Sun Pharmaceutical Industries Limited (SUNPHARMA) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Sun Pharma's Q3 FY26 Financial Results Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star, then zero on your touch-tone phone. Now I have the conference over to Dr. Abhishek Sharma, Vice President and Head of Investor Relations and Strategic Projects, for his opening remarks. Thank you, and over to you, sir.

Thank you. Good evening, and a warm welcome to our third quarter FY26 earnings call, especially Saturday. I'm Abhishek from the Sun Pharma Investor Relations team. We hope you have received the Q3 financials and the press release that was sent out earlier in the day. These are also available on our website. We have with us Mr. Dilip Shangri, Chairman, Mr. Keerti Vanurkar, Managing Director, Mr. Alok Shangri, Chief Operating Officer, Ms. Jayashree Satagopan, CFO, and Mr. Richard Ashcroft, CEO, North America. Today, the team We will provide an update on financial performance and business highlights for the quarter and respond to any questions that you may have. We will refer to the consolidated financials for management comments. The call recording and call transcript will also be put up on our website shortly. In recent weeks, there has been speculation in media regarding Sun's M&A interest in certain companies. We have clarified to exchanges that the news is speculative in nature, and we will not be taking any questions in today's call regarding the news article and their subject. The discussion today might include certain forward-looking statements, and these must be viewed in conjunction with the risks 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 Shri Sadagopal.

Good evening, all. Welcome and thank you for joining us for this earnings call after the announcement of financial results for the third quarter of FI 2026. Our Q3 financials are already with you. As usual, we will look at key consolidated financials of the company. During the third quarter of FY26, we recorded a sale of Rs. 154,691 million, registering a growth of 15.1% vis-à-vis Q3-FY25. Besides the underlying business growth, we also had a milestone income of US$55 million in rest of the world in the third quarter. X milestone, overall sales growth was 14.7%. In the corresponding quarter of FI25, Sunhead received a milestone payment of US$45 million. The gross margin during the quarter was at 81%, higher than the same period last year, largely on account of better product mix. EBITDA for the quarter was Rs. 49,485 million, an increase of 23.4% over Q3 last year. EBITDA margins came in at 31.9%, higher both on a year-on-year and a quarter-on-quarter basis. Excluding the impact of milestone income, favorable forex impact, and other operating revenues, EBITDA margins for the company improved mostly on account of better product mix. During the quarter, an exceptional charge of Rs. 4,895 million was taken primarily on account of wage code gratuity as per ICAI guidelines and additional provision for GXMDL final settlement. Reported net profit after tax for Q3 FY26 was Rs.33,688,000, up by 16% over Q3 last year. Adjusted net profit for the quarter was Rs.35,367,000, up 9.9%. EPS for the quarter was Rs.14 per share. Effective tax rate for the quarter was 24.3% vis-a-vis 14.7% in the third quarter of FY25 and 24.7% in Q2 FY26. Forex gain during the quarter was Rs. 1539,000,000. Our balance sheet continues to be strong, with a net cash of $3.2 billion at the consolidated level. Now, we will discuss the nine-month performance. For the first nine months of FI26, sales was at Rs. 436,604 million, registering a growth of 11.3%. Gross margin was at 80% for the first nine months. EBITDA came in at Rs. 137,772 million, registering a growth of 19.2%, with a resulting EBITDA margin of 31.4%. Adjusted net profit for the nine months was Rs. 96,508 million, up by 6.1%. The Board has declared an interim dividend of Rs. 11 per share for the year FY26 against Rs. 10.5 per share interim dividend for the previous year. I will now hand over the call to Kirti, who will share the performance of our Global Innovative Medicine business and the India business.

