Thank you. Good evening, and a warm welcome to our first quarter FY '27 earnings call.

I am Abhishek from the Sun Pharma Investor Relations team. We hope you have received the Q1 financials, the press release, and the earnings presentation that was sent out earlier in the day.

These are also available on our website. We have with us Mr.

Dilip Shanghvi, Chairman; Mr. Kirti Ganorkar, Managing Director; Mr.

Aalok Shanghvi, Chief Operating Officer; Ms. Jayashree Satagopan, CFO; and Mr.

Richard Asfalg, CEO North America. Today, the team will provide an update on financial performance and business highlights for the quarter, pipeline updates, and respond to any queries that you may have.

We will refer to the consolidated financials during management comments. The call recording and call transcript will also be put up on our website shortly.

We have recently noted that Organon has received the shareholder approval for acquisition by Sun. The acquisition is subject to the satisfaction of remaining customary closing conditions and is on track to close by early 2027.

Since Organon remains a public listed company, we will not be taking any questions today regarding Organon's business performance. The discussion today might include certain forward-looking statements, and these must be viewed in conjunction with the risk that our business faces.

You are requested to ask two questions in the initial round. I also request all of you to kindly send in your questions that may remain unanswered today.

I will now hand over the call to our CFO, Ms. Jayashree Satagopan.

Welcome, and thank you for joining us for the earnings call after the announcement of financial results for the first quarter of FY 2027. The financials are already with you.

As usual, we will look at the key consolidated financials now. During the first quarter of FY '27, sales were at ₹151,836 million, registering a growth of 10.1% versus Q1 financial year FY '26.

Gross margin was at 80.5% for the quarter, higher than the same period last year, mainly on account of better product mix. EBITDA for the quarter was ₹44,177 million, an increase of 2.7% over Q1 last year.

EBITDA margins came in at 28.9%. While EBITDA margins were slightly lower, please note that Q1 FY '26 had some benefit from lenalidomide sales.

Adjusted for that, EBITDA margins were higher year-on-year. Forex gain for the quarter was ₹1,220 million, lower than Q1 last year.

Reported net profit after tax for quarter 1 FY '27 was ₹28,948 million, while adjusted net profit for the quarter was ₹30,894 million. EPS for the quarter was ₹12.10 per share.

Exceptional items for Q1 FY '27 include a charge of ₹1,670 million towards Organon acquisition-related costs. There would be additional charges on this account in the subsequent quarters.

Since some of the costs are not yet fully crystallized, we are not in a position to guide to a full estimate at this point in time. However, these charges are somewhat back-ended, with a substantial part being accrued at closing.

Effective tax rate for the quarter was at 27.8% versus 24.3% in Q1 FY '26. Sun had a significantly lower tax rate in India, which is now getting exhausted, and with varying tax rates in our different jurisdictions, our ETR has moved up.

Going forward, and until Organon closing, we expect the tax rate to be in a similar range as in Q1. Balance sheet of Sun continues to be strong, with a net cash of $3.4 billion at the consolidated level.

With this, I hand over the call to Kirti, who will share the performance of our Global Innovative Medicines business and India business.

Thank you, Jayashree. I shall first provide you an update on Global Innovative Medicines.

In Q1 FY '27, our innovative medicine sales were up 12.8% to reach US$351 million. This business accounted for 21.9% of Sun's sales for the quarter.

The performance in innovative medicine business continues to be driven by growth across US and ex-US markets, and across products, notably ILUMYA, ODOMZO, and CEQUA. During the quarter, the company shared the updated results from locally advanced cutaneous squamous cell carcinoma expansion cohort from the pivotal trial of UNLOCKED at 2026 ASCO Annual Meeting.

The updated data showed a durable benefit for patients, with more than one in four achieving complete tumor response and generally manageable safety profile. Now coming to India business, sales of India formulations were ₹54,749 million for the quarter, recording a growth of 16%.

India sales accounted for 36.1% of our total consolidated sales for the quarter. During the quarter, the company became number two generic semaglutide injectable player.

