Thanks, Iqra. Good evening and warm welcome for 3rd quarter FY 2026 earnings call of Alkem Laboratories.

From the management side, we have Mr. Sandeep Singh, Managing Director; Dr.

Vikas Gupta, CEO; Mr. Nitin Agrawal, CFO; Mr.

Kaustav Banerjee, CEO Alkem MedTech; and Ms. Purvi Shah, Head of Investor Relations.

Over to you, Purvi.

Thank you, Tushar. Good evening, everyone.

On behalf of Alkem, we welcome you all to today's Quarter 3 FY 2026 results call. Earlier today, we released our financial results, press release, and results presentation, all of which are available on our website and have also been filed with the stock exchanges.

We hope you've had a chance to review them. Before we begin the call, please note that this call is being recorded and the audio transcript will be made available on the exchanges and on our website shortly after the call concludes.

Also, today's discussion may include certain forward-looking statements. This should be viewed in the context of the risk and the uncertainties associated with our business.

Since we have made a major acquisition announcement today for Alkem MedTech, we also have our MD, Mr. Sandeep Singh, with us on the call, who will throw some light on the same.

All the questions pertaining to the medtech business will be answered by Mr. Sandeep Singh along with Alkem MedTech CEO Mr.

Kaustav Banerjee. With this, I now hand over the call to Mr.

Sandeep Singh.

Thank you, Purvi. Guys, it's great news that we have got into medical devices.

I think after biotech, this could be one very valuable subsidiary that we will create in the long term. I would just like to share some facts about this market and then of course, Vikas will talk about the business operations, and then we can go through Q&A.

Largely, medtech in India is a $10 billion market with significant headroom for growth. India is still a underpenetrated market; per capita is $7 for India, it's $50 for China, and even Brazil is at $40.

We all know there's large headroom left in India. There are technological advances leading to proliferation of use cases across disease areas.

There's low competitive intensity, historically smaller value pools, limited tech know-how, and lack of at-scale domestic players even yet. Let's not forget, medtech can be generic version two, and India can become a supplier globally to the best parts of the world, to the most advanced countries in the times to come.

Shift towards localized manufacturing and emergence of Indian players will happen, and we are very sure of it. The two areas which we want to focus is ortho and cardio.

Though I spoke about India, but our play is global. I believe Enzene and Alkem MedTech both can be value-accretive, not just in valuation, but even on pure EBITDA margins.

In 4 to 5 years, both businesses will have an EBITDA margin of 25%. With this, I'll pass it on to Vikas, and I'm happy to take questions later on.

Thank you.

Thank you so much, Mr. Sandeep.

Good evening, everyone, and thank you for joining us for Q3 FY 2026 earnings call. In Q3, we delivered a stable performance in a dynamic operating environment supported by strong fundamentals in our domestic business and consistent execution across our international businesses.

We remain bullish on the growth opportunities in domestic as well as in the international businesses and are on track to deliver our full-year guidance. We are seeing good revenue growth across our core markets.

In domestic market, if we look at our YTD numbers, we have grown at close to 10%. During Q3 of last year, we undertook measured adjustment to our distribution setup in certain areas, which was aimed at strengthening the channel effectiveness and improving the service levels and supporting overall long-term growth.

We had realized certain sales in Q3 FY 2025, which led to a high base for that quarter. If we adjust the base effect, there has been a still strong double-digit growth of domestic business that continues even in Q3 of FY 2026.

Our chronic business is seeing very strong growth trajectory both YTD as well as quarter for this year. We also have carved out our Alkem Wellness business as a separate entity, which is seeing certain headwinds.

However, our prescription business is growing at a strong rate, which is reflected in IQVIA data as well. We continue to gain market share across specialties as reflected by the prescription research data as well.

I will now present some of the key highlights for Q3 FY 2026 financial performance. The total revenue is at 37,368 million rupees with a YoY growth of 10.7%.

International sales were at 12,157 million with a YoY growth of 26.6%, while India sales, like I mentioned, is looking at YoY growth of 5.5% with 24,959 million. EBITDA margin of 22.2% and EBITDA stands at 8,280 million with a 9% YoY growth.

R&D expenses for the quarter were 1,390 million, which is 3.7% of the total revenue from our operations. PBT was 7,812 million with a YoY growth of 7% and net profit at 6,360 million with a YoY growth of 1.6%.

There is an exceptional item for the quarter, which includes the impact of ₹528 million on a preliminary basis related to the notification by the Government of India regarding the labor codes. According to IQVIA data, we have outperformed IPM in six therapies, which is anti-infectives, which is our core, we are growing 1.4x; vitamins and minerals, we are growing 2x of the market; pain at 1.4x; anti-diabetic is 1.2x, but if I adjust for the GLP-1, it is more than 2x of the market; respiratory 1.2x and derma 1.8x.

We are seeing a very strong trajectory both in IQVIA as well as internal business performance. We are encouraged by the opportunities ahead, supported by our expanding portfolio, upcoming launches, and investments in the new growth areas.

We will continue to navigate the evolving operating environment with agility. Thank you for your continued trust and support.

I would now like to hand over the call to the moderator so that we can open the session for questions.

Hi, thank you for the opportunity. My question is on medtech to Sandeep.

Sandeep, you clearly mentioned this could be generic two in terms of growth opportunities which are available. From Alkem perspective, I just want to understand what kind of scale you want to build over next 3 to 5 years, and then what kind of investment or cost will be required to build that scale?

Sure, thank you. Yes, I do believe in that.

In the next 3 to 5 years, revenue could be around 1,000 crores and EBITDA would be around say 20-22%. 25% would take higher, but since your question was 2 to 5 years, I've answered that.

Kaustav, you can give more color to it, please. Kaustav, go ahead.

If you look at from the business of ortho and cardio, our ortho business is more like organically growing. The tech transfer product that we did last year, that is under manufacturing and we expect to launch it in the end of June next year.

If I give you a volume perspective, we should be around 10% of the market in the next 5 years' time. If you ask me in terms of numbers, that would be around 250,000 implants in 5 years cumulative numbers.

It will be a very strong growth. We have already launched the product, the Indian brand manufactured product, in the second quarter of this year.

If you look at sequentially, we are growing at a number which is 50% quarter-on-quarter. If I look at the overall EBITDA, I think which Sandeep already mentioned.

EBITDA, yeah. Your question was on incremental cost.

I think more or less, maybe it will take 200 to 300 crores more of investment in the next 3 to 4 years. Significant investment, I would say, is almost done.

Yes, thank you.

Out of that 200-300 expected spent, majority are already done. That's what you're saying?

Yeah.

Okay. Just continuing with that, we understand, see, medtech is very different than pharma, right?

What gives you so much of confidence that you can really scale up big in just a matter of say 3 to 5 years? What could be the major challenges, if you can just talk on this business?

Kaustav, maybe you can go ahead. I'll just say this, that of course it's different.

Therefore, we have a different team, we have a different company. That's why we acquired this company because those skill sets, we don't have it.

We are very clear about it. We will run it independently.

It is different, but it falls under healthcare. Kaustav, please.

If you look at medtech, we are in the process of building the team. With ortho, we have already built the team.

The people we have brought in are from large global companies with significant experiences, anything between 15 to 20 years. If you look through my background, you will see that I have grown in the medtech sector before joining Alkem.

I was hired to build this portfolio. I have spent around 26 years into medtech, starting with large three global companies: Medtronic, St.

Jude/Abbott, and then Zimmer Biomet. I have worked through cardiology and orthopedic all through my 26 years before Alkem.

Sure. Thank you.

I'll get back in the queue. All the best.

Thank you.

Hi. Thanks for taking my question.

If you can provide some more color on this acquisition of Occlutech. If you can give some history about the company, the product segment, geography, any concentration risk.

Then beyond the profile, if you can just talk through the strategic rationale for this particular deal as to how this will sort of help in your long-term aspiration. Then the financial metric, how does it make sense?

What's the EBITDA margin for the company, whether it will be earnings-accretive or not, if you can give color on that, and any breakeven timeline for this acquisition? These are

good questions actually from your side. Let me start with the rationale and what the company is about.

Very briefly, this is a research-oriented company which has, solved one of the biggest medtech problem in the world, which is being in high-entry-market-barrier markets. Entry-barrier markets which is which include United States and Western Europe, as well as Japan and Australia.

This segment is is a very niche segment of cardiology. For us, it's more like a platform.

If you look at intervention cardiology, this is a subsegment of that intervention cardiology where the occluders, which is basically treating treating the the septal defects of the heart. The three primary areas is definitely number one is is atrial septal defects.

Number two is is the treatment of heart failure. Number three is, prevention of stroke.

That's the therapeutic area. Now why, this is important for us?

This is a in this particular segment, they are the third largest company in the world. Given their revenue coming from Western Europe and US to the tune of 85% of their total revenue, it's a very, very strong portfolio which is waiting to be, expanded across the globe.

In Europe, this company is already holding a number two position. Apart from this, this company has a very strong R&D set up with their own own research lab, multiple research lab, own cleanroom, and own testing facility, which is not very you know commonly seen any other companies that you come across in the segment.

As a result of this, this company has a very strong product pipeline. One of this product pipeline is another occluder which is left atrial appendage, where the revenue in the market I mean the global market size is around $1.4 billion and which is a oligopolistic market today.

I would still say a duopoly being shared by Abbott and and and Boston Scientific. These are two companies which are leading this occluder segment, and this is a product which is in the pipeline and will be very soon getting approval.

Another important thing you need to recognize: while they have they have got into US just in last 1 and 1/2 years, and within this 1 and 1/2 year with one product, they have already achieved 5% market share. PFO is about to be launched, and we are expecting a market share I mean we are expecting a approval by 2027.

That can significantly help us scale up in a high-value market. Now coming to your question on on EBITDA.

First, this company is EBITDA-positive in in the present year, which is, it's financial year I oh sorry, calendar year 2026. Our our estimate is to have 10% EBITDA by FY 2027, which will take us to around 23% to 24% in 3 years' time.

Our market share, if you see, in Europe already is 23%. We expect to replicate the same experience in the United States.

Given the company do not have significant presence in emerging markets, that's a huge opportunity for us to grow.

Okay.

If you have more financial questions, you can ask I think overall company... Nitin is here,

please go ahead.

I just wanted to ask, you've got 55%. Who owns the company and why not owning 100%?

Is there a plan to own 100% at some point in time?

If you look at their shareholding, there are around more than 150 shareholders currently in the company, and majority, around 32%, is held by the founder himself. The reason why we are buying 55% because the balance shareholders, they want to retain their shareholding and gain in part of the, say, value creation which we are going to do in next 5 years together.

The current management will also continue. The current promoters will also grow the company along with us.

Maybe over years, I would say next 4 to 5 years, they may look for an exit. As on date, there is no such plan and they want to grow the company with us.

That's the reason that we are buying 55% stake. Maybe after 3-4 years, we can again look at buying the balance stake from them.

So

30-odd percent for the promoters. The promoter is still owning that much stake?

No, he will sell some part of it, but definitely he will own significant stake after we take control.

Can you share how much stake he would own after the transaction?

We will share once we sign the SPA. It's still in the discussion process, but yeah, overall, we will acquire 55% stake that has been decided.

In terms of the promoter stake, how much they will continue, that exact number we will come to know once we reach to the signing of SPA stage.

The promoter will continue as the CEO of the entity? Is that already decided?

Yes, the plan is that the same management will continue, and definitely we have taken a commitment from him to continue at least for a year. Even for the other management, say senior management staff also, the commitment has been taken.

The plan is that this company will run as it is because of the strength we have bought this company, their R&D and manufacturing capabilities. As Kaustav said, that there are a lot of opportunities to use the brand name of Occlutech and launch more number of products in the structural heart and other similar, say, cardiovascular segment.

Definitely, this is a big, big brand which we have bought and we want to retain the brand image as it is.

Okay. Thank you.

I'll join back.

Thanks for taking my question. Sorry, I missed the number for what is the incremental investment that we are planning on growing the Occlutech assets?

The initial investment will be of around 1,100 crores. Over 2 years, since we want to also accelerate few of the R&D projects, as Kaustav spoke, that they have LAA, which is a great product in this segment, and we want to definitely accelerate launch of LAA in at least in Europe market over next 3 years.

We will maybe invest 100 to 200 crores more over next 2 years to fund their R&D program. Definitely I think at operations level, they will be cash flow-positive.

There I don't see any challenge from operating cash flow end.

This 100 to 200 crores is largely R&D?

Mostly to fund or accelerate their R&D program. Otherwise, they have already EBITDA-positive.

I think there are some concerns on the PAT numbers because they have a loan also in their books of around 450 to 500 crores. The loan is currently at 10%, but yeah, definitely we have plans to reduce the interest loan since Alkem has such, say, cash liquidity in the market.

Definitely the PAT will also improve once the loan is supported by a corporate guarantee from us.

The plan to launch more, I think that product that you mentioned in '27 in US and expanded into other markets, that wouldn't require too much investment or that would be over and above this 100 to 200 crores?

No, so as Kaustav spoke about PFO launch in US, that will be June '27. Most of the R&D spend or investment on that project is already done.

We are just waiting for the approval to come, and we will most probably launch that from June '27 onwards. We will start marketing that product.

Okay. What I'm trying to understand is this 200 crore number includes all marketing spend as well?

Yes, yes. As we said that say if you look at cash flow at the operating level, we have positive cash flow.

We don't need to invest further in, say, sales and marketing. The current business can manage its own sales and marketing expenses.

For R&D program and to accelerate the R&D program, definitely there will be some amount of investment which we will do in the clinical trials and also the clinical program.

Thank you. Understood.

What would be the payback period for this acquisition based on your initial assessment?

See, as we've said that this will be more for us, this will be a platform to access developed markets like Japan, US, and Western Europe. There is a plan to also launch more number of, say, products in cardiovascular using this platform.

If you don't consider the additional portfolio which we are going to launch, or you don't consider LAA, which is a big opportunity, the payback is around 10% 10 years on this asset. After considering LAA or, say, new set of products which can be launched under this platform, the payback will significantly be lowered.

As as I said, it is 10 years, it can be significantly reduced. It's very difficult to predict as of now.

Yeah.

Okay. Sorry, my last question.

The additional cardiology assets that you're mentioning, are we looking at more asset acquisitions to add on to this portfolio? Is that the eventual idea other than what's there in the pipeline for this asset?

The idea is not about acquisition. See, if you understand the business, this company is very well manufacturing a simple scaffold kind of technology, which is based on nitinol.

There are many adjacent technology to that, which can be very easily manufactured by them. Doesn't require an inorganic acquisition, but product can be developed and manufactured through this same organization because they have already mastered one of the most difficult skill of delivery system.

Given that they have already done it, I feel that whatever investments and R&D Nitin mentioned, that should help us and suffice to introduce our newer products.

Understood. Thank you so much.

Hi. The first question on our domestic formulation business.

Dr. Vikas alluded that we had some higher base last year same quarter.

If I can see last year same quarter also we had kind of mid-single-digit growth, right? If I look at the 2-year CAGR, removing that whatever restructuring we did, we're still at mid-single-digit growth, right?

What is happening in our domestic formulation business that continues to grow at a lower level, much lower than the IPM level?

I would disagree here because if you look at our YTD numbers, I think we are close to 10%. If I split that out even further, like I mentioned, we have this year some headwinds in the generic business.

We carved it out as a separate entity. If you remove that, we are actually close to around 11% or 12% in that range.

Now in a market which is growing at around 7.5% to 8%, YTD numbers are looking at around early double-digit kind of numbers. In fact, we are seeing very good traction across segments within our domestic business.

Chronic, which always has been a question that people have asked, whether you look at IQVIA numbers, whether you look at our internal performance numbers, I think the growth story is at its high. We have a high-teens kind of growth that we are registering in our overall chronic segment.

I think if you ask...

On YTD basis,

on YTD basis,

we also have Adroit adding the inorganic growth, and Bombay Ortho also getting added, right?

That's hardly, if you ask me the number for YTD for Adroit, it's hardly 40 crores. That's not a very big number, which is even otherwise, if you look at, our prescription business is seeing a very strong growth.

You can see even it in IQVIA, I think we do not have any challenges. In fact, our growth is very good.

We are very bullish on the same. In fact, now with we all getting ready for semaglutide launch also, we are also geared up for day-one entry into semaglutide.

In fact, that would require addition of some people, but even in other therapies, looking at our growth trajectory, we are very bullish on our domestic market and we will add some more manpower to drive the growth further in the coming years as well.

Sure, sir. The second one on the Occlutech business.

How is the gross margin profile of the business, and when we say that we'll improve the EBITDA margin from around 4% to more like 25% over the next 3 to 5 years, is it more driven by operating leverage, gross margin improvement, and does the company have manufacturing facility? If yes, where is it, and what kind of utilization it is currently at?

The gross margin of the company is as of now close to 73%. There are multiple things that will be driving our margins going forward.

Definitely, one of them is operating leverage. Number two is there is a lot of opportunities to optimize cost utilizing the significant back office that Alkem already has, including the GCC.

Also, one of the thing we need to recognize that there are certain new products that will be introduced in very high-ASP market. For example, when we launch our PFO in US, the ASPs is almost to the tune of $9,500.

Number four that is going to drive the margin going forward: while we recognize the fact anything that is labor-oriented or that can help us build labor arbitrage or anything which is labor-intensive process, we will move to India, but we still want to retain the organization's international DNA. We will continue to make investment on optimization, but ASP, increased coverage, operating leverage, and utilizing Alkem's strong backend to reduce operating costs.

Sir, regarding the manufacturing facility?

The manufacturing facility, as I said, it will take time because it is also regulated. Already currently it is in Germany and Turkey as well.

These manufacturing facility will continue to operate. Eventually, we will see opportunities to optimize.

Sure, sir. Lastly, the 450-500 crore debt on the balance sheet, which is at a high interest rate, is there a plan to kind of provide loan from the Alkem balance sheet at a lower percentage point, or you would refinance from the market?

How should we think about it?

We will not provide loan from Alkem India, but definitely we will get it refinanced. With help of corporate guarantee, the rate can be reduced from current 10% to 5% to 6% easily.

This is a rate we pay for our other facilities also for working capital loans. Yes, to answer your question, it will not be from Alkem, but it will be a refinancing.

Sure, sir. Thank you and all the best.

Hi. Good evening.

Sorry, I wanted to understand the India numbers a bit better. There is a divergence what you were suggesting between the primary sales and the secondary sales.

So 1Q, 2Q were much better possibly on the secondary side and so on the primary side, and this quarter the primary is worse off than secondary. Any particular reason for this divergence between the two?

When do you see this anomaly getting corrected in the business?

Let let me clarify it once again. There is no divergence or no anomaly in this number.

If you see it is just a cutoff adjustment, when we had changed our distribution setup in last year Q3, there were certain markets, where we could realize, the spill it is just the spillover impact which which already got corrected, in in Q3. There is no divergence.

It is looking at a like a 5% growth, but if you see YTD, this year numbers, there is no divergence in primary and secondary. YTD numbers are are 10% kind of growth, which is which is overall domestic.

As in our overall domestic, there is a large component of the generic business as well. Now that generic business this year has been more flattish.

If you, look at only the, core business, the branded generic business, then, the growth trajectory is is strong. It is, early double-digit kind of growth, and we are also bullish of ending this whole year also at that number only.

Just to clarify, there is no divergence in any primary or secondary. It is just because last year because of the cutoff,

More of a base impact.

More of a base impact in the last year Q3 because of which only this quarter is looking a little, sluggish. Otherwise, there is no I I hope it is clear, Nikhil.

You'll be back to a 10% growth level from 4Q? Is that the right understanding?

Yes, YTD also we are at that number, and Q4 also will be that number because that base was only for Q3 which got corrected. Now after that, it has been the same cutoff principle that we have followed.

Even in Q4, you will see, touch wood if everything goes well, a similar... Just to

add what Dr. Gupta said, if you look at billing-to-billing growth for the quarter, it was 10% plus for the prescription business.

It was just because of cutoff adjustment that the reported growth looks slower, but billing-to-billing if you compare the growth, it is 10% plus for Quarter 3 also.

Understood. Slightly medium-term, let's say FY 2027, FY 2028, now this generics business, I don't know, if we want to grow this business or not, would it drag your overall growth in FY 2027-28 if you don't find...

No,

no, it won't. See, as I said, it's a large business for us and we would definitely want to grow it.

Of course, because we had carved it out as a separate entity, whenever you do that, we have seen that in the short term, business goes through certain headwinds. Even in the market, you know that it has become a highly competitive market.

I think we will be back to our high single-digit to early double-digit kind of growth even in generic business from next year. This year, we have taken certain conscious calls also in the interest of keeping the margins intact from that business.

We are very hopeful. Overall, if I have to give you a domestic story picture, we're very bullish on this.

I have always maintained that we will continue to grow at 100 to 150 basis point more than the IPM growth. In the recent month, we have seen even IPM growth getting recovered.

Similar trajectory we are seeing actually in the recent months in our overall domestic business as well. I think this kind of growth would persist and continue even in the coming year.

Got it. I have a question on Occlutech as well.

Before that, just final question on the core business. You are at 66% gross margin now.

If I look at 9 months, somewhere around 65-66%. Any particular guidance on the gross margin going into FY 2027-28, especially in light of the MIP that has been announced for Pen G and its derivatives?

Does that create some sort of a headwind?

See, of course, MIP is a very recent event. We are just waiting and seeing, how the market pricing would unfold.

If the India players, increase their supply, then clearly the cost impact, would be lesser, on our balance sheet. As of now, the way it looks like, it looks like overall, close to say 80 to 100 crores impact.

Some of this, would get should get nullified by some of the market pricing because the because even our trade generic business, we have a big, portfolio on that front, we can pass it on, to the customer. We will try and see, how we minimize that impact.

Then, there would be certain other products as well, where we are working on improving our overall, procurement. I think put together, as of now, we are looking at say a similar guidance on the gross margin, maybe 0.5 to a percentage basis points here, there, but we'll try and we'll will actually get to see it closer to how the market unfolds, in in the coming quarters.

How many months of inventory do you usually hold of these derivatives, Pen G and its derivatives?

We have close to 5 4 to 5 months of inventory with regards to the number of days.

Got it. I have a set of questions on Occlutech as well.

Now Sandeep sir, historically, Alkem has been very conservative with regards to capital allocation. Only of late, we are seeing these acquisitions.

What gives you confidence on these acquisitions, especially this one, given your conservative nature and the company being loss-making? It seems a bit departure from your past practices.

You said many acquisitions. I think this is the first one, not many.

You can't count Bombay Ortho

and all that. That was

a sneeze, don't even bring it up. This is the first one.

Many times, you all were kept asking that you all should acquire and acquire, maybe we listened to you all. Now what gives me confidence is what we answered in the first question.

I think we believe in people. I think we have the best people in the medical devices.

We have acquired a company, which I'm kind of repeating, this is not a in-house development or in-house management. This is an acquisition not only of company, but of talent.

Yeah. Kaustav, you can add on that if you want anything.

No, I think you

covered

it

all. Yeah.

Yeah. Could

the current promoter and...

Sir. Thank you for the opportunity.

Sir, when you think about the acquisition in 3 years, this incremental growth that is going to come, is this going to come in across similar markets or similar products in newer markets? If you can just flesh out some details here, that will be helpful.

The second one was that as and when you get comfortable with the share purchase agreement, we need a lot more color around how the balance sheet looks like, what you've paid, and what the historic financials of this company look like, and maybe some literature around what product approvals they have, etc. That will really help because this is a fairly large acquisition, a large capital allocation.

A lot more details required is the feedback because I just wanted to sort of...

I'll take the first question first, that is your question on how are we going to grow, right? Fundamentally, there are three things that will drive our growth.

One is definitely newer products that will be introduced, which are awaiting regulatory approval. For example, PFO in the United States, which is a very large opportunity.

Similarly, increasing the footprint in emerging markets, that's the second large opportunity that we have with this product. Third thing is it's about going deep into markets where we just have little bit of presence, where we have low market share.

Because Western Europe, we already have a very good and very high market share. Thereafter, APAC and EMEA are the markets where we have the headroom to grow.

Multiple factor. US, as I said, the PFO launch and deeper penetration with ASD.

Would you flesh out any guidance for these numbers on the next 3 years kind of growth?

We have around 600 crore we are estimating in the calendar year 2026. Then subsequently, we will grow that number up to 780 crores in yeah, 14 4 approximately 14% CAGR about for the next 5 years.

That is not counting your LAA bolt-on.

Not counting the bolt-on.

Conservative numbers, I can say, Kaustav.

Yeah. Correct.

This 15 14-15% growth equally split across all the three aspects that you talked about: geographic expansion, newer markets, and of course, existing markets higher penetration? Almost equally is how we should think about it?

It would be very difficult to say equally because in certain markets, you will drive higher volume, may not be at the very high ASP. Certain markets like US where you have a very high ASP, may not be at the same volume.

It would be distributed, but largely our estimate says we'll grow at 14% CAGR over the next 5 years.

Just to add on what Kaustav said, that this 14% CAGR is without any new product, as we have LAA also in our product pipeline, and also without adding any portfolio any addition to the portfolio like we can add TAVR or stent or other products also going forward. So 14% CAGR is only from the existing products.

It's a conservative estimate.

I understand. Sir, the reason I'm deliberating on this point so much is that the execution hurdles across these three buckets is very, very different, right?

Getting newer products in developed markets versus getting developed product market sold in India versus, all of these are very different execution hurdles, right? I get the point that you're bullish about the business.

When you think about this growth, we have to kind of at least try and get some sense on how you're thinking about these three verticals in terms of the contribution to growth.

We are already having a full-blown team with Occlutech. We are just acquiring 55%.

The team remains, the management continues, and we would like to continue with the DNA of a international company.

Understood. Fair point.

All the...

Hi. Good evening.

Sir, just wanted to understand on Occlutech. We are doing this acquisition.

From company's perspective, what do they expect? What will we be adding as a value to them overall?

What we are going to add as a value?

Right.

Definitely number one is we are going to put muscles into the company by making investments. We are a strategic investor into it.

Number two, we are going to add is in terms of the Alkem's strength in building organizations across the globe. Third is Alkem's large infrastructure and GCC to reduce the SG&A.

When we say to reduce SG&A, what will we be doing there basically, because they don't have a manufacturing facility? What exactly we are pursuing there?

SG&A is outside manufacturing. You are talking about cost of sales.

Cost of sales, eventually we will look at optimizing by moving some of the labor-intensive activity. SG&A, I am talking about is more on the expenses side, admin expenses side.

For the support function.

For the support function.

Right. When it comes to the future acquisitions, are we geared up to even further invest into medtech any longer, or the future investments are going to be in different areas, if you could explain that?

No, I think so. First, we'll look at investments, but as somebody said we have been conservative, we're very selective.

Coming to medtech, I think more or less is done. We might look at something small, but nothing significant for sure.

I think a large part is done. Yes, we will look into our core business as well, obviously, like pharmaceuticals.

At a reasonable valuation, something available, we'll look at it. We continue to be a company which doesn't have acquisition as its main thing.

Don't look at it as we will do some big-ticket acquisitions.

Right. What will be the ROCE expectation if we go for future acquisition in the pharma side?

I think any business which generates 20% is great return on equity.

That will be the threshold for us as well when we are investing?

Yes, but that's theoretical. If it's a great growth, we can compromise the return on capital.

It depends, right?

Surely. Vikas sir, since you were mentioning about trade generics, are you giving any absolute number?

What was our trade generic business during this quarter?

I think that we've not called out that. We know that our percentage is in terms of our overall business, I think you know how it has been.

I can say that it has been flattish for this year.

You're saying YTD, right?

Sorry? Yeah.

You're saying

YTD.

On quarterly basis? For the quarter,

for the quarter it was flat. For the YTD, at YTD level, it was at lower single digit.

Lower single digit.

Lower single digit. All right, thanks a lot.

I will get back in the queue. Thank you.

How many more questions?

Thank you for the opportunity. Could you please provide some insights about the denosumab biosimilar in US and when it was recently submitted, and as well as what is the recent status in the Europe region, and when will the Xgeva biosimilar be submitted?

Great. Denosumab, we have both Xgeva and Prolia, both.

Number one answer is that. US, we are undergoing FDA inspection as we speak.

Maybe it would be later on, not during this year, because of litigation with Amgen. Even though there are many players, Amgen still litigates on it.

US entry is going to be '26 end, hopefully. Europe, we'll be entering very, very soon in the next couple of months.

Okay. Thank you.

Thank you so much.

Sure.

Hi, thank you for the opportunity. Mr.

Kaustav, the PDA occluder device, which is currently under filing, is it already filed or is it under clinical trial and we are yet to file? June '27 is the approval date, does it refer to calendar year '27?

Your question is PDA or PFO? PDA is already an approved product.

If you're talking about PFO, not only filing, even the clinical trials are being conducted. The results will be shared with US FDA, and we are expecting by mid of June 2027.

When I say June '27, it's specific, it's not about calendar.

That's the target action date we have already received, or clinical trial is still going on?

Clinical trial is done. The data is being submitted.

Okay. On some of the anti-infective portfolio, Dr.

Gupta alluded that we can pass on some of the increases, MIP-related increases to customer. My understanding is a lot of these products are under NLEM, right?

The price increases are linked to the WPI index?

Let me clarify. I didn't mention on MRP.

What I said in the trade generic business, where it is sold at a, say, higher discount, right, to MRP, is where we can look at increasing the pricing. That is where I mentioned we can pass on some of the cost to the customer.

We will see how it goes and how it plays out in the market.

Sir, of our anti-infective portfolio, how much is in the generic division and how much is in the prescription division, if you can share the broad percentages?

Large brands. That's a branded generic market, say Clavam, say Taxim-O, the injectable range, Pipzo, etc.

It's a mix, the breakup of the same we've not shared, but we'll have to look at. Overall, yeah, if we have to dig out.

We can say

the IQVIA numbers which you get is only for the prescription.

That's

generic. For trade generic, the IQVIA numbers, they don't cover it.

Yeah.

You can make out IQVIA number what is our prescription.

There

are five of 20 factors.

My understanding is IQVIA do capture some of the trade generic, but we can take that offline.

Some doesn't make it representative.

I agree.

Yeah.

Some gets captured, yeah.

That's good, yes.

Thank you.

Sir. Thank you for the follow-up.

Sir, the trade generic business 9 months, the margin on that, given that we've been flattish, would the percentage margin on the trade generic business be better this year versus last year?

Chirag, come again. At

EBITDA level.

Chirag, I think we mentioned that growth was flat for the quarter, and at YTD level, the sales growth for trade generic was in lower single digit. If you look at EBITDA, as we have given or shared in previous calls also, that the EBITDA for generic business is a 2 or 3% lower than our corporate EBITDA, but it's not very different from our corporate EBITDA, varying from quarter to quarter, but it's on the same line as corporate EBITDA.

Understood, sir. Just the second one, sir, on the anti-diabetic business, or basically the Pen G, volume wise, for the anti-diabetic business, we now can be just whatever is dependent on Pen G and derivatives?

I think we will have to do that calculation, but it's more or less similar.

In fact, more or less because trade generic anti-infective is equally big as yeah, the impact will be almost similar because the volumes are higher in trade generic. Right.

Trade generic.

Understood. This 100 crore is a total number, sir?

We said at a at a Is a total. A part of that gets offset by pricing.

Understood. Correct.

Thank you. Trade

generic is always higher as compared to prescription, the impact will be more on generic business.

Right. Understood.

Yes. Thank you, sir.

Thank you, everyone, for joining us today and for your thoughtful questions and active participation. I'd like to inform all the participants that we have organized an investor meet on the 18th of February, that's Wednesday, to outline the strategic direction of the Alkem MedTech.

The invite will be shortly shared on next with a registration link. Kindly register yourself, and we wish to see you in person.

We look forward to engaging further with you there. The venue is St.

Regis, you'll have all the details on the registration form. Please feel free to connect with us in case if you need any further help.

Should you have any follow-up question, you can reach out to us. We appreciate your continued interest and support.

Have a pleasant evening and a happy weekend. Thank you.

Great, sir. Very

well, thank you.