Mankind Pharma Limited (MANKIND) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the investor and analyst meet of Mankind Pharma Limited. [Operator Instructions] Please also note that this meeting is being recorded. With that, I hand it over to Mr. Prakash Agarwal, President, Strategy and Investor Relations, Mankind Pharma Limited. Thank you, and over to you.

Yes. Good evening, ladies and gentlemen. It's been an absolute pleasure to welcome you all on behalf of Mankind Pharma Analyst Meet 2026. Mankind's journey has always been driven by ability to identify growth opportunities early take bold strategic decisions and execute with speed and agility while remaining focused on long-term sustainable growth. As we continue to strengthen our presence across chronic therapies, specialty products and innovative platforms such as ACTX Mankind is entering an exciting new chapter of growth and transformation. Today's session is an opportunity to share our strategic vision, growth priorities and the opportunities that lies ahead. We are privileged to have the leadership team of Mankind Pharma with us Mr. Rajiv Juneja, Vice Chairman and Managing Director; Mr. Shital Arora, Chief Executive Officer; Mr. Arjun Juneja, Chief Operating Officer; Mr. Chan Ka Juneja, Director; Mr. Sanjeev Nawangul,MDBSV; Dr. Anil Kal, Global Chief Scientific Officer; and Mr. Ashutosh Dhawan, Global Chief Financial Officer. We are also delighted to welcome the leadership team of ACDx. Coming to today's agenda, we will begin with Mr. Rajeev Juneja speech, comments and vision on mankind's evolution, strategic direction and future growth outlook. This will be followed by Dr. Anil Kal and then the presentation from the STX leadership team who will share insights into the exciting opportunities in next-generation CAR T cell therapy and ACTX. This will be followed by a Q&A session, and then Dino. With that, let me invite Rajeevji to share his perspective on Mankind's journey and the exciting opportunities ahead. Over to you, Rajeevji.

Thank you so much for taking your time and coming here. We're just grateful, Mumbai traffic is always bad, but you could reshare in time. The journey of Vanca is very special to us, but today is call has been called because elephant in the room is CTX. And that's one reason the leadership of ACT is here. let me start with Mankind jury actually. We have always been very dynamic and evolving organization. And if you just look at Mankind, you'll always say what basically is the most important attribute of Mankind, its evolution and dynamism of mankind. When we started our journey, we started from small town, UP and slowed in gradually Walt bigger cities, for a good number of years. But just in small towns and our customer base was only GPs. If you just look at this side, you find that '95 to 2002, it was just foundation timing, small towns, GPs, GPs to CPs and gradually, we evolved from state to state. This is all. And during this phase, we had no factories. It was all third party. And slowly and gradually, we went to metros and chronic Tier 1, expanded to South India state in chronic in 2004. 2007, we started going for consumer division because we wanted to build brand mankind in the doctor's mine. If you're in pharma side, you cannot really an propagate your products, but through TV advertisement of Manfroce, fake news and other brands, we wanted to build brand man can in doctors mine so that they can really impact our influence doctors and make them believe that this is a good company. Because when you start very small and you start from a small town, and you are not there in metros, you're not there in southern part of the India in many places, and you are rising very fast. And you're selling your products at our most affordable price because our philosophy has always been accessibility. And when you talk about accessibility, it does not mean that your products are only available they are accessible to be bought by the poorer patient as well. And those doctors, those were sitting in the smaller places. So that's one reason we basically started building the brand mankind. For the first time, we realize that there's something called chronic segment. And at that particular time, our share in chronic was only 1%. And from there, we started building the chronic side as well. And gradually, we build mankind to a different level. But in the pyramid of doctors, bottom side, we were very, very strong, middle-middle side, we're good. But at the top of the pyramid, we are not strong. And that's one reason in 2020, we launched our specialty diseases because we wanted to penetrate a big doctors, big hospitals, and keeping that in mind, we opened a new office in Mumbai away from Delhi, away from our traditional office in Delhi where we were gating mass marketing divisions. Because we wanted to have one culture but different strategies because when you go to a specialist, these demands are different when you go to a GP and mass marketing things are different