 12:11 12 minutes, 11 seconds SPD site um you We will really be uh deepening meaningfully our specialty injectable 12:20 12 minutes, 20 seconds injectable offerings. Apart from the the business, what also uh gives me a a lot of matter of pride is our compliance 12:29 12 minutes, 29 seconds track record which remains absolutely stellar. uh we saw the year um uh successfully completing 49 uh regulatory 12:39 12 minutes, 39 seconds and and customer audits and and these includes who's who in fact we had uh surprise FDA inspection during the year 12:46 12 minutes, 46 seconds at two of our sites and we completed both you know successfully uh getting the ERS we have renewed our EUGMP 12:55 12 minutes, 55 seconds certification uh both at our flagship site as well as our stri injectable site we had an visa approval coming through 13:02 13 minutes, 2 seconds the year, you know, which which gives us which puts us in in in pole position uh to supply to to Brazil as uh our 13:11 13 minutes, 11 seconds customers as they they they start getting approval. Uh so how you know we have achieved this obviously is through a very meaningful investment in our 13:20 13 minutes, 20 seconds people and in organization. We have our flagship side where thanks to all the expansion project we have added you know 13:27 13 minutes, 27 seconds almost 400 people um which is which is where you know the bulk of our uh growth is going to be coming. uh we are also 13:36 13 minutes, 36 seconds expanded and and uh deepened uh the strength of our other organization whether it is in front end um in the US 13:45 13 minutes, 45 seconds or whether it is in operations and in quality uh just so that we are very well positioned uh on our FI27 and 28. Um our 13:55 13 minutes, 55 seconds uh commitment to our community as well as environment also was recognized uh by EcoIS who have awarded us the bronze 14:03 14 minutes, 3 seconds medal uh medal for FI25. Uh and this is really with a very strong improvement across all categories. Uh we have also 14:12 14 minutes, 12 seconds been recognized as a leader by national stock exchange sustainability uh ratings. Uh so basically a very strong 14:20 14 minutes, 20 seconds uh uh external recognition that this is an area where we are really committed as a company uh and will and will continue. 14:28 14 minutes, 28 seconds Uh finally I really want to thank all our teams for their extraordinary commitment and uh all our customers for the trust they are uh continuing to 14:36 14 minutes, 36 seconds place in us uh with the with all the momentum which has been driven by the recent approvals which I just spoke about uh our continued progress in 14:45 14 minutes, 45 seconds capacity buildout and a and a solid base business. We are confident of uh a 14:52 14 minutes, 52 seconds strong FY27 and also reiterate our FY28 guidance of 400 million revenue and 40% 15:00 15 minutes EITA margin. Um thank you. I hand over to Anorak for uh his commentary to you. 15:08 15 minutes, 8 seconds Thank you. Thank you. U very warm welcome to all of you uh on this call today. I'm pleased to take you through 15:15 15 minutes, 15 seconds our quarter 4 and fully year financial results for FY26. Uh but talking about revenues first in the fourth quarter, our revenue stood at INR 4282 million. 15:26 15 minutes, 26 seconds Uh it reflects a strong 47% uh sequential growth driven across all our service offerings supported by India 15:35 15 minutes, 35 seconds semagide uh commercial launch towards the end of the quarter. on a fullear basis uh we reported 14216 million INR 15:43 15 minutes, 43 seconds uh which is a 2% decline year on year um it reflects the softer quarter that um we had uh uh in the previous quarter um 15:53 15 minutes, 53 seconds you know due to delayed semaglutide approvals in Canada uh on the profitability side the Q4A uh uh 16:01 16 minutes, 1 second reported was uh 919 million which is more than 5x sequentially and the margin expanding by 1550 basis points quarter 16:10 16 minutes, 10 seconds over quarter uh reflecting a strong operating leverage uh on our higher CSA revenues for the full year. Um the EITA 16:19 16 minutes, 19 seconds declined about 35% uh due to delayed somewide approvals which weighed in on our second half of the results. As you 16:27 16 minutes, 27 seconds are aware there is a significant regulatory change on the new labor code during this year. uh during the course 16:34 16 minutes, 34 seconds of the year we've already fully provided uh for this change as an exceptional item in our current uh year's 16:41 16 minutes, 41 seconds financials. Uh looking at uh our pack and EPS adjusted back for the quarter is about 390 million compared to a loss in 16:50 16 minutes, 50 seconds the previous quarter. So this quarter we reported loss to profit. Uh for the full year FY26 adjusted PD stood at 739 16:59 16 minutes, 59 seconds million. uh accordingly our EPS for the quarter is INR 3.4 on a fully lined basis and 6 and a half through INR 6.5 17:07 17 minutes, 7 seconds for the full year. I would like to highlight that our patent EPS metrics exclude exceptional items and amortization of scheme related 17:16 17 minutes, 16 seconds intangibles uh which is a commentary that I've been making repeatedly. uh just want to reiterate that these are 17:23 17 minutes, 23 seconds balance sheet items um goodwill arising from the scheme of arrangement that we had in the past which respect the 17:30 17 minutes, 30 seconds significant strategic value in the transaction. Goodwill is a non-cash item and does not have any bearing on the operational performance and liquidity of 17:38 17 minutes, 38 seconds the company. On the working capital uh we've seen a year where we've seen certain increases. There are elevated levels but all of that essentially to 17:46 17 minutes, 46 seconds prepare for the long um launches that are upcoming in the years and uh we expect uh this to normalize during the course of the year in FY27. 