Glenmark Pharmaceuticals (NSE:GLENMARK) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Q1 FY 'twenty seven Earnings Conference Call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Uttarsh Gandhi, Senior General Manager, Investor Relations of Glenmark Pharmaceuticals. Thank you, and over to you, Mr. Gandhi. Thank you, Andrew. Good morning, everyone, and welcome to the Q1 FY 'twenty seven Earnings Conference Call of Glenmark Pharmaceuticals Limited. Before we start the Q and A, let us quickly review the performance of the business in the first quarter. For the first quarter of FY 'twenty seven, Glenmark's consolidated revenue from operations was at 40,185 million as against INR 32,644 million in the corresponding quarter last year, recording the Y o Y growth of 23.1%.

1:07 Quickly covering our key regions, starting with India. Sales from the combination business in India for the first quarter of FY 'twenty seven was at INR 14,321 million as against INR 12,399 million in the corresponding quarter last year, recording a growth of 15.5%. Glenmark continued to significantly outperform the IPM in terms of secondary sales as per IQVIA. Glenmark's India Formulation business recorded a growth of 18.1% in Q1 and 14.3% as per MAT June 2026 compared to IPM growth of 12.210%, respectively. Glenmark continued to sustain strong growth in its core therapy areas like dermatology, respiratory, cardiac and oncology.

1:53 Glenmark's India business is ranked thirteenth with a market share of 2.37% as per IQVIA MAD June 2026. The company has 11 brands in the IBM Top 300. In terms of core therapy areas, Glenmark is ranked second in dermatology, third in respiratory and fourth in the cardiac segment as per IQVIA matching data. Glenmark has launched some key products in its core therapy areas in the last twelve months, which have been driving growth. Some of the notable ones are Telimbra, Brutinza and oncology, which are partnered with D1. In a short period, these two brands have seen a very strong uptake in the market. And the company expects these brands to further gain momentum and meaningfully contribute to the India business growth. On the respiratory side, Glenmark launched Netsmart GFP Smart Tools, Glenmark's KLFB Smart Tools, which is the world's first nebulized fixed dose triple therapy for COPD.

2:53 And we had not strong growth in the chronic respiratory segment has been led by differentiated market first in market launch of this product. In terms of the consumer care business in India, primary sales for GCC in Q1 were INR $1,558,000,000 with a Y o Y growth of 28%. The company's flagship brand Candid recorded revenue growth upwards of 30% across all its variants and LaShiq portfolio delivered mid single digit growth in Q1. However, scalp and Bontress recorded very high growth in the first quarter. Other skin brands such as Aloe Vera and Episoft also continued a strong growth trajectory during the quarter. North America. The North America business recorded revenue of 10,974 million dollars for the first quarter of FY 'twenty seven, which is translating into a Y o Y growth of 41.1%.

3:44 Net of the deferred out licensing income recognition for ISB 2001, the core business Y o Y growth for North America region was 19.8% in the first quarter. During the quarter, Glenmark launched nine products consisting a mix of prescription and OTC products. Some of the notable ones are ethylene glycol injection, sodium phosphate injection, vancomycin injection, clonazepine injection, progesterone vaginal insert and calcium gluconate injection. Glenmark is looking forward to several new approvals and launches in the second quarter as well. In the last six months, Glenmark has strengthened its generic respiratory franchise with the first ANDA approval of 30% capionein forty four mcg, which is the generic effluent HFA.

4:30 Glenmark was granted a CGT designation for this product as the first approved applicant and eligible for one hundred eighty days exclusivity upon commercialization. Glenmark also received approval for cluticasone propionate nasal spray OTC. And during the quarter, Glenmark has also initiated end to end commercialization of railtrisk leading the brand strategy, market access and customer engagement in The U. S. Glenmark filed two additional ANDAs for differentiated NDA products in the third quarter of last year, including the NDA for fluticasone propionate one hundred ten MCG, which is generic to Fluent one hundred ten MCG and for ripretopin bromide inhalation aerosol, which is generally two eighty one.

