Hikma Pharmaceuticals PLC (HIK) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Hikma Trading Update Conference Call. [Operator Instructions] I would now like to turn the conference call over to today's host, Riad Mishlawi, Chief Executive Officer. Please begin when you're ready, sir.

Yes. Good morning, good afternoon, everyone. Glad to have you with us today. Just wanted to -- we have released our statement this morning. We'll be happy to answer any questions that you'd have. In general, again, we have reiterated a lot of our -- all of our guidelines actually, especially the ones that we have upgraded in the midyear, both Generics and with Branded divisions and we reiterated the Injectables. Very happy that the company is going the way it is. Our -- it's going strong. Our divisions are all doing well. And again, as we stated, we are reiterating all of our results, and happy to take any questions that you might have.

[Operator Instructions] Our first question comes from the line of James Gordon of JPMorgan.

James Gordon of JPMorgan, taking a couple of questions. Two on Injectables and one on Generics, please. The first one would be, so Injectables, so you've launched, I think, 10 products year-to-date. You're launching more at the end of the year. EU seems a bit too nicely and grew slight about 10% in the second half. But to what extent should we think that's a bit exceptional? Or is that a bit more like the new run rate? And then when we think about next year, we should add Xellia on top of that, so you could grow even faster? Or is it a bit exceptional and within reach if we bear that in mind? The other question you thought is that, can you remind me, are you still thinking that the business you bought grows at least as fast as your existing Injectables business or even a bit faster? And is the thinking still that it has OpEx, it's about the same as revenues initially, so it doesn't actually contribute any earnings or could it actually be contributing some earnings? And then the third question was just on Generics. So H2, is that unusually like, but if we're trying to extrapolate, should we be sort of annualizing the H2 more thinking that's the new normal for Generics or more like thinking about the full year 2024 number? So -- and why was it declining or why has had the second half performance it had -- is the second half performance that -- what we should extrapolate over the full year?

I will start with the second one because the first one, I heard half of it, and -- but I will start with the second one. I think what you're asking is the difference between the first half and the second half, and if you should consider the second half as our running rate for next year or not, I think that's probably...

That's right. And then having Xellia.

Right. So for the Generics business, I think it was just a matter of timing. The -- one of the drivers that we have, along with the important product that we have in Generics is Advair. And in releasing Advair, it really takes a long time to do that. So you have to plan it at a time. It takes about 60 days, sometimes the 2 leases batch because there's a point where you have to make the product settle, and it has to go through some kind of steps. So there's a lot of the timing that has to take place in releasing products in this division. This is one of the elements why 1 half did much better than the second half, not significantly better, but a little bit more better. So I wouldn't really take the second half of our trend going forward into the next year. I would think that you have to look at it from the entire year. And in this case, it just happened that some of the deliveries that we had in the first half were a little bit stronger than the second half. But we believe that the trend in this business continues the way it is. We are very focused on it. We're focused also, I think, one of the contributor of having lower second half is our commitment to spend more on R&D. So we have been with half run joining and we've been doing a lot of R&D and spending some increasing amount of money that we're spending in R&D. That will be -- continues. I think our commitment and the reason why we had broad happen is to reinforce our commitment to having good, strong internal R&D. So that will continue. But you know as a whole, I wouldn't really look into the trends in the second half and think that this is the norm for the next year. I think when the time comes, we will give you the guidelines for the next season. I think that would be as much as we can initiate. For your first question about the Injectables, again, you wanted to talk about some of the products that we're introducing on the first half of your question. We have a plan, as you all know, we're planning to introduce liraglutide to the market. And as you all know, Teva has authorized it right now and they have the exclusivity of that product until the end of the year. That expires, I believe, on the 24 of December, and this is when we're allowed to sell out. So we do have some inventory in the warehouse, and we are ready to start launching the product at that date. Today, we don't see -- I don't think that there has been any approval besides Teva, with authorized generics. So I think hopefully, that will be a great opportunity and continue to be like that. But yes, we're looking forward to launching this product at that time. We did have plan to launch other products. But unfortunately, some of the regulatory hurdles or some of the regulatory delays that we had out of our control and we anticipate those really coming in 2025 rather than what we anticipated to be in 2024. Other than that, I think the division is going strong. There's a lot in that division that's happening right now, especially with the addition of Xellia. As you know, it requires a lot of integration, it requires that you will be integrating as you are basically -- you have to continue, eyes on the -- on running this division and continue doing it as efficiently as we used to, as you are also integrating a new plant, significantly a large plant and also an R&D center. So there's a lot happening in this division. People are busy producing good products, growth is healthy. And we anticipate this division will continue doing what they're doing today. And hopefully, in the future, as the integration happens, it will have opportunity to even help produce more growth. As far as next year, I think -- we really can't give you a guideline for next year. We'll do that in February, I believe. But again, Xellia is going to add imported products to the 2 division. As we said in the past, also, it will be -- it will take us some time before we integrate everything in, and we're saying we're giving ourselves about 12 months. So it will be really neutral to earnings for about 12 months until all is integrated, and then we can see the bigger benefits after that. Things are going on time and everything is on plan. Again, a lot of activities, but things are progressing nicely. Did I miss anything on part of the [ question? ] Is there anything that I missed? No? Okay. James, anything I missed, just let me know, but I thought -- it's not -- the speaker is muffled, so I'm not understanding the entirely the question, but I hope I answered all the questions.