actually. So Mankind is basically a combination of plenty of different strategies. On one side, we have some divisions where 1,700, 1,800 people are working in one division, and they're promoting 30 brands, 40 brands covering approximately five lakh doctors. And right from beginning, one thought was there in our mind that how can we create some kind of entry barrier. And when you have no resources, you acquire different kind of things. You just invent different kind of things. And one thing was what that if we reach to every nook corner, that would be our entry barrier. If you reach to the small villages, that would be entry barrier because not many companies can reach to those places. Traditionally, most of the pharma companies started from big metros and came to Tier 1 towns only. 350, 400 people, they used to keep and hardly people used to go over there in smaller towns. And instead of getting one equity support, INR 50,000 support from Etoc, we thought why not to have even INR 2,000 support from each doctor. That way, I mean we will have a very mass-based big base, so penetration over there would be difficult for any big company. And when you keep the prices low, the advantage basically is what that even if they try to penetrate our market, it will be very tough for them. Because they will have to cut down the prices and naturally, the profits will go down, and we'll have to increase this strength. That was the philosophy in those days. But naturally, when you grow, you become responsible, you reach to a certain revenue and you start having some profits, you start thinking differently. And 2020 and '22 an evolution of Manan started, and during that phase, only we acquired Tanisha biotech? And why did we acquire Panecea biotech because Spanish offered us super specialty portfolio, transplant business, which is very niche. And whenever we have gone for any kind of acquisition, the thought was that we should acquire only those entities where we cannot build. We cannot build those entities Keeping that in mind, we acquired, we got lysate and but more thing was there that we weren't lookout for anything, which is anything with C chronic segment. And Penacea gave us entry in transplant, Onco and chronic became 30% chronic in licensed products and some products we acquired from Novartis. It gave us approximately our market share reached to 30%. Public listing happened in '23 and in '24, we acquired BSV. Mind you, I mean, at that particular time, we have choice of acquiring some other company with somebody else acquired versus BSV. But why we went for BSE because that company could have given us immediate revenue, bigger portfolio of chronic, but we were always looking out for one thing, which is called entry barrier. Because by the acquisition of BS, we got entry in biologics. And we call entry in one segment, which is infertility, which is growing very fast, abroad as well as in India. The philosophy has always been one that keep adding something which you don't have keep building in bigger entry barriers. So alas, if you just look at the bottom side, INR '95 INR 5 crore, 2001 INR 50 crores, 2007 INR 500 crore, 2018 INR 5,000 crores, and philosophy has always been one that 10x, whatever we are doing year can we do in one month with this philosophy, we have always more. And we have very big dreams. And manifestation is -- we keep saying it, our manifestation is that one day, we want to become India's #1 company. And this, we are not saying now after becoming something this we are seeing from last 28 years and now sing to public because we're not boosting it. We're just reminding ourselves, our team it's a model boosting. If you just look at this chart, we are the youngest company. Prescription ramp as #1 IPM brand fourth, we cover five lakh doctors. Field force is 18,500. We have a huge number of stockist consumer brands, which are four #1 brand, brand families of more than INR 100 crores is 22. This is what and revenue CAGR of '21 to '26 is 18.1%. On one side, initially, we were just in marketing and sales. And then we started thinking of going for R&D we started thinking of going for manufacturing as well. So in 2012, for the first time, without having any kind of a background of R&D, we started this, and we became the second company in the world to crack on hormone Diadem after Arbet; and 2024 with the help of BSV Biologics platform has been done. And now we are moving towards help our own NC-GRP-119 in Phase II and JAK inhibitor in Phase I. We have seven R&D centers, 740 scientists and 58 U.S. A&D as approved products. In manufacturing side, we had no manufacturing, and we started building our own manufacturing plants. And today, 75% manufacturing of mankind happens in mankind. And that gives us a leverage of maintaining great quality and selling the products at the most affordable prices. And if we just look at this last couple of years, I'll say, two years were quite painful for mankind because we realize that something after correlate that