Sun Pharma is the only company in India offering semaglutide auto-injector, and the device has received a positive feedback from healthcare professionals for enabling smooth initiation and significantly reducing needle phobia. Sun Pharma is ranked number one and holds 8.5% market share in the over ₹2,527 billion Indian pharmaceutical market, as per Pharmatrac MAT June 2026.

Corresponding market share for the previous period was 8.2%. For the quarter ending June '26, we grew higher than IPM, and we have done well across all major represented therapy areas.

Sun Pharma 13.4% Pharmatrac growth was driven primarily by strong volume expansion and new product launches. Sun's volume growth of 5.4% for the quarter compares favorably to IPM volume growth of 2%.

As per SMSRC March-June 2026 report, we continue to be number one company based on prescription volumes. Sun Pharma is also ranked number one by prescription with 12 different doctor categories.

For Q1 FY '27, the company launched five new products in India. Now I hand over the call to Rick for the update on the US business.

Thank you, Kirti. Let me share the performance highlights for our US business.

Overall, the US business reported sales of 427 million US dollars for the quarter, declining by 9.7%. Our innovative medicines portfolio continued to grow, and this was offset by lower sales in the generic business, largely due to lenalidomide erosion, but also due to additional competition in certain products.

The quarter-over-quarter decline in the US is due to a decline in generics and also some seasonality in LEVULAN. The US accounted for 26.6% of consolidated sales for the quarter.

We also launched five generic products in the US. Now, let me provide some updates on the LEQSELVI and UNLOCKED launches.

We're seeing good momentum in LEQSELVI, with prescriptions and the number of prescribers expanding each month. In the month of June, we surpassed 1,000 prescribers, and we also delivered our strongest month since launch, demonstrating increased adoption and growing confidence in the brand.

UNLOCKED was launched earlier this year. The early feedback from healthcare professionals, including oncologists and dermatologists, continues to be positive, really highlighting the balance of durable efficacy and safety resonating exceptionally well, largely due to UNLOCKED's differentiated mechanism of action.

Similar to LEQSELVI, we continue to see month-over-month growth as more cancer centers and integrated health systems add UNLOCKED to their formularies. I now hand the call over to Aalok for updates on our other businesses.

Thank you, Rick. I will provide an update on the performance highlights of our other businesses.

Our formulations revenues in emerging markets were US$311 million, up by 4.2% over quarter one last year. Emerging markets accounted for 19.4% of the total consolidated revenue for the first quarter.

While branded generics have continued to grow, innovative medicines has been an important driver for growth in emerging markets, with ILUMYA doing well across several markets, such as Romania and Poland. Formulation revenues in rest of the world for the quarter was US$218 million, marginally lower than quarter one last year.

Rest of the world markets accounted for approximately 13.6% of consolidated revenue. Recently, we have received approvals to manufacture and market the generic version of semaglutide injection in both Brazil and South Africa for the treatment of adults with type 2 diabetes.

We have already launched the product in South Africa, and launch in Brazil through our partner is expected shortly. I will now hand over to Mr.

Dilip Shanghvi for updates on R&D.

Thank you, Aalok. Let me take you through our R&D initiatives.

We continue to invest in building an R&D pipeline for both global generics and innovative medicine businesses. Consolidated investments towards R&D for Q1 FY '27 stands at ₹8,264 million, or 5.4% of sales.

Innovative R&D accounted for 30% of our total R&D spend. Recently, our partner Philogen has resubmitted Nidlegy for marketing authorization in Europe.

The updated data for resubmission is due to be published soon in a major journal. Coming to Organon transaction, the process of filing for regulatory approvals in various markets have been completed.

We've already received approvals in certain countries. Shareholders of Organon have also approved the transaction recently.

We expect the acquisition to be completed in Q4 of financial year '27, and an Integration Management Office has been working on day one preparedness.

That's the end of our prepared remarks. Operator, you can ask for question and answer.