5:16 The company is working on additional respiratory filings across MDIs and nasal space. In injectable site, Glenmark has built a large portfolio of 20 plus commercial injectable products to various partners. Glenmark's injectable manufacturing facility in Monroe received EIR with a VII classification from the U. S. FDA in November 25. And during the quarter, Glenmark relaunched colostridine injection out of the Monroe facility. Glenmark's marketing portfolio through 06/30/2026 consists of 125 generic products authorized for distribution in The U. S. The company has currently has 53 applications pending at various stages of the U. S. FDA approval process. Moving on to the Europe, Glenmark's Europe operations revenue for the first quarter of FY 'twenty seven was INR 7,472 million as against INR 6,678 million, recording a growth of 11.9%.

6:14 While the overall regional growth was muted during the first quarter, the branded portfolio recorded good growth across markets. The company continues to focus on sustaining the increasing contribution from the branded market slash portfolio in Europe in the respiratory and dermatology therapeutic areas. Glenmark's respiratory portfolio also gained momentum across multiple markets with market share increases across MDI and nail space. Ryaltris continues to gain market share across countries where the product has been launched by on our own or through partnered through our partners through our partner NRE. In addition, there are eight of the respiratory products commercialized across various markets and additional two, three launches are expected in the next twelve to eighteen months.

7:00 In the branded dermatology portfolio, Vindavir gained traction since its launch in The U. K. During the first quarter of FY 'twenty six. And Milnevy has also received MA approval in the European markets and is launched in select markets across the CE Region, Spain and the Nordic countries. Glenmark also received approval for Helcota in the Nordic countries. This portfolio will be further augmented with additional products over the next twelve months. Emerging markets for the first quarter of FY 'twenty seven, revenue from the Emerging markets region was INR 7,304 million as against INR 5,721 million, recording a Y o Y growth of 27.7%. As per IQVIA MAT 2026 data, Glenmark's Russia business recorded strong secondary sales growth of 12% plus amongst the dermatology companies.

7:53 Glenmark's mid to unranked and is now ranked eight as per IQVIA. Glenmark's LatAm and EMEA regions also recorded very strong growth during this quarter on the back of continued market share gains in key therapeutic areas. Glenmark's overall respiratory portfolio continues to outperform the covered market across the EMEA region. The Ryaltais continues to be the leading nasal spray for allergic rhinitis in most of the markets where the product has been launched. Glenmark plans to launch Riotrace in Brazil in the second half of FY 'twenty seven. In the APAC region, double digit secondary sales growth was led by strong outperformance in key markets such as Malaysia, Vietnam and Australia. Then VRALTRAS was also approved, as mentioned earlier, in China and Thailand in Q4 and has been launched by the company's respective regional partners, Grand Pharma and Orbital.

8:47 Moving on to our global innovative portfolio, starting with Ryaltris. So I think we mentioned a few of the key highlights of Ryaltris. As of June, marketing applications for dialysis have been submitted in more than 90 countries across the world, and the product has been commercialized now in 57 markets. Further, it is expected to be launched in 10 markets over the next few quarters. As mentioned earlier, China and Thailand have been some of the recent launches and Glenmark's partner in Moldova has also launched the product. Glenmark initiated The U. S. Commercialization as well during the quarter. And as per IQVIA data across markets, Glenmark has seen a robust performance in terms of both value and unit market shares and continues to record global secondary sales growth of upwards of 40% Y o Y.

9:40 VINLEVY, as mentioned, the company launched VINLEVY in The U. K. In Q1 and saw a strong uptake throughout the year. VINLEVY has also received approval in Europe in October. In the first quarter, Glenmark launched in several European markets, including the Nordic, CE countries and Spain. In Portugal, also Glenmark launched the product through a strategic partner. And Glenmark is also currently under regulatory review in South Africa, where Glenmark has submitted the marketing authorization application. Which is envafolimab partnered with Janssen, alpha lab and CD medicines. Glenmark has filed marketing authorization applications in 24 countries. As of June, the first commercial launch is expected in FY 'twenty eight.

10:29 The companies in parallel initiated early access on new patient programs across seven markets, including Kenya, Mauritius, Uganda, Philippines and Tanzania for the supply of CANIO. And Glenmark has also initiated a global multicenter Phase III study in neoadjuvant and adjuvant treatment of patients with susceptible Stage IIIa3b non small cell lung cancer. Trastuzumab vazitacan partnered with Glenmark has advanced preparations for the initiation of MF applications for trastuzumab vazitacan, which is a next generation HER2 targeting ADC in licensed in Q2 last year from the MCU Hungary. The company expects the first wave of MA applications to begin in Q2 FY 'twenty seven.

