Emcure Pharmaceuticals Limited (EMCURE) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Emcure Pharmaceuticals Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Paliwal, Head of Investor Relations. Thank you, and over to you, sir.

Thank you, Dorvin. Good afternoon, everyone, and welcome to Q1 FY '27 Earnings Conference Call of Emcure Pharmaceuticals. We will begin today's session with opening remarks from the management, followed by a Q&A session. Joining me today on this call are Mr. Satish Mehta, Managing Director and CEO; Mr. Taj Shaikh, Chief Financial Officer; Mr. Samit Mehta, Whole-Time Director and COO; Mr. Vik Thapar, President, Corporate Development, Strategy and Finance; and Mr. Piyush Nahar, Executive Vice President, Corporate Development and Strategy. We hope you had an opportunity to review the financial results, the results presentation and the press release, which was released earlier this afternoon. Before we start, please note that this call is being recorded. I also need to remind everyone about the safe harbor related to today's call. Certain statements made during this call may be forward-looking in nature. These statements are based on our current expectations, assumptions and management's views as of today. Actual results may differ materially due to a range of factors, including market conditions, regulatory developments, competitive dynamics, operational factors and other risks and uncertainties. The detailed disclaimer accompanying the results presentation and the press release applies to this earnings call. I will now hand over the call to Mr. Mehta to begin his opening remarks. Over to you, sir.

