Alkem Laboratories Limited ($ALKEM)

Ladies and gentlemen, good day, and welcome to the Alkem Laboratories Limited Q4 FY '26 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Tushar Manudhane from Motilal Oswal Financial Services. Thank you, and over to you, sir.

Thanks, [indiscernible]. Good evening, and a warm welcome for fourth quarter FY '26 Earnings Call of Alkem Laboratories. From the management side, we have Mr. Sandeep Singh, Managing Director; Dr. Vikas Gupta, CEO; Mr. Nitin Agrawal, CFO; and Ms. Purvi Shah, Head of Investor Relations. Over to you, Purvi.

Thank you, Tushar. Good evening, everyone. On behalf of Alken Laboratories, I welcome you all to our Q4 and FY '26 earnings conference call. We are happy to have our Managing Director, Mr. Sandeep Singh on the call today to engage directly with all of you and he'll address any queries related to the future strategy, leadership transition and future outlook. Earlier today, we announced our financial results along with the press release and investor presentation all of which are available on our website and also have been filed with the stock exchanges. We hope you've had an opportunity to review them. Before I begin, I'd like to remind everyone that this call is being recorded and the audio recording and transcripts will be made available on the stock exchanges and our website shortly after the conclusion of the call. Please note, that today's discussion may include certain forward-looking statements, and these statements should be viewed in conjunction with the risks and uncertainties associated with our business and the environment in which we operate. With that, I would now like to hand over the call to our MD, Mr. Sandeep Singh for his insights. Over to you, sir.

Thank you, Purvi. So good evening, everyone. FY '26 has been a landmark year. We crossed INR 3,000 crores EBITDA. So it's been a fantastic year. And I will let Vikas fill in more details, but I would just like to say we're even excited for the future. And it has been a great year. We launched GLP-1 where we are doing extremely well. And both Medtech and similar bio CDMOs continue to be our growth hailers. With this, I think as Vikas you, please speak over. Thank you, doctor.

And I would like to place on record that Dr. Vikas is going to now kind of proceed from Alkem and he's done a fantastic job and he will be missed and I'm sure that you all will join me to wish him all the best for his career. Thank you.