something is not right in mankind, we are supposed to take some pain. We are supposed to transform mankind, and we started taking those corrective measures. We took those corrective masses. And did those things which are imaginable if a company is being run by a professional because profession are supposed to give answers to the Board, answers to the promoters, where is the growth. But we thought that these are most important things. We must go for it, and we did that. So in last two years' time, what we have done, you can see we just changed the leadership team. We brought new leadership team. This is one we reenergized the field force because when you remove, you bring a new field force, you train new field force, you're supposed to make sure that the new team is in sync with the top leadership, and with the culture of the company that we could try to do. And with the help of medical marketing, we could really mean do better doctor engagement and with the help of technology. We could train people, bring certain tools to track how they are working, train those people. This is what we have done. And if you just look at what after doing this, what basically has happened the volume growth, which was just minus 0.6% in '24 has reached to 6.2% because volume growth is one thing, which basically tells you that the company is moving in the right direction or not. I mean two, three things in mankind, we track. Whenever as you are sitting and analyzing us when we sit in a meeting and our leaders come sales lead marketing people come. And this year that we are doing very good. On four, five metrics, we see people. One is what is their sales trend. The second basically we see is how is the performance of new products? How do we basically see is the growth and more than the growth jump in the sales in the productivity. On these four metrics, we generally see. And when we see all those four metrics today, we are very, very happy, very confident that the Phase II of mankind. The kind of manga we have always advises where I'll say speed of execution was fastest it's come back. After this acquisition of BSV and after acquiring certain brands, Symbicort from Astra, Grenslo, from Novartis, Wonolo, Flotek revert rail from Roche. These are certain things we have done the last two, three years' time. So what we basically see going forward, on three or four things, we basically are working. They are very, very clear to us that in which direction we are supposed to move. The #1 basically is what we are supposed to move our chronic share from 39% to 50%. And how we are supposed to do it by launching more chronic diseases. What was strength of mankind a few years back. That was our reach, and the kind of portfolio we were promoting to everybody, five lakh doctors. But post COVID, attention span of everybody got lesser and lesser. Doctors started giving less time -- so on one side, one strength is still intact that we have a great reach, with the second strength that 30, 40 brands, one division was promoting, that become a weakness. So what we're doing, we are just hiving off some of the brands, creating more divisions. So we're launching many divisions at Azure. And you can see this Cardiosonastrois one, cospology is one and GPTson is one and tentative. And when we are saying we are launching that means we have launched GPT has been launched because we want to regain our command and share in GP side. Guest division would be launched in the month of February. Cardio division, new cardio division would be launched in the month of June. These are approximate months. But process has been started, he knows. I mean who is coming at leadership position, what they are supposed to do. The process internally has been started. Because if you have specialized PCP cardio divisions, you are at the advantage actually. On one side, our share in market is 4.7%, but if you just look at the hospital side, this side Pillar #3, the share in the hospital of mankind is just 1.7%. So number three objective is that we should double down on hospitals and make sure that we start generating better prescription from hospital. When I say hospital, I'm not talking about hospital injectable hospital products I'm talking about. You must have seen in the last couple of years. GP practice is going to consultant-consultants are shifting to hospitals. In hospital, many doctors have joined hospital, OPD and naturally attached to the hospital. We just want to penetrate over there. That's the third one. And the fourth pillar basically is what our ranking is fourth but 10 states we have identified in India. There, our ranking is seventh to 14th. We have identified and focus is basically is what to bring these 10 states to the ranking of mankind. How we are doing it, either the top leadership is spending good number of days in those states or leadership from those states should come to head office and sit over there. That means what for example, underpredict is there. So somebody from Anda Pradesh should