Thank you, Saurabh. Good afternoon to all of you. This is Satish Mehta, CEO of Emcure, and I'm absolutely pleased to speak to you post publication of our Q1 results, which I believe you must have seen it by this time. Before I start talking about the performance for the quarter, which has ended, I would like to share some important Board and organizational updates. So an important details, I would like to share with all of you. Number one, our Chairman, Mr. Berjis Desai and as far as Berjis is concerned, he is associated with me for more than 3 decades, has been appointed as member of National Commission for Minorities, member of National Commission of Minorities. He has been appointed. It's a full-time employment of Government of India. And as a result of this particular appointment, Berjis is going to step down. Berjis Desai is going to step down from the Boards of all listed companies. So obviously, as far as Berjis Desai is concerned, he will retire from the Board of Directors of Emcure at the conclusion of our AGM, Annual General Meeting. As I told some time back, Berjis and myself, we have been working together for more than 35 years, and he has been very much responsible in shaping the value system of the -- value system and culture of the organization and immense guidance and contribution he has given to Emcure. Obviously, being a stalwart and a very eminent law in his own right, he has helped in terms of improving the governance standards and institutional processes of the company. And we will obviously continue whatever he has, we have jointly built over a period of last 35 years and take it to the next level. Anyway, the entire management of Emcure and each and every Emcure is absolutely grateful to Berjis for the contribution that he has given to company in the last 35 years, and things wouldn't have happened but for his active participation. With the recommendation of the Board, I will now take on the role of Chairman in addition, Satish Mehta will take on the role of Chairman in addition to my existing role as Managing Director and CEO of the company post the conclusion of the coming Annual General Meeting -- post the conclusion of coming Annual General Meeting. In a weird way, I feel happy about the development, because I jokingly keep on saying that I started my journey in early '80s. And I still remember the first year turnover of the company was less than INR 10 lakhs. And that time also, I was Managing Director and CEO. And now I got promotion after 40 years of more than 4 decades of services to the organization. And now I'm the Chairman and CEO of the company because of support that I received from you all. I assure all of you that company strategy, operations, execution, everything remains absolutely unchanged. In terms of this new position that has been entrusted to me, I feel humbled and I'm committed to give more than what I have done so far, and I will work very closely with the Board, senior management team and each and every Emcurian to take the company to the next level. So the first thing I told you about Berjis stepping down from the Board of the company for -- after having been appointed as member of the Minority Commission. The second important announcement I would like to make is that Samit Mehta now takes over as Chief Operating Officer of Emcure as COO of Emcure. And as far as Samit is concerned, as you all know, as I told you in the beginning, he is extremely passionate about science and technology. He has done his MBA from Wharton, and he has spent more than 2 decades with the organization. And he has also been involved and giving a lot of innovative products and has worked very closely with the R&D and manufacturing. And now going forward, he will have a broader oversight of group R&D operations, licensing activities. And I have every reason to believe that Samit will play a bigger role, not necessarily in the areas where he is directly involved, but overall strategic inputs we will get from Samit as he's getting committed and to the next generational leadership change that will happen in the organization. So that's a very important development that has taken place that Samit is going to become the COO. He will get more and more involved in the management of the company and clear signal to everyone about the way forward. The third important thing that has happened that we have just recently acquired 12% minority stake in Gennova. And now Gennova happens to be completely, completely owned, 100% owned subsidiary of Emcure. So with the strategic platform, the strategic control of our biological platform will obviously ensure that we have a very sharpened focus on biosimilars and obviously adjacent therapeutic platform. So the another thing that we have done and biosimilars is very close to my heart. In fact, we began the journey 15, 16 years back. So there, as far as Samit is concerned, because of his passion for science and technology, apart from being Chief Operating Officer of Emcure, he also becomes Chief Executive Officer of Gennova, our biotech arm wholly owned 100% subsidiary. And he will obviously be focusing on taking Gennova, biosimilars and other technologies to the next level because I personally believe the way the things are happening at the global level, a lot of things are happening in the field of biologics. And obviously, Samit's leadership to Gennova will ensure that we will have a robust product pipeline going forward because biosimilars and biologics are going to play a very important role. The Gennova consolidation now allows us full control of our India and foreign subsidiaries because all subsidiaries, Gennova, Zuventus now, everything is 100% owned by the parent company, giving us a very simplified and aligned group structure that ensures strategic coordination across all businesses. So I talked to you about 3 major events, Berjis stepping down, I assuming the role of Chairman of the company. The second thing I talked about Samit becoming COO of Emcure, very clear signal about the way forward. The third thing I talked is obviously about Gennova minority stake being acquired 12.06%. And now each and every company under the Emcure umbrella is 100% owned by parent company. Having discussed about these 3 major events, now let me focus on our quarterly performance, which I believe most of you have seen. So as far as our FY '27 first quarter is concerned, it's the second year of our 5-year plan. And I'm very pleased to say that we have started on a very strong footing and Q1 gives a very, very encouraging early signal. The Q1 FY '27 reflected strong all-round performance with broad-based growth across revenue, profitability and earnings. Let me tell you what has happened. As far as revenue for the quarter is concerned, it grew by 22.8% year-on-year, 22.8% year-on-year to INR 2,580 crores, INR 2,580 crores, I repeat, supported by momentum across geographies. As far as EBITDA is concerned, it has grown by 25.8%, 25.8% to INR 508 crores, INR 508 crores and margin has improved. Margin has improved to 19.7 percentage points, 50 basis points more and reflecting the productivity gains and operating leverage that has happened in this particular quarter. As far as PAT is concerned, profit after tax has grown faster at 36.2% to INR 292 crore, INR 292 crores, underlining the strength of quarter's operating performance, enormous amount of excess control has been exercised in operating parameters and operating performance. So again, outstanding performance as far as the second year of the 5-year strategy plan about which I talked last time, we have obviously begun on very, very strong footing. With that, let me turn to the performance of what has happened in India. As far as India business is concerned, on a year-on-year basis, it has grown by 10% to 10.2%. We have done INR 1,095 crores, INR 1,095 crores, returning to double-digit growth -- double-digit growth over the quarter previous year, Q1 of previous year. And if you compare with Q4 of '26, if you compare with Q4 of '26, I repeat, we have grown by 12%. And as far as the performance is concerned, it is in line with our plan and in line with our expectations. I must say that all of our leading brands, all of our leading brands in CNS, cardiology and gynecology have shown very good traction, very good growth. We have also seen improvement in Zuventus following the changes which have taken in the previous quarter. In the previous quarter, as I told you last time, there was a bit of problem in Zuventus, but now we are moving towards stability because what really happens, there are 3 areas on which we have been working, stability, consolidation acceleration. So stability we have achieved. We are almost in the process of completing consolidation. And now we are obviously moving towards acceleration going forward, having achieved the first 2 objectives that we have set for ourselves. Then again, as well as the in-licensed products from Sanofi, Roche, along with Poviztra from Novo Nordisk, the semaglutide from Novo Nordisk. The performance complemented the performance of our own brands and broadened our presence in relevant therapy areas. I mean, it's a matter of happiness that through Poviztra, we have a very solid presence in obesity market, which I believe is going to grow going forward. I'm also happy to inform that we have entered into consumer business through our wholly owned subsidiary, Emcure Wellness, and that is also getting traction. In fact, one of the product bitter drops that we have is showing early signs of scalable growth going forward. It has been very well received by the consumer. It is showing good traction going forward. And I'll keep on telling you quarter-on-quarter about the performance of bitter drops as we go forward. We remain confident of continued growth in India as we strengthen sales teams and portfolio gain traction. I feel going forward, whether it is Q2, Q3, Q4, you will see the northward movements as far as the Indian business is concerned. And as I told you last time, as far as the Indian business is concerned, there is a lot of, what I would say, overseeing of the performance from senior management, I included. And obviously, this particular part of the business is very close to our heart. And you will see positive movement quarter after quarter as far as India business is concerned because as I told you some time back, I think the process of consolidation is behind us, and now we will obviously move towards acceleration. Having said that, now let me turn my attention to international market. As far as the international business is concerned, it delivered a very, very strong and robust growth as far as the quarter is concerned with revenue of INR 1,485 crores, INR 1,485 crores recording a growth of 34.2%. Growth was supported by base business ramp-up, new launches and obviously, we had tailwinds because of currency. All regions contributed to this strong performance. All regions contributed to this strong performance. Just to recap, as far as Europe is concerned, Europe grew by 32.8% to INR 537 crores with growth led by a strong base business performance and obviously enhanced contribution from liposomal amphotericin, enhanced contribution from amphotericin B. As far as Canada is concerned, Canada grew in the first quarter by 24.6% to INR 427 crores with continued growth in the base business, while rest of the world grew by 44.8% to INR 522 crores, led by very strong performance in ARV, HIV business. Now having spoken about stellar performance of international market and also getting back on the growth track as far as the domestic business is concerned, let me spend a few moments on the R&D and the pipeline that we have. During the quarter which ended, we received 15-plus product approvals across developed and emerging markets. Across developed and emerging markets, we received 15 product approvals. These approvals provide visibility for continued business growth for Emcure across market because as far as the international markets are concerned, the growth is driven by the quality of filing that we have, what type of products that we file and how many approvals we get, that plays a very important role. And it's a matter of happiness to inform my investors that we got 15 approvals in the quarter that has just ended. As we discussed previously, we continue to build differentiated capabilities across biologics, complex injectables, novel delivery system, especially focused on liposomal platform where we have a reasonably good understanding. So I think we are going to focus on technology-driven differentiated products. That is going to be the core strategy that we will be pursuing as far as the emerging markets and Europe and Canada is concerned. Again, something interesting has happened as in the month of July as part of government technology transfer, as part of government technology transfer, government-led technology transfer, ICMR licensed a novel anti-HPV candidate, a novel HPV candidate for cervical Neoplasia to Emcure. This particular product will have to go through various phases, and we are very excited because this is NCE and the development is also, the development is also part of our women health care portfolio. As you know, that is the women health care portfolio of gynecology is one segment where we are doing well, and this is part of that particular segment. Now again, as far as July is concerned, we signed a royalty-free, nonexclusive voluntary licensing agreement with Merck Sharp & Dohme to make and sell a generic version of experimental once a monthly oral HIV pill in 129 low and lower middle income countries. The drug alimatravir, a pre-exposure prophylaxis or PReP candidate is currently in late-stage development. As I told you, we do exceedingly well as far as the ARV segment is concerned. So last time we spoke about lenacapavir, the molecule which has been licensed by Gilead. And this is one more feather in our cap getting MHC product, which is also a pathbreaking molecule, oral pill once a month. So obviously, as we go along, as far as ARV portfolio is concerned, that also we are consolidating. That's what is going on. Now in conclusion, I would like to tell that as far as FY '27 is concerned, strong start to the second year of our 5-year journey. We delivered broad-based growth, saw improvement in India over the Q4 of FY '26, consolidation as far as Zuventus is concerned. We have continued with our strong international momentum, acquired full ownership of Gennova and deepened our leadership bench. Now as far as we are concerned, our priorities are absolutely well defined. The emphasis going forward will be on execution, execution, execution that is key to success. I believe very strongly on that. Second thing, acceleration and improvement as far as the Indian domestic market is concerned. We'll keep on doubling down on the international business where scale is also going to play an important role, where getting technology-driven differentiated products is going to play an important role. We keep on focusing on that. And we also will work to advance the differentiated pipeline and convert growth into operating leverage. If you recollect last time, I had very specifically mentioned that we, as a company, as far as the strategy is concerned, we will double down on whatever we are doing, make the big brands bigger. That's one thing. The second thing we will also be ensure and I'm very proud of the R&D that we have built up to keep on getting products from our R&D. Even today, when I'm speaking to you, all the products which have come from our R&D, like ferrous ascorbate, Orofer XT or Orofer FCM or Pause or for that matter, all chiral compounds, they are doing exceedingly well. So do expect R&D to contribute to the growth of the company, make big brands bigger. And the third obviously important vertical that we'll have as part of the strategy is to work on in-licensing from multinational also look out for products from ICMR and look out for products which are in early stage of development. That's the strategy we will follow. I'm very happy to say that Emcurians have shown a lot of resilience. That is something which has happened. I mean, if you look at the global environment, what's happening in West Asia, Middle East or even for that matter, what's happening with Russia and Ukraine. And with so much of uncertainty, Emcurians have shown a lot of resilience and everyone is absolutely committed to the growth of the company. And that is something which makes, as I also take the role of Chairman with the support of each and every Emcurian backing me and obviously, support of all the investors which means a lot to me, and that's what we are doing. And I think with the very diversified and the geo presence in various geographies with vertical that I talked to you, I think going forward, the performance is going to be northwards is going to improve quarter-over-quarter. And all of us at Emcure, we are very positive about the direction that company is taking. And obviously, we'll be counting on your support as we go forward. Okay. With that, I will complete my -- this one opening remarks. Just I would like to reiterate my confidence in Emcure to deliver low to mid-teen revenue growth in FY '27. I told you quarter after quarter, there will be 4 movements, positive movement. And as we discussed in the past -- as we discussed in the past, we are committed to give 70 to 100 basis points of EBITDA margin expansion. So very bullish about the business. With that, I will request my CFO, Taj, to give a little more color and run through the financials before we open the --