Yes. Thank you so much, Mr. Sandeep Singh, and thank you, everyone, for being on the call. And I must, at the beginning, thank you all for all the patience and support and guidance that you have during my tenure at Alkem and I really value and cherish my journey over here. As I speak about the Q4 and the annual results for the financial year FY '26 it has been a landmark year for Alkem and it has been marked by a very strong broad-based growth. We have had a record profitability. We have continued our progress across our strategic priorities. So I'm happy to share that we delivered our highest ever EBITDA during the year with surpassing INR 3,000 crores on an annualized basis, reflecting the strength of our business growth strategy, disciplined execution and operational excellence. Our performance was supported by a very healthy momentum across both the India branded generic market as well as the international businesses. In India, we continue to outperform the market across several key therapies, with strong traction in chronic segment and sustained brand performance. I'm particularly pleased with our new product performance and the launches that we have done. It has been outstanding during the year. And a key highlight has been the successful day 1 launch of semaglutide in the month of March 2026. While these are very early trends, but I'm happy to share that in the most recent IQVIA report, we could garner a market -- unit market share of around 11%. And it to go up even further in the coming months. So it has been a strong launch that we have done. Internationally, both the U.S. as well as non-U.S. businesses delivered very strong growth, supported by the new launches market expansion and steady execution. Importantly, the year also reflected the benefits of an improving business mix. We got operating leverage and continued our cost discipline, which contributed to a meaningful margin expansion. I will now present the key financial highlights of Q4 and FY '26. In Q4, our total revenue from operations was INR 36, 033 million with a Y-o-Y growth of 14.6%. India sales were INR 23,245 million with a Y-o-Y growth of 8.8%. But if you look at our branded generic business growth, that has been close to 10%. And International sales were INR 12,223 million with a Y-o-Y growth of 25.4%. EBITDA was INR 5,174 million, resulting in an EBITDA margin of 14.4% for the Q4 FY '25 versus a 12.4% -- versus 12.4% for Q4 2025, sorry, it is INR 5,174 million for FY '26 Q4. EBITDA grew by 32.2% Y-o-Y. R&D expenses for Q4 FY '26 were INR 2,293 million, which is 6.4% of our total revenue from operations. But on an annualized basis, it is pretty much as per our guidance. Profit before tax was INR 5, 578 million with a Y-o-Y growth of 40.7%. Exceptional items for the quarter included INR 602.7 million incremental liability towards gratuity and leaving encashment for the past service cost, following finalization of central loans under the labor codes. And INR 747 million impairment of real estate investments. Net profit was INR 2,365 million. According to IQVIA data, for Q4 FY '26, the company registered a growth of 11.1% Y-o-Y versus the IPM, which grew by close to 10%. Acute segment reported a growth of 10% versus IPM, which grew by 7.7% and chronic segment reported 16.1% versus the IPM growth of 13.6%, which is almost a 250 basis point outperformance. We have outperformed in 6 key focus therapies, which have -- which are meaningful for us in terms of the internal value, which is GI therapy, vitamins and minerals, pain, antidiabetic, respiratory and dermatology. For FY '26, the key financial highlights, the total revenue from operations stands at INR 147,123 million with a Y-o-Y growth of 13.5%. India sales were INR 98,514 million with a Y-o-Y growth of 9.7%. International sales were INR 46,810 million with a Y-o-Y growth of 22.5%. EBITDA was INR 30,052 million, resulting in an EBITDA margin of 20.4% versus 19.4% in FY '25, and EBITDA overall grew by 19.6% Y-o-Y. R&D expenses for the whole year were INR 6, 173 million, which is 4.2% of the total revenue from operations versus INR 5, 620 million in FY '25, which was 4.3% of the total revenue in that year. Profit before tax after exceptional item was INR 28, 709 million, which is a Y-o-Y growth of 13.6%. There were exceptional items for the year. And I think subsequent details can be given by the finance team by Nitin in the later call. The outlook, as we enter FY '27, we strive to drive the growth and profitability with continued focus on strengthening execution improving the overall portfolio mix and expanding our differentiated pipeline, thereby creating long-term value through disciplined investments and operational excellence. While we remain optimistic on sustaining our momentum in FY '27. The current geopolitical environment and evolving global supply chain dynamics have resulted in increased logistics costs, along with some pressure on APIs and the packaging materials. We are continuously watching these changing trends. These external factors may lead to some near-term headwinds. However, we are closely monitoring the situation and trying to proactively manage our supply chain. We are confident that with our strong capabilities and adequate inventory buildup, we are well positioned to mitigate the potential disruptions and ensure continuity of operations. For FY '26, our tax rate has gone up, and we can have the subsequent details on the reasons for the same later during the call. With this, I will open the floor for Q&A.

[Operator Instructions] Our first question comes from the line of [ Sukrit D. Patil ] with Eyesight Fintrade Private Limited.

I have 2 questions. My first question to Mr. Sandeep is, what type of strategic levers are you prioritizing in FY '26/'27 to expand Alkem's domestic formulation leadership and accelerate growth in chronic pain and manage it from regulatory pricing pressures and global competition? That's my first question. I'll ask my second question after this.

Yes. So I think there is no synergic lever for '26/'27. Every year, we don't have a strategic lever. We are continuing on whatever strategy we had decided last few years, and that's paying good yield. I think Vikas can go into depth, but for example, GLP-1 getting extremely well in semaglutide. So things are working. What pricing risk we do to mitigate. I think nobody in the world can do that because the pricing is going by regulations, which we have to follow. Vikas, over to you.

So Sukrit, I think I've always maintained that domestic is 1 of our top most priorities. So one, we have strengthened our new launches a lot in our domestic business. We have -- I spoke about a few years ago, we had restructured the businesses and that's paying very good dividend in terms of the overall growth that we are seeing across therapies as far as domestic business is concerned. We recently launched semaglutide, and I think that will be 1 of the biggest priorities for us. In the coming year, we are seeing very good trends as far as -- and that will propel our overall chronic growth in addition to -- and that will contribute to even the India growth overall. We have also looked at strategic expansion of manpower as far as India business is concerned, domestic business is concerned. So we have we have added people wherever we are very bullish about growth and largely on the product side because that is where our entire focus has been. And I was just looking at the trends. If you look at the definition of acute and chronic, then today, our chronic business, as far as branded generic business is concerned, we are close to 22% of our business is from chronic and which is -- if you see our last 3 or 4 years' time, every year, we are improving it internally by at least 1%. And we see with now newer and newer products coming in over a period of time on chronic, we we expect it to get strengthened even further. So I think it's a journey. And consistent, as Mr. Sandeep Singh just mentioned. So this is -- we are just playing on the whole -- we'll focus on execution of whatever strategy we have planned out for domestic business.

