Hello. Thank you.

Good afternoon, everyone. On behalf of B&K Securities, I welcome you all to the Q3 FY '26 Earnings Conference Call of Natco Pharma.

Hope everyone is in good health and doing well. On behalf of Natco, today we have with us Mr.

Rajeev Nannapaneni, Vice Chairman and CEO; Mr. Rajesh Chebiyam, Executive Vice President, Crop Health Sciences.

I now hand over the call to Rajesh for the management's opening remarks, post which we'll open the session for Q&A. Over to you, Rajesh.

Thank you, Hrishikesh. Good evening, and welcome everyone to Natco's conference call discussing our earnings results for the third quarter of FY '26, which ended December 31st, 2025.

During this call, we may be making certain forward-looking statements, which are not necessarily historical facts, and anything said on this call which reflects our outlook for the future must be reviewed in conjunction with the risks that the company faces. We undertake no obligations to update these forward-looking statements.

Like to state that the material of the call, except for participant questions, the property of Natco, it cannot be recorded or rebroadcast without Natco's express written permission. We'll begin with the call results highlights, and followed by an interactive Q&A session.

We've updated the financials and press release earlier today. These are also available on our website.

Natco recorded consolidated total revenue of 705.4 crores for the quarter ended on 31st December 2025, as against 651.1 crores as of 31st December 2024. EBITDA for the quarter was at 216.8 crores with a margin at 30.7%.

The net profit for the period on a consolidated basis was 151.3 crores. Revenue from our associated company, Adcock Ingram Holdings South Africa, for the first half of their financial year which ended December 31st, 2025, was at 2,464 crores at a profit after tax of 198 crores.

For Natco, the profit pickup for the period which started from 10th November to 31st December 2025 at 35.75% amounts to 29.65 crores. After one-time stub period amortization of 18.75 crores, the associated profit reflection in Natco's financials amounts to 10.9 crores.

The Board of Directors have declared an interim dividend of 1.5 rupees per equity share of 2 rupees each during Q3 of FY '26. Other segmental split have also been shared in the press release.

I will not go through the details, but we will take questions and will answer from there. Thank you all.

Questions on the staff.

Hi, sir. Good afternoon.

I had a question on GLP-1. Do we have any fill and finish capacity, and if so, is this for an Indian market or an emerging market segment?

GLP-1 approval is expected sometime this month. It's pending at DCGI.

Capacity right now we're outsourcing from one source.

All right. Regarding emerging markets, which geographies will you be launching in, and will we have our own capacity in the future or this is one-source capacity?

As of now, we don't have any capacity. Our tie-up right now is for India, one source we're doing.

Then we're not actively pursuing emerging markets. We're actively pursuing only regulated markets.

Those I think the launch is a little away.

All right. Thank you, sir.

Thank you. Next caller, please.

Hello. Am I audible?

Please go ahead.

Hi, sir. I was just looking at our statement.

We have about 2,600-700 cash on our books post the Adcock acquisition. Why don't we consider a share buyback given the current favorable valuations of our share price and reward the shareholders in that format?

Actually, the calculation net is about 2,500, just want to be more precise. Regarding buyback, at this time, I'm not really thinking about it.

I think my sense is that there are further acquisitions to do, and we are actively engaging trying to do another very large transaction. I think we have enough cash.

I would like to preserve my cash for another transaction similar to the size of Adcock. I would preserve the cash for that.

I wouldn't want to do a buyback at this time.

All right. When do we plan to announce or complete this acquisition, and what vertical?

Until it's done, it's not done, right? We're actively pursuing two, three targets.

We're hoping we'll able to close and we closed this in 2025, Adcock. Something large we want to close at least one or two we are pursuing, if we're lucky two, or at least one in 2026 we want to close, in this calendar year for sure.

All subject to clearance of diligence and clearance of whatever other things that we need to close, yeah.

All right, sir. Thank you.

Okay. Thank you.

Next caller, please.

Good evening, sir. Do we know what is the net cash in Adcock Ingram's books?

Exactly I don't remember, my friend, but I think net debt is zero, I think, or some little bit of cash they have. Net debt is zero is what I recollect.

Exact number I don't recollect, but, yeah, it's about something like that.