11:16 In June 2026, Glenmark initiated a Phase III clinical trial of trastuzumab derazitacan in platinum resistant ovarian cancer or PROC in India following the approval of the BCGI. Glenmark also plans to enroll patients in Australia and South Korea subject to regulatory approvals. Omelertinib partnered with Hanzo. As mentioned earlier, in Q3 last year, Glenmark had in licensed Omelertinib, which is a third generation EGFR TKI for the treatment of non small cell lung cancer. Omalotinib is already approved in The U. K. In June 2025 for the first line treatment of adult patients with locally advanced metastatic NSCLC with activated EGFR mutations.

12:02 Hanzo also received MA approval in the European markets in FY 2026. Glenmark has submitted MA applications for omlertinib in 13 countries as of June 2026, and the first commercial launch is anticipated during the second half of FY 'twenty seven. Moving on to IGI, some of the key updates on our pipeline products, ISB 2,001 or ABBV 2,001. To date, more than 160 subjects have been dosed in the IGNITE Phase I study, 42 of which were in dose escalation and more than 120 patients in dose expansion. Safety and efficacy data from all subjects continue to be promising and are consistent with the data previously presented at ASCO twenty twenty five. Multi center Phase III multi cohort combination study in multiple myeloma and other myeloma anti myeloma therapies has been initiated and there's a clinical trials link available to give the details. ILB-two thousand three hundred and one, the next asset in the IGI pipeline is a first in class multi specific immune cell activating activator targeting solid tumors. And IAGI intends to submit the an IND later this year.

13:19 And ISB2302, which is a bispecific immune modulator and ISB2501, trispecific T cell engager, are both in early preclinical development. You can view more updates on the IGI pipeline assets on the IGI website. From the Glenmark management team, we have Mr. Glen Saldana, Chairman and Managing Director and Anurag Mantri, Executive Director and Global CFO. I will now hand it over to Glen for his opening comments. Thank you, Utkash. Good morning, everyone, and thank you for joining us today on the Q1 earnings call. We have begun FY 2027 on a very strong note, delivering consolidated Y o Y revenues of 23%.

14:09 Even if you exclude the deferred income from 2001, the base business Y o Y growth is north of 18%. This performance was broad based across all our key markets. India business sustained its continued outperformance in the core therapies as well as strong momentum in oncology through TIVEMRA and Brukenza launches. As guided earlier, our North America business reported a strong recovery on the back of respiratory launches, and we expect this growth to sustain over the next few quarters. Our Emerging Markets business also recorded a very strong performance in the first quarter while Europe was muted as we are transforming our presence there through expansions in the branded respiratory and dermatology segments.

14:59 Our branded portfolio continues to do well across the markets. Ryaltis is growing upwards of 40% in terms of secondary sales in Q1, and we've also expanded the launch of Vindlevi to other EU markets. We continue to work on our partnered innovative oncology portfolio and are expecting to launch amlotinib towards the end of FY 'twenty seven, followed by TRAS2REZA and enmofilumab. Innovation remains central to our long term growth at Glenmark. ISB 2,001, ABB 2,001 continue to show promising safety and efficacy with more than 160 patients dosed to date and we are excited about the progress of IGI's pipeline assets including 2300 and '1 and 2302.

15:52 Overall, we remain focused on disciplined execution, strengthening our base business, scaling up our specialty portfolio across markets and continuing to progress the IJI pipeline forward over the course of the year. With this, I will hand it over to Anurag Manfri for his opening comments. Thank you, Glen. Good morning, everyone, and thank you for joining us today. We have started the FY 'twenty seven with a broad based growth across all our regions. The improved mix has also helped maintaining our gross margin in spite of the increased cost due to the ongoing geopolitical situation. As highlighted during our Investor Day, we are reinvesting in our base business as well as innovative business expansion.

16:42 This, coupled with the increase in cost of shipments and overall logistics, it has impacted our overall operating margins to some extent. While depending on the geopolitical situation and the development, some of the cost increases will continue to impact the business, but we are working on to minimizing the impact on our profitability through superior product and geographical mix. Our working capital initiatives help generate incremental income through interest rate arbitrage. The associated interest income is clubbed under the other income in the P and L and the increase is apparent in this quarter. While gross interest costs have gone up, this is mainly on account of higher lease expenses, bank commitment charges and various other interest arbitrage thing, which is the income is booked in other income, but the interest cost comes in the interest under the in this side.

17:46 As a result of various measures implemented, our overall earning profile and visibility has improved considerably, and we remain committed to maintaining a gross debt zero position in our balance sheet. Overall, we have delivered a strong quarterly performance and are on track to achieve our guidance as a part of Glenmark 3.0. You. So with that, Renjoo, we can open the floor up for Q and A. Thank you. We will now begin the question and answer session. The The first question comes from the line of Tamayant Kairai with HSBC. My first question is on your R and D spend. So can you call out the spend for the quarter?

18:54 And since you have planned to move ISB 2,312 clinical trials later this year, after that, what kind of incremental R and D you anticipate? That's my first question. Thank you. So R and D spend for this quarter was around INR $2.89 crore. And which is going forward, as we guided earlier in that R and D spend is going continue to be around 7% to eight percent overall. This quarter was a bit lower, but it's actually it cannot be exactly the phasing out of the R and D spend, and it will continue as per our guidance. Also on as we guided, right, IGI, the spend will be around $70,000,000 This includes the investment in 2,301 Phase I and all the investments in the clinical trials that we anticipate over the next two to three years.

19:51 It's all included in that $70,000,000 that we will continue to burn in IGA. Sure. So you have a comfortable funding position to take care of this spend, which is required for moving assets to midstream. Thanks for that clarification. My second question is on Europe. Can you talk a bit more like what has changed? Because I think this is the second quarter when we are seeing the trend. So if you look at our European business, right, the last four years, we've been among the fastest growing. Our European business has contributed significantly to the company, right, over the last four years. And if you remember our guidance, we said Europe will come to high single digit this year, right? The other thing about Europe that we are doing is we are working aggressively to move to focus more on our branded products in Europe, which is mainly the products in the respiratory and we have several respiratory and derm launches, right, which will drive the growth of Europe.

20:59 So I think this year, we'll finish probably at high single digit for our European business. However, I think as these branded launches start gaining scale, right, we will get back to double digit growth from next year, right, for our European business. But again, just to remind you, we were the it's been the fastest growing geography for four years continuously. So very strong business for us. Sure. And if you can just say some quantitative number, what percentage of European segment sale is contributed by branded products right now? And where do you want to take it safely just down the line? So today, it is small relatively, right, around 30% of total revenues, right? But we see that number, if you take a five year view, right, that should go to about sixty sixty odd percent, right, over the next five years.

21:55 That's the kind of focus we are bringing to the branded products across Europe. Okay. That's helpful. And my last question is on your injectable pickup in U. S. Segment. So you mentioned 20 plus products, including the partner project. So when we look at the contribution coming from the injectables, is that meaningful in the current number? Or you think it will build up over the time? It will still take time. I mean most of these are commodity injectables, right. We have some good launches and some good products, but it will still take some time to contribute to the overall revenue profile of the U. S. Business, right. The U. S. Business, if I look at the U. S. Business this year, the primary drivers are the respiratory launches of Fluticasone forty four.

22:54 Then Fluticasone Nasal Spray OTC, which we have launched. And in the second half of this year, we have at least two or three more respiratory launches. So I think which will help drive the performance of the U. S. Business this year. All in all, we should have a good year in The U. S. This year. Next year, I think some of the Monro differentiated injectables will start contributing next year for The U. S. Business in addition to all the respiratory work that we're doing. Okay. That's helpful. Thank you, Glen.. Next question comes from the line of Harshita with Diamond Asia. Sir, maybe on this cost part, how should we understand the R and cost impact, the increase in API cost because of this ongoing world situation and supply disruption?

24:00 How it can impact the gross margins and how sustainable this impact will be? How should we understand this, the gross margin outlook, sir? So as I mentioned in my opening remarks, the geopolitical situation is impacting our gross margin, which is across the API cost as well as the logistic cost. So we are seeing the cost pressure across. We are trying to mitigate it with the through the better product mix and the better geographical mix. So that we are trying to maintain that's the reason you can see that the margin was impacted, but not to the extent of the impact we are seeing across the API packing material as well as the logistic cost. Going forward, it all depends on how the situation evolves in the geopolitical situation, if it's subside. But I think in the future quarter also, at least two quarters, we can we see the pressure coming up on because of this, and we'll try our best to mitigate through the product and geographical mix.