My second question to Mr. Agarwal is again, a forward-looking one, what type of capital allocation and risk management frameworks have been applied in '26/'27 to balance dividend payout with funding for R&D in biosimilars and specialty drugs. Any hedge again for -- sorry, any hedge against ForEx and raw material volatility and any liquidity buffers put into place to sustain the profits and go for the large scale expansion projects?

Okay. Let me first take the ForEx part. So we have a ForEx policy, and we generally cover 80% or we hedge 80% of our ForEx exposure. In terms of raw material prices, see, due to what going on, we can see that raw material prices are increasing, the packing material prices are increasing. And we have been cautiously watching the prices and we have been taking calls on a weekly basis whether to cover and how much to cover. Definitely, there is impact on first quarter. There will be impact going forward also. If the situation don't improve from here. . I've not shared any numbers in this call regarding how much will be the impact, but we are continuously monitoring our inventory levels and whenever there is a dip in price, we also book for API and for packing material also, we build our inventory. But you're right that there will be some impact on account of the API prices and packing drill going forward in this year. On capital allocation, we said during our last call also that Oklutech is 1 of our biggest investment in the last 10 years. And we don't foresee any further investment into acquisitions, at least for the next 12 months. We want to first actually integrate Occlutech into our Alkem Medtech business, and that itself will take, say, another 12 months to do it. In terms of dividend policy, currently, I think we actually declare 25% to 30% of our PAT as dividend. In next year, since we'll be coming out of MAT -- definitely, the PAT, you will see that -- and we have actually discussed this in a few of our previous calls also that our tax rate will significantly go up from FY '27 so definitely, there will -- if we maintain the same dividend which we have declared in the last few years, if we maintain the same absolute value then definitely, the payout percentage will go up, but we don't foresee any major reduction in absolute value of dividend. The second good thing is that we have decided to move to the new tax regime from April '26 onwards. So the past declaration -- sorry, in the past numbers which I have shared that our tax rate will be around 35% to 38% going forward. So we want to revise our guidance on tax rate. The number will be around 27% to 29% going forward. So which will increase our cash accumulation also over the years. I hope I have answered all the questions or is there any other?

[Operator Instructions] Our next question is from the line of Neha Manpuria with Bank of America.

My first question is on the India business growth. Vikas, you mentioned that the semaglutide launch and is our priority, which has added growth. Given that we have grown this year at close to 10% -- how should we think about growth going forward? Should we assume that growth improves further? And if you could also give us some color into how the trade generic business grew in FY '26 versus the branded.

So Neha, thanks for your question. I have always maintained that we will grow 100 to 150 basis points higher than the market. Now what has happened is GLP has added to overall market growth as well. So if the market growth improves, we will continue our growth trajectory 100, 150 basis points higher than the market, which is what we have achieved even in the current year. And we expect that to happen in the coming year as well. And definitely, semaglutide will add -- will play a role in -- for us to ensure that kind of growth. What was your second part of your question? Sorry, come again?

On the trade generics.

Trade generic, this year, we had carved out a separate entity. And during that transition, we have had certain challenges. So this year, the growth has been lesser as far as trade generics ones close to around 4.3% on an annualized basis. But our focus on -- in the trade generic business has largely been on the stability. I have said it earlier also, we have focused on margin improvement as far as trade generic business is concerned. So we have not chased just top line. There are challenges in that business in terms of the overall receivables that can happen. So we want to focus on margin improvement as far as trade generic business is concerned. And our key growth driver, branded generic business where we want to be very fast as compared to market, I think that is where it continues. On trade generic business also, we are pretty hopeful that the coming year, our growth will be much better than this year. Just to add because of the sales cutoff issues, we could not deliver. So the reported growth is on the lower side. On the trade generic business.