come to head office as a leader and take up on the British. This is what we're basically doing. Pillar #5 basically is what we have selected certain brands, which we feel they are doing good, but they can become great. INR 50 crore brand can become INR 100 crore, INR 100 crore brand can become INR 200 crores. And these are certain brands where the growth is phenomenal, 30%, 25% like this. That's the focus. BSV has come on track. It took us two years. Sanjeev is sitting here. Is the first have really, I mean, come to some kind of on the surface. Now domestic BSV Internationally, BSV both have really come to the kind of expectations we have from BSV. I have not missed the consumer health care. If any place, we are disappointed with ourselves that is consumer. The kind of expectations we had from consumer, we have not been able to fulfill. Having said this, and let me add one more thing that in next six months' time, total transformation will take place in our consumer health care, whether it's a leadership, people from FMCG would be ticking up I mean taking over this consumer, the kind of transformation we brought in Mankind in the last two years' time, the same kind of play will happen in consumer. So having said this, E-commerce is growing at 100% in our consumer division. That's a good news. Our two brands have gained market share, Manforce and Prega news. Gaso fast is doing very good. We are the only company which could really penetrate the market of our competitor, big brand. And now comes the eighth most important innovative bets and capital allocation. If we just look at this particular slide that if '26 our chronic share is 39%. We feel by '30 we should reach to 50% in chronic site. Why chronic is very important for us because it brings consistency, it brings more profit it gives us more money to invest in R&D. And bring healthy EBITDA as well and great growth as well. Market share in IPM, if you just see cardio, our share was 3.9% in '20, and it has reached to 5.5%. Our cardio side, it was 3.2%, it has reached to 4.5%. One more thing I just want to point here. If you just look at that particular site, when we started and we talk about that in NPLs, we're depending upon only cold and cough, et coming and all these things. But today, we are doing fantastic in inhalers that really talks about the acceptance of Mankind in the specialty rate forms, specialty hospitals. Symbicort, which we acquired -- I mean, we are the only company as trans given Symbicort name. And we decided that we should surprise the multinational by doing fantastic. We could really do very good. We bought at a very nominal price CombeHail from Doctors Sedita too is doing very, very good. In oral antidiabetic and now if you just look at our insulin and look at the growth that is 45% nor that really talks about one thing that Super Specialty has accepted Manati as a company with quality because for a good number of years, people said that you sell affordable medicines, and they had some kind of a doubt that affordability cannot really be with quality. But the growth in Nobia, the acceptance of Nabila talks about that has faded a lot. In hypertension, we have many products, and people said you can sell only affordable medicines. Today, we are selling transload, which basically is lipid-lowering injectable costing INR 1 lakh one injection. And we are doing fantastic in that. We are doing the best, better than the competitor. So now going forward, we feel that 50% chronic share can come by new specialty division, new products, good to great brands. And when we talk about good to great brands, again, the focus is only on chronic side. One thing I just talked about, when you look at a company, you look at the performance of new brands. So Bonalon Vonoprazan is a new brand, we are #1 market share is 12%. Neurokind,we just launched a few months back 12% market share, #2. AdwayUD, we launched a few months back. Number two, Dana, do you again? I mean that really talks about we have some examples to just showcase that how Mankind is performing and launching new products. For the first time in the history, this will happen that Mankind would become the first company to launch first time I mean certain brands. Otherwise, we were always after Dr. Ready and any other company. When we launched Garbia launched Caring, so these are certain brands that's been strong NASH retier disease product. We will be ahead of any other company. Managing be the first company to launch in a few months' time and insulin is on the way is coming, Perflura is coming. And all these brands, I mean, are in the pipeline. And again, we will be the first to launch in India. I'm saying maybe I'm in two months, three months ahead, but we will definitely be ahead of any other company. In last couple of years, if you look at this, how many size of brand has been increased, INR 500 crore, three brands are there right now. In 2021, it was zero. INR 200 crore seven brands were there into '21 now 13. INR 100 crore brands in last couple of years, we have added seven. INR 50 crore brands, we have added 18 and look at the growth as well. On the right side, you can see that Talvin it is INR 783 crore brand. 