24:57 But assuming situation remain standstill, the elevated situation remains continue, then how it will impact the margins around 1%, 2%. Can you please help qualitatively on that? I think the way to think of the business right is given the new launches and the respiratory launches in The U. S, right, given our strength in our India business, right, the growth in the India business, all that we are hoping will clearly offset any pressure that we are seeing on account of the elevated cost due to the war. So overall margins we are pretty comfortable. Think on a full year basis what we guided to the twenty one percent, 22% will clearly be there, right, on the overall margin of the company.

25:45 Thank you, sir. Thank you. Thank you. Next question comes from the line of Kunal Vangiriya with Axis Capital. Please go ahead. Yeah. Hi. Good morning. So first question is on the India business, quite a strong performance, and it's also mirroring the secondary data that we see in IQVIA. So, Glen, maybe while the secondary data has always been very strong, I think this time around, we see that convergence. So is there any change that has happened? And going forward, would that be a good indicator on how we should model the domestic business? As we've always said, our domestic business is really a fantastic business, right, in terms of the quality of the brands, the quality of the franchise across the board, right? And even if you look at the domestic business today, I mean, most of the segments we operate, cardiovascular, we are growing 15 odd percent.

26:51 Dermatology continues to do well for us. Respiratory, particularly chronic risk, over 25 plus percent growth. So all these coupled with Tvembra and Brucensa, we did over INR100 crores of sales in the first twelve months of launch, right, which is remarkable. So India is a very strong franchise for us. And I think if you have to model it going forward, you can easily assume that we will have between 12% to 15% growth on a consistent basis from year on for the entire India business. I'll tell you that your top three brands still are like Stegma or its extensions. You also gave a very high concentration risk in some ways. So do you see any risk to its growth prospects?

27:41 On the contrary, I think having strong brands is a positive. That's the view we have, right? So having brands like Telma, Ascoral, Alex, Candid and some of the newer products, right, our OTC franchise, Standard Powder, now with this November, Brutanza, I mean, there's so many different the strength of the portfolio is extremely strong, right, across the board. So we don't see any risk to the performance in our India business. Sure. Sure. And Glen, you've also invested quite a bit of innovative products, so organically as well as in licensing. So barring R and D, other than R and D, any kind of OpEx or like marketing costs that you will have to do to market these products in Europe or emerging markets, additional cost beyond what you're already doing?

28:38 So we're already doing that, right? I mean, if you see, we are investing in building out or strengthening our oncology commercial capabilities, particularly in emerging markets, right? And that has that's why we are making some investments this year and that's why our margins we are guiding to is 21% to 22%, right. Because these investments are more for preparation of the launch of amlotinib followed by Trasturaza, followed by envafolimab. And these three brands can give us almost $506,100,000,000 dollars over a five, six year time frame, right? And then, of course, we'll use the same infrastructure to launch ISB 2001 when available. So that will give us a very strong oncology franchise, particularly in India and all of emerging markets.

29:32 So I think we're continuing to make these investments, which is all built into the margins that we buy to. All right. All right. And one more, if I can squeeze in. ISP 2,301, it's in I think should we expect a deal this year? Or will it be after Phase I similar to what you saw in ISB 2001? On 2301 is a super exciting asset, right? I mean, we've it's a penta specific, which globally puts us at the world stage in terms of innovation, right. No one has ever bought tried to target both NK cells as well as activate T cells, right, along with these tumor antigens.

30:28 So it's a very, very novel concept overall. And from a deal perspective, clearly, we will wait till at least we get some data, clinical data in humans and get some POC before we even start looking at potential partnering. Right. Right. I have a few more questions. Thanks a lot. Next question comes from the line of Tushar Manudai with Motilal Ossal Financial Services Limited. So two questions. One, on one hundred and ten MCG, the product being filed, where do we stand in terms of approvals or any additional queries?

31:15 That's first. Yes. I mean, we are as we said in H2, right, second half, right, we should see some of these respiratory products getting approved. We anticipate at least two or three of these getting approved, right, between 110, Fluticasone, nasal spray, Rx, Ipirotopium, all this, right? In the second half of this year, you should see my hope is at least two of these three come through. Got it. And the one which is already launched, have we had in a way full quarter benefit from in terms of business or we're still to see the real meaningful impact? I wouldn't say full quarter. I would say half the quarter we saw some benefit, but I think this Q2 we'll see the full quarter benefit out of 44 crores.

32:11 Got it. And then secondly on ISB eight thirty with BioCrest, is there any rethink from their side that is as far as the agreement is concerned? And then subsequent extension to that, that since the product is now about to complete Phase two. So and is there any scope for having an agreement with alternate companies or more number of companies on this asset? ISB, we moved a backup compound, right, called STAR-three ten. So it's actually in Phase one, right. It's just completed Phase one, right. So that's the stage at which we're at. In terms of Biopress, we have no visibility to what they're doing in terms of further development yet, right, because they just acquired some time ago. So we're still trying to figure out what the next steps are on that.

33:12 Got it, sir. That's it from me. Thanks. Thank you. Next question comes from the line of Krish Mehta with Inham Holdings. I had two questions. The first is if you could provide the current working capital and net cash position for the quarter. And the second question I had is on, Glen, you spoke about 12% to 15% growth in India. If you could just give some color on how this growth would be split in terms of volume versus value and new product launches? Okay. So first question on I'll take the first question and Glen will take the second question. So on the working capital as well as the debt position, what we guided for the year is that we will have around one hundred and fifteen days of working capital days, which we'll continue to maintain. We are well below that and we are on track because quarter on quarter there could be some ambition. But I think currently we are much below the one hundred and fifteen days, but still we maintain our guidance of the full year basis on one hundred and fifteen days of working net working capital.

34:26 On debt position, as we clearly said that we'll continue to maintain gross debt zero in our balance sheet. The cash position accordingly varies because of the various rate related expenses and some of the pressure which we are seeing. But given that all these are mitigated and we'll continue to maintain our gross debt zero position. And on the second part, right, with regards to the India growth, so India, if you see the main growth drivers for us, right, as we've discussed, November, Brucensa INR100 crores already in the first year continues to do very well for us. Chronic respiratory, GFP launch, the brand is trending closer to about in the first year itself about INR70 INR80 crores of annual revenue and still growing very, very rapidly.

35:19 On the cardiovascular, Telma continues to gain market share, the entire franchise, right, across Telma and all its variants. On dermatology, right, it's pretty much a broad based growth, all mostly this is all volume growth, right. On the value side, I mean, we don't see too much of value growth in our business purely because the competitive intensity is pretty high, right. So we think the bulk of the growth is still volume growth, right. Maybe closer between volume growth will be about 6%, 7%, new products will be another 3% and then value will be another 3% to 4%, somewhere thereabouts, right. That's the typical breakup that we are seeing in the India business, right.

36:11 But and to answer your question, we still have a lot of runway in terms of new launches. For example, amlotinib we will launch in India, which is a big product we think in the non small cell lung cancer space, very large indication. We will launch trastuzumab, resitican in India, right, in the oncology space. And that will put us among the leaders in the oncology space in India, right, which with the launch of November of Brucensa and these other two launches, right, that will take us to being among the leaders in the next five years in India, right, so way before we launch ISB 2001, right. So that's on oncology. We talked about cardiovascular. We talked about dermatology, right? And in the respiratory, chronic rest, we still have many more exciting launches as we go forward.

37:04 The last point on India is regarding the semaglutide is not a big area of focus for us, but it will help turnaround our diabetes franchise, which until last year was declining, right? And now we've been able to turn it around. CEMA currently is tracking at about 20%, 2520%, 25 crores of annualized sales as we speak. The brand is still growing. So I think overall that will help turnaround our diabetes franchise. So these are all the segments that we operate in, right, in India. So I think pretty broad based growth across all the segments that we operate in. That's very helpful. Thanks a lot for that. You. Next question comes from the line of Sukrit D. Patil with ISAT Finrate Private Limited.

37:55 Please go ahead. Good morning, sir. I have two questions. My first question, Mr. Glen, is I just want to understand the forward guidance. Beyond the regular outlook, what are the top two to three execution priorities you're focusing on in the next few quarters? And alongside that, what do you see as the biggest risk in client adoption, regulatory shifts or compliance pressures? And how are you preparing to manage them while strengthening Glenmark's position in generic and specialty pharma? That's my first question. I'll ask my second question after this. So priorities are clearly to prepare for some of these U. S. Launches, right, that we are anticipating particularly in the respiratory side in the next in the second half.

38:41 That's on one side. The other side is preparing for the launch of amlodinib, right, which is a big product for us in India and all emerging markets, right, which will drive the growth starting second half of this year, right, followed by Trastoreza and some of the other launches, right. So that's probably the key priorities where we are focused on driving the business, right. India continues to do well and Europe and the other franchises continue to do well. And we have all the building blocks in place, right, to continue to sustain the growth that we are anticipating for India, right. Also, think field force expansions, we continue to do field force expansions both in India as well as in emerging markets to prepare for those launches. So that's another thing we are heavily focused on, right, from now till the end of the year.

39:41 So that's your second question, I couldn't I mean the second half of the question, I couldn't get clearly. Can you repeat that? Yes. Just want to understand what risks you see in adoption or competition from the peers? And just want to understand your plan of growth and how you're preparing to handle the challenges that could slow down the growth? So look, I mean, the growth that we are seeing, right, is a culmination of all the hard work that we've done in the past, right? So I think all the what we are working on right now is all which will drive our future growth, right, basically over the particularly next year, right, as these launches start happening, as the products start commercializing, right, that should help strengthen the growth for FY 2028 particularly, right.

40:36 But all the growth that you're seeing now and which we hope to sustain, right, is all the work that's already been put into in terms of launches and products already there. So from a risk perspective, we think the risk this year is relatively low, right. It's all a matter of how well we execute from here till the end of this year. And that's where the primary focus is right now. So, Sukrit, as we mentioned at the beginning that most of our growth is towards the branded and unique products. So to answer your question on the regulatory part, which reduces the risk because we are moving towards more innovative and branded portfolio. So to that extent, going forward, it will start derisking from the regulatory risk related to the geopolitical situations.

41:30 Thank you. My second question to Mr. Mantri is, again, along the similar lines, from a financial point of view, what key risks or challenges do you anticipate in the coming quarters? And what specific measures are being taken to manage margins, cash flow, and balance sheet strength, especially in areas like raw material costs, volatility, receivables or any regulatory compliance? Just want to understand your plan of excellence. Thank you. Yes. So we have taken a multiple initiative to improve our working capital efficiency, as you rightly mentioned in this situation that is to how to because the raw material prices are actually not completely in your control because it's related to the geopolitical decision and so is the freight and other thing. So what we are trying to mitigate is improving the working capital optimization efficiencies towards that, reducing our data base, improving the payment terms with the vendors.

42:32 And in this process, we are actually optimizing the various supply chain financing, trade based MSME financing, global factoring and packing credit and all these type of instruments so that we can actually at the moment we increase, improve our working capital efficiency to free up the cash for the growth and for the future growth. So that's how we are looking at it. Next question comes from the line of Pat Souda with Pruneta Asset Management. So first of all, my question is on BRT.

43:17 Now Like it has become Glenmark's most successful global specialty brand. Internally, product in your current portfolio do you believe has the highest potential to become the next global brand of similar scale? So I think post Raltus is the first big one, right, followed I think amlodipine has tremendous potential, right, the one we are starting to launch second half of this year in non small cell lung cancer. So the one we licensed from and so that should be a big product. Likewise, Trasturasar, which we licensed from Hungary, that can be a big product for us. So all these will help build a very nice innovative respiratory innovative franchise right across all our markets. And then, of course, the big one will be ISB 2001, right, as and when it launches. So I think over the next five to ten years, you should see significant launches happening on the innovation side.

44:27 Got it. And my second question is like, the LME has now been launched in several reopened countries markets. So could you discuss physician adoption and whether the dermatology could become a meaningful growth driver in Europe? You're referring to wind levy, correct? Yes, sir. Levy is a niche product, right? It's for acne and we think it will be a nice product to have with the dermatologists. It's differentiated and the adoption has just started, right. We just started commercializing it in many of our markets. So it will take us some time to build on win level, right. But along with Windlevy, we have a couple of other branded derm products, which we are also promoting, right. And we are planning to promote, right, which will help drive the entire derm franchise in Europe.