Understood. That's helpful. My second question is on the cost pressures that you mentioned given that we don't know when the situation is going to improve and the cost pressures that you've talked about, how should we think about the margin improvement guidance that you have mentioned in the past that we should see 100 basis points margin improvement every year, would it be possible for us to deliver on that? Or do you think the best case at the moment would be for us to be able to maintain the FY '26 margin?

Neha, this is you know that geopolitical environment is very unstable, right? And when we had given the guidance of 100 basis points improvement maybe every year, that is more stable and a like-to-like period. And we still believe that operationally, if everything remains the same, we would do that. In the current scenario, it's a moving goal post. We don't know how much time, how much price variability, how inflation will play out. But I think we will -- we will continue to do things that are there in our control. We are taking various measures, whatever we can to mitigate or minimize the risk. But yes, it I think in the current scenario, it looks like whatever we have achieved in the current year, we should be pretty much in line with at least that -- but of course, as the quarters would progress, we will have more clarity on what kind of headwinds would play out. And I think in the -- by H2 or Q3 of this year, we will be more clear as to how the environment is prevailing because anything that we predict at this stage may or may not turn out to be true because this is something beyond anybody -- and I'm sure every business is having a similar trend in every business having a similar sentiment.

Sure. Understood, sir. But based on -- okay, no worry. -- sorry, 1 last question, if I may. On the operating cost in the quarter, I see that R&D has increased materially. We have also seen an increase in other expenses -- so any color on -- is this a sustainable base of cost that we should assume. I mean R&D, what should be the range as well as the other expenses?

So in terms of R&D spend, I've always maintained our filing cycle as such that Q4 we file maximum number of products. So in Q4, even last year, we had 5% of our revenue as our R&D spend. And this year, it has been around 6%, 6.5%. But if you look at the annual spend for -- it will be within the range of 4% to 5% only. Even this year, we have been at 4.2%. Last year, we were at 4.3%. So it has been pretty similar in terms of our overall percentage, and we expect it to be a similar between 4% to 5% even in the coming year.

And other expenses?

In terms of other expenses, definitely, there will be some inflationary pressures. And not only on the API prices but on other costs also. But we don't expect it to increase. There will be increase of -- I'm talking increase without, say, Occlutech acquisition, which will happen in, say, 1 or 2 months, the share transfers will happen. Other than that, the other expenses can increase by 7% to 8%, not beyond that.

See, if your question is only on the Q4, why we have a, say, INR 200 crore type increase from Q3 to Q4 and our on our other expenses, then there are various heads and various reasons to it. One, we carried out some due diligences because we were acquiring certain companies. So that has that has added to -- that's a onetime cost which is featuring in this quarter. We had foreign currency impact because even the foreign subsidiaries expenses as the rupee would depreciate that adds on to the cost. So that's 1 impact. Then there is some internal renovation costs, et cetera, which were more on time, which is also featured as part of other expenses. But as Nitin has guided, I think from a broad rate outlook range, you can consider it more than that.

Our next question comes from the line of [ Sandeep Kumar ] with Clindus Research Solutions.

Update on the

Sorry to interrupt, Sandeep, but your line is not very clear.

Am I audible enough? .

This is a little better, please go ahead.

Could management provide a regulatory launch time line for the [indiscernible] portfolio. Currently, I know we are in the FD submission activity. So how should we think about the approval and launch time in for -- -- biosimilars in the U.S.?

Yes. So yes, we are under approval. I think with this -- I think if we are good, maybe by next quarter -- I mean, next year's first quarter. So there's still some time. And second thing, keep in mind that we don't have a basket yet. So we have to figure that out as well. So there could be an option we will out license it to someone also. Yes. [indiscernible] Launch it this year.

Yes. Okay. So my final question is on the European market. I know we have got the approval for Prolia biosimilar. So how we are going to tackle the pricing pressure in Europe and when you are expecting the submission of extra biosimilars in the European market?

What -- sorry, what biosimilar last one? that okay, that you asked denosumab is the same thing. Okay. So we have -- I think that we have European partners for that. Ingenia Partners Yes. So the pricing pressures for everyone will figure it out how it settles. But

So when are we expecting the submission for [indiscernible] biosimilars in the European market?