20% growth, neurokine, INR 660 crore brand, 8% manforce, INR 640 crore. And at the bottom side, these are the brands INR 50 crore plus means they are between INR 50 crores and INR 100 crores. And that is the progress we are making right now. In consumer, we have talked about and hope that going forward in coming few quarters, you'll see a different kind of consumer division. And BSV, plenty of things have been done. In gynecological market, our ranking is one in nine key brand families, either we are #1 or #2, 37,000 gynec logis we are covering, which is approximately an 88% of IVF coverage we are doing right now. And as I mentioned that under the leadership of Sanjeev, we feel that this will grow even faster in the future. And now comes the capital allocation. I mean two, three places, you're going to spend our money. Just looking at this historically, I mean when we acquired BSV, our debt was INR 10,000 crore. And today, it is INR 2,500 crores by the end of '28, our objective is it should be fully repaid. So whatever we said, whatever we promised, our intentions are, we should come to our words, fulfill the commitment and we could really do that where the money would be going in manufacturing, R&D and in license and some kind of M&A is chronic or consumer. I mean there would be our total focus. And as far as two things are there. One is your bottom line and second is your top line. So we will try to give good EBITDA, but great growth in top line. That's the kind of thing we basically feel like working on. And in the end, I'll just say that in Mankind, we believe that as I started by saying that we are an evolving company, a dynamic company. We also understand one thing that every strategy has expanded. So you're supposed to really, I mean, keep building new things because then you can say that your success is not flash in the pan. So we genuinely believe that with the addition of ACTx, we are adding something very special. When the team would be coming here and we'll listen from those people, you will definitely understand. I'll now invite Anil call. He is our global Chief Research Officer. I mean former Vice President of Johnson n Johnson. He has many things under his belt. We'll talk himself will praise himself as well, but he will introduce the team and we'll talk about the ACTx. Thank you very much.

Thank you, Rajiv, and welcome to all of you to Mumbai and this analyst meet. So I will give you a quick update on strategic acquisition of Arm cell therapeutics by mankind. So the question is always why innovation? I think that must be a question in your minds also. I believe that for Mankind to grow further, innovation is one of our key pillars. And in regards to innovation, ACTx is one of the very concrete solid steps, which Mankind has taken to go forward. The founding factor is why ACTX. I think you must be all thinking about why ACTx and Y CAR-T. I think ACTX is one of the key innovative companies, which we acquired recently and is based out of Belgium. And it has its lab operation in Pittsburgh in U.S. and it also has operations in Netherlands. So in terms of the role of ACTx in CAR-T, the key question is why not ADCs, why not T cell engagers, why only CAR-T? If you look at, I personally believe Cattle is one of the most transformative therapies, which has been discovered to cure cancer. So if you look at India, one out of eight people will have cancer in their lifetime. So that's a staggering number, and the numbers are increasing exponentially. So what we need, we need transformational cell therapies, not only in India, but across the world. And CAR T is basically giving us a platform which allows us to cure cancer, not only treat but to cure cancer, that's our hope for future. So I think another question you must be thinking about why ACTX what is so great about ACTX. That's shown here. So ACTX basically has very well differentiated assets. So my colleague, John will talk about the assets in detail in terms of their properties, but I will give you a snapshot of it. So ACTx has what we call armed cards. So car therapies or what we call chimeric antigen receptor T cell therapies, are basically, they give you extra support in order to cure certain forms of cancer or give extra power to the engine. And one of the arming helps is basically modulates the tumor microenvironment for solid tumors rally. So that's one aspect of ACTX strategy. Another key feature of ACTX is that it's multi-targeting. So instead of targeting one antigen on a cancer cell, it targets two antigens. So that gives it much more power to kill a cancer sim. And the third thing is basically, which is the most differentiated factor of ACTx platform is that it's in vivo. Why in vivo? I think Rajiv already said that the mantra of mankind is affordability and access. So in CAR therapy, