Gufic Biosciences Limited (509079) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q1 FY 2022/'23 Earnings Conference Call of Gufic Biosciences Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Ami Shah, Company Secretary. Thank you, and over to you, ma'am.

Thank you so much, Peter. Good evening, and a warm welcome to Gufic Biosciences Limited earnings conference call for first quarter of FY '22/'23. I have with me Mr. Pranav Choksi, Chief Executive Officer and Whole Time Director; Mr. Devkinandan Roonghta, Chief Financial Officer; and Mr. Avik Das, from Investor Relations team, to give the highlights of the business performance of the company and to clarify all the queries of the investors during the call. After the opening remarks from the management, operator will open the bridge to call for Q&A session. But before we proceed with the call, please note some of the statements made in today's discussion may be forward-looking and are based on management's current expectation, and this may be viewed in conjunction with risks and uncertainties involved in our business. The company assumes no responsibility to publish or update or amend, modify, revise any forward-looking statements based on any subsequent development, new information or futures, or except as required by the applicable laws enforced. This call is being recorded, and the playback shall be made available on our website shortly after the call. The transcript of this call will be submitted to the stock exchange and will also be made available on our website. I'll now hand over the call to Mr. Avik for his opening remarks. Thank you, all. Over to you, Avik.

So welcome, one and all, to our con call. And -- so I'll just first quickly summarize how the quarter has been for us, and then take a deep dive into each of the divisions. So excluding the COVID portfolio, we've seen a growth of around 20%. And we've not only been able to accelerate our EBITDA margins in these inflationary times, but we've also seen an improvement in our EBITDA margins. Growth in this quarter was primarily driven by sports and our domestic market. We gained market share in key therapy areas such as infertility, ortho and gynecology as well as aesthetics, and robust performance was noted in our branded and CMO business via antifungals, hormones and anti-inflammatories. And even our international business, we saw better penetration in Europe and LatAm. Now I'll quickly take you all through the performance of each of our divisions. So within the Critical Care division, we've been able to retain leadership position in the antifungal and antibacterial space. As you all are aware that we did -- we launched dual chamber bags for the first time in India, initially targeting anti-infectives. The total addressable market over here is INR 3,000 crores. And of course, Critical Care segment faced some headwinds due to reduced hospitalizations and excess inventory in the channel, but with the launch of dual-chamber bags and normalization of hospitalizations, we see growth coming back in the next quarter. And in this quarter, we've also entered neurology, which is with some unique products and with a dedicated task force. And we've also set up a training center. I'll talk about it subsequently on this. And the idea mainly over here is to broaden the addressable market for the product that we've launched in the neurology segment. Now I'll take a quick dive into the Ferticare division. So in this division, we will be launching dydrogesterone. This is a product which is ready to launch and to de-risk ourselves, we have vertically integrated with our own API. The market size for this product in India at the moment is INR 700 crores and growing roughly at 60% year-on-year. And we are planning an annual sales of at least INR 20 crores in less than 2 years. And as a company, we have also invested in developing a recombinant alternative to the urinary source of a certain hormone, which is very critical in the treatment of infertility. And by doing this, we will be de-risking ourselves of geopolitical issues as well as currency risks, maybe within the next 15 to 18 months. And broadly, we have the widest basket of products now in the infertility segment, and we are vertically integrated with our own manufacturing. We have a very strong field presence, and we intend to be among the top 3 players in India in the next 3 years in the infertility segment. This is, of course, a INR 4,000 crore market and growing at 15% year-on-year. Next, I'll take you all through Health and Spark division. So we are, of course, market leaders in the anti-inflammatory and herbal medicines. We have initiated a trial of a product, which is derived from Indian gum by a standardized extraction process for management of asthma. So this is an extension of our existing products, but targeting a new indication, of course, which is a very huge market in India. And our brand in this space Sallaki continues to be the market leader in Boswellia serrata range of products. And new multi-vitamins and anti-inflammatory basket will be coming up in the coming quarters, and we'll be driving the growth further in these 2 divisions. Now in Stellar division, we already launched Sallaki Max, and now we are complementing it with launch of pain management and muscle recovery products. And we're also launching a very unique topical oil suspension, which will improve penetration and faster recuperation. And we foresee that this is a very differentiated product and very few companies have it in India and we foresee growth to come into