Sir, regarding this domestic semaglutide, we have two two applications, for the generic Ozempic and the generic Wegovy, or since we've got some SEC approval, it's for the diabetes variant, right? There's something which is also there for the weight loss?

Both for Ozempic and Wegovy, we have both the applications. One of the trials is not completed yet.

The Ozempic one is what got completed, for which we got the SEC committee clearance. We're expecting the license any moment.

I think that's where we are. Our expectation is that we'll launch the diabetes strength when the market opens up in shortly.

Sir, the court case that we've done is to prevent them from evergreening the patent, or why are we spending money on There's so many other companies that also have got approval from the SEC. What's the logic behind it?

Logic behind the court case, you're saying? It's a very complicated question at this time.

I don't want to answer that question. There is a strategy that we had.

I think for the purposes of this call, I would like to say that we're going to launch when the market opens up post-March, yeah.

Okay. Sir, just on this aspect only, for the Wegovy thing also, we will get the approval soon, right?

We're working on that, right? Or is there some trials is pending?

Yes,

that's also we're working on. I think the clinical trial is expected to complete soon, and then we'll file for approval shortly, yes.

That's correct.

Sir, my last question is in the export formulations, year on year, there is an uptick of around 135-odd crores this year. Is this because of the tailwind of Revlimid or in other things we've done better?

In fact, there's been literally no Revlimid this quarter. We had zero Revlimid this quarter, and these numbers are with zero Revlimid, which is a good thing.

Whatever

tailwind that we got is essentially because our subs have done extremely well, Brazil and Canada has done extremely well, and also we've done very well in the Middle East. Our strategy of expanding into emerging markets has paid dividends, and you'll see the benefit of that I think in the coming quarters.

As of now, we're not consolidating for this quarter substantial amount of profit from Adcock, but I think for the coming quarters, we'll be consolidating Adcock profits as well, we'll have a steady, strong base business. I think you'll see more steady revenue like we have this quarter.

Sir. Thank you very much, sir.

That's all.

Thank you for taking my question. With regards to the Adcock Ingram acquisition, will there be an annual amortization amount or this was just a one-time amortization that we'll be taking?

This is a one-time amortization. See, this is how we're going to account for Adcock profit.

Whatever Adcock profit is there, 35.75% of that will be consolidated into Natco's books. There will be an element of amortization.

I think the accountants are working on it. It will be about 10 to 14 crores per year.

Essentially, a thumb rule for you would be take Adcock's profit, take 35.75% of their profit, and remove about 10 to 15 crores from that for amortization. Any one-times happen, that I can't project for you, but I think that should be the quarterly amortization that it will be split over a quarter.

I think maybe about 3 crores a quarter is what our expectation is. I think the accountants are working on finalizing the number, but roughly I think about that is what my expectation is.

Back of our hand, if you assume that this is a steady-state number and they're able to repeat the numbers, we will be adding about 35 to 40 crores of PAT to our balance sheet every quarter from Adcock.

That is helpful. Sir, is there any timeline for the Crop Health Sciences demerger in place for now?

I think we have started the process. I think roughly we're thinking by October-November, but I don't want to say any definite timeline, but this is our goal to do, but there are a lot of processes that we have to run, right?

I think process will take whatever time it will take, right? Our end goal is that we should be able to do it in the next eight, nine months.

Again, we'll keep you updated to give you more accurate timelines, but as of now, that is the expectation, yeah.

Yeah. One last question is, you called out that you are looking at two, three targets for acquisitions.

Are they in any particular segments, or for domestic market or exports?

I don't want to answer the question directly, but our focus has been looking at emerging markets and looking at brand business, established brand business. I think that's what we're looking at.

This is where we see value in our portfolio. This is what we're looking at at this time.

Okay. Thank you, sir.

Okay. Thank you.

Next caller, please. Thank you.

Hi, sir. Thank you for taking my question again.

Sir, you had mentioned that for India, we're outsourcing via one source. Is it just fill and finish or the whole product, and what capacity would be how many units per se?

It's fill-finish, you give all the raw materials and they'll convert and give it to you. What capacity am I reserving, you're saying?

We're only launching for India, right? India is actually a very tricky market.

I'm positive about the semaglutide launch, but I think it'll be extremely competitive. I think my expectation is that there's going to be a lot of generics.