17:58 17 minutes, 58 seconds On the Treasury side uh as highlighted in our earlier calls we've had four notch upgrades during the course of this year ever since we got listed last year. 18:07 18 minutes, 7 seconds And these four notch upgrades are helping us repeatedly take our overall cost of borrowing down. We are trending 18:14 18 minutes, 14 seconds below 9% today which is 210 pips lower than what it was in the prior year. Um 18:21 18 minutes, 21 seconds all our capacity expansions that Arun and Nirj talked about are fully funded through incremental borrowings both from 18:29 18 minutes, 29 seconds domestic and international uh banking relationships that we have. Uh this marks the second annual results after 18:38 18 minutes, 38 seconds getting listed and um uh while FY26 has been a year we've been building with 18:45 18 minutes, 45 seconds investments and managing the transition to commercial phases we believe we've got a very good foundation in place and 18:52 18 minutes, 52 seconds very excited about what lies ahead for us in FY26 27 and 28. Um we expect to 18:59 18 minutes, 59 seconds scale meaningfully building towards the 50% plus uh ROC expectation that we have for ourselves during the medium term. Uh 19:08 19 minutes, 8 seconds we uh we are committed to uh creating the long-term value for our shareholders and we truly value your partnership. 19:17 19 minutes, 17 seconds Thank you. Um and I will hand it back to Mich. 19:25 19 minutes, 25 seconds Thank you very much. We now begin with the question and answer session. 19:29 19 minutes, 29 seconds Anyone who wishes to ask a question may press R and one on the touchstone telephone. 19:35 19 minutes, 35 seconds If you wish to remove yourself from the question Q, you may press R and two. 19:41 19 minutes, 41 seconds Participants are requested to use handsets while asking a question. 19:46 19 minutes, 46 seconds Ladies and gentlemen, we'll wait for a moment while the question to assembles. 19:52 19 minutes, 52 seconds Participants you may press star and one to ask the question. 20:00 20 minutes First question is from line of rupesh nata from long equity partners. Please go ahead. 20:06 20 minutes, 6 seconds Uh hello sir thank you. Thank you for the opportunity and congratulations uh on on Canada approvals for sabide. I 20:13 20 minutes, 13 seconds have two three questions. First first question is my understanding is that Brazil has you know 28% duty if local manufacturing requirements are not met. 20:24 20 minutes, 24 seconds So how how how I mean how are we going to deal with it? 20:28 20 minutes, 28 seconds How are we going to work around it? And is it a hindrance for you know a big growth in Brazil? Uh that is question number one. And then question number 20:36 20 minutes, 36 seconds two, sorry, our uh US deal with NATO plus my lab, I think it had profit sharing arrangement as per the press 20:44 20 minutes, 44 seconds release, is it is it fair to assume that similar arrangements might be there with other customer major regulators? 20:54 20 minutes, 54 seconds So let's start with thank you for your questions. uh on uh on Brazil. I can just tell you that you 21:02 21 minutes, 2 seconds know that uh um that that that is applicable only when there is local manufacturing available as as we speak 21:12 21 minutes, 12 seconds right now there is no uh you know manufacturing which is which is available in Brazil. Uh and also having 21:19 21 minutes, 19 seconds said that you know as a as a CDMO all our terms with our customers are X 21:25 21 minutes, 25 seconds perks. So really you know any any uh impact of uh whether it's a tariff or 21:32 21 minutes, 32 seconds otherwise uh you know will actually be to the customers to uh to really be taking over uh if that clarifies. 21:40 21 minutes, 40 seconds And um to your um second question um around uh profit share 21:48 21 minutes, 48 seconds yeah around profit share is uh you know what we have shared uh in public domain is what we have shared uh uh and you 21:57 21 minutes, 57 seconds know that uh as CDMO we we neither do we talk about which customers we have or the terms which are with them and I hope 22:05 22 minutes, 5 seconds uh I hope you will appreciate confidentiality is the biggest part of our uh of our deals. with our customers. 22:13 22 minutes, 13 seconds Okay. Okay. And and uh one one other question is uh in I mean in in drug device combination business 22:21 22 minutes, 21 seconds we are I think the service provider. So there is uh we just provide the infinite service. So with with that context I 22:29 22 minutes, 29 seconds mean can you please explain why our inventories have moved from you know 158 K in March 25 to 440 K in March 26. I 22:37 22 minutes, 37 seconds mean that number for for nonsenoglutide business seems kind of large. 22:45 22 minutes, 45 seconds Um rupesh I want to clarify that while our inventories uh have gone up um as you would know we are service provider as you rightly said but you should know 22:54 22 minutes, 54 seconds that these inventories are part of our entire production process. So these purchases are uh fully funded by our 23:02 23 minutes, 2 seconds customers and fungeible. So precisely you know that is the inventory that we are carrying. There is really no risk that we carry on our uh inventories that we are carrying. 