this division as a result of the combination of all these products. Now on the international business front, we've seen a growth of around 25% in this segment. We are very proud to let you know that we are exporting to more than 130 countries now. Currently, we have 180 registrations. And in the past quarter itself, we received 13 registrations and we've applied for 33 new registrations. We are very, very proud to announce that we received 2 product approvals from U.K. MHRA. In the past quarter, we set up our own subsidiary in U.K. to grow this business. We've also applied for one more product in Brazil. So for Europe and LatAm, our strategy is very much in place, which is to take our existing developed formulation in these countries, especially those countries where we already have presence and identified new countries based on market gaps and opportunities. Now I'll take you all through a brief overview and our idea behind setting up the Center of Excellence in Mumbai. So the Center of Excellence will be not only treating your patient's skin and body, but it is going to be using the most advanced equipment toxins and fillers for entire face and body contouring. And through the Center of Excellence, we intend to bring to market some of the most advanced technologies and techniques products from across practices and philosophies and markets as well. And this will be the most panoramic way of approaching your skin treatment and body contouring treatments in India. And moreover, the idea of setting up the Center of Excellence is to promote it as a knowledge repository and make it open and available to all members of the medical fraternity to leverage our findings and showcase the magnificent and marvelous capabilities of botulinum toxins. And after this, I'll just give you a quick run through of the Aesthaderm division as well. So Stunnox continues its penetration into the Indian market. We are also developing fillers to complement and complete this entire basket now. We've started, as I said, the training center for new therapies, with combination of machines and use of fillers and botulinum toxins for face and body contouring. And we've also tied up with experts in the field of vaginal tightening and vaginal rejuvenation and organized training at national level to promote the use of botulinum toxin for these indications. And a quick update on our R&D. So our API R&D at Navsari is going very well. We have selected 3 molecules in very targeted therapy segments, such as antifungals, antibiotics, and a lot of it will be for backward integration as well. And so that R&D center and the product development is going on very well. And we will be completing the clinical trial for D29 by Q3 of FY '23, and we'll be submitting by -- around the same time to DCGI for final approval. This, of course, is a [indiscernible] of the anti-infective, which will be launched for the first time in India. We've also done some interesting work in biofilm in the last quarter, and we are expecting approval soon, not only in the vial form but also dual-chamber bags. And dual-chamber bags will be the first company in India to launch biofilm with. Another thing about biofilm is that currently, the market penetration is quite low due to the unviable pricing. But we intend to -- using our proprietary technology, we intend to reduce the pricing and increase the reach, and thereby increasing the overall market of biofilm in India. Of course, we've had a very successful launch of dual-chamber bags. We also shared a link in our presentation, and I'll highly encourage all of you to have a look at how beautiful the product is. And for isavuconazole, we will be complementing the injectable form with an oral option as well by Q3 of FY '23. And overall, the market for this molecule is growing at roughly 100%. Last quarter, we did announce our partnership with Selvax, which is an Australian company focused on immuno-oncology. So there's a quick update on that, that this particular therapy has demonstrated promising results in pancreatic cancer models tested in the preclinical stage, and these results align with other different mouse tumor models tested. So the current treatment options for pancreatic cancer includes surgery, chemotherapy and radiotherapy. These options are rarely effective, and in most cases, are used to manage symptoms rather than eradicate the disease and -- which is definitely highlighting to -- there's a need for a new treatment that can effectively combat this cancer. And Selvax has shown some very promising results. We've highlighted that in our investor presentation as well. And a quick update on our CapEx at Indore. So the civil construction and site development work is progressing very well and as per schedule. And we're really happy to announce that it's nearing completion. So all our equipments have been selected and ordered, and we expect most of these equipment to reach us by September. So we are still on track for commercialization of this facility by Q1 of FY '24. With the [indiscernible] at Navsari. Our decision to move it to Navsari has played very well given the timing, the time that we see it and our ability to leverage the existing utilities around. So the civil work is completed, all the equipments have been received, installations have been completed and we are absolutely on track to take commercialization in this month itself, which is an announcement that we made earlier. So with this, I hand over the call to our CFO, Mr. Roonghta, to give you all a brief overview of the numbers for the past quarter.