Thank you, Jayashree. I shall first provide you an update on Global Innovative Medicine business. In Q3 FY26, our global innovative medicine sales were up 14.3% to reach U.S. dollar 423 million. Milestone income, our global innovative medicine growth. An additional point on the milestone income, while Sun has had a milestone income in the last year, it may or may not recur in the future. Hence, you may treat it as one-off income. Our performance in innovative medicine business continues to be driven by a mix of growth in U.S., and recently we launched UnlockSit in the U.S. We also introduced Illumia in India. Early feedback for both the launches has been quite encouraging. For Q3 sales of formulation in India were Rs. 49,986 million, recording a growth of 16.3 million. India formulation sales accounted for 32.3% of total consolidated sales. Sun Pharma is ranked No. 1 and holds 8.4% market share in the over 2,407 billion Indian pharmaceutical market as per Pharma Rack, MAT, December 2025. Corresponding market share for the previous period was 8.1% ending December 25, we grew higher than the IPM and we had done well across all major represented therapy areas by higher contribution from volume and new product introduction as compared to the overall market. 1.3% for the quarter bit IPM volume growth, which is at 1.2%. As per SMSRC, July-October 25 report, we continue to be the number one brand based on the prescription volumes. We are well positioned here with an expected launch across both indications as well as all the strength presenting a comprehensive solution to the physicians as well as patients. The demands will be made available in easy-to-use format, and we have ensured sufficient supplies to meet the demand in India. I will now hand over the call to Rick for the update on the U.S.

Thank you, Kirti, and good evening. Let me share the performance highlights of our U.S. business. Our overall U.S. business was marginally up by 0.6% to reach $477 million for the quarter. Growth in innovative medicines was offset by lower sales in the generic business due to additional competition in certain products. The U.S. accounted for 27.5% of consolidated sales for the quarter. For Q3, we launched three new generic products in the U.S. As Peerty mentioned, recently we've also launched Naloxone in the U.S. for the treatment of advanced cutaneous squamous cell carcinoma. Our early launch efforts have been focused on education and awareness of healthcare professionals. We are also in active discussions with health systems to ensure wide access for the product. Our initial interactions have been positive. We have completed initial stocking and had our first orders from distributors. I'd also like to give a quick word on Lixalvi. The initial response from physicians has been encouraging. Physicians are reporting early signs of hair regrowth in patients, which mirrors our clinical data, including in some patients who have previously failed other JAK inhibitors. I will now hand over the call to Elok for updates on our other businesses. Elok.

The underlying growth in 10.4% in ROW. The rest of the world markets accounted for approximately 17.1% of consolidated revenue. I will now hand over to Mr. Dilip Sanghvi.

Thank you, Alok. Let me take you through our R&D initiatives and activities. We continue to invest in building a R&D pipeline for both the global generics and the innovative medicine business. Consolidated investments made towards R&D for Q3 FY26 stand at Rs. 8,928 million or 5.8% of sales. Innovative R&D accounted for 30.5% of our total R&D spend and stands at 7.2% of global innovative medicine sales for the quarter. During the quarter, we filed SBLA for Illumia with the US FDA in the indication of psoriatic arthritis. FDA approved label updates on unlocks it based on longer term data that demonstrated improved clinical outcomes in advanced cutaneous squamous cell carcinoma. We have also initiated global phase 2 trials of GL0034 in the indication of type 2 diabetes. FDA has also updated Illumia label recently with additional efficacy data in treatment of psoriasis of the nail.

Operator, we can open for Q&A.

We will now begin the question and answer session. Anyone who wishes to ask question 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Questions, please press star and 1. Rishi Parekh from J.P. Morgan, please go ahead.

Good morning and good evening, I guess, and thank you so much for taking my question. Now, I appreciate you're not taking questions on what's speculative out there, but for many of us that are new to Sun Karma, I was just hoping that you could walk us through your M&A strategy and what you're hoping to target or achieve with the strategy. Are you looking at tuck-ins? Are you looking to add biosimilars? Are you looking to expand your geographic presence, and how important is North America in the strategy?