Apologies for the line quality.

The next question comes from the line of Paul Cuddon of Deutsche Bank.

I have 2 questions, please. Firstly, retaining the GBP 700 million to GBP 730 million operating profit guidance range, it sort of would imply some degree of uncertainty going into the last several weeks of the year. So if you're perhaps able to elaborate on some of the puts and takes there, that would be appreciated. And following the U.S. election results and to what extent may any changes in sort of domestic manufacturing and/or tariffs hamper or kind of benefit the Hikma business?

Yes. I'll start with over the last part first. Any effect -- I don't think that we will see the effect as recent as -- or in the next couple of months that we have left in the year. We don't know any change of policies or tariffs or anything like that, that would happen later on. But we -- uniquely, from our competitors, we do have a lot of products that are made in the U.S. Our biggest facilities are in the U.S. In Generics, entirely in the U.S., and service is also the market of the U.S. market. And the Injectables, about half of it is in the U.S. and even more now with the Cherry Hill being in the U.S. and the rest being in Europe. So we don't depend much on countries that might be affected by tariffs or by transportation or by any thing that might affect us. There is some deals here and there that are coming from these countries where, maybe with some different -- some changes in policies, might be different, but I don't think the company, uniquely in our position, that if this happens, I think we will be -- it will be more of an advantage to us than not. For your first part, how are we doing in the last 2 months left? I think like always, like any business, there is a forecasting mechanism to everything that you do. You try to look at the trends that you've had, look at where you are and look at what you anticipate is going to happen. We're confident that we will land in line to what we have promised. We have -- of course, there are 2 months remaining. And usually, it is a challenging one. But it's just business as normal, business as every day. It's -- we're focused. We will close the year as we need to be, and we are confident that we will get the numbers that we are -- we committed to.

The next question comes from the line of [ Dominic Dunn ] of Morgan Stanley.

Two questions on contract manufacturing, please. So I was wondering if you could expand a bit on the nature of the announced CMO contract in Generics that's due to start in 2027, i.e., is there any color you can give on the size of the contract in terms of rough annual contribution or the duration? Or would you expect the contract to be back-end loaded or more even over the course of this life? And then secondly, I think you've also highlighted that the CMO contract will help improve the utilization of the Columbus facility. So is it therefore fair to assume that the deal is making use of previously unallocated capacity? Or is there an element of reprioritization from in-house projects? And then further to that, is there a similar idle capacity in any of your other sites where you would look to increase utilization via CMO contracts as well?

Yes. Great question. Thank you very much. I think -- we wanted to answer that in the announcement about the contract manufacturing for 2 things. One is to show that we committed that contract manufacturing could be an arm or an avenue of growth in this division being -- having a great facility, having a capacity that's available and also with a fantastic track record that we have quality, facility has got a lot of technology in it. Team is fantastic. They know what they're doing. So we felt that this can be easily translated -- our contract manufacturing can be easily inserted in as part of this business and can help in a lot of the growth that we're anticipating or we want to do in this business. So the other thing is the fact that, as you said, contract manufacturing, there's a lot to the business. One, it gives some predictability and some of the revenue because it's basically anticipated. It's a service that you do. It's -- usually it's a product that you can -- somebody else take the responsibility to market. So it does really help a lot in the business, especially as you said, utilization of an idle capacity that would help an absorption of cost and therefore, would help you on your own and the cost of your own products. So we feel it's very, very positive. What we have is a great deal, a CMO deal. Unfortunately, I cannot name a lot of details. I cannot name the company, it will tell you a lot of details. All I can say is meaningful, it's significant. It does depend on our innovative product that will be anticipated to be approved in the next 2 years. We will have to get the facility ready and the capacity allocated and added if needed, to make sure that we have the capacity that is required for us to -- under that contract. We think this is very positive. I think maybe in the near future, when things become a lot more clear, we can put more life on it and talk a lot more details. All I can say is it's an innovative company that we have to deal with. They were very excited and happy with what they had seen in our facility. They like the people that they have interacted with, and they gave us a very important product that they have, and that shows the trust that they've had in the people and in the facility and the quality record that they have seen. So it's all positive. And I feel that the fruits of this will become more and more apparent in the very near future. Today, it's really limited to what we can say, just to respect of what our clients have asked us to do.

The next question comes from Victoria Lambert of Berenberg.

I have 2, please. So the first is just on the potential biosimilar launches you could have in the U.S. next year. It looks like Bio-Thera has filed its Stelara biosimilar with the FDA. I mean, Gedeon Richter has filed their denosumab in Europe. I don't know if you guys have filed in the U.S. yet. Just wanted to get a sense of how you think this could impact next year and maybe potential timings? So that's the first one. And then the second one is just on the Generics business. We're still seeing a similar pricing situation as the first half of the year, so sort of single-digit declines, and is this expected to continue into next year? I think Sandoz was saying they haven't really seen a change in -- don't really expect this to change in the next few months. Sorry, just one more squeezing in. Have you seen any benefit from the supply shortages caused by the Baxter facility with regards to IV fluids?

Okay. Well, thank you very much for the question. I will start with the easiest one, the shortage on Baxter. As you know, it's really IV fluids, we don't really have, per se, IV fluid. This is usually the diluent that are sodium chloride, the DFI and all of the diluents that they use in preparing products. We don't really -- we're not in that business. We do have IV bags, but mostly drugs, not the diluent. So we are not affected by the shortage, and we are not -- it's not something that we can call opportunity for us. As far as your first question about the biosimilars in the U.S. Yes, we are excited about where we are. We've seen some positive indications about us maybe getting the approval late next year. We don't know yet. We -- of course, there is a regulatory part at the end where you really cannot predict. It could possibly be next year. It could be possibly be early the year after. Both of our products have been filed, both of which are -- we are anticipating getting it in 2026. That hasn't changed. It could be a surprise and maybe we could get it earlier, but we don't know yet. We are tracking it. We're following up on our partners and seeing if there's any questions that the FDA had presented to us that we need to answer. So we still don't know. The effect of both biosimilars, again, it's really depending on the positions that you come -- your approval comes in and how the market is. And today, we're at least 1 year away from that. So it's just very hard to predict. This is a very fluid market. This is -- we don't know who's in, who's out and who can supply and who can't. So I think as we get closer to this, we should be able to give you more light on it. As far as the Generic price erosion, I agree with Sandoz, it's -- we haven't seen any difference from last year, so it's still about a single-digit erosion. Maybe very similar to what we had last year. That continues. We don't know if there are new policies, if there's any new policies that would make things different. But today, I think we're considering it to be very similar to what we had this year.

The next question comes from James Vane-Tempest of Jefferies.

Firstly, just on the IMS. We -- cause I didn't see any commentary just on the others and compounding, so just wondering how that's going to progress through Q3 and what we should expect for the second half? Second question is, I know you don't typically comment on the individual products. But why are you still to launch generic Korlym? There seems to be one of the largest small molecule opportunities and they lost IP last year. And then third question is just coming back to the generic pricing. I guess, you just mentioned the prior question that you're still seeing that sort of single digit. I even remember your guidance was around sort of mid-single digits. So I'm just kind of curious how much of a benefit that is compared to your prior expectation at the start of the year?

Yes. And I'll take the last one. So I don't there is anything different. I think what we expected is what we have, so there was no surprises there. And I think we are expecting that to continue exactly as we had last year. So I don't think that's going to change anything that we have assumed. We did not assume before. As far as the compounding, I see that you're finally getting the compounding in place right now. I feel that we are getting now some traction. We are -- as I always said, the compounding is a very delicate, sensitive. It will take time. We don't want to rush it. We don't want to make mistakes as we're doing it. We are working to make sure that we have got to got our clients' needs. So there's a lot of interaction with the clients today. We had added to our compounding sales team, it's a very experienced salesladies that she knows this market well. She just started. And then we're hoping that also she would add -- her knowledge will definitely benefit this business. But we're seeing some very positive indicators that this business is going on the right track, and we keep supporting this business to get to the point where we want to -- need it to be. I think your question towards the Generics, I think -- I'm sorry, I couldn't response, the part of the question...

Yes. Just a specific part, Korlym or mifepristone. I think the pattern went -- all the IP lost last year. Just wondering why you haven't launched that, seems to be one of the larger opportunities.

I think this is all depending on the commercial team. The commercial team decides what to -- I don't think -- Guy, do you know if there's any?

Yes, we have previously said that we settled to launch on 1st of October 2034 or earlier under certain circumstances. You'll actually see that while we have filed, we don't currently have FDA approval for the product, and our intent is to launch as soon as they are approved and are able to under the terms of the agreement.

So that was 1st October 2034?

Correct.

And one quick follow-up, if I may. Just on the CMO business, you obviously mentioned your kind of contract today. But just a very kind of high level, can you remind us how much across the business is CMO today? And I'm not going to hold you, sir, but just to give us a feel as to how much this could potentially be at the business in 5 years? And how we should think about how that could expand both across the Orals and the Generics and the Injectables business?

Today, I would say, maybe around 10% of the Injectable business is contract manufacturing, a little bit less than the Generics. We are looking at expanding in the Injectables to contract manufacturing. But as you know, today, we have a lot of demand to our own products, so we really don't see that we are going to contribute more to the contract manufacturing as we do today, a little bit, nothing significant. We do have 2 major clients that we do products -- we make products for or 3, and we don't intend to take too many to complicate our business. I think we have the demand that we need today, and we have -- the capacity is fully utilized. However, with the integration of Xellia, that will give us plenty of capacity. And we have also -- are adding another facility here in Portugal, which also will be added to this capacity. So I think in the next, I would say, 2.5 to 3 years, we will have the right capacity or plenty of capacity that we can dedicate to contract manufacturing. Contract manufacturing is a commitment. We cannot just continue doing it. We did it on a small level as an opportunistic business. But in the last few years, we've had big clients, big innovative companies that want to work with us. And with these types of companies, you can't just do it as an opportunity. It's a commitment. They don't want you to be -- they don't want to be an opportunistic client. They want to be a long-term, and we have to treat them accordingly. So until we have capacity that we are confident that we can give up for a longer time, we would rather not engage any contract manufacturing. So today, we have good amount of contract manufacturing, good clients, very few ones, but they're good and they're significant and happy, and we would like them to continue like this. Hopefully in the next 2 to 3 years when we add more capacity, we should be able to take on a lot more. Actually, that was part of our plan to enhance that contract manufacturing unit. We will have plenty of capacity with technologies that are desired today, that we can definitely utilize the contract manufacturing. As far as the Generics business, contract manufacturing wasn't really -- it was there, but it wasn't a big focus until last year when we changed our strategy or when we basically we defined our strategy and put contract manufacturing as being a very important pillar to the strategy. Until we created a team. The team went out, started talking to a lot of different companies. And we've got a few of the innovative companies to be very much interested. And a few of them also had signed up with us, contracts. And one major one is the one that we have announced today, but this business also will have significant contract manufacturing as part of it, and we will be expanding this and we'll be adding more capacity. So later on, if we decide to add more, that's something that we will have to do. But for now, we're busy to what we have, and I think we have a lot. And I think it will be a very good addition to the existing business.

The quick follow-up I was going to ask for is if today, it's sort of roughly 10% and in 2 to 3 years, you have the right capacity. Completely understand. It's a very kind of durable business and commitment if you can get it. But if you get the right capacity in 2 to 3 years, what does that look like? Is that going to be 20% of Injectables, 30%, like 15%? Just to give us a feel in terms of how much of the incremental growth of this business over time do you think you can commit to that sort of CMO business outside of your kind of core product portfolio that you have in terms of materiality?

It's hard to give you a percentage because you don't know what we're growing at. I don't know, but I can tell you that if you take companies like [ Catalan ], like some of the contract manufacturing companies. If you take the past then the new, you can see that there is a lot of money that you can earn as a contract manufacturer, especially if you have the technology and if you have the quality record. And on top of that, if you are manufacturing in the market, that those products have been sold out, which we will be -- you'll be able to -- we will be in the U.S. We will be for the U.S. market. We will be FDA approved. We will be all of that. I think there's a lot of a potential business there, especially that the biosimilars and GLPs now are taking a lot of that capacity away from the normal products. So the capacity that are needed out there, there is a lot that -- a lot of companies that are contacting us to see if we have the capacity that we can sell to them. So we see that there's a potential there. We will have a huge facility with 6 life [ license ] there that will be dedicated to contract manufacturing. So I can't give you a number, but you can pretty much anticipate that, that would be a lot more than we have today and would be significant to the business.

I understand. Last one, if I may, just as a follow-up, ask it a different way, how many years do you think it could possibly take you to double the CMO business in Injectables? Rather than think on a relative basis, when you look at what you're doing today, you got this capacity coming in 2 to 3 years, what point you think that could double if that kind of plays out?

Well, you're asking the same thing in just words, but let me tell you something. In 3 years, we should have double the capacity that we have today and [ light position ]. And today, the half of what we have is being dedicated to contract manufacturing. If we are going to have double of that, so probably in 3 years, we should be at least comfortably more than -- significantly, more than a double of what we do today. Is that...

Yes, that's very helpful. I appreciate you taking the questions.

[Operator Instructions] Our next question comes from the line of Christina Glennie (sic) [ Christian Glennie ] of Stifel.

It's Christian Glennie from Stifel. Just on the Generics and the CMO contract. I mean maybe anything else you can say around here on whether you expect to be the sole manufacturer of this product? And is this their first-to-market product for this company? On the utilization, it may be any way to characterize the significance of that, you're calling a significant contract. Are you currently running as I understand that facility around about sort of, say, the 60% utilization rate when this product is in, couple of years into launch or pre-big launch, does that significantly move the needle on that utilization of that facility? And then the final piece on this, just on -- is this an expectation you built out a BD team that we -- over the coming couple of years, we should expect some similar announcements around sort of some similar contracts to come from that BD initiative?

Yes. Okay. I'll try to go over this again. So the contract that we have with the CMO is an innovative company for a product that will be approved. It is an innovative NDA product. And there is a lot of hope that this product will be big. That's what I can tell you. I don't know much about -- I really don't know if we -- somebody else would be manufacture it. I don't know if it's exclusive. I know that what we had been told and what we have been anticipating or what we can produce is significant to us. And that's all I can -- I believe we can say. It will be utilizing a lot of the capacity that we have, and we are working with this company to make sure that they have what they are -- what they need and what they know today. But I know -- I'm guessing now this is not something [ new ] to us, but I'm guessing, as this product launches, then it will be more and more accurate on how they are anticipating. Is it going to grow bigger than they thought? Is it going to be a little bit less than they thought? We don't know. But as any product, there is a forecast, there's a -- you look at the market and you see what you're anticipating, you build a plan around that. And then the actual situation takes place, you adjust. So I think this is where they are today. However, we do feel it is significant to us. We feel that they're excited about it. So this is why we call it significant. We call it significant because it's really measured to us, not to the innovator company, but might be less significant than that to us. But the reason why it is significant to us because one, it really answers our strategic plan that we have put forward. We wanted to go after the CMO, and we did get CMO, and we did get the size of CMO that we want that utilizes capacity, that we have that's desirable, that gets our facility moving and utilize the strength of this capacity in terms of its compliance, in terms of its location and of course, in terms of the technology that we have. So it answers a lot of the things that we were looking for, and we are excited about it. We hope that we'll be a great client to this company, and it opens other avenues and other opportunities that we can work together in helping them in manufacturing and being a bigger CMO than this one product, maybe we can go from other product. We had that with remdesivir. If you remember, we did that with Gilead, and that has expanded to multiple products, and we have great relationship with this company, and we respect them and they respect us, and we feel that we can do that with a lot of those big innovative companies that mean we don't compete, but we can definitely help each other. So this is where we are with it. This is why we're excited about it. Whether we are going to add any more contracts, I don't think in the very near future, we don't add any significant contracts. I think maybe increasing what we have today with the existing customers, maybe adding something small, but this is going to take some time. And I really think that we really want to be very, very successful with this because, as I said, it's an important product for this customer. It's a big innovative company, and I think we would like to open the doors to do more for them. So it's very important for us to succeed with this. So we dedicate a lot of our resources to making it happen. And hopefully, that will be launched in time and will be very successful and everybody will benefit from.