23:12 23 minutes, 12 seconds It is paid for by the customers already. 23:15 23 minutes, 15 seconds Um just for you to know because we because our benefit to our customers is the fact that we are able to combine uh 23:23 23 minutes, 23 seconds pull in the demand from various customers and able to get better terms uh for customers for all the inventory which is funible among them. 23:34 23 minutes, 34 seconds So, so An this this inventory change then will not flow through P&L. Is that fair? It will the inventory up and down 23:42 23 minutes, 42 seconds will be adjusted against customer advances. Is that a fair way to look at it? You're right. That's correct. 23:51 23 minutes, 51 seconds Okay. Okay. Thank you. I I have few more. I I'll come back and look. Yes. 23:56 23 minutes, 56 seconds Thank you. Participants, you may press star and one to ask a question. 24:10 24 minutes, 10 seconds Next question is from the line of Cherasha from White Pine Investments. Please go ahead. Yeah, thank you for the opportunity sir. 24:18 24 minutes, 18 seconds I have one question. Uh if I look at H2 results uh and balance sheet there is significant amount of investments both 24:27 24 minutes, 27 seconds in P&L as well as balance sheet without commensurate revenue. uh so beat staff cost other expenses like inventory 24:34 24 minutes, 34 seconds example. So what kind of revenue will this investment support if you can just share some thoughts it would be helpful 24:42 24 minutes, 42 seconds or and secondly the non CBMO business or the indexable plus tax business what 24:48 24 minutes, 48 seconds kind of aid margins that we do because it is difficult to analyze it right now. 24:56 24 minutes, 56 seconds Hey Sher. So as I mentioned earlier to Rupesh, I think what you are seeing is a increased elevated level of working 25:04 25 minutes, 4 seconds capital. U these are these are um you know as expected and as planned. Uh you know these uh essentially are 25:13 25 minutes, 13 seconds preparation for our significantly large launches. these inventories uh are fully 25:20 25 minutes, 20 seconds funded and paid for by by our customers and pretty much will um you know go off 25:26 25 minutes, 26 seconds the balance sheet. Uh the impact on the P&L is practically negligible. It's only the conversion charges for the service 25:35 25 minutes, 35 seconds fee that we get which will flow into the financial. So uh not a matter of uh 25:42 25 minutes, 42 seconds concern from standpoint. what we are also doing from a balance sheet standpoint is there is capacity buildout 25:49 25 minutes, 49 seconds and that's the u that's the increase that you may be seeing so those are the two so I was more I was referring I was more 25:58 25 minutes, 58 seconds referring the staff cost or the wage expenses and the other expenses despite drop in revenue we have seen a increase 26:05 26 minutes, 5 seconds in both line items and that could be because of the cost that we are bearing on expectations of potential revenue so 26:12 26 minutes, 12 seconds what I'm trying to understand is up to what kind of revenue scale this task cost and other expenses can support and 26:20 26 minutes, 20 seconds beyond that there will be further investments that will be required. 26:25 26 minutes, 25 seconds So I think this is uh just that you know this is the environment which is being put in the entire expansion of capacity 26:34 26 minutes, 34 seconds whether it was earlier the capex which we said but this opex is basically to support that expansion and that is what we have said it is for supporting our 26:43 26 minutes, 43 seconds guidance of 400 million revenue out of which the out of which the DDC part where the increase is happening is very 26:51 26 minutes, 51 seconds significant and that's where uh you know this you we we have already said the second line is already here and second line is uh is going undergoing 27:00 27 minutes qualification right now. So there is you know opex associated with it and that's when it comes online uh from next quarter onwards and similarly that that 27:09 27 minutes, 9 seconds third line which will be coming online later in the year. So I think that's what uh you you see so and the revenue guidance we have already given which is 27:18 27 minutes, 18 seconds going to be coming out of this uh uh expenses. Thank you. 27:26 27 minutes, 26 seconds I request to come back for a follow-up question. Participants, you may press star in one to ask the question. 27:36 27 minutes, 36 seconds Next question is from the line of Nagarval from Dam Capital. Please go ahead. Thanks for taking the question. 27:42 27 minutes, 42 seconds you know on the uh you know on the capacity this is probably just remind us on you know the timelines for the capacity expansion in BBC and uh you 27:51 27 minutes, 51 seconds know by when do you see these incremental capacities available and if you can give also some sense on by when do you see reason utilization of these capacities in your in your plan? 28:01 28 minutes, 1 second Yeah uh N hi so um thanks for your question. So if you if you see our uh as I mentioned the current line is 28:10 28 minutes, 10 seconds currently completely um completely busy on doing the CSA the commercial uh 28:18 28 minutes, 18 seconds manufacturing for both uh Canadian partners as well as our in multiple Indian partners. The new line which is 28:26 28 minutes, 26 seconds currently undergoing qualification it was installed earlier in the year and it's now undergoing uh qualification. 