I think on second -- so I think we've got approval for both. But right now, we have a partner only for one. So we are not going to launch it anytime soon.

Okay. So my last question is on [indiscernible] amenity biosimilar. So we are...

Which mab excuse me, which mab?

[indiscernible]?

Yes, what about it?

So could you please provide any insights that when we are going to start the

No, I don't think so we have that product in our pipeline. Yes.

See, right now, we do not have the product in our pipeline. I think at an appropriate time, we can talk about that particular product. But please -- I mean be more specific than be my request if there is any question.

Our next question is from the line of Kunal Dhamesha with Macquarie.

So the first 1 on the -- what are your estimates or internal budget for growth in our various line of businesses for FY '27. And on margin, I think there are a lot of pulls and push, menu. But let's say, if we kind of combine all that, there is a positive impact of currency depreciation as well. Where do you see the FY '27 margin range to be? That's the first question.

Kunal thanks for question. See, in terms of our estimates, if you ask me domestic, I've already called out that we should be 100, 150 basis points higher than the market, which means that maybe a double-digit kind of growth is what we are looking forward to. If you look at from U.S. market, U.S. market from a currency to currency basis a dollar to dollar, we are looking at a high single-digit margin. And the currency gain would add up to that. And then if we have some new launches that will come in the H2, they will also contribute to some extent on our overall U.S. growth. From the ROW markets, we have looked at a higher teens kind of market growth. And we assume that, that is going to be the trend even in the coming year. So I think this is the broad outlook on the growth that we are anticipating for FY '27. I think I've already answered the question on the overall margins when Neha was asking. In the current scenario, we have touched a 20.4% kind of growth like-to-like. We we would -- we should be within the range of 20% to 21%. But of course, there will be a better clarity on it. considering the geopolitical situation stabilizes and we are -- we have more clarity on costs as we progress quarter after quarter within the year.

Sure. And second question is on the -- what is the current contribution from the medtech and when will the Occlutech acquisition be concluded? And then when will we start seeing those numbers in Alkem's numbers?

Yes. The contribution is less than a percentage right now, medtech is very small. And when the deal closed, maybe in like in 45 to 60 days.

45 to 60 days it will get completed.

Yes. We estimate so.

Okay. So first quarter onwards, like quarter 2 onwards, you'll have a full impact of Occlutech.

Yes. If the deal flows, yes.

Okay. Okay. Perfect. And lastly on the trade generic where Dr. Vikas highlighted that the focus has also been on the profitability -- just from a qualitative or directional perspective, between, let's say, the kind of business segments we have like India branded generic, U.S., ROW, where would the trade generic profitability would fit in from the, let's say, the chronological order perspective. I think India branded would be the highest, but then where would trade generic fitting?

We have not called out segment-wise profitability anyways. But what I can tell you is we have improved in the last few years. And now even trade generic is not very far from our corporate margins. So that has been our intent. And that is what we are continuously focusing on. So that's the range that I can give you.

Sure. Thank you, and all the best to the team and all the best to Dr. Vikas for your new beginning.

Thank you so much, Kunal. Thanks for all your support.

[Operator Instructions] Our next question comes from the line of Abdulkader Puranwala with ICICI Securities.

So my first question is with regards to the revenue and the cost of in and the U.S. biologic plant, what you have started if you could highlight that, the cost as well as revenue in Q4?

Yes. Broadly, I'll tell you the Nitin can fill in, he's the numbers man. So see, if you split in into 2 businesses, that is India and U.S., the reason I'm saying that because Ingenia India started much earlier, Ingenia U.S. just got commissioned last year or just a few months back. So India is around -- it's a breakeven, much more than breakeven. We are in late -- in early double digits, you can say teens EBITDA. U.S. we will lose money, of course, because it takes time to ramp up. So overall, yes, we'll not be EBITDA positive. Maybe this year, we'll be close to it. But I think India and Ingenia U.S., we obviously see separately to be fair to it. So Ingenia U.S. will take time to kind of get EBITDA breakeven.

Okay. And sir, on previous expectation what we had or at least a onetime at this particular site. So I mean post the imposition of tariffs and more focus on in-sourcing. How was the order inflow at the U.S. Ingenia manufacturing facilities?

I think early to say, see these headlines are great. Everybody feels fantastic, but big companies take a lot of time. And don't forget big companies are setting up their own capacity. So that also plays out. You have to keep that in mind. So I think it's early days to declare any victory or the onetime asset turnover will look dramatically different. Nothing of that sort has happened yet.

Understood. And sir, last one, just a position for mine. So if going ahead in the PPT after completing the acquisition of Occlutech, if you could also highlight the progress of Ingenia as well as the metric business in terms of the way the assets are moving would be very quick.

Yes, we'll do that. Whenever there's something meaningful to report, we will do it, sir.

Our next question comes from the line of Tushar Manudhane with Motilal Oswal Financial Services. .

Sir, firstly, on like as Vikas sir moved on, so if you could give a clarity in terms of -- are we going to look for a new CEO? And then now that Occlutech also there were, of course, business sites are there. So if you could sort of give an overall CXO level in terms of the changes that would happen or any new person coming up on the -- if you could just share?

Yes. Thank you, sir. I will. So yes, we will look for a CEO. We have engaged with the top 3 global head and up for this. And that would be in place. It would take a few months, but business will go on because promoters are completely involved. And you spoke about Occlutech and other businesses. Keep in mind that the group businesses, which are non-pharma, Occlutech or [indiscernible], they will report to, let's say, other promoters or MD and the CEO would we look at the hardcopharma business that's the structure which we have. And going forward, it will remain the same. .

Got it. So got it. So secondly, coming to the domestic formulation market, if you could share the number of MRs attrition rate? And what -- how do you think about scaling the MRs in FY '27, maybe.

So we have -- I just mentioned we have expanded some field force in the recent quarter. And so our number of MRs at the group level is around 14,500. The other -- what was the attrition was the other question, right? We are we are at 18% to 19% kind of attrition currently and which has been a substantial reduction from the previous years and much lower than the industry average that we see. So I think it's a pretty stable sales force and now with the added number of people and large part of that addition is on the chronic side because that's where we see the growth opportunity and which is what we are going after.

And just 1 on the semaglutide side, while in terms of dosage wise, we are going to be only into injectables?

Yes. So at this stage, we have approval from the regulator for injectables, and we have entered that market. Our clinical trial for tablets is on, we will be going through the regulator in a while. And once we get the approval from we'll figure out the go-to-market strategy for tablets.

And will this state extended further to ROW or, let's say, non-U.S. markets?

Yes, yes, correct. So at this stage, we are looking at, like I mentioned in the earlier call as well. India is showing a lot of opportunity. We want to be absolutely sure and be on top of our supply chain for domestic market. We are also working on rest of the markets, including the U.S., but that will be -- that's not immediate. It will be in a while. So we have we will start our filing even for the U.S. market, maybe 1.5 years, we will file for U.S. And for ROW markets, we are -- we are just figuring out -- we will be going after it, but it will be, say, a few quarters from now.

Okay. And just lastly, I missed the U.S. growth guidance [indiscernible]

On the U.S. growth?

Yes, I mentioned that on a dollar-to-dollar basis, we will be a high single-digit kind of growth there will be a ForEx gain that might add to that growth. And then there are new launches that we are looking at. So put together, I think that's the guidance that I would give on the U.S. growth.

[Operator Instructions] Our next question is a follow-up from Neha Manpuria with Bank of America.

Yes. Vikas on this high single digit U.S. guidance that you've mentioned, does this include the CDMO business or that would also be reported under the U.S. revenue guide.

So this I'm talking of pharma Neha.

Okay. So the CDMO would be reported separately in that year?

Yes, that will be a part of the number. But yes, you're right. It's a geography, we report that. But this guidance is largely on the on the summer.

And when should we start seeing revenue from the CDMO business comes through for Alkem?

No, CDMO has already started for Inge, not from the U.S. plant that much. Last year, we recognized some CDMO from U.S. that was like less than 100 CRs is pretty small. It would take time for us to get like meaningfully like INR 200 crores, INR 300 crores, it will take us a couple of years.

And where would that reflect in the segmental breakup that we do.