Good afternoon, everyone. I will now walk you through our financial performance for Q1 FY '27. Unless stated otherwise, all growth numbers in my remarks are on a year-on-year basis. Revenue from operations grew 22.8% to INR 2,580 crores, reflecting strong execution across both domestic and international businesses. Growth was broad-based with international markets continuing to be the bigger growth driver, while the domestic business delivered a resilient performance. Domestic revenue grew 10.2% to INR 1,095 crores, led by strong performance across key therapies, including CNS, cardiology and women's health franchise. International business grew 34.2% to INR 1,485 crores, continuing to be a key growth engine for the company. Europe grew 32.8%, supported by amphotericin scale up and steady execution in the base business. Canada grew 24.6%, led by new launches and market share gains. Emerging markets Rest of the World delivered strong growth of 44.8%, supported by robust growth in the ARV segment and continued momentum in the non-ARV segment. Gross profit stood at INR 1,507 crores, up 16.1%. Gross margin was 58.4%. Margins declined year-over-year, led by increased exports and also a function of product and business mix. R&D investments were INR 90 crores, representing 3.5% of revenue. R&D investments are expected to pick up in the remainder of the fiscal year to support our full year plans. EBITDA grew 25.8% to INR 508 crores, reflecting the benefits of scale, operating leverage and continued productivity initiatives. EBITDA margins improved to 19.7%, up 50 bps, supported by operating efficiencies and disciplined cost management. Depreciation and amortization grew to INR 110 crores from INR 99 crores in Q1 of FY '26. Interest cost was INR 32 crores. Effective tax rate for the quarter stood at 25.6%. Profit after tax grew 35.4% to INR 292 crores with PAT margin improving 110 bps. This reflects strong operating performance and improved profitability. Gross debt as on 30th June stood at INR 1,291 crores with cash and cash equivalents at INR 189 crores. Net debt stood at INR 1,103 crores. Net debt is expected to increase in the next quarter, reflecting the Marcan and Gennova payouts completed in July. Looking ahead, we remain focused on sustaining growth across our domestic and international businesses, improving operating efficiencies and driving steady margin expansion over the medium period. With that, I will open the floor for questions.

[Operator Instructions] Our first question comes from Kunal Randeria.

Kunal Randeria here from Axis Capital. Sir, firstly on the India business, good to see that the growth has touched double digits. As you guided in the last quarter, is this a clean growth? I mean, is there any element of channel filling over here after Q4? Or is this how the growth should be going forward?

There is no channel filling in this quarter, Kunal. This is a normalized growth that we have. And I think as the CEO mentioned, we expect growth to improve further from these levels that we have seen in the coming quarters.

Right. And this improvement in growth would be -- I mean, I know CEO sir said a few things about your existing brands, your therapies are doing well. But is -- I mean, how much of your revenue contribution would be coming from some of these in-licensed products? Are they growing in line with the company average or below that or above that? Some color would be helpful.

So I think most of the in-licensed are growing in line with the industry. I think that's what we talked about even when we've taken over the portfolio, they will continue growing in line with the industry growth. But where we're talking about faster industry growth, that will be driven more by our own brands across women's health, cardio, CNS, oncology, those segments.

Right. Got it, got it. Second question is on the ROW business. In the last -- you are coming off a very high base of last year you had a 42% growth. Now you have 45% growth driven by the ARV business. What would be the ARV contribution? And I mean, would that mean that FY '27 base would be higher, then '28 could be a bit subdued.

No. So I think we are seeing growth in both our ARV and non-ARV segment. So I don't think we're looking at FY '27 will be abnormally high then it flattens out. Yes, ARV is higher in the current quarter. So I think about 65% -- 2/3 of the business in ROW will be ARV in this quarter. But for the full year, we do expect about -- we end up at about that 50%, 55%.

Got it. Got it. And just one more, if I can. I guess the gross margin decline has been lower to the geographic mix of the business. But is there any lever for gross margin expansion beyond the geographic mix changing?

No, I think broadly, it is due to the geography mix. We obviously continue to look for ways and means to improve some of the activities around procurement or COGS improvements. So that should continue as an ongoing basis. But by and large, I think we have been guiding historically to about a 60% plus gross margin. But given the strength we're seeing where we're outperforming on the international piece of the business, I think where the gross margin is coming in at or somewhere in that ballpark 59% or 59% to 60% is what one would assume if we continue to see this trend of the international business outperforming.

Our next question is from Alankar Garude.

Satish bhai Piyush, you spoke about domestic growth picking up here on. Just trying to understand where are we in the Zuventus restructuring journey? Maybe in some sense, if you can quantify it, maybe we are 60% there, 70% there. Some sense on that would be useful.

As you said, I have a very interesting statement, Alankar, you got it. There are 3 phases. First, I told you about stability, consolidation acceleration. These are the 3 very specific terms I used. So as I told you in the last quarter, we had a problem. We had exodus as far as Zuventus is concerned. So now the stability has come back, normalization has taken place. consolidation has also happened and now we are moving towards acceleration. So as far as Zuventus is concerned, I think most of the job has been done, and we are moving in the right direction. So, Zuventus is no more my worry. It's only a question of putting it on a high growth. That's the basic objective in which we are working. And we have a very good team in place. All new people, they are also fairly well trained. And going forward, you should see good traction as far as Zuventus is concerned.

Sure. Got it. Maybe a follow-up there will be if we look at the IPM growth, it's clearly picked up over the last 2, 3 quarters. And in context of that, Emcure's domestic growth because of the challenges we've seen on the Zuventus front has been lower. So would you like to call out when exactly would the company be back to growing at par with the market?

Alankar, I think from next quarter onwards, you will start seeing that. So if you look at even last year, 2H, we had seen a bit of impact and slowdown out. So that base effect will also start playing out from 2H this year. So I think from second quarter onwards, you'll start seeing us more in line with the industry and then second half will be more faster than the industry growth.

Second half, Alankar will be much better. As far as this quarter is concerned, we think we should be in line with the industry growth. And again, as far as Q4 is concerned, if you compare Q1 over Q4, we have grown by 12.2% or 12.3%. So it's all moving in the right direction.

Got it. The second question is again on domestic growth. I mean, if we strip off the Sanofi diabetes portfolio, if we strip off Roche Nephro and Poviztra, would you like to give some range as to where the domestic growth was in the first quarter?

I think if I strip out the Sanofi OAD and the Roche, we'll probably be about 6%, 7% growth in the quarter. Ora effectively is a new brand that we are launching out, so.

Got it. And so basically, when you talk about growing at par or maybe outperforming the market, you're including -- you're looking at it at an aggregate level. You're not just looking at the organic growth.

So next quarter onwards, if you look at it, OAD will be in the base. Roche is a much smaller business. So it doesn't move much.

Got it. The final question before I come back in the queue, maybe Satish bhai to you is, if you look at the traction in semaglutide Poviztra, not just specifically on Poviztra, but in general for the market, we've seen quite interesting trends over the last few months. Maybe some media articles say that the pickup has been slightly slower. There is inventory in the channel. There are companies who say that more or less the traction has been in sync with expectations. What is your view as far as the pickup is concerned? And how should we expect the market to evolve maybe over the next 3 to 6 months?

I don't have a crystal ball here because as far as we are concerned, -- we are marketing innovation. And what has really happened that apart from marketing Poviztra quite aggressively. One good thing that has happened from our point of view that last -- actually 15 days back, Poviztra was cleared or semaglutide or innovator was cleared for MASH. So that's one area where we see the growth. And that's one area where we will possibly have a poor position. But to really opine what's happening in that particular market, the jury is out, wait for 3 to 6 months before we know what's really going on because I'm given to understand almost 40, 50 brands are being launched. So how much is channel stepping and how much is real, what I would say, consumption, I wouldn't be able to hazard a guess. I could only talk about what's happening at our level. And I can only say one thing as far Poviztra, is concerned, month-over-month, we are growing.

And if you can comment on the acceptance levels, both among physicians as well as patients, any instances which you can highlight wherein -- which give you confidence that things will pick up going forward?

No, no, because what happens as the innovator is concerned, that is rDNA molecule, number one. Then second thing, this part of the public domain that 2 major Indian players, they had a recall. And the third thing as far as this particular product is concerned being biologic, I think what happens, the absorption or even for that matter, the solubility is also a very major challenge. And since the innovator, Novo Nordisk and of course, Emcure, we took a decision to make the pricing very, very competitive. I have every reason to believe that eventually we will emerge winner or will do better than most of the brands because, first of all, innovation, second thing, massive data that we have, then more and more publication of clinical trials, which is happening because of the association with the innovator. So things will work out very well because the generics got launched only sometime in the month of March. So there is a lot of noise, a lot of brands. So let's see how it plays out. But it's a question of survival of the fittest and that's what will happen over a period of time. And where I feel we'll do a very smart thing by getting associated with the innovator.

[Operator Instructions] Our next question comes from Alok Dalal.

On the export side, what is the constant currency growth for the quarter?

I think for the overall company level, the ForEx impact was about 6%, 6% to 7%. So on the international would have been about... Okay 12%.

And for growth in Europe and Canada over the coming years, will it be more broad-based growth? Or will it be driven by 1, 2 big product opportunities like Ampho, for example?

I think there will continue to be big hitters that will contribute and continue to gain momentum, whether it's Ampho or some of the other filings that we are expecting approval for shortly. But that said, we have a portfolio approach depending on the market, say, for example, in U.K., we also have a retail presence. So there's a large number of plain vanilla generics as well, which contribute meaningfully. So I think that mix will continue to happen. Of course, 1 or 2 big products will contribute more than some of the others.

I think it's a little bit different for the 2 geographies. So if you look at Europe, multiple countries, I think it's going to be a little bit more concentrated in terms of some of the high-profile pipeline products that we're working on. For Canada, however, single market, I think that's a fairly broad-based growth. There's no sort of big hit or product as such driving concentration in that market.

So is Ampho now introduced in all countries of Europe? Or is it just a few ones today?

It's pretty much in all the countries. And there also, we are ramping up supplies. So the order book across the different countries should also go up in line with the supplies.

I think, Alok, what happened is we have -- we have introduced the product, but again, most of them are tender-based and they'll have their procurement cycles.

Right. So it should pick up in the coming quarters is what you're trying to suggest?

Yes.

Okay. And last question is on semaglutide for Canada. I saw in the presentation, there is a filing lined up for it. So what could be the time line that we are looking at?

I think we'll be filing in the current quarter in the next.

In next quarter?

Yes.

Next few months. Okay. So then Piyush, you will be in the second wave. Do you still feel there is upside once you are able to get approval and launch the product?