28:32 28 minutes, 32 seconds that line will be available from next quarter onwards. um you know and that's what will a it'll ease uh pressure on 28:42 28 minutes, 42 seconds the existing line and as and when uh you know customers keep moving because that is also the line which has the capability of going to a significantly 28:51 28 minutes, 51 seconds larger batch size of 500 liter which actually is in the interest of our customers and us uh to be able to churn 29:00 29 minutes even higher output from uh from that line and uh and once the third line because you know that we are going to be 29:08 29 minutes, 8 seconds adding two lines uh two additional lines this year. Uh and the as the year you know will be ending we'll be having the 29:16 29 minutes, 16 seconds the second new line. Uh so by end of the year we will have three lines installed. 29:23 29 minutes, 23 seconds uh and you will see se as we have said you know the sequential improvement in both revenue and ITA quarter on quarter 29:30 29 minutes, 30 seconds that sequential improvement actually is built on basis of these new capacities being available because as I mentioned 29:37 29 minutes, 37 seconds in my note we have a we have a very clear visibility of a very robust demand uh you know from all the markets which 29:45 29 minutes, 45 seconds are either already where the approvals are there or the approvals are going to be coming and with this capacity expansion 29:52 29 minutes, 52 seconds that uh demand will uh keep getting serviced and that you will see shown in 30:00 30 minutes our you know sequential quarteron quarter improvement and you also know that there is additional line which will be coming next year but you know I'm not 30:09 30 minutes, 9 seconds factoring that I'm just staying put with three lines which will be uh ready and 30:14 30 minutes, 14 seconds which will be visible by end of FI27 what the capacity are going to be at a 40 million in the per line and how many 30:23 30 minutes, 23 seconds car capacity will be there by the end of the year available with us. 30:28 30 minutes, 28 seconds Yeah. Yeah. Yeah. Yeah. So Nathan I think last time if you remember we explained that our capacity you know way to look at the capacities in the number 30:38 30 minutes, 38 seconds of sterile days which are available at a as a sterile injectable company and that is you know roughly we look at roughly 30:46 30 minutes, 46 seconds about 225 odd days of sterile uh manufacturing available to us and in 30:52 30 minutes, 52 seconds this it is then a function of uh bat sizes. Now you know if we do a 200 liter batch size we can do roughly 60 odd 31:01 31 minutes, 1 second thousand uh pens per day and if we were to uh take the bath size to 500 liter that number immediately goes up by two 31:09 31 minutes, 9 seconds and a half times as you can imagine. So from the same line the output can vary quite significantly uh and increase 31:17 31 minutes, 17 seconds quite significantly depending upon uh the bat sizes. uh so the customers who will move to the bat sizes will be able to get a much higher output uh from us 31:26 31 minutes, 26 seconds and the same same will be applicable to all the three lines. So you can imagine that you know with 225 astral days for 31:34 31 minutes, 34 seconds us in uh on one line uh and you multiply by three give you the you know 675 odd 31:42 31 minutes, 42 seconds uh days which will be available to us uh once all the three lines are up and running making commercial and that's the 31:50 31 minutes, 50 seconds best way to look at uh our uh our capacity and also at the same time I will also tell you that what we are 31:57 31 minutes, 57 seconds really uh good at and What our customers are really valuing us for is all the capacity which I'm telling you is not 32:05 32 minutes, 5 seconds only for filling it is end to end including assembly. So we are telling our offering our customers the full 32:12 32 minutes, 12 seconds finished packed product and secondly on the biologics business I think 32:19 32 minutes, 19 seconds then sorry our coming muffled can speak through the handset sorry is it better? Yeah, 32:27 32 minutes, 27 seconds on the biologics business, we probably made a lot of progress on the on the funnel, but uh you know with what we see in the you know in the business now in 32:35 32 minutes, 35 seconds terms of the uh you know the pipeline the way building out when do you see uh this business begin to contribute uh to a meaningful proportion of consolidator 32:43 32 minutes, 43 seconds for the business by you know by what time does does it begin to happen? 