So I think almost for all of those issues we've indicated all in the past, I think U.S. continues to be an important part of our focus, specifically for the innovative medicines, and not only U.S., but selling innovative medicines globally. Emerging markets, we are looking at what you call tuck-ins or smaller acquisitions, which we can look at integrating with our existing business to get scale in there. And we have also consistently indicated that we want to remain disciplined about acquisition. Our focus is on finding a way to grow our business organically at a rate so that we continue to be an attractive investment opportunity for shareholders. We would look at an acquisition only if we think that it can help us in terms of strengthening our long-term strategic capabilities.

And then can you also talk us through the size of the types of acquisitions you're looking at?

I think we have indicated in the past that we need to be confident that whatever acquisition we make, we should be able to manage effectively without our diluting focus on our own growth. At the same point of time, I think we have also indicated that for acquisition, if it It is necessary. We are comfortable raising debt.

Mr. Tishar Manudane from Motilal Oswal Financial Services. Please go ahead.

Thanks for the opportunity. Sir, on the innovative medicine sales, tax of milestone payment, the growth has been bit soft compared to earlier quarters. If you could elaborate on that, that's my first question.

The question, as we have called out in the year 20, one reason for the growth is that the specialty should continue to do well. It is difficult for us to comment quarter to quarter. My view is always you look at the business on an annualized basis rather than looking at quarter to quarter basis.

And so secondly, R&D spend on the innovative portfolio is both as a percentage of total R&D as well as absolute amount has been reducing for past two, three quarters. If you could also explain that.

No, I think it's all linked with commencing clinical trials, as we are commencing new clinical trials, including the one for GL34, and next quarter we will guide R&D.

Got it, sir. And just lastly, if I may, USA's HEX of Revlimed has the portfolio grown, or it has still been stable, if you could just show some light on that.

Is the question specifically related to generics?

Yes.

X-Linolidamide, the generics business is slightly down in the U.S.

So is this to do with dry erosion or lack of long-javes?

It's really due to specific competition for certain products.

So how do you see this improving going forward?

I think overall for the U.S., we see the innovative medicines continuing to grow, And the generic business will start to recover once we are in manufacturing compliance for a number of our sites in order to launch new products.

Got it. I hear you answer. Thanks a lot.

Hi. Good evening, and thank you for the opportunity. My first question is on gross margin. I just want to understand it better. In your opening remarks, you mentioned better mix led to such strong gross margin. So, if you can just explain, like, what are the key drivers to sustain such high gross margin, as we understand now, rev limit benefit is over for you. So, if some additional color to explain the very strong gross margin performance.

Thanks for your question, Devanthi. As you know, we don't specifically guide on product margin. Having said that, better mix of products, both in terms of branded products and our innovative medicines, has given an uptick compared to the gross margin in the previous year.

Okay, and you think this level of margins will sustain, or how do you see margins trending ahead?

As I was just mentioning, we normally do not guide on margins. Our endeavor is to see how we sustain and we perform to our potential.

My second question is on spend on the new launches, where you indicated incremental spend of 100 million or so. So, in terms of spend, how much of that is already covered and how much is yet to come? And where are the major spend happening?

Yeah, I'm happy to address that. So, the spend is really occurring on the Lexaldi and Luxit launches. It was fairly evenly split. We do see that spend is increasing now in the latter part of the fiscal year, Particularly as we've just launched Unloxys. We do expect this to be kind of part of our core expenses, though, going forward.

Okay. So next year as well, we expect elevated spend on these new launches as you build up the market needs, et cetera.

Yeah. Next year, it will just be part of our core operating OPEX to support these and the rest of our innovative medicines business.

Okay. And on this subject, it's a very recent launch. But any color on how you're proceeding with your discussion with the insurance partners, et cetera, and when do you expect those deems to sign, like when you have the healthcare partners onboarded?

Is the question related to Unlock This?

Yes.