Thank you, Avik. Good evening. I'm Mr. DevI Roonghta, CFO of the company. I'm going to highlight the financial performance of the company for Q1 of financial year '22/'23. Firstly, I would like to inform you that in the Q1 of last year, that is '21/'22 the sale was [indiscernible]. This includes the COVID sales of around INR 113 crores COVID-related products. And if I remove the COVID-related products, the net sale without COVID was around INR 139 crores. Against INR 139 crores, this quarter, the sales is around INR 165.70 crores. That is around 20% jump on the top line. Both the quarter's figure are not comparable because of the inclusion of COVID-related sales of around INR 113 crores. So I'm making a comparison between the Q1 of '22/'23 versus Q4 of '21/'22. The total revenue for the Q1 of this year is around INR 165.70 crores, where the subsequent Q1, that is Q4 of '21/'22 was around INR 162.2 crores. EBITDA for the current quarter is around INR 33.6 crores, whereas Q4 of last year was around INR 31.6 crores. The EBITDA margin in current quarter is 20.3%, and the last quarter of last year was 19.5%. There was improvement about 0.8 basis points. Profit before tax has improved from INR 26.2 crores to INR 28.3 crores. PAT margin has improved from 16.1% to 17.1%, and profit after tax has improved from INR 20.3 crores to INR 21.1 crores. PAT margin has further improved from 12.5% to 12.7%. And Q1 of this year versus Q1 of last year is not comparable because of sale of COVID [indiscernible] of around INR 113 crores. Thank you very much. Now I'll request Pranav sir to take...

So thank you, Roonghta, sir. So I think Peter will directly go to the question and answer, right? I believe that's the normal protocol.

[Operator Instructions] Our first question comes from the line of Girish Gulati, an investor.

Sir, my question is that regarding the pancreatic cancer, what are the updates which we have? And are we trying to target any hospitals yet, like AIG hospital is there and PSLI hospital is there as well?

Yes, good evening. So yes, so in terms of the therapy, what we normally do, we are currently following certain animal models as per the regulatory pathway. So first, we have to like Avik also commented, we have to start with some animal studies and then only we are allowed to take the permission of the government to perform certain human studies. Of course, assuming it's an oncology product, the permission is a little bit fast track, but it goes through a protocol. So as of now, the status is that, as we have mentioned, these are mostly for solid tumors, the entire immunotherapy, which we are working on. And we had already got good results in some species of animals, such as dogs, horse and the mouse and all that. And now the recent update, which has come is in regard to pancreatic cancer, again, being a type of a solid tumor, but more importantly, it's a different type of tumor, which we got sort of a higher percentage of remediation, which is not possible in the conventional FDA-approved therapies also. So to answer your question, sir, yes, the moment we get the permission to -- I mean the moment we submit the data to -- right now, it's with the Australian government, we will be starting the journey to the Indian government once we get -- the tech transfer is on process, and we will get -- so we get a final formulation, we do the tech transfer. And then we will be applying to the Indian government to either allow us to go for a direct Phase III or maybe they might ask for a Phase II. If not -- as I don't want to do any animal studies here in India till the entire consent has been fully proven. So we are looking at least some time off till we start the human trials in India.

Because why I was asking this pancreatic cancer is usually [ uncurable ] disease.

Yes.

We'll come out with a medicine, which -- if we can take care of it, usually it is fatal only. So...

Yes. So very rightly said, yes. So pancreatic cancer, I would say is one of the difficult cancers to treat. But like you rightly said, it is having its own challenge. And so we hope that with such data in the animal models, we should get a fast track response to do some trials earlier in the Indian market also. So I agree with you, we should try to push it. And we're already trying to push to get some earlier response. So we'll be submitting to the DCGI very soon.

Good luck, sir. Because that is a very, very challenging disease to treat.

Thank you.

And one more follow-up was in the last, I think Q3 con call, you mentioned about in those facilities, you'll be coming up with [indiscernible]. So just you -- because this is an area of your interest. So just wanted a bit brief on that, sir.

Yes, Sure. So as you rightly said, sir, we are already launched the peptide forms, the recombinant -- protein recombinant hormones are something which Avik also spoke about. We are trying to get in the next 15, 18 months, maybe one product before that also. The overall vaccine technology is something which we already have applied the proof of concept to the DCGI in February, and we have got a reply in some months and we have replied back to that also in the month of July. So hoping for another lineup maybe in the month of August how to take it forward. And we are going to apply in the month of October for one more candidate of the oral vaccine technology to the DCGI. Knowing the time lines, like I said, the vaccine will be a little bit more long term in terms of the regulatory cycle as compared to the recombinant proteins because they already generics, I would say, a little bit more of the recombinant products are mostly like biosimilar, whereas the oral vaccine technology will be a complete new technology, [ it's only one ]. So I foresee some, I would say, extensive regulatory pathway, which is fine, and we accept that and we want that to happen. So we ensure that the product is completely safe and effective. So but it is exciting. I hope that oral vaccine, when the time comes of at least the preliminary preclinical and animal in Phase II, you will be hearing some nice updates from us.

And sir, on the platform of biotech, sir?

Yes. So biotech like -- of course, the biotech is entirely about recombinant proteins, oral technology and immunotherapy of the tie-up with Selvax. These are the 3 things which we are working on in the entire thing of biotechnology. Apart from, of course, the peptides, which we already mentioned, we are doing the work on recurrent implantation failure, endometriosis. So all of this comprise antibiotic headspace of, would say, the entire entry of Gufic into these sectors. So all 3 -- all 4 of these things.

These are very challenging, and I wish you good luck for this, sir.

Yes, sir. Thank you for your questions. And I'll take this opportunity, I hope you have patients in the company because these are long term, but we are really having our own trajectory. So we will go step by step, and we'll ensure that we do it the right way.

And we are always there to support you as a part of [indiscernible].

Thank you.

Our next question comes from the line of Rajat Setiya with ithoughtpms.

My first question is about the dual-chamber bags, which you say is a INR 3,000 crore opportunity. So can you please highlight who are the major competitors and what's their market share?

When we say INR 3,000 crore market share, we specifically refer to the conventional dosage forms, which are available in the form of penicillin-based antibiotics and also some, I would say, gram-positive antibiotics. To name a few, we are talking about meropenem, imipenem, biapenem, doripenem, piperacillin tazobactam, and vancomycin and teicoplanin. So these are currently available in India. I'm again talking specifically for India only in the form of the normal vial. You have a glass vial, you have a rubber stopper. And I would also once again take this opportunity for you all to refer to the link which Avik has mentioned. I'll try to explain to my level best in the call. But once you see the video, which we have uploaded on the presentation, it gives a very good 3D -- [indiscernible] audiovisual presentation of what the technology is about. So currently, the product is available in a vial and the entire medical -- the [indiscernible] and the medical fraternity takes approximately 3 to 5 minutes depending on their time to reconsider each product, which might lead to cross-contamination, inaccurate dosing or in some cases, other sort of a contamination because of air or because of some using the wrong needle [indiscernible] wrong diluent also. So with this technology of dual-chamber bags, we have ensured that the entire drug remains in a very enclosed way, and they're not exposed. The entire reconstitution happens only in around 20 seconds as compared to 3 to 5 minutes. So imagine in today's scenario when the workload on the nurse is quite, I would say, high, where she had to handle in any ward you see, the nurse-to-patient ratio is quite high. We are -- apart from just treating them and serving them, they also have to take care of documentation, which is a big thing as for the new guidelines also. So if we can save around 3 to 5 minutes per patient, and maybe a patient has to be administered medicines on an average around 3 to 4x a day, I'm saying on an average, we are saving a decent amount of time for a nurse. In some cases, we have done some excess around 1.5 hour of nurse's save on a daily basis, which we either spend on the documentation or spend on herself to just take a break and relax. But more importantly, the cross-contamination here in the ICU setup, where the drug -- because a lot of people have different, different diseases and different, different conditions. And since the entire dual-chamber bag is enclosed, there is no air hole or there's no pinhole or there's nothing else which comes in. So the entire drug goes into the IV in the form of an enclosed system to avoid any sort of exposed contamination. So we refer to this technology as a new thing, which has been brought into India in the form of this. At the same time, I will have to be really upfront. This technology is already available for some products in the U.S. and the European markets. However, the price is almost 3 to 5x the cost of a conventional product, which makes the product not viable, and that's why it's not keeping up. We are proud to say that we have launched the current product with only a price expense of around 15% to 20% in some cases than the conventional drug right now for these products in the Indian market, and we foresee that after -- maybe after a year or 2, once we reach economic of scale or maybe earlier than that, we foresee that we can make the cost of the dual-chamber bag almost same as a conventional vial, which will be a big revolution. So this is the product which we are talking about.

Okay. This is , very, very helpful. So basically, of the INR 3,000 crore market, some is dual-chamber, which has just started versus conventional vial. So how much would be dual-chambers?

The entire INR 3,000 crore market is conventional vial only. We have launched the product just right now. So we are the first one to come to dual-chamber, and then we will be taking a market share from this. We are the only one in India with a dual-chamber bag. No one else.

And imports are also not happening for this kind of product?

Imports are happening for liquid-liquid [indiscernible] parenteral nutrition, which are triple-chamber [ brand ], but no one in India as of now has a powder-liquid dual-chamber bag, which is the most unique and complex thing, only Gufic has. And Gufic is going to do that via their own, and also we're going to give it 1, 2 of our associate clients to bring up the concept molecule-wise.

Understood. And what kind of revenue potential you see for yourself in the next 2 years from this product itself? And do you plan -- and have you launched -- the dual-chamber bag that you have launched is the only product in this category? Or do you think there will be more variants for -- to address different kind of therapies?

Always. So anything which can be done intravenously, we can do in this product, all the way from 50 milligrams to even 5 grams, all the way from 25 ml to 100 ml. We can always have these permutations and combinations, and we have the capacity to back it up. Answering your question, I have an internal target of the market share, but I'll refrain from doing that. But like I said, we are working on so many things, something works at this time, something works at that time. But overall, our target of minimum 15%, 20% year-over-year revenue jump will be coming, and this product will be playing quite a big role along with Indore facility also. So we'll foresee that we should, as it is, try to take as much as market share as possible. Again, I cannot give you numbers as of now because it will be too, I would say, wrong on my part. Let me -- give me a quarter. I'll see the response, and I will give you a much more solid number by then.

And are you seeing any more people entering dual-chamber bags in the immediate future?

As of now, no. I don't see, because for us, at least it took us 4 years to actually get it done because we got the entire thing from Europe, we had to do something [indiscernible] from [ model making ] to stabilities and all that. So I think if anyone wants to follow the right European and U.S. way of launching a product, which we do, then I don't see our competition, at least for the next 2 years. However, I've seen India, people do shortcuts and come up with inferior products, which I cannot comment on. But as of now, I don't see any shortcuts of inferior products coming in. But if anyone has to do and launch a product our way, minimum they have to work 2 years from now if they have to start. Minimum, I'm saying, it must be more because at least we will be, what you call, a blueprint for people to follow.

Also just one small thing if I can suggest. In the opening remarks, if you can avoid -- if you can cover something which is not already mentioned in the presentation, that will give us more time for the Q&A.