Yes, can I ask one on Injectables, the guide -- the revenue guide, you've maintained the 6% to 8%, just maybe characterize or put that in context in terms of how your comfort on the 6% line and could you still get to the 8%? And what are the some of the things that need to go your way to get you to the top of range?

Well, the very soft range, again, we anticipated to introduce products. And we anticipate a little good example, to introduce it earlier than it was going to be introduced. We thought that the exclusivity with Teva will not really take on as long as it did. We thought that would help a lot to -- would have helped us a lot to get there to the upper range. We had a couple of products also that we were anticipating that we will be launching them in 2025 because of some regulatory delays. So could we be in the upper range? I would say we would be between the range. It's hard for us. We have a couple of big months. I would say maybe we will be -- I don't know if I -- Susan, help me with this.

I think you're fine. I mean I think we'll be between the range. We're comfortable with the range. And yes, we've seen very good momentum since August, so we're on track to deliver the guidance. And I mean, obviously, it depends how strongly we get through to the end of the year, but we're confident that we'll come in within the range.

We now have a follow-up question from Victoria Lambert of Berenberg.

I just wanted to ask on the Branded Middle East business because we haven't really had any questions on that. So I just wanted to can -- your expectations in H2? Are you still feeling like there's going to be maybe some tender? I think you said it will be -- the benefit will be [ ripe ] into H1. Any other sort of general comments would be helpful.

Yes, you're right, Victoria. We haven't had much questions about the Branded business, and we would like to have more questions about it because it is a very well-performing business now, the third year in a row, it's stable, profitability is very decent. It's growing. Business is growing all around us and the Middle East is also been growing, and we've been climbing the ranks there, and we've been competing with all the big innovative embedded companies. The most important market that we have today in Saudi Arabia, and we are ranked #1 right now. And we have a lot of plans to maintain that ranking. We're building a lot, investing a lot. We have plans to build very impressive facilities there. Our engineers are working very hard in designing state-of-the-art facility. So I think -- of course, I mean you all know, I've talked about the Injectable facilities that have been added in both Algeria and Morocco. Morocco's facility is completely done now. We're waiting for approvals from the authorities to start shipping. We also had added oncology facilities in many of the countries. We're doing that in Saudi Arabia also, adding one there. We are -- we did that in Algeria. We had also a separate one facility in Morocco. So we're very active in investing this -- in this area because we really believe that it has a great future and is delivering, delivering good sales, good profitability. And I think by adding all those facilities, we can do even better. We are also very active from the BD. On the BD side, we're seeing a lot of interested companies to work with us. I think, in light of all the problems that has been happening in the currencies and in wars and instability, I think they see us as a solution to that. We can contract one company that can take in -- can service all that area, North Africa and the Middle East and stable, very reputable growing company. So we are benefiting in both sides in our own expansions in facilities and expansions in our product line and seeing some good demand and getting a lot of interested in-licensing partners that they would like to in-license products to us. So it's a good situation that we have. Hopefully, that momentum will continue. We see it, that it is continuing. And hopefully, those numbers are going to continue going up and up in the near future.

As there are no additional questions waiting at this time, I'd like to hand the conference call back over to Riad Mishlawi for closing remarks.

Well, thank you very much. Thanks for all your questions. I think just as a closing, I would like to reemphasize the strength of this company. We had been delivering our numbers year-on-year. We have been growing year-on-year. All our divisions are doing well. We've struggled during the generic, where all the generic business has struggled, and we had to make decisions on what to do with the Generic business, and we're committed to do one thing and now we're coming well to you and show you how we are delivering on our promise. We're delivering our strategy. Our strong business, Injectables, is still growing on -- it is impressive numbers, still maintaining a very impressive profitability. And with the addition of very good strategic acquisitions that we had last year, we think that we can maintain that. We did also say that one thing that we wanted to focus on is R&D, and we are delivering also exactly that. We had put the management that is very much experienced in R&D. We have expanded our R&D capabilities and adding [ excellence ] at the center of R&D for -- today for the Injectables, and we see that it could be also for more than the Injectables. Maybe we are looking at to see if we can add other divisions in that location, being -- having a very competent people and at a lower cost. So we see that expanding and we can benefit in having more value for less cost. So we see our internal R&D just getting better and better. And again, as I said, in the -- Branded is a lane all alone, going fast and growing well and growing. And we are confident that this lane is going to continue like that. So all in all, I'm very happy where we are. I'm happy with what we have progressed, and I'm looking forward for good years ahead. Thank you very much.

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.