Sure. So we're having active discussions with physicians, as you would expect, given we're just a few weeks outside of launch. From a distribution perspective, the distribution network is in place. As I have shared, those agreements are in place. The product has been stocked, as well as the agreements with downstream customers. The other important discussions are with health systems. As this is an oncology product, a lot of the prescriptions will come from health systems. So we have been in active discussions with health systems since before launch. We have been in touch with the top 50 cancer centers within the U.S., and all of those discussions have been progressing positively. So for the first few weeks, very pleased with what we've seen so far. The message is resonating in terms of the balance that this product provides in terms of efficacy and safety. It's something that clinicians have been looking for. And, again, within the health systems, the discussions from a formulary perspective have been progressing positively.

Sure. Thank you. I'll get back in with you.

Thank you.

America, please.

Yeah, thanks for taking my question. My second question is on the INGRA business. Given the strong performance that we have seen and the upcoming launch of SEMA that you indicated, Should we expect this growth rate to improve further as we look, you know, look through the next quarter, particularly as we add SEMA? And just a related question on that, would we need to add any more sales force or, you know, any plans to expand the sales force in India generally with SEMA or otherwise, given the strong growth that we've seen?

I think, Neha, you'll appreciate that it's very difficult for us to predict what will be the future growth and how we will grow, so we will not comment on that. Coming to your question on GLP-1, yeah, we will add some few field force, and that's like the way we do the business in India.

And this hasn't been done as yet, sir?

I'm preparing for the launch, as I said in my redoubt, so some of this thing has already been done.

All right. Okay. My second question is on the R&D spend for genetics. If I were to strip out the speciality number that we have mentioned, that seemed to have, you know, increased quite a bit. So, if you could give us some color, you know, in terms of incrementally, you know, where are we looking at spends, you know, and since historically we have kept biosimilars outside, you know, any plan in sort of looking at biosimilars again with the change, given the change in regulation.

Yeah, I did not understand. What is the question?

If you, if I look at the, you know, X-speciality R&D spend, right, then after stripping out the R&D, specialty R&D that you give, the generic spend seems to have increased quite a bit. So, you know, could you give us some color on where you're spending on generic specifically and also afterwards on, you know, biosimilar, how should we look at that opportunity for Sanfama, particularly given we haven't done too much in the past?

So, no, I think we are giving some split between the generic and the speciality, but beyond that, within generic, where we spend the money is not something that we give at a granular level. We also recognize that we're not only talking to investors, but we're also talking potentially to competitors. So generally, we avoid sharing commercially sensitive information on this call.

Understood. And on biosimilations, have your view there changed in terms of looking at that opportunity overall?

So we, I think last time also I indicated, so we are evaluating, re-looking at, because we look at comprehensively, including setting up manufacturing, investment, overall cost of development, and the time for the investment to produce any kind of meaningful, we are evaluating everything to take a decision.

Understood. And sorry, Tanish, one last question on Unloxid. You know, how are we thinking about positioning this product versus, you know, as we are, would it be the warehousing patients that we would look at first or the new patients that come in?

Yeah, Rick, maybe you can respond.

Yeah, I think the position of Unloxid in the market is very clear and very crisp. What it really offers is balance between efficacy and tolerability. So, unlocks it, works three ways. It restores adaptive immunity, which is by binding to the PD-L1. It engages the innate immune system based on its active SC domain that activates natural killer cells. And unlike the existing product, it preserves PD-L2 signaling. And the reason that's important is that's the pathway through which immune-mediated adverse events are typically anticipated. So that's really the positioning of amoxone in the marketplace, and as I said, that's been resonating with clinicians.

And do you think, you know, this would be more important in getting new patients on board, or could we initially go after the patients that have used existing products and kind of work for them?

We would mostly anticipate new patients.

Of course. Thank you so much.

Bharti Bhadavudu.

Hi. Good evening and good morning. My first question is sort of a follow-up from earlier questions. I just wanted to know if there is any lenalidomide contribution at all in Q3, or was it completely over in Q2?

Quite small in Q3, but there was a negligible contribution.