I agree. I agree. But then we have got a question that -- I hope people like you at least read the presentation. A lot of people just meet us without the presentation, and that's why we do it. But I got your point. What we can do, we can maybe shorten it up little bit and we can spend more time on Q&A. I got your point.

Our next question comes from the line of Subramanian K. With Alpha Invesco.

Sir, my first question is, assuming the total market size of Criticare is INR 5,000 crores, which is mentioned in the previous call, and I see a lot of things lined up like dual-chamber bags, [indiscernible], et cetera. But currently, you have 4% market share, which is INR 200 crores sales in FY 2022. And in the Ferticare, you have market 3% share in the INR 3,500 crores total market size. Sir, I wanted to understand what are your aspirations moving forward? And when can we see the double-digit market share capture in each division?

Firstly, I would like to compliment you for your percentage in math -- precision. I don't know if the percentage you said is right or wrong, but I'd like to complement that. Coming back, I think in a market like India, the only innovation will bring that double-digit, I would say, market share. If you see even -- if you see the [indiscernible] numbers also, you see the entire market of INR 1,80,000 crores, which according to [indiscernible] is there. I'm not giving you any number from my mind. If you see the #1 company still would be around 8 to 9, but I'll still correct myself. I think I'll wait for Avik to maybe see the [indiscernible] and inform me what is it [ Criticare ]. So I would, of course, love to have double-digit market share in India. And I think you rightly said in Critical Care [ if credit ] possible because of certain launches which we have planned in the next few years. If I -- and as Avik mentioned, I will first talk about infertility. As we see the market, what the market of infertility products maybe much higher. But when we give you a certain number, we only talk about the represented market where our molecules are present. So If I've launched the progesterone, I will talk about the progesterone. I will not talk about dydrogesterone. But if I talk dydrogesterone, it will also include only dydrogesterone. So that way, considering that, we feel in a represented market share, we hope in the next 3 years, we should have more than definitely a double digit. Maybe next 2 to 3 years, we should have to a double-digit market share in the represented market for sure. Into to the Critical Care, you rightly said, if you see Critical Care is very unique because all the way from anti-infectives, then anesthetics, cardiac, even neurological, even parenteral nutrition, anesthesia, lot of things come in Critical Care. So the INR 5,000 crore market, which I was referencing is, again, is related to the representative market where we have molecules present. We have plans now for the Indore factory and from the Navsari factory to actually grow and gradually address in the next 3 years about INR 25,000 crore market share where we have listed out molecules as per [indiscernible]. We are trying to go a little bit around penetrative model where we get into all primary, secondary and tertiary hospitals via a different alternate model of end-to-end. So again, I'm saying that as my molecule launches grow up, and I'll be always increasing my represented market from a INR 5,000 crore towards INR 25,000 crore. So even though in the represented market, I might be getting into double digits, when I increase my market share to INR 25,000 crores, I might again come in a single digit after 3 years because of there's been new lines launched of Criticare. So as molecule-wise, I would like to share with you, in some examples, we are the #1 company; for some fungins, we are the #2 company; for some antibiotics, we are the #3 company. And because of these individual molecule markets, we already might be in double digits right now itself. We might be, in certain cases, maybe 20% of the market. In certain cases, we might be 33% of the market share also. So it's very difficult way for me to answer your question, but I hope I have done it my best way possible.

It has given me the understanding of the total addressable market, how to -- like how you are projecting [ yourself ]? Okay. So I will go ahead with the other divisions. So I want to understand what are the challenges in making Sallaki as INR 100 crores sales product. So if you see -- as you're using 30% of [indiscernible] division, which is highest among other divisions in terms of its field force usage. And sales for [indiscernible] is low compared to industry standards. So do we have any other anchor products in pipeline, which can replicate Sallaki?