Each guy, we are launching our own brand plus also we're giving to two other people. Again, all the other guys also I think they're launching their own brand, and there's also some outlicensing business that's happening.

It will be a crowded 10, 15 generic market. A lot of strategies involved in it.

If you ask me, I think the next quarterly call, I'll give you an idea of how the uptake is and what I believe the market will entail and capacity because at this time, it's very early, my friend. Because a lot of permutation, combinations.

That Mounjaro is doing better than semaglutide in Indian market. Obviously, with a lower price, obviously, there will be some uptake.

I think once we are in the market, we will have when we do the March annual audited numbers in May, I think I can shed better light. Right now, we need a little more time to give you a little more clarity and guidance on how things are going to play out, yeah.

Regarding the capacities reserved with one source, is that shareable?

No, my friend. I can't share anything at this time

because

it's very difficult. I actually have no idea what the demand is going to be.

Once we have a demand clarity and seeing how the market formation plays out, I think I'll give you more color on how I think the things will play out here, okay?

Understood. Thank you.

Right. Okay.

Thank you so much. Next caller, please.

Hi. Am I audible?

Hrishikesh, please go ahead.

Sir. Quickly, our other expenses have declined sequentially as Y-o-Y.

We had earlier highlighted in previous calls that in the post-Revlimid era, we will be probably curtailing some cost and R&D, if at all. What's the major chunk that has gone away, and will this be the likelier trend going forward on a quarterly basis?

I think a lot of the R&D budget in terms of allocation and all was done in the September quarter, a lot of projects because we knew that there'll be decline in Revlimid. A lot of the allocations were done for the next 12 months in September.

I think that kind of a lot of the R&D for the next few months is covered already, for most part. Obviously, there'll be some incidental expenditure.

I think one-time bonuses that we wanted to give, they're all done with in September because we anticipated decline in the earnings. A lot of things, we've been waiting for this moment for almost four years, we've been preparing for this new cost structure and R&D budget, yes.

We're still continuing our strategy of doing complex generics. I don't want to back down doing projects.

We continue to invest. I think there's enough surplus, and the guidances that we're giving on surpluses are based on after accounting for the R&D expenditure that we intend to spend.

Thank you for that. Quickly on our NCE and C-line gene pipeline paid.

Can you just throw on the two, three names that we have on the pipeline under progress as of now?

Sure. I think five ideas we've put on the presentation.

I think the most exciting one, if you ask me personally, is eGenesis. EGenesis is doing extremely well.

As it's in public domain. They have dosed one patient.

They have transplanted one kidney for one particular patient. Then they had to remove it after 6 months.

The another patient doing extremely well, and they're trying to extend it to multiple patients. I think that trial is going extremely well.

We are very excited about this investment, and we believe that if the trial goes well, this will be a multibagger among the portfolio that we have. I think this is probably the most exciting one of the five ideas that we had.

Thanks for the update.

Just continuing the same question in different way that where do you see in 3 to 5 years this eGenesis potential or the second best idea which can come across within next 3 to 5 years? All five are unlikely to fructify in 3 years.

If you can share some timeframe within which each of them can fructify, what could be another, and some quantification if you can share over 3 to 5 years, need not be 1 year also. See,

I think we always wanted an exposure for NCE. I think this is something that all Indian companies want to do.

I always was very keen on doing it, but what happened is our balance sheet and our bandwidth in the system is never strong. That I always felt, okay, the next-best way of participating in the NCE pipeline is through investments.

This is probably the biggest investment we have made among NCE ideas. This is $8 million.

See, this technology is called CRISPR-Cas9 technology. What they do is they do a genetic modification of the pig and which makes it more likely that the humans will accept the kidney.

You can do for kidney, you can do for heart, you can do for liver. This is probably the most disruptive thing that's going to happen in medicine.

These are all very high-risk ideas. I just want to let the investors know that it is a high-risk idea.

If it works, it's truly disruptive. We all know people who have challenges with kidney and liver and who want a transplant.

If this works, practically you could use a pig kidney and transplant to humans. If you ask me, this is a idea of the decade, easily the idea of the decade.

As investors of Natco, you're getting a see-through of one of these ideas. We invested at very early stage, at a very early modest valuation.

I am actually very bullish about this idea. I think if it reaches a stage where they're able to demonstrate, let's say, about 25, 30 patients, I think you have a home run and which will play out, in my personal view, in the next 2, 3 years.

Essentially you have to transplant the kidney or whatever organ you're trying to do and see how the patient does over a period of 1 year, 12 months, 1 year or 15 months or 18 months. We've seen one patient who has done well for at least 6 months, which is probably the longest in the world.

I think the second patient is also doing very well. I think we're in good place.

I'm actually very excited. We'll see how things go.

If you can share something say they are almost 1 lakh death for kidney transplantation. Spain is the highest where something is going wrong.

Liver side living maybe 50%. What about rest and how adoption could trigger if it's based on some analysis or some sensitivity or what could be the factor to start the adoption?

Spain I understand is an exception because Spain has a very active program where there's a lot of cadaver transplant, but culturally a lot of countries don't allow it now. A lot of countries it's very difficult to get organs.

Spain is a super exception. If you look at India, for example, for a moment, yeah.

How many people are willing to give their kidney and liver away when somebody passes away? Practically none, right?

How big is the market for kidney and liver? It's huge, right?

If you get a breakthrough, the potential is enormous. Company has a great platform, and so I think the potential is enormous, but you just have to have the risk appetite and wait.

I think if something good happens, I think it'll be very exciting, yeah. You just have to show the data that patients are doing well.

Then I think it'll be pretty interesting.

Wish you all the best to keep cost sub-10k.

Thank you, sir. Thank you.

Next caller, please.

Good afternoon, sir. The recent exchange filing, there was a update regarding the approvals for this erdafitinib from US.

What is the significance of this approval for this molecule from the business perspective?

The litigation is still ongoing, it's a Para IV. It's a $60 million product, it's not a very large product.

We just announced it because we're the first generic which got approved, I think, and that was the significance.

Just on the timeline perspective, sir, when we can see this product launch, any tentative idea?

No, no. It's too preliminary at this time.

The Para IV litigation is still ongoing. I think it's very premature to talk about the launches.

I think our investor presentation has a list of all the Para IVs that we have. I think at this time, it's very difficult to judge the timelines, but we do have multiple launches over a period of time.

I think if you look at our pipeline, we have things starting from 2026 till 2035. I can't name which molecule when, and some of them we have settlements and some of them we're still litigating.

I think all these launches will play out in the next 8 to 9 years. I think that's where the excitement is.

I think some of them are sole FTFs, and some of them are shared FTFs. Even if some of them come through, I think we're looking at a very very interesting situation.

Sir. Thank you.

Sir, I have a marketing suggestion on a lighter note. Now that we are going to be launching the generic Ozempic and Wegovy and we have around 4 lakh retail shareholders plus, maybe you can also think about sending a hard copy of annual report with some discount for captive customers.

It's a 100-150 crore idea if it's 50 size. Just another.

You're saying

I should send out hard copy annual report, okay.

Give the discount coupons.

We environmentally friendly also no, Rahul.

Discount coupon for Ozempic and Wegovy. Yeah.

Because to mass market produce.

I understand.

It's ₹20,000.

No, no. We will sell it at a such a discount that you'll be happy, not only for shareholders, for everyone, yeah, for the whole larger community.

Sir.

Perfectly. Okay.

Thanks. Good marketing idea, Rahul.

Thank you.

Thank you for the opportunity, sir. Firstly, I wanted to ask you, if there is an opportunity which comes up for a large acquisition, would you be comfortable to take debt or you'd go through a route of fundraise through capital markets?

I'm not a big fan of debt, you're aware of that. I would make the judgment closer to the time.

I think right now we have enough cash, we don't need any money from public market. If the acquisition is large enough, then maybe we'll look at it.

Generally, if I do it also, I'll mix it up with some debt and some equity and some cash flow. I think we'll do a mix of all three.

Ask me point-blank right now, the answer is we're not going to raise any capital. If something happens, yes, I will change my mind.

We're shopping, but if something happens, yeah, certainly, I think we'll consider that.

Follow up on this, do you see any lucrative acquisitions coming up or in pipeline?

Yes, I do. I personally do.

I think a lot of the opportunities are there, especially outside India, there's a lot of opportunities with very reasonable return on capital. Compared to India, I think there are better opportunities outside India.

Just that you have to have the leap of faith and take that currency risk and take the risk of being outside our geography and whatever comes with the political risk or whatever you want to call it, exchange risk, political risk, and so on and so forth. I think the returns outside India are much better than India.

I think that has always been my take. Obviously, I've been against the grain in the conventional thinking that people have.

I think people have been more comfortable doing acquisitions within India because it's a more certain environment and this variables are more controllable. Having said that, I believe that going out, the return is much higher.

I think that's my personal position,

right?

Okay.

Yeah. Lastly, I wanted to ask on the vision.

If you can throw some road map of say 5 to 10 years down the line, and is there a figure in your mind which you can give a ballpark, say 10,000 kind of crore of turnover of something of that sort?

I think what we have done is this year, I think we're more or less going to meet the guidance. I think we should do about 4,200 to 4,300 4,300 crores is what my expectation is.

Going forward, obviously, we want to increase our shareholding in Adcock, but obviously, subject to Bidvest willing to consider our request. We have that in the shareholding, so that is obviously a quick way to get to your number of 10,000 crores if that were to happen.

At this time, Bidvest has not shown interest in selling their shares. The agreement allows us to increase in the event they are interested in diluting their shareholding.

At this time, I want to clarify that they're not shown interest. That is one possible way of getting to the number that you just said.

Another is we'd probably have to do a very large transaction again because the way our business is today, organically, you can only grow so much. Incumbent share in generics is very difficult to snatch away from the incumbent because everybody has their own supply chain, everybody has their share, nobody gives up share.

You want to disrupt and get that share, you have to do something very disruptive on pricing, which again destroys the value for everyone. The only way you can achieve that scale you just said, it has to be in combination with the pipeline and an M&A.

An M&A has to be either supplementing what you're doing in your portfolio or adding a new geography. That's the only way.

Do I have such a number in mind? Of course, we have this number in mind.

I'm totally aware of it. That's the only way.

I think without M&A, you will not get there, simple answer. Organically, it'll get you to a certain point, but you need to do M&A for sure, yeah.

Understood. Sir, there is a buzz in the industry, people are moving towards pet care and stuff.

Do you have an opportunity to explore that market, or how do you look at that market, sir?

I've not looked at pet care. I'll be honest with you.

We've not looked at pet care. I think our focus has been only to expand our geographical footprint.

I think we've been always very US and India-focused, and we've not been ever present in other countries. Very deliberately, I think last 4, 5 years, we have built a geographical footprint with our own subsidiaries in multiple countries.

Now I think we have reasonable presence in Canada. US now we have our own front end.

Brazil, we have a very good presence. Then obviously South Africa through Adcock.

I think we're trying to build geographical expansion. I think there's more value to our portfolio than we are getting, and I think the value can be expanded by adding geographies.

One biggest market that we're not present in is Europe, especially Western Europe. That's a lot of guys are present in there, and that's a market that we're not clearly present.

There's still a lot of scope for our portfolio in multiple geographies. I think let me exhaust that, and I think we'll probably come to a different segment.

I think the oncology portfolio has a lot of scope. I feel that all the best oncology products for the next 10 years non-biotech, we have it in our pipeline.

I think there are enough dark pairs in the pipeline. I feel that we're well-placed to exploit that, yeah.

Okay?

Sure. Thank you for taking my questions, sir.

Okay.

Yeah. Thanks for the opportunity.

Sir, I didn't hear it clear, but you're expecting roughly 4,300 crores of revenue this year? That's FY '26?

I think so. Based on how things are going, I think 9 months, if I look at my numbers right now, we did 3,559 crores of revenue.

I think we'll maintain the similar sort of revenue around 720 700 plus, 700 to 750. I think that's what my expectation for this quarter is.

If you add the 750 to the 3,500, it's about yeah, 4,300 is what our expectation is. I think that's where things are going at this time, yeah.

Okay? Understood.

Also,

how much PAT? PAT also I think we are at 11 11 almost 1,150 crores for 9 months.

We'll end with I think around 13 1,280 to 1,300 crores is what I accept, okay?

Understood. Also, sir, on the India front, I think this quarter you had a decent growth in the oncology segment.

What is driving this uptick in revenues in India if you could highlight?

I think India will be primarily driven by semaglutide. I think if I understood correctly, your voice was not so clear, but your question is what will drive India revenue the next 12 months?

Is that the question, if I may paraphrase that?

Yes, sir.

Abdul,

is that it?

Okay. Yeah.

I think from what I understood from your question, I think what's going to drive India revenue we have our oncology pipeline that we're launching, but obviously not large ones. The biggest one will be semaglutide.

I think because our business is small, our domestic business is not very large. I think we're doing annualized around 450, 460 crores.

I think any bump on semaglutide will more than help us grow around 20%. I think our internal target is that our domestic business should grow more than 20% this year because of semaglutide.

The bump is primarily coming because of semaglutide. A lot of our expectation of domestic growth is coming from semaglutide.

Understood. Thank you.

Okay.

Hello. Am I audible?

Yeah.

My only single question is, will there be any Revlimid in this quarter, the running quarter?

I have not budgeted anything at this time because very difficult to judge. I think we had very little Revlimid the last quarter, practically zero.

It's some amount, but nothing significant. We're not budgeted a heavy amount of Revlimid this quarter because very tough to judge how the market is going to be.

I've not budgeted anything. Whatever guidance we've given for PAT this quarter, which is around 150 crores, doesn't assume much from Revlimid.

Sir. Thank you.

Hi, sir. Am I audible?

Go ahead.

Yeah. Sir, I just wanted to learn about the launch timelines particularly for olaparib.

Do we have any information on that?

We're awaiting tentative approvals, so that is one milestone we need to achieve. The second milestone is we are still litigating the product, we don't have any timelines at this time.

At this time, I can't answer that question, but I think we'll have clarity in the next few months. As of now, no, I don't have any timeline.

Got it. Okay.

That's all.

Thank you very much for the opportunity. I would like to know how many MRs do we have on field for semaglutide in India?

What would be the strategy, how many do we actually require?

Our total MR strength is about 600. For semaglutide, I think we allocated about 350 people to promote, 350 to 400 people.

We're covering endocrinologists, specialists, and then we're covering consulting physicians. I think that should be adequate to cover.

Are we covering every doctor that is there in the group? No, probably not.

I think we don't have that level of field force. I think we'll cover all the key opinion leaders and the key stakeholders we will be able to cover.

Which should hopefully make a meaningful impact on our revenue, based on the setup that we have.

Okay. My second question, for the Adcock, how much CAGR can we consider for the Adcock's revenue and the PAT?

I think as of now, I think the business has been flat. I think the historical numbers of Adcock have been there in public domain.

The numbers have been flat. I think the value that we're bringing for Adcock is the pipeline.

I think we have our own oncology pipeline, and we also have relationships with others. Then GLP pipeline, and then we're talking about HIV.

We're trying to sort of use our relationships and our own pipeline to strengthen Adcock's pipeline and file these products. The benefit of Adcock in terms of growth of earnings, you'll probably see it in the next 18 to 24 months once these registrations start coming.

I think the real value you'll see in 2 years from now. Right now, we'll be depending on Adcock's base business for earnings.

I think Natco's input and the value of that input, you'll probably see 2 years from today. I think that's our expectation, and I think over a period of time, you'll see value.

Also geographical expansion, right? I think a lot of the what you call feedback that we get from our shareholders is that our revenue and profitability is so very concentrated.

I think we have shown that in the last 3, 4 years, we have done a lot of work to sort of diversify our what you call profit base. Now you're seeing more diversified profit base and bring more stability in earnings.

In spite of not having any Revlimid, I think you have seen that the company has delivered pretty reasonable earnings. I think we're going to build from here.

We have very good launches coming up in the US in the next 12 months. Also we have very good launches in Brazil also coming up in the next 12 months.

Now with the warning letter lifted from our Kothur facility, we anticipate a lot more approvals coming in and also a lot of launches going to happen. From this base, I think we should able to compound comfortably in the next couple of years.

Thank you very much.

Right. Thanks.

Hi, sir. Similar to my question that I asked previously, do you have any idea on when this patent expiry will take place for olaparib or cabozantinib?