Got it. Second on semaglutide, are you also planning for launches in some other emerging markets around the time you will launch in India?

Now, what I said about the launch in India only, other markets, we are not guiding what is our launch plan.

Understood. And finally, a question on GL0034. I believe it is in Phase 2 in diabetes. When can we expect some sort of data there?

What was that?

GL0034 in diabetes Phase 2. U3 is right. Any further data is 18 months. Okay, got it. Thank you.

Yeah, thanks for taking my question. Just questions on U.S., again, regarding two products. First, Lexilvy. My understanding is the product requires a genetic testing before you put the patient on. Can you talk about that? Isn't that a significant difference?

Yes. Well, first, I think it's important to point out for all the JAK inhibitors, there's a whole battery of testing that needs to take place. So that's similar across all the products. Lexelvia is a bit unique in that we do have a specific testing for how the drug is metabolized. Now, what's interesting about that is a lot of drugs are metabolized through that system, so it's good for patients to understand that. So there's some benefits of actually knowing that as part of the testing process. But you're correct. That is one of the steps associated with starting patients on Lexelvia.

And can I ask, Richard, are there enough centers who are doing this testing, and if you can also throw who's covering the cost of the test? Is it the patient or is it the insurance company?

We're actually covering the cost of the test, so we're working with the leading providers. There are several big providers of testing within the United States, and we are working with them to provide the test, and we do so free of charge to the patient.

Understood. And just while we're on this market, I mean, RINWOC, of course, is being talked about as a new entrant potentially soon. I mean, I was looking at the data. The data of RINWOC is pretty solid, and its dosing is also better than Lexalvee. So how do you see that competition coming in this market? And of course, there are a small set of new drugs also probably being targeted in alopecia.

Yeah, I don't know if I would agree with the comment about the dosing being better. I think what I would say is, you know, first of all, this remains a category where there's opportunity for more diagnosis. So the more products that are available is a good thing because it's getting patients' choices, and it's going to allow the market to continue to grow, particularly the severe market where it can be challenging for physicians to differentiate those patients. So having additional competition is a good thing because it will help with that education. The other thing we know in pursuing with Lexalvi as well is just because a patient tries more, that doesn't mean they're not going to respond to others. In fact, that's exactly what we're hearing from clinicians. We're having patients that are starting Lexalvi that have actually failed the two other approved JAK inhibitors and actually are now responding on Lexalvi.

Understood. And the second question was on Lexalvi. I heard your comment earlier that this primary market is basically new patients. So, I mean, you are not really targeting patients who have failed K-Truda or LipTayl. Is that correct?

Well, there could be patients that are having trouble tolerating K-Truda and LipTayl that could move to Unloxit. But in general, our assumption has been and our strategy has been more focused on new patients.

But wouldn't that market be smaller, like given the advanced carcinoma patients, would be difficult to find?

No, yes. I mean, it's smaller than the overall population, but there's a meaningful population of patients that start immunotherapy where they need to go on one of these therapies.

And lastly, any thoughts on new indications that you're pursuing for LexCell?

We are in active discussions about LCM for both products.

Thank you so much.

Manchanda from Systematics, please go ahead.

Hi, good evening, and thanks for the opportunity. A question on your pending ANDS and NDAs. So, you have 116 ANDA spending and about 14 NDA spending approvals. Would you be able to share how many of these are from sites that are impacted by OAI? In the sense, like just a percentage of the spending ANDAs or NDS that would be filed from the affected sites. And if you could share some nature of the NDA filings that are pending approval in the sense whether these are ready to use injectables or sprinkle powders that you have been kind of trying to build over time. So a good majority of these would be kind of ready to use injectables and dysphagia related products.

No, we haven't given details about our NDA filings in terms of the nature.

Okay. And just one final one. Do you expect to see further decline in U.S. generic sales in Q4?

We provide forward-looking guidance. I mean, it's included in our overall guidance.

And if you could just share between Unloxed and Lexelby, which one would scale up faster over the next two years? Any sense there?

We typically don't provide product-specific guidance.

Thanks. Thank you.

Kunal Damesha from...

Hi. Thank you for taking my question. The first one is on the CMS's proposal on the most favored nation pricing, the two models that they have put out. Can you share some color? What is the internal assessment? I believe right now it's open for the commentary, but what's your internal assessment of that?

Sure. Happy to do so.

I think, as you know, there are three models. There's a voluntary model that exists today, which is called the generous model, which is directly related to Medicaid within the U.S. And then the other two are proposed, so they are very much in the notice and comment phase. We expect that notice and comment phase to end within this next month. So it's pretty speculative at this point to know, A, whether they will stay intact as they are or how they will change. As you would expect, we are working on all possible alternatives to mitigate any impact.

Can you share the broader aspect as to how we can mitigate what other strategies we can employ?

Guys, I think there are a variety of ways. I think these are commercially sensitive information. It's difficult for us to share this information on a public call. If you see, none of the pharma companies have given any details about any agreement that they have signed with the government, excepting which products are covered. So, I think you need to understand that there are things that we can share, and there are things that we will not be able to share.

Second one on the, you know, cause the belly mass, we, you know, just suggested that we might be in active discussion for new indication. So, would this indication be within the therapy areas that we are focusing or we are willing to go beyond our key therapy areas at this moment, even the data, especially on the immune-mediated adverse events, is quite strong compared to the competitors?

So, I think once we decide, we will share both the information that we can share. As we have said, we are evaluating. So, while we evaluate, there are advantages of staying within the therapy area that we are present in. There are advantages of looking at other areas that we are not present in. So, we have to do a commercial risk.

Thank you and all the best.

Yeah, thank you.

Thank you.

Thank you for the opportunity. Good evening. I want you to know regarding GLP-1, do you have a fill and finish capacity and if it's our own capacity or through a partnership capacity?

No, I think I talked about launch in India, but we will not comment specifically on capacity here, and whether it's in-house or it's out.

All right, and you guys don't have any timelines or any intention outside India market, any emerging markets, or only India market will be guided as of now?

No, as I said earlier, my comment was only on India market. Outside India market, we are not going to disclose whatsoever plan here.

Thanks for the follow. Just on continuing on innovative sales, so while you highlighted high base in the same quarter last year, is there any X of Milestone as well, any certain sort of one-off which would sort of come form an higher base in this quarter as well?

There's no one-off in this quarter apart from Milestone.

Secondly, more on the overall performance of FY23 to FY25, there has been almost, you know, 13 to 14% CAGR in EBITDA as well as NINX, even if I adjust for the Milestone income. However, FY26, nine months has been, you know, sort of, subdued. So, if you could just throw some light, while this nine months, the R&D spend also has been relatively lesser given the clinical programs at various stages. So, how do we see, while not, you know, taking a numerical guidance from your side, but, but directionally, it could, you know, help us understand.

I think our margins during this year and quarter have also been good. Factoring in the two new launches and the related expenditure that we have sided on. So, I think on a normal, when you look at the, on a normal ongoing basis, the margins are at a comparable basis.

Ma'am, I was referring for the growth in EBITDA as well as FAT, while higher spend on innovative medicine to some extent got offset with lower R&D spend compared to earlier years, right?

Yeah. So that is at EBITDA level. FAT we have indicated in the past as well. Our ETR has moved up from around 13 to 15 percent to currently about 25 percent, and that is the reason why You would see that the PAT improvement may not be commensurate with the margin improvement.

Subsequently, is 25% effective actually to be number two, as you, for the 27-28?

I think it would be sort of in the range, we guess.

Got it. Moving on. Thank you.

Next question.

Hi. Thanks for taking my question. My first one was on the launch of an auto-injector Illumia in Canada. So I wanted to get your thoughts to possibly move beyond the usual physician-administered setting. So do we also have plans to do this in the U.S.? We just want to understand that. And just a related question, for psoriatic arthritis, is it reasonable to expect a launch towards the FY27?