32:49 32 minutes, 49 seconds So Nathan it's a biologics is a is a really you know very exciting business for us as you see there are so many uh 32:56 32 minutes, 56 seconds global tailwinds which are supporting you know including the the recent changes in in the guidelines by FDA as 33:05 33 minutes, 5 seconds well as Europeans which have opened the bioimilar business dramatically expanded the size of the biologics business uh 33:14 33 minutes, 14 seconds the biosimilar business globally and obviously the access and and the attractiveness of CDMOS like us 33:22 33 minutes, 22 seconds uh you know because of uh the the comparative cost which we offer because of the agility and and time to market 33:29 33 minutes, 29 seconds which we offer has you know has made us really really attractive. So uh so while the the the tailwinds and the funnel is 33:38 33 minutes, 38 seconds is very strong what happens in biologics is it's a it's a fairly long gestation in terms of closing the agreement. So 33:45 33 minutes, 45 seconds while the the funnel is really uh strong, we see you know agreements getting signed and you will see that 33:53 33 minutes, 53 seconds happening over the next uh uh full FI27 and FI28 for you to you will already see a 34:01 34 minutes, 1 second meaningful contribution coming in uh in FI27 and FI28. The real kicker uh is 34:08 34 minutes, 8 seconds once the commercial uh manufacturing starts for uh for biologics which is I would say still you know beyond the 34:16 34 minutes, 16 seconds current time horizon which we are looking at a28 we see the commercial manufacturing happening 29 onwards however there will the contribution from 34:25 34 minutes, 25 seconds biologics will already uh you know be meaningful in FI28 34:35 34 minutes, 35 seconds last one I don't you know if it is probably if you can answer that you know we talking about F28 guidance which we've been holding on to for the last 34:42 34 minutes, 42 seconds couple of years now if you look at one source as a business qualitatively how should one think about the business beyond the F28 if you can give us some 34:49 34 minutes, 49 seconds qualitative feel on how should we visualize uh the business scaling up beyond that I would request Arun to answer it's a 34:58 34 minutes, 58 seconds good question good questions hey uh 35:05 35 minutes, 5 seconds hi Nan And um on your question basically there are several modalities right there's a lot of uh conversation and 35:13 35 minutes, 13 seconds noise around the DDC's which of course is an important segue to our 400 million but we have several modalities including 35:21 35 minutes, 21 seconds our soft shells inductibles and the biologics which is an asent u buildout as Mir said that would take a little 35:28 35 minutes, 28 seconds time before we've got a lot of contracts signed up early stages and a lot of RFPs issued But you know material 35:38 35 minutes, 38 seconds uh conversions will take at least another two three years. Um and we al already see the need to expand 35:44 35 minutes, 44 seconds capacities in that in that area. Uh but we believe that the soft shell in in our 35:51 35 minutes, 51 seconds 400 million target. Uh we've alluded to the fact that our soft shells and injectables business are trending closer 35:58 35 minutes, 58 seconds to the $und00 million mark. We see a lot more uh growth opportunities there. be expanding our capacities. Um NRA alluded 36:06 36 minutes, 6 seconds to the uh enhancements of capacities in our injectable space. We have a fourth line coming in unit 2 which is a 36:14 36 minutes, 14 seconds dedicated injectable capability with uh with uh several features uh including an SVD with uh high viscosity prefilled 36:22 36 minutes, 22 seconds syringes. So there are uh several likes uh beyond the hund00 million which we are invested heavily now and uh we 36:30 36 minutes, 30 seconds brought in um a lot of new capabilities in R&D and market access. Uh so we are very confident those businesses will be 36:38 36 minutes, 38 seconds will grow uh quite smartly in the next many years and should give us much more leg up on the beyond 400 uh growth. Of 36:47 36 minutes, 47 seconds course the ster science uh assets would have added to the whole story. Uh but that's uh that's for another day. But 36:55 36 minutes, 55 seconds having said that the 400 million uh organically will also have some inorganic elements uh not necessarily 37:02 37 minutes, 2 seconds the steer science assets and clearly they would also that's that's a pivot that we'll continue to look as as we create beach heads uh internationally. 37:14 37 minutes, 14 seconds Thank you Nathan. I'll request to come back for a follow-up question. 37:19 37 minutes, 19 seconds Next question is from the line of Kunal Lakan from CLSA. Please go ahead. 37:25 37 minutes, 25 seconds Yeah. Hi, thanks for taking the question. Uh uh it's a little more elementary question with respect to sag blue tide. Uh do we have like a minimum 37:33 37 minutes, 33 seconds commitment on volumes uh from our clients uh say either on a quarterly or an annual basis uh irrespective of whether the clients are able to sell 37:40 37 minutes, 40 seconds their inventory in their respective markets or not? 37:44 37 minutes, 44 seconds Yeah. So I can tell you that you know our uh right now the biggest challenge actually for the customers is access to 37:52 37 minutes, 52 seconds capacity. Um and uh and for them to secure uh this access customers have uh 38:01 38 minutes, 1 second done a capacity reservation with us. Um and uh you know that capacity reservation includes uh blocking 38:09 38 minutes, 9 seconds capacity and uh uh you know committing to to pick up that capacity both by paying upfront fee as well as uh uh take 38:19 38 minutes, 19 seconds or pay kind of contract. So u you know right now as I said we are uh we are only looking at how we can uh service 38:27 38 minutes, 27 seconds this uh this demand than worrying about uh whether they'll be able to sell or not. Sure. I I get that. 38:36 38 minutes, 36 seconds And then once once say the markets like you know uh Brazil and other markets open up right going into say FI28 or 29 38:43 38 minutes, 43 seconds right uh would these terms be different or you see similar terms in terms of like you know access to supply or access 38:51 38 minutes, 51 seconds to capacity still remain remaining a priority with these clients. 