Carfil,

we have a settlement in the US. The settlement date is bound by confidentiality, I can't reveal that.

I can tell you that we have exclusivity on 60 mg with shared exclusivity, and on one strength we have sole exclusivity. I think that's a position that we are in.

The launch date and all, I can't answer that question, but it'll happen, obviously, in the next few years. Exact date, we'll come back when we are closer to the market formation.

The other question was olaparib. Olaparib, there are multiple patents going into the next 7, 8 years.

We're litigating all of them. It depends on either you have to win in trial or you have to get a settlement date, something in the next few years.

At this time, it's very premature to speak about the US launch of olaparib because we don't have clarity yet. I think over due course, I think we'll have some clarity.

Got it. Got it.

Okay.

Okay. Thank you so much.

Thank you. Next caller, please.

Hi. Thank you.

Good evening. Sir, can you call out the R&D spend for this quarter and the 9 months for FY '26?

Just 1 second, yeah. Let me just look at it.

Typically, our R&D spend is about 8% of sales. I think that's the rough estimation.

I think it's around that. Exact number I don't have, but I have a rough percentage.

Sir, just this year we had some revenue from Revlimid this year and that was 8%. Next year, the absolute R&D spend, you expect that should continue to grow with these trials of Phase II going on and more complex generic pipeline, or you expect some moderation there?

I think we can't spend the way we spent it in Revlimid time, I think there's no doubt in that. I think we're looking at two, three strategies.

One is we are looking at some generics we want to do it ourselves and because we have our own front end. What we're doing is for complex generics, we're looking for partnerships so that we can split the R&D expenditure between a partner and ourselves.

I don't want to stop the momentum that we had in the last few years. I would say that we will split the R&D expenditure.

I think if we have a very interesting idea, we believe it's a strong Para IV, then we'll probably go to a partner and say, "Why don't you just share the cost so that we can reduce the risk," which has always been Natco's original model. Now because we have become a bigger company, I'm doing more R&D on my own books.

Maybe we have to do a little more sharing, but I think the momentum and the train won't stop. I think the motivation won't stop.

I think we just have to sort of recalibrate things and probably a little bit of sharing. I think the momentum won't stop.

Interesting. Got it, sir.

Thank you for that.

A

couple of questions on sema, the US and the India filing. I think for Ozempic, if I understand, there were six NCE-1 filings, and for Wegovy, there were probably three day-one filings.

Now we've have, some strengths or all strengths of Ozempic, Wegovy where we think we're the sole FTF. Is this as a result of a settlement?

Have we got a TA within 30 months? Any any clarity on that?

What gives us confidence that we are a sole FTF

on this? I think neither do we or any of our competitors have an approval with FDA on semaglutide.

Nobody has approval on semaglutide in 30 months' time. Certain strengths of both the products, we are a sole FTF, you're right, absolutely right, and which is covering a significant part of it.

Did we get approval in 30 months? The answer is no.

I think first, I think we're answering FDA queries, and I think we need to answer them successfully. Do we have 180 days?

I have no answer to that question. Typically, for complex products, people give a little bit of leeway on the 180 days.

Having said that, it's premature to talk about it. I think one product we already settled.

I think if I recollect, I think Ozempic we already settled, I think. Wegovy, we've not settled, I think.

I think that's where we are.

Oh, yeah. Got it.

Yeah. Thank you.

All the best. I'll join back.

Thank you.

Okay. Thank you.

Thanks for taking my question. Rajeev, since you mentioned there is not much of Revlimid that you've seen in Q3 and your guidance for Q4, is it fair to assume H2 is sort of more representative of base quarter for us, recurring quarter for us going forward, in terms of before the addition of newer products?

Absolutely, Nitin. Everything is base.

I think this is the base business, and from here, we need to grow. Yes, absolutely.

Any new launches that we get will be an increment on this, yes.

That's perfect. Secondly, you mentioned that you expect a lot of launches in the US over the next 12 months.

If you can give us some color on what kind of launches you're thinking here?

We have some ANDAs we're expecting approval in the next few months. Those are non-Para IV ANDAs and which we're marketing through our own front end.