Thank you for taking my question and congrats on good set of numbers. First question on the specialty medicine.

There seems to be some deceleration of growth in this segment. Is it possible for the management to give color on reasons for slower growth in 1Q?

I think our focus is on innovative business, and here, we would like the innovative business to continue to grow at a healthy rate. We are expecting healthy growth to continue for innovative business in US, driven by new launches, as UNLOCKED and ILUMYA is also doing well.

We don't provide any product-wise revenue and growth at this moment. Sir, but

any product in this quarter particularly where you saw some impact which could have affected the growth this quarter?

That's what I said. Go ahead, Rick, yeah,

sure. Kirti, I can comment on the US as I shared in my comments.

We do see seasonality with LEVULAN, our product for actinic keratosis. As I had shared previously, we did see that seasonality this past quarter.

We would expect to see similar next quarter.

Sure, that's helpful. Second question I have on semaglutide.

It is quite visible that Sema could become a meaningful revenue driver for us, both in India and RoW. In light of this, just wanted to understand our preparedness of the supply chain.

How much supply we have been able to secure in terms of pens for the full year of FY '27? Thank you so much, I will join back the queue.

Sure. Semaglutide now, means we are selling in India from March '26 onwards, South Africa we got approval last week, and as Aalok said, we already commercialized the product.

Now we are preparing for the launch in Brazil through our partners. I am hopeful that we will meet the market demand.

We are well prepared for this launch. We have API manufactured in-house, formulation also we do in-house, and we are tied up with all the people who are supplying the components for device.

I think we are well prepared to commercialize this opportunity in South Africa and Brazil. India, as I said already, we are number two players among the all generic players, yeah.

Hi. Thank you for the opportunity.

My first question is on gross margin. Very strong trend, and this is despite the loss of lenalidomide sales.

In your opening remarks, you indicated product mix is the main factor to drive gross margin. If you can elaborate a bit which regions or which segments are really driving the growth, and are these levels sustainable?

Thank you.

Okay. As I was mentioning, we have seen growth mainly driven by product mix.

We've seen good growth in our branded generics business, as well as our innovative medicines business. Both of these have resulted in a healthier margin profile for the quarter.

On an year-on-year basis, does contribution went up from both branded generics and innovative medicine at the gross profit levels?

The share of business to the overall revenues have gone up, and therefore, you would see the reflection also coming in the gross margins. Okay.

My second question is on your R&D spend. We understand there is variability quarter-on-quarter, but how should we look at the spend on a full-year basis?

You have given the pipeline as well, and indicated 30 percentage for innovative medicine. Where is the rest 70% spend happening?

That's my second question. No,

I think it's a time gap between what you call stopping some of the trials and starting some of the new indication trials. I think don't look at the R&D spend this quarter.

We've already guided for the annual number, and I think we should be able to meet those numbers.

Okay. The remaining 70% spend is towards?

That would be generics as well as products for India.

Okay. I have more questions, I'll get back in the queue.

Thank you.

Thank you.

Hi. Thank you for the opportunity.

First one for Rick on LEQSELVI and UNLOCKED. While it has received good response from the prescriber, how is the access aspect of these two molecules moving on?

Let's say, where would you want to be versus where you are currently, and how long this journey would take from improving the formulary access?

Great question. Maybe I'll start with LEQSELVI because the access is different given the different kinds of products that we have.

From a payer access, which is what's most important for LEQSELVI, we continue to grow. In fact, we added an important plan just this past quarter, and improved the overall access.

We do already for LEQSELVI now have the majority of the covered lives available to us. UNLOCKED is a bit different because it's primarily administered in the healthcare setting.

There, we're very focused on formulary access at the cancer centers, as well as the large integrated delivery networks within the US. Similarly, we have progressed quite rapidly, actually, in terms of getting the product added on those formularies.

I think really in recognition of the differentiation that the clinicians see. It's a different mechanism of action, and so you have this durable efficacy, but what's quite interesting about UNLOCKED is you don't see the typical immune-mediated adverse events, particularly the grade 4 and 5, which is why the product is being added to formularies.

Rick, just for the understanding, for UNLOCKED, who is the decision maker? Is it doctor who makes the decision, or is it the cancer center, which will have few PD-1 or PD-L1s on their formularies, and then doctor needs to prescribe from that list?

How does it work?

It's a bit of a combination. In most of the centers, there is a formulary, but that formulary is heavily influenced by the clinicians and what products they want to use on the formulary.

We're working directly with the administrators of those institutions, as well as oncologists, they can ensure they have access to the product.

Again, this would be Medicare Part B heavy, right? Because this is generally seen in aged individuals?

It is, it's a Medicare Part B product.

Sure. We have

decent understanding I should add though, we also have good commercial coverage as well. Yes, due to the age of the population, they tend to be Medicare beneficiaries, and because the product's infused, it is a Part B, as in boy, product.

Sure. Second question is for ma'am on other expenses.

I think we had suggested that other expenses would come down, and it has come down on sequential basis. From here on, how should we look at for the rest of the year, especially with the lens of now UNLOCKED and LEQSELVI probably the launch costs are behind us.

How should the progression happen in the other expenses?

The other expenses have two, three components in it. One, obviously, is the launch costs that we had indicated early on last year for these two products, which is LEQSELVI and UNLOCKED.

During the year, as we mentioned, the products in the initial years, as they go through the commercialization, there would still be certain costs, and we need to continue to incur that. The second one we should also be aware is that there is a forex element that is also contributing to the expenses last year to this year when we translate.

I think that's something that we need to bear in mind. In the current quarter, just as you would have heard us a little while ago, the R&D expenses have tracked a bit lower.

That will get normalized in the coming quarters. I think one need to look into all these three aspects as we analyze other expenditure.

Sure, ma'am. And

I might just add a bit from the US perspective, since we're in the middle of launches. I think it's a bit of a misnomer to think there's a one-time expense on launch, and then that expense goes away.

It's a sustained investment to ensure you have a successful launch.

Sure. I think the understanding was some part of the launch expense would continue, which is what you are referring to, right?

Correct.

That's correct.

Perfect. Lastly on the overall top-line growth guidance, we had suggested for high single-digit growth versus this quarter, we have done almost 11% kind of a growth.

Do you see an upside here from the full-year perspective, or we will stick to the high single-digit growth guidance as of now?

I think we should stick on to the high single-digit growth for the full year. Also, we should be a little mindful of the exchange-related impact that will come across all the line items in the P&L.

That should be overall positive, right? In translation effect would be positive on the revenue growth?

Right. It would be positive.

Then, is it conservative? See,

current quarter obviously it is positive, but we have to see how it translates for the rest of the year. Therefore, I would suggest that we should look at holding on to the overall guideline that we have shared with you earlier on.

Sure. I have more questions, I'll join back the queue.

Thank you.

Thank you.

Am I audible now?

Ma'am, we could hear you now, but the line was breaking a lot.

Let me dial back.

Ma'am, we can hear you now.

You're good now.

Thank you so much. Rick, on the US generic business, there seemed to be a very sharp step-down in revenues, just, roughly if I look at the numbers.

I I know you did mention some additional competition in certain products. Is that the only reason for the sharp decline in the US?

Is this the new base for the US business, US generic business?

The largest part of the decline is lenalidomide.

No, QoQ?

Slight decline based on the base business due to competition on a few products, but year-over-year, it's definitely lenalidomide.

All right. How the US weighs from here?

I know we've been launching products, but we really haven't seen too much traction there. When do you think we start seeing the US business turn the corner and actually contribute more meaningfully to growth?

I think we do continue to see both LEQSELVI and UNLOCKED contributing to our results. As we don't give product-wise specific targets, but as I said before, I think if you look at the inputs of number of prescribers, you look at the market research and what we're hearing back from clinicians, all of this gives us a very strong confidence in both of those two products.

Oh no, sorry, I was talking about the US generic business here, Rick, sorry.

Oh, I'm sorry. We just launched five new products, which of course will contribute to growth this past quarter towards the end of the quarter, and we have new launches this quarter as well.

Neha, we are not guiding to the growth specifically for

Understood. That's clear, Abhishek.

My second question is on the emerging market business. I think in the last two quarters, if I were to look at the USD growth, they were pretty strong, like high-teens, 20%.

This quarter seems to be 4%. Is there any timing issue in supplies or anything that I need to be cognizant of in the quarter?

I think emerging markets, I would characterize the impact as a combination of both the geopolitical issues and difficult macroeconomic conditions in certain countries.

[unclear]

Sorry to interrupt. Neha ma'am, your audio is breaking once again.

[unclear]

Ma'am, still the audio is not coming clearly. If you can repeat the question once again.

Okay.

Hi, thanks for taking my question. My first question is again on the US generic piece, more from a strategy standpoint.

Most of our global generic peers as well, when they've made this transition from generics to specialty, some part of their specialty R&D has also been funded by the US generic piece. I think in our case, it's the strong domestic franchise which is doing a bit of that heavy lifting, but given that we're still continuing to invest in generic R&D, we have 100-plus ANDAs, can this business again go back to a stage where we can start generating cash flows and potentially this business could also contribute to some of our future growth drivers?

Just trying to understand how we are looking at it. I understand we're in the middle of an adverse regulatory cycle, but how are you looking at a sustainable turnaround in this business?

When can we sort of expect that? No,

I think what you're saying, because we split the businesses into different geographies, but many of the products that we also register for the US are also sold in other geographies, like approval of semaglutide in all the geographies is because that's being developed for the US. I don't think that when I look at our overall investment in R&D, we're not able to leverage this currently in the US for many products, but otherwise, I think we are creating a basket of products which will help us continue to grow globally.

Got it, sir. Second one on LEQSELVI.

I think you've mentioned in the past that we could potentially look at other indications with which other JAK inhibitors are also targeting. I think incrementally, we're also seeing data.

I think one of our competitors has seen positive data in vitiligo as well. When are we planning to sort of also try and target some of these other indications, and is the addressable market size also within these indications as meaningful as alopecia is, for instance?

How are you looking at attacking some of those indications with LEQSELVI? No,

I think LEQSELVI is a very what I would call good product in terms of its ability to significantly downregulate some of the important cytokines which are what you call involved in multiple autoimmune conditions. We've to prioritize and identify areas where we can differentiate and register the product where when we come to the market, it's not very competitive.

Whenever we initiate any study, I think we will keep that updated and we will keep people updated about the progress of the disease. Both LEQSELVI as well as UNLOCKED are potentially important opportunities for us to expand the current indications.

Got it, sir. That's helpful.

I'll join back the queue. Thank you.

I might just add, we are conducting in the United States investigator-initiated trials, and those of course can inform what Mr. Shanghvi just said.

Hi. Good evening and good morning.

On the specialty business, we launched two big products in the last 6 to 9 months, but if I look at the global specialty revenue over the last three quarters, it has been flat or even slightly coming down. These two are pretty big product launches.

What am I missing here, or is that the kind of ramp-up they have?

Rick, you're responding or?

I'm happy to respond. Both of these products are still pretty early in their growth curve, including an oncology product that just launched a few months ago.

I think give it time to be able to see the larger contributions. We do continue to see good growth across the rest of our portfolio.

I think for this quarter, as we mentioned, at least with one of our products, we do have seasonality, which is having a bit of an impact on the growth rates. Other than that, I think we have seen generally pretty strong growth out of the rest of the portfolio.

Understood. Just a repetitious question on the generic part of the business.

To one participant, I believe you mentioned that there is some cyclicality in the business which led to a down quarter compared to the March quarter. At the same time, you also mentioned to somebody else that there were extra competition in some products.

Are both these reasons or is one a more important reason?

Let me take that, Rick. I think, Bino, there are two different things we're talking about.

The seasonality was on QoQ basis for LEVULAN, not to do with generics, and the YoY comparison was basically the additional competition factor that we gave.

Understood. There is no cyclicality in the generic side of the business.

No.

Okay. Thank you.

Sorry, if I can add one bookkeeping question. Like the other expenses have come down QoQ, the depreciation and amortization cost has also come down Sorry to interrupt.

The last portion of your question was not clear, Bino sir. If you can repeat it once again.

Is my voice clear now?

Yes, sir. This is much better.

Thank you.

Okay. Like the other expenses have come down QoQ compared to March quarter, the depreciation and amortization cost has also come down compared to March quarter.

Is there any particular reason, and what can we expect going forward?

There is no specific reason for this.

Thank you.

Thanks for taking my question. Sir, on the domestic market, we have seen good growth in the recent past.

If you can explain what's driving that, and also on semaglutide, various reasons being forwarded for some sort of a slowdown after the initial spurt that we have seen. How are you seeing that market and opportunity?

The dynamics in India versus some of the other emerging markets that you are launching, how do you read that? Is that very different, and if you can give any comments based on the experience so far?

Sure, I think I will answer the first question. You're talking about the growth of India business.

I cannot pinpoint only to one thing which is driving the growth. It's like all the business units are doing good, and we are also focusing on generating a new prescription and brand building.

The entire part of the business and all the therapy areas are doing well. You also know we did a field force expansion in the past, and that is also helping us to grow the business in Tier 2, Tier 3 tiers.

All put together, I think all of these things are helping us to grow better than the market currently. Coming to your second question on semaglutide, and as we said in our readout also, we are become number two among the generic companies, and here also, our idea is to continuously grow above the market and gain market share.

I don't know what you are referring to slowdown. I think there were some article about semaglutide generics inventory being increased in the market, but as far as Sun is concerned, I think we are doing well both on a prescription side and also on the value side and the unit growth also, yeah.

We see this is a very exciting and important opportunity, and also, we have a novel treat which is available in a format which is auto-injector, and which is also very unique format in terms of use by the patients. There are a lot of doctors and patients they are finding it quite user-friendly.

Right, sir. Any comment on the emerging market opportunity, any dynamics there?

Aalok.

Emerging market.

What is the question?

The question was on semaglutide because you got approval in Brazil, South Africa. How are you seeing the opportunity in emerging markets?

To be honest, I think a little premature to be able to comment because in this scenario, there's other generic companies don't get approval, the opportunity is certainly much more attractive. I highly doubt that to be the case.

Our focus will be in getting the product to the market and doing the best launch possible.

Okay. Just one other question on UNLOCKED and LEQSELVI launches.

It appears from your comment that initial traction is good, you're getting formulary access as per expectations. In terms of revenue contribution, it might not be very significant.

For both these products, what's the timeline for really seeing traction in revenues? There's two different products.

If you can guide us in terms of how long you think it take for really the traction on revenues to come through?

We don't provide product-wise guidance that way. I would say we expect to continue to see growth based on all of the indicators that we have today, whether that's increasing access, whether that's increasing the prescriber base, whether that's increasing repeat prescriptions.

We do anticipate we'll continue to grow, but in terms of giving you a specific timeline, we're not in a position to do that at this time.

Is it, Rick, one product like LEQSELVI or UNLOCKED, is the dynamics different in terms of how quickly the traction can evolve, or both of them is kind of more or less would take equal amount of time to get the traction?

I think they're quite different products, and they are for quite specific patients as well, right? There is a training component, there is a patient identification component, and then there's adding to new treatment protocols component.

I would say they're similar in terms of the level of differentiation in what we've seen from market research. For instance, on LEQSELVI, when we do market research, physicians, they clearly see the benefit of the speed and the overall efficacy versus our competitors from a market research perspective, and similar with UNLOCKED, particularly in terms of both the durable efficacy, we mentioned that we had shared new data just at ASCO this past June, as well as the safety profile.

All of those give us good reason to believe that the growth will continue.

Right, thank you.

Good evening. Thank you for taking my question.

Just the first one on the domestic piece again. 16% growth, if you could kind of disaggregate that into just the split of the growth in volume and new product and price as well, please?

Sure. I think I already told in the readout and also here, means we are growing higher than the market in terms of volume and new products.

If you bisect the growth into price growth, volume-led growth, and the new product growth, 50% of our growth is coming from volume and new products, which is quite healthy, which also indicates that we are generating new prescription in the marketplace, and which is way ahead of IPM growth in terms of volume.

Perfect, sir. Just want to also get your view on what is happening to the industry or your theory on we have seen a step-up in growth for the industry as well, right?

It's not only on new product, but we've also seen the base business kind of volume growth also improve. Any theory that you have, I know it's probably just maybe one or two quarters now, but your sense of what is driving higher industry growth as well?

Means

I saw particularly in the month of June, the industry growth was much higher than what it used to be usually, but very difficult to point out where this growth is coming from and whether it's sustainable going forward.

Got it, helpful, sir. Just a second question on the comment about the tax rate, the ETR being higher.

Ma'am, is it now standalone Sun 28%, 29% is what we're assuming? Sorry, I missed the absolute, whatever percentage.

We don't give standalone numbers. What I discussed about was primarily the consol number for Sun, and given that we have presence in various geographies, and the tax rates in each of these geographies could be different, the overall ETR for this quarter was about 27.8%, and we expect this range to sort of continue for some time until we have the Organon transaction completed.

Our endeavor obviously would be to look for areas to optimize the ETR, but we should look at this as a range.

Helpful, yeah. Thank you, and all the best.

Sure,

thank you.

Thanks for the opportunity. My first question is on the Global Innovative business.

If you can talk about the progress that you are experiencing on the Global Innovative business outside of the US, what is the current share in the overall mix currently, and what is likely to be, given your aggressive activities that is visible by launching the specialty products outside of the US?

We don't provide the breakup, Surya, for the innovative business by geography,

yeah. The point that I was trying to drive is since we have seen some moderation in the growth, I was thinking that with the newer contribution or newer revenue stream contributing from the non-US market, the growth would have been better, so that is why.

Both US as well as international markets continue to grow for us. We are not seeing a challenge in terms of overall innovative medicine growth.

I think

Sure. Okay.

My second point is about, let's say, our pipeline, the innovative medicine pipeline, the MM-II, where we are talking about looking for partnership. Any thought processes here?

Just curious about it that okay, if we are having a great specialty portfolio successful in the various market, any reason that we are thinking it for the MM-II for partnership?

As MM-II is a potential product which can be used for orthopedic pain, that is knee joints basically,

and

these are the product which will be prescribed by orthopedicians and maybe rheumatologists, means that the kind of segment of doctors who can prescribe the product. Today if you see our US business, we don't have any commercial presence to cover this doctor, and that's why we thought that it is a good for us to out-license to a partner who has a good presence in this therapeutic area.

Sure. Just one observation from my side, sir.

In the last few quarter, what we have observed that the people cost is rising ahead of the revenue growth what we have been reporting. In recent past also, we had mentioned that we have no major plan of field force expansion or something like that.

What is leading to this kind of enhanced growth in case for employee cost versus our revenue growth?

Let me put it in a slightly different way. There are two or three elements that actually impact the people cost or the salaries and comp and ben, right?

One is the year-on-year increment that you get to see in the first quarter of every financial year. If you do a year-on-year, there is an annual increment that normally comes in and impacts.

The second one is also relating to additional field force that we had to employ, especially for our two new launches, which was not there last year, but it is there in current year. Similarly, we've also seen some field force increase that has happened in some of the other markets other than US as well, where we are promoting our innovative medicines products.

The third one is also a bit of the forex impact that would also show as a higher cost this year. If one were to look at it, the reality is there is going to be a merit increase that happens, the additional field force, especially for innovative medicines, which is necessity for growing the new products, and forex is not in our hands, depends on how the market moves.

Sure, yeah. That was helpful, ma'am.

Thank you. Thanks a lot.

Wish you all the best.

Thank you.

Thank you for the opportunity. My first question is on RoW market.

In USD terms, we see it constant around $218 million for the second quarter in a row. I assume this could be because of the Middle East war.

Until the sustainance of this war, can we expect this kind of run-rate to continue for the upcoming quarters?

Foram, RoW is flat in dollar terms, but we do not give forward guidance for any particular. You should look at our overall revenue growth guidance that we have given for the year for the company.

Okay.

My second question is on the emerging market. Here, in the opening remarks, it was said that innovative products are doing good globally.

However, our growth rate has come down to 4%. Can we assume pricing pressure in the generic business?

If you can give some color on the generic business of the emerging market?

I think I would say a large majority of the emerging markets business is branded generics, and while there is some element of pricing pressure, but I would not say that would be the driving force.

Sure. Last question if I may add.

The last one is on the domestic side. I see that the diabetes therapy growth rate in the IPM has increased to about 15% post the GLP launches.

Any color here would be helpful that how should we see the diabetes therapy growth, once the GLP sales is in the base for the next year, how should we see the diabetes therapy growing in the IPM?

I think how it will grow in IPM is difficult to comment, but what I can say that there are a lot of new product being launched in last 2, 3 years, other than GLP-1, I am saying like SGLT2 inhibitors. The diabetes as an area, there are good number of new products being launched and as individual product and also in the combination.

As the incidence of diabetes also in India is increasing. All of these factors are helping the market to grow.

How much it will continue to grow in IPM in coming quarter, it's very difficult to comment.

Sure, no problem. Thank you.

That's helpful. Those were my questions.

Hi, sir. Thank you for the opportunity.

Just one question from my end. Sir, in terms of the outlay what we had previously talked about on the two innovative medicines for the US market in terms of the marketing costs, so, when we are planning that kind of an outlay, typically what is the kind of payback or the breakeven when we are kind of budgeting when we kind of outlay that kind of a spending in our numbers?

We specifically don't comment on this. However, as we look into any asset when we want to do a in-licensing, all these costs are factored in part of the overall business case.

Sure. Thank you.

Yeah. Good evening, everyone.

One I have a question on UNLOCKED. Can you provide what share UNLOCKED would have in terms of the various PD-L1 inhibitors among the new patients that get into the therapy?

I'm not in a position to do that right now, partially because from a claims data perspective, the claims data is lagged. It's always going to be a few months behind what is reality.

Okay. A second on ODOMZO, are we seeing any supply issues?

Because what we see is a decline in the prescription on a QoQ and YoY basis. Any supply issues there?

No, and I don't believe that's accurate in terms of year-over-year as well as Q-over-Q performance for ODOMZO.

Got it. Okay.

Thank you.

Hi. Thank you for the opportunity again.

One for Kirti bhai on domestic market. Would you internally be tracking prescription data for some of the key therapies?

We'll have prescription data. That's what we said, no, in SMSRC, we are number one in 12 therapy areas.

We track both IQVIA, AWACS, and the prescription data from various agencies, yeah.

Based on that prescription data and the value growth you would have in some of the key therapies, are those kind of aligning very closely in recent months?

No, I can talk on Sun Pharma, that's what I would say like I just alluded to the volume growth. The way you should look at is if there is a volume growth, means there is a prescription growth which is coming.

Our volume growth and the new prescription coming from new product is a 60% of our total growth. 40% from volume, 20% from new product.

That clearly indicates that we are growing in a prescription, yeah.

Kunal, we look at this variance, what you're suggesting, and for the last few months, it's been within the normal bounds.

Okay. Perfect.

Thank you so much.

Thank you everyone for joining us at this late hour. If you have any questions which remain unanswered, you can reach out to the investor relations team.

We'll be happy to take your questions. Thank you once again, and good night to all of you.