That will come in --

Currently, we don't share segment-wise sales or profitability,. So our plan is -- once it will become substantial, we start hitting not only for our also [indiscernible]

Will not reflect in the U.S. .

I understand that 1 thing

Currently there.

Currently that is reflective?

Yes. Currently, it is part of U.S. You're right.

[Operator Instructions] Our next question is from the line of Rahul Jeewani with IIFL Securities Limited.

Yes. Just on the U.S. business, we had received the approval for a -- so when -- if you can talk about in terms of when it could be a launch for the product -- and when you launch, do you think the market would still be limited competition or you would expect the market to become competitive at the time of Alkem's launch?

So our expected launches around September or October, somewhere around that time. And -- it's a limited player launch. It's not as crowded as some of the other markets, other product categories that we have seen. I think as compared to those, it's a limited player launch. So it should not be a crowded as some other -- as normally it happens in U.S. .

Okay. So essentially, we are targeting launch in September, October of this year. So contribution should come in second half.

Second half -- second half.

Sure. And with this tolvaptan launch given that you are talking about, let's say, limited competition market, that would imply that the U.S. business should grow much faster

Sorry, Raul, just to qualify. At this stage, we still have 4 months by months. We don't know

Other things will soon. So is the same.

What happens is on the base business, U.S. as a market as a value erosion that we see over a period of time. So maybe in some products, you see a value erosion that would happen. But with -- on the back of some of the new launches, we are able to make up. So I think that is how -- that's why the guidance is on those lines.

Sure, sir. And my second question is with respect to the India business. You talked about the TGX business growing, let's say, 4%, 4.5% in FY '26 as that would essentially imply that the branded generics business grew closer to 11% last year. Now next year. Correct? . So what my question was, obviously, TDX growth last year was impacted because of the restructuring, which you've carried out -- so let's say, TDI saw on a stable trajectory next year and be benefiting from GLP-1 or Camacaleup in India. -- then potentially, the VDX growth for FY '27 could be even better than this 100, 150 basis point outperformance, which you found out versus the

See, if the GLT-1 really, say, adds a lot of value, I'm sure the market growth would also be much higher. So that's why I have given the growth guidance relative to the market growth. So if market also is bullish and the market growth from, say, 9% moves to 11%, then our growth also will be much higher. I think it will be -- as a guidance, I would say, 150 basis points ahead of market is fairly doable as far as that is concerned because that is just 1 product category. And our large base is still acute. So chronic is, say, 22% to 23% of our overall base over there. So sometimes that weighted average plays out. But I think I will do that calculation. I would just keep the focus clear on are we beating the market as far as 100 to 150 basis points is concerned? And then -- of course, the growth can be bullish. I mean FY '26 you assume we acquired -- also. So there was some incremental on account of acquisitions, which have already built in the base now.

Okay. Sure, sir. And given that you touched about on the acute business. So on anti-infectives, we have seen that the market continues to remain muted, both for the IPM as well as Icam any visibility in terms of when could we see some sort of a growth improvement in the acute therapies in India?

See the market may have been muted. But if you look at our growth, we have outperformed even in acute and an acute anti-infective is muted and back to in anti-infectives, if you would see the struggle has been on the oral liquids as well as on the injectable side, right? If you see oral solids there are still -- there have been some growth. It has been a shade better than -- so I think if you look at our growth, our growth have been, say, a high single-digit kind of growth even on that segment. But even in acute, we say, for example, we have at has been a great story for us in the recent years. We are really outperforming the market. We have seen very good growth coming out of that segment. respiratory is growing pretty fast for us. So there are areas pain and analgesics, we see as a category, we have revived our growth. So if you look at some of those segments, we are getting good traction -- but of course, when anti-infective market will come back, it is very hard for anybody to predict. That's more yes. I mean we would rather not predict it and things that are in our control.

[Operator Instructions] We have no further questions, ladies and gentlemen. I would now like to hand the conference over to the management for closing comments.

Thank you, everyone, for joining today's call and first [indiscernible] questions and active participation. Should you have any follow-up queries or require any further clarifications, please feel free to reach out to us. Have a pleasant. Thank you.

Thank you. On behalf of Motilal Oswal Financial Services, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.