45:27 Got it. Thank you so much. That's all from me. Had a best of luck. Thank you. Thank you. Next question comes from the line of Sai Mukherjee with Nomura. Please go ahead. Yes. Hi. Good morning. Just one question I had on the litigations in The U. S. There were some news around some settlement on antitrust litigation recently. So if you can just update us what are the pending litigations and how much we have provided for and what would be the cash flow implications? And is there anything that we need to provide for additionally this year, next year? So if you can just update us on the situations around various litigations?

46:18 I think, Shayan, most of the litigations we've already provided, right? I mean, all the information was around the settlement that we did with the state AGs, right, which we already took, I think in Q4 in terms of provision, right. So that's done, right. So on the MDL side, right, MDL we provided for state AGs, we provided the DPPs we settled, right. These two groups we settled. We have the EPPs to go and we have the one more group to go, right. So that's pretty much it from a litigation perspective. And outside of that, we're pretty much done with most of our major litigations.

47:15 Okay. So there won't be any so most of the provisions are made and incrementally this will not be very significant, right, going forward? Yes. So it will not be a very significant that now with a smaller two litigation what Glen mentioned has been left. I think as in when it we provide more on a conservative basis of all the litigation. The cash flow will obviously go in at least two years out of it. But as a P and L perspective, we have provided all the litigations as of now on today. Understood. Understood. And I don't know whether I might have missed it. Can you just share the net cash position as of June?

48:03 See, Shyam, as we mentioned that we'll continue to maintain our gross debt position as well as the net working capital days of one hundred and fifteen days. We are well below under those under working capital controls. And we'll continue to maintain that position going forward. We are taking a lot of initiatives to mitigate the cost pressures and now improving the working capital, especially in the current geopolitical situation to in terms of our procurement side as well as on the sales side. And overall, we are continue to maintaining our gross debt zero position. Look, I was just looking at the cash number, cash and investment that you share, right, every quarter. I know gross debt has been zero for a while, but the cash position, if you can share?

48:51 Cash, I'll give you the cash number, but I think it's not going to be a much of the help towards your model. I think you should my request is that you build the model based on the balance sheet perspective dates, which are the gross debt zero. We currently have a close to as the operating cash flow, we continue to maintain our 800 to 900 cash on lease. Okay. Sir, one last question on India, what is the MR strength that we have? And given all these oncology launches that are happening, is there some investment that you need to do? If you can give some color on that. India, MRs, think we are about 5,600 somewhere thereabouts, right.

49:41 But every year we add about 300,400 MRs. I mean that's pretty consistent in terms of our growth, right, across all the therapeutic areas that we operate in. Oncology in India doesn't need a big we already were in oncology. We already had a sales force in oncology in India. So there's no expansion required for the India oncology. I see. Okay. Okay. Thanks, sir. Thank you. Next question comes from the line of Divanj with Anubuddi. I just wanted to ask a question regarding how much of the AbbVie deal cash flow have you got in so far? I understand that there was a $700,000,000 upfront payment and the other $1,200,000,000 which was attached to the milestones.

50:33 So has any of those milestone payments been activated? So as of now, we just got the 700,000,000 upfront. We've not got any further milestones yet. So the deferred income which you say coming from the IGI deal has a part of that $700,000,000 Is that right? That's correct. That's correct. Perfect. Thank you so much. Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. Utkarsh Gandhi for closing comments. Thanks. Thanks, Hindu. A quick reminder to everyone that the information, statements and analysis discussed during this call describing the company and its subsidiaries, objectives, projections and estimates are forward looking statements.

51:24 These are based on current expectations, forecasts and assumptions and are subject to risks and uncertainties, which could cause actual outcomes to materially differ. No representation of warranty, either expressed or implied, is provided in relation to the conversation and the documents provided, and the company undertakes no obligation to revise any of the forward looking statements because of new information, future events or otherwise. With that, we can close the Q1 FY 'twenty seven earnings call for Glenmark. Thank you, everyone, for joining us today. Thank you. On behalf of Glenmark Pharmaceuticals Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.