Those we're expecting in around April to June quarter, we're expecting it all. Some of these older products we are launching, and we're just waiting for one we're waiting for FDA approval and one we're doing some manufacturing tweaking in terms of the equipment.

That's the reason why the plan is deferred to April. We are expecting at least one of our first-to-files in the US, shared FTF, that we're going to launch in the next few months.

That's our expectation. Which one and all, we can't reveal, but, yeah, one of our shared FTFs we're going to launch in the next financial year.

Benefit of that you'll see in the next financial year, which I think will also add to the base earnings.

Okay. Secondly, on the R&D, have we filed any complex generics this year so far?

We are going to file about four, five products we'll file. I think the total target is that we're going to file about eight products.

Of the ones that we filed, we didn't get any sole FTF. I can't answer that we've got any sole FTFs or shared FTFs.

Let me come back on that because we don't have clarity on that yet. The really good one that we filed, which was complex and hard to do, was probably niraparib.

That was a good one we filed. We were not FTF.

I think another beat us to it by 2 months. Niraparib is a cancer product for which you need to do a what you call a patient bio.

I think that was a nice complex one, but yes. We couldn't get the FTF.

Somebody else got an FTF ahead of us, so. I think so we'll see.

I think something will probably hit in the next 12 months, yeah.

Second one, on the non-US export markets, how should you broadly look at these markets? What kind of opportunities do you see in these markets: Brazil, Canada, and some of the other emerging markets?

I think you've seen the base earnings. I think a lot of it is coming from emerging markets.

A lot of it has come from the Middle East and Brazil, if you look at most of our export revenue. I think Brazil has some very good launches.

We have very good approvals coming this year. I'm very bullish about our emerging.

Add that with our Adcock profit consolidation, I think our emerging market profit will drive the company's growth. Even US also, we're going to see some very good launches, and they're very bullish about our US launches as well.

I think 150, 160 is the base, and on that, I believe in '27 we'll see a very strong growth. The guidance on the growth and all, I'll give you I think maybe closer in the May call once we finalized our audited numbers, but I feel very confident that we should go comfortably in the next couple of years.

Thank you so much.

Thank you, Nitin.

Yes, last question.

Hi. Am I audible?

Yeah. Please.

Yeah. Sir, quickly, what was the sales for subsidiary sales for 3Q and 9M?

100 and 1 second, yeah. Let me just look it up.

177 crores out of the 705 crores, subsidiary sale was 177. Sir,

my second question is can you provide a brief update on our manufacturing plants, the US FDA status?

We have four FDA plants. Kothur had a warning letter which got removed, so that got resolved.

Mekaguda also got her inspection this year, and we got clearance for that. Chennai got inspected this year, and we're waiting for classification.

We believe the observations are procedural in nature. We're expecting the classification in the next 30, 40 days.

Vizag formulation facility, I think we'll get an inspection sometime this year, I think. It's been due now.

I think if I recollect, it's been about 3 years since the last inspection happened, 2.5, 3 years. I don't recollect the exact date.

I think we're expecting this. To answer your question, of the four, I think three got inspected in 2025, one has not been inspected.

Out of three that got inspected, two we got clearances, and third we're anticipating clearance.

Thank you.

Last question, please, yeah?

Thank you. Sir, on your M&A, you highlighted which areas you're looking for.

As per your M&A framework, what kind of valuation multiples are you generally comfortable paying just to help us factor in the terms of the size of acquisition that maybe comes? Because Adcock was relatively on the lower side of EBITDA multiple.

Going forward, as per your framework, are you able to share what kind of valuation multiples you're comfortable with?

It's tough to judge. You judge an asset based on the multiple and the growth potential.

It's very difficult to ascribe a particular multiple. You can't walk into the room and say, "I want this particular multiple."

You have to take it by the case. I can't answer your question directly.

You take it by the case. Depending on the circumstance, the market, and political issues, and stability issues, currency risk, I think it is priced in that manner.

See, how to keep an open mind, and how are you going to finance it. Then take it from there.

How much equity you want

I think yeah, that's how we're going to look at it, yeah? With this question, I complete our call for today.

Let me thank everyone for all the good questions that everybody has asked. That's it.

Thank you so much.

Yeah. Thank you all.

Thank you all.

Hrishikesh,

I think we can conclude the call.