I think very good question -- I think this is a very good question that I ask myself on the marketing [ amendment ] again. If you talk about nonsteroidal anti-inflammatory products, you have the diclofenac [indiscernible] markets. If you see Boswellia Serrata, maybe it might not have an analgesic effect as much as a diclofenac would be. But the long-term use of a Boswellia Serrata and the safety and the benefit of Boswellia Serrata as anti-inflammatory is far, far more than the other NSAID. But the problem what I feel, and this I [indiscernible] my own personal opinion, please take it in that way. Normally, when anyone goes to a doctor, the doctor wants the person first to be relief of pain, and that's why there is always important that you have to give an analgesic first, followed by anti-inflammatory. For us, we are, in the last 3 to 4 years, was trying to endorse that -- let's say, the [indiscernible] experts already established the product, and we have a particular scalability in place. For us, actually to go for a genuine high scale of INR 100 crores or INR 150 crores, make this entire Boswellia Serrata market, forget just [indiscernible]. If you want to make the Boswellia Serrata market in multiples of hundreds of crores also, we need to do many more clinical trials and training sessions for the orthopedic doctors and the decision makers of KOLs who actually are the main primary treatment leader for rheumatoid arthritis or osteoarthritis and ensure that how we do that. So we are trying to do that in the last 2, 3 years. It's not easy. We try our level best to do trials. We try our level best to do symposiums and we try to do training. I would not use -- the word, training, is the right word, basically, it's just informing and telling the doctor [indiscernible] ensure that they try to do it. Even if you see the cost of therapy of the [indiscernible] long-term management of the disease is much, much, much convenient than doing any other thing, which is available in the form of the modern medicine also -- other, I'm not here to debate the pros and cons of either, but I would like to say that our efforts are on. We hope that via doing more clinical trials, via doing more studies with different institutes and key opinion leaders of India, we you want to confirm that the Indian alternate [indiscernible] symmetry is very good. Also, I'll tell you one more challenge which we had in the middle. Since our product was an ayurvedic proprietary medicine, there was a rule in some states, again, I'm telling you what information we have and you can check it up on your own also. A lot of allopathic doctors are not allowed to write ayurvedic products and ayurvedic doctors are not allowed to write allopathic products. And this is something which we always try to go and change and talk to the government and do it. And of course, the government is helping us a lot also because there's always benefit in either. We cannot say that, no, this is important, that is not important. And now since, for Sallaki, we have actually [indiscernible] is a product as a modern medicine. We have worked on the pharmacology part of it, we have worked in the pharmacokinetics. We have done so much work on -- we also have worked on the [ mutagenicity ] of the product also, which we have used in data to register products in countries like Germany and Switzerland. So if modern doctors from Germany and Switzerland are allowed to write this product, we also have made a representation to the government of India and they are helping us. They also want to promote ayurvedic product use, wherever science is involved. I'm not talking about all ayurvedic products, but wherever science and data is there, they are backing us to also make other doctors use. I hope, in the near future, if the modern doctors try our product, use our product, which, of course, we will work a lot for that. And if they are allowed to prescribe our product, I don't foresee why not Sallaki becoming INR 100 crore product very soon, because it's been -- it's standard. It's been there for 20 years. It's become more than a INR 30 crore product. I hope very soon -- I think it's more than INR 30 crore product, but I hope very soon we can extrapolate it to much higher number.

This is a mind-blowing explanation for the history within Sallaki and the market dynamics. So we are focusing only on Sallaki because we are having more than 30% of the sales [indiscernible] there any other product? And as you're facing this ayurvedic challenge with the modern doctors. So do we have any other products in pipeline?

Yes, yes, of course. So we have multivitamins. We have products for kidney stones, for any stones and we also have products for [indiscernible], which is a combination of honey and what you call or other conventional forms. They are also very good. So we have more than, I think, around 24 -- I think more than 18 products and more than, I think, 24 SKUs, which is part of the division. We also are launching some new innovative, I would say, options for cardiac treatment soon, of course. But it's no use just launching a product on concept. Before launching any product on concept, we try to do some clinical trials and we do some data. So at least it helps to convince the doctor with scientific data. Otherwise, there is a plethora of products in the market, which just makes claims, which has no evidence. So ayurvedic products will improve in India only once they are backed with scientific data, and that is what we are trying to do step by step.