38:56 38 minutes, 56 seconds See it again depends uh how the uh you know demand uh develops but I can tell you uh considering right now the way we 39:04 39 minutes, 4 seconds have seen you know India pick up we are seeing even the brand in in other markets where u the the expansion which 39:12 39 minutes, 12 seconds is happening is continues to to go beyond u you know beyond what was anticipated and uh the demand supply gap 39:23 39 minutes, 23 seconds uh will continue to be there at least for next two years. So uh you know so right you know where I uh why I cannot 39:32 39 minutes, 32 seconds forecast any future but I can tell you that certainly over a next 2-year period uh the there will be a challenge more I 39:41 39 minutes, 41 seconds mean demand will be uh will be robust and the gap will be more from supplies than uh than the demand. 39:50 39 minutes, 50 seconds Understood sir very helpful. Thank you so much. Thank you. 39:57 39 minutes, 57 seconds Next question is from the line of Anikit Singh from Kodak. Please go ahead. 40:03 40 minutes, 3 seconds Hi. Uh sir, firstly on the semaglutide Canada opportunity uh when do you expect uh approvals for your other clients in 40:11 40 minutes, 11 seconds the Canadian market? Do you expect them uh to come in by the end of FI27 or maybe sometime earlier or beyond FI 27? 40:20 40 minutes, 20 seconds So uh you know honestly that's uh a question which is you know we are we are not directly involved in uh in managing 40:28 40 minutes, 28 seconds the the regulatory strategy or uh discussing with the regulatory agencies. 40:34 40 minutes, 34 seconds Um but uh but I think uh you know as we have all seen in public domain uh that the there would be more uh approvals 40:42 40 minutes, 42 seconds which will be coming in over the next few quarters. So now when exactly these are going to be there uh you know it's 40:50 40 minutes, 50 seconds uh it's very difficult to anticipate but you saw health Canada talking about uh that there are more approvals which are currently in the pipeline. 41:00 41 minutes Got it sir. And secondly sir you have given uh some information on few ro markets in your presentation. So can you 41:08 41 minutes, 8 seconds give some more thoughts on how big could be the market in Brazil and the few latam and select ro markets that you have mentioned in your presentation. 41:17 41 minutes, 17 seconds So Brazil um you know today if you look at IQ Brazil is the largest market outside of North America uh for 41:26 41 minutes, 26 seconds saglutine right so so it's a it's a very it's a large country you know significant population uh and a country 41:34 41 minutes, 34 seconds which is very focused on uh on uh you know weight reduction so uh so it is going to be a very significant market uh 41:42 41 minutes, 42 seconds and if you see there are you know other markets which are which are fairly large whether it is uh Turkey, whether it is 41:50 41 minutes, 50 seconds Saudi Arabia because this is a factor of population size and you look at these markets you know Turkey with 80 million people you know Saudi Arabia again you 41:59 41 minutes, 59 seconds know large large populations so these will be interesting uh but also you need to uh see that many of these markets 42:06 42 minutes, 6 seconds today whether it is Southeast Asia whether it is Latin America the the brand has uh not been available it has 42:15 42 minutes, 15 seconds been a very very uh constrained supply because brand has focused only on US and Europe and the developed markets. So 42:24 42 minutes, 24 seconds these markets will uh really grow. So there there are no clear numbers available simply because uh simply 42:32 42 minutes, 32 seconds because the the brand has done a very very uh poor job of even supplying these it the clear example was India which is 42:39 42 minutes, 39 seconds the second largest diabetic population in the world and uh you know the the brand got launched you know months back 42:46 42 minutes, 46 seconds and not uh uh you know not years back as it should have been and and you see the growth. So I think that's how we will have to wait and see but there is a very 42:54 42 minutes, 54 seconds significant uh market out there in each of these emerging markets. Sure. 43:00 43 minutes And also we have we have customers in all these you know we have a very strong customer base uh which will be covering all these markets which are opening. 43:12 43 minutes, 12 seconds Got it sir. And so lastly uh while you have given your FI28 guidance but now as a few of your customers have already got 43:20 43 minutes, 20 seconds semaglutide approval in few markets. Do you want to give some color on uh fiery FI27 numbers maybe some inclination? 43:30 43 minutes, 30 seconds Yeah. So I think we as we said you know we will we'll stay right now with FI28 guidance while we continue to progress with the commercial launches expanding 43:39 43 minutes, 39 seconds capacities this year. So this year right now we are iterating FI28. 43:46 43 minutes, 46 seconds Thank you. Thank you. Next question is from the line of Dr. 43:54 43 minutes, 54 seconds Karthik Bane from Bajage Life. Please go ahead. 44:05 44 minutes, 5 seconds Dr. Ban, can I request unmute your line and proceed with your question? 44:13 44 minutes, 13 seconds I take the next question to no response. We move on to the next participant. Next question is from the 44:21 44 minutes, 21 seconds line of Rita from Value Quest Investment Advisors. Please go ahead. 44:27 44 minutes, 27 seconds Yeah. Hi sir, thank you for taking my question. First question is on Brazil market. As for Aniza's website, uh we 44:36 44 minutes, 36 seconds see only handful of applicants which are currently under review though there would be 17 applicants. Um could you 44:44 44 minutes, 44 seconds help us understand of these top filers uh what would be our partnership number though we've said we have five partners 44:53 44 minutes, 53 seconds but out of these top applicants um where would our partnership share be? 45:00 45 minutes Uh so Rita again as I said this is not uh you know this is not a information which is in public domain you know what 45:06 45 minutes, 6 seconds and visa is not given uh it doesn't give details on which ones are currently under evaluation what are the names who 45:14 45 minutes, 14 seconds are so I can only tell you that our uh our customers are a fairly uh you know 45:22 45 minutes, 22 seconds variable bunch we have we have uh some of our global generic company partners who are who have filed in Brazil. We 45:30 45 minutes, 30 seconds have got you know Brazilian companies who have filed in Brazil. Uh we've got regional uh strong leaders who have 45:37 45 minutes, 37 seconds filed. So it's very very difficult to uh to really understand where they are. But 45:44 45 minutes, 44 seconds as and when the approvals will start coming uh you know our our customers uh 45:50 45 minutes, 50 seconds should certainly be in that uh first wave. 45:55 45 minutes, 55 seconds Sure. Uh second question is on Saudi Arabia as a market. Um few months back we uh had um given out the notification 46:04 46 minutes, 4 seconds of approval of the drug in Saudi Arabia. 46:10 46 minutes, 10 seconds Uh why would there have been delay in launches? Um could you help us understand that? 46:17 46 minutes, 17 seconds No. So here it's not delay because the fact is that while Saudi Arabia there was no patent. You're aware that there was a patent in India, right? So that's 46:26 46 minutes, 26 seconds the uh that was a containing factor and not uh not the Saudi pattern. Now that uh you know all that is uh you know 46:34 46 minutes, 34 seconds freedom to operate is there. Uh so as we have said the Saudi launch is uh is imminent. 46:44 46 minutes, 44 seconds Sure. Uh last question is on customer advances. Uh what would this number be currently on our books versus 250 cr last quarter? 46:56 46 minutes, 56 seconds um Rita uh the number would likely be at uh almost the similar levels. There's not significant change on that number. 47:06 47 minutes, 6 seconds Sure. Thank you so much. Thank you. 47:11 47 minutes, 11 seconds Next question is from the line of Aman W from Astute Investment Management. Please go ahead. 47:18 47 minutes, 18 seconds Good afternoon sir. Uh first question is on the biologics part. uh you you explained how uh FI27 and FI28 could be 47:27 47 minutes, 27 seconds good growth years for the business. I just wanted to understand what is the number uh in terms of revenue and paya 47:36 47 minutes, 36 seconds loss for fi26 and when do we expect the break even in this biologics business. 47:44 47 minutes, 44 seconds So that's uh you know I think we have mentioned that earlier we the the the stage of evolution we are in right now 47:50 47 minutes, 50 seconds you know we don't really break it down uh um in that granularity business- wise because the the modalities our customers 47:58 47 minutes, 58 seconds take are all together. So, so and and as you know right as I've mentioned that CDMO our biggest uh biggest asset is 48:06 48 minutes, 6 seconds actually confidentiality of our customers. So we don't really break down uh business-wise um revenue or or any other any other financial. 48:18 48 minutes, 18 seconds If you can answer which year can we expect the business to break even and start contributing in terms of profitability also? 48:26 48 minutes, 26 seconds as I said you know it's uh you know uh whether you know what what would be the uh profitability whether it is breaking 48:34 48 minutes, 34 seconds even already or not you know I will not get into that but as I mentioned that the one it's it's a business which is 48:41 48 minutes, 41 seconds going to be expanding uh expanding year on year uh and uh you know we'll already contribute meaningfully to our FI28 48:50 48 minutes, 50 seconds numbers uh and beyond beyond in fact that is a business which has got very long runway uh you know for us beyond 48:58 48 minutes, 58 seconds FI28 because the commercial manufacturing is going to be uh starting beyond FI28 and that is a is a very very 49:07 49 minutes, 7 seconds meaningful u growth on on on these numbers I mean just to to let you know it's a it's a very strongly uh strong IITA uh business. 49:19 49 minutes, 19 seconds Sure sir. On soft skeleton part in my understanding the new capacities are already online. So can you talk about 49:26 49 minutes, 26 seconds say capacity utilization and when can we see start seeing good growth and higher cap capacity utilization in that business? 49:36 49 minutes, 36 seconds Yeah. So this is as you know that the last year we have expanded the capacity and uh since then we have onboarded new 49:43 49 minutes, 43 seconds customers. we continue to on board in fact that uh thanks to all the challenges in having uh you know capacity available for European for uh 49:53 49 minutes, 53 seconds uh our European customers and who are really coming to us uh so that soft genet capacity we are actually seeing uh 50:00 50 minutes an increase uh and as we have said by you know most likely by end of this year 50:07 50 minutes, 7 seconds or if not next year we would have no no real uh no real capacity available beyond and that's 50:14 50 minutes, 14 seconds If you also know that we have a a limited uh period uh agreement transition agreement with uh with 50:22 50 minutes, 22 seconds strides then we will be uh expanding into our own site and that's the time where we you know the next set of expansion on the capacity will happen. 50:31 50 minutes, 31 seconds So so by the within the within the current uh period we we look at this capacity to be fully utilized. 50:41 50 minutes, 41 seconds Sure. Final question on sema side. You explained how the based on bat size whether it is 200 kl or 500 kl the capacity becomes 2.5x. 50:52 50 minutes, 52 seconds So in your clarif it's it's liters it's only it's it's 200 lit 50:59 50 minutes, 59 seconds yes yes 200 liter to 500 lit. So in your understanding when do you expect say this to happen for the at least the first original line? 51:09 51 minutes, 9 seconds Yeah. So uh our our original line the current line we can't go beyond 200 that's why the new lines which we have 51:16 51 minutes, 16 seconds done uh see it's again our the the existing line predates all the exuberance and excitement on GLPS and 51:25 51 minutes, 25 seconds and where the market was. So that line can do maximum 200. It's the new line all the new lines which we are doing which can go you know even up to between 51:34 51 minutes, 34 seconds 750 to,000 lit is what where we are going to be changing and and for the first new line when do you expect this to happen? 51:45 51 minutes, 45 seconds So, it's a it's it's a process. You know, customers are already working on it. Uh, you know, we'll keep updating you, but it's not uh it's not a, you 51:53 51 minutes, 53 seconds know, long-term plan. It's it's going to be happening sooner than uh than we anticipated. 52:02 52 minutes, 2 seconds Thank you. Thanks for answering the question. Thank you. Next question is from line of Dr. 52:10 52 minutes, 10 seconds Karthik Van from Bajash Life. Please go ahead. 52:13 52 minutes, 13 seconds Uh, hello. Can you hear me now this time? Yes. Yes, please go ahead. 52:18 52 minutes, 18 seconds Yeah. Okay. Thank you. Yeah. Thanks for the opportunity. Uh so I would like to know more about the u oral senoglutite 52:26 52 minutes, 26 seconds opportunity and how would that impact our business. 52:30 52 minutes, 30 seconds So, so I think uh you know it's u it's it's a it's a good product and um uh you know 52:37 52 minutes, 37 seconds we are very clear that uh there are uh there are patients who who just cannot take um injections because they have a 52:46 52 minutes, 46 seconds needle phobia uh you know and for them oral tablets are uh an absolute um an 52:54 52 minutes, 54 seconds absolute relief. Um having said that you know orals uh have a have a challenge of efficacy that they they they still don't match the efficacy of uh of injectables. 53:07 53 minutes, 7 seconds Um orals also require a daily doing what we call a very high pill burden uh you know and obviously with with the daily 53:16 53 minutes, 16 seconds dose uh the side effect uh challenges also also increase. Uh so you know with all in mind you know we while um you 53:25 53 minutes, 25 seconds know they are they are a they are a very good uh solution for people who really need um uh and can can do with a lower 53:34 53 minutes, 34 seconds weight loss uh and the expectation can I can I line please? 53:47 53 minutes, 47 seconds Yeah I'm sorry. 53:50 53 minutes, 50 seconds Yeah. So we don't expect uh you know the the orals to be taking about anywhere between 25% to uh maybe a third of the 54:00 54 minutes total market. So the market will overwhelmingly stay as uh injectable. 54:06 54 minutes, 6 seconds Simply look at the pipeline of products uh the other GLP products which are coming which are overwhelmingly injectables. 54:17 54 minutes, 17 seconds Okay. Thank you. And my second question is uh you mentioned Canadian partner uh would you like to uh clarify if the 54:25 54 minutes, 25 seconds Canadian partner is a Indian company or outside India company? 54:31 54 minutes, 31 seconds See I think we have said right that it's one company is in public domain which is Dr. Radies. Uh so uh and the second 54:39 54 minutes, 39 seconds partner uh is uh is also you know in very clear we have put in uh public domain. our our partner is or butler has 54:48 54 minutes, 48 seconds a has a partner uh in one of the largest Canadian companies. So I think it's there are only there are only two 54:55 54 minutes, 55 seconds companies who are approved. So you can I'm sure figure out which ones are those. 55:01 55 minutes, 1 second Okay. Thank you very much. Thanks a lot. 55:06 55 minutes, 6 seconds Thank you very much ladies and gentlemen. In the interest of trying that will be the last question. I'll now hand the conference over to the management for closing comments. 55:18 55 minutes, 18 seconds Uh yeah, thank you very much uh for you know taking time and uh asking uh you know such insightful uh questions. 55:26 55 minutes, 26 seconds Really um really appreciate the interest and uh and we look forward to speaking 55:33 55 minutes, 33 seconds to all of you next quarter. Thank you very much. Thank you. 55:39 55 minutes, 39 seconds Thank you very much on behalf of OneSource Specialty Pharma Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.