Yeah, maybe I can provide you. Oh, go ahead.

Yeah, no, Rick, please respond.

Yeah, I was going to say, so we've launched a PIN for Lumia in Canada, and as another market, the product is self-administered there. It's a different situation within the U.S. We're currently pleased with the HC administration model, and that's our current intention. As it relates to ceratoc arthritis, we would expect typical FDA review times, as we did submit the application.

Thanks, that's it. So, just a second question on India. So, do we also plan to launch SEMA tablets post-March? Just wanted to check that.

So, right now, as I said earlier, we have approval for semaglutide injection.

Okay, that's it.

Thanks again. On the phylogen drug fibromone, can you guide if there is a possibility for the drug to get an accelerated approval?

Where?

In the US.

I don't think it's here.

Off-tissue sarcoma.

So my understanding is that they don't have a... So like when the... I can find out. If I respond, I'll respond without having adequate information. So maybe share the specific question with Abhishek and we will get back to you. Because this is a product that Phylogen is responsible for as well as for finding.

Got it, sir. Yeah, I'll do that. Thank you.

Thanks for the opportunity. The question again is related to your M&A strategy. Just want to understand in case if you find a suitable M&A target, what kind of debt you are comfortable with? So, are you able to leverage the balance sheet, let's say, 3F of Avidda? Thank you.

No, I think I said that we are comfortable with raising debt. Now, it all depends on the targets, cash flow profile, our confidence that we can repay. Why we want to go into an area where we have no specific information?

Yeah, thanks. No problem at all. And just one more question on this globe model, Rick. Although you are not commenting on your strategy, but just if I look at the model itself, is there any possibility or how do you think about the possibility of this, let's say, getting implemented? Is it practical or can it get delayed or may not be implemented at all? How do you think about this?

I think that's pretty speculative. I think we need to wait until the notice and comment period is over and then react. It's hard to tell at the stage. Understood.

And are you also working with any kind of deal with the Trump administration?

Can you repeat the question?

Are you also working with any kind of deal with Trump administration like some of the other big pharma companies have entered with?

We're regularly in conversations with the U.S. government on any number of topics.

Perfect. Thanks, Dad, so much, Aide.

Thank you for the opportunity. Our emerging market growth is quite buoyant in this quarter. So I hear that it was led by both generics as well as innovative products. But can we elaborate more on this and give us some direction, like, going forward, how should we look at this region? My second question is a little open-ended, and it's on the India business GLP opportunity. So, given that the market is going to be very crowded, so what are our thoughts? I mean, how excited are we to be in this competitive market? So, any thoughts there?

Sure. We are very excited to launch the product on the patent expiry. And I think the generic product will also improve the access, and the market will expand. In terms of number of patients or value, we cannot comment on it at this moment, but we are all very excited to launch semaglutide-equivalent generics in India on patent expiry.

Sure. And can we give some direction on the pricing side? I mean, do we want to be very competitive, or how are we going to be on the pricing side? Any color there?

Sure. Pricing, we cannot comment, but I already told you, like, when the generic comes, it improves the access.

Sure. No problem. Thanks for answering my question.

Thank you for Anwala from ICICI Securities. Please go ahead.

Yeah. Hi, sir. Thank you for the opportunity. So, the first question is with the generic Samadru said, I believe we have filed the product in Canada through Taro. So, I just wanted to understand, you know, what's the status there, and have you heard anything back from the regulator for the filing?

No, I think I clarified this second, third, or fourth time. It's like right now in this call, we are discussing semaglutin only for India.

We can close the call to hand the conference back to Dr. Abhishek Sharma for closing comments.

Yeah, thanks, everyone, especially for joining us on this Saturday. If any of your questions have remained unanswered, please reach out to me or the Investor Relations team, and we'll be happy to hear.

That concludes the conference. Thank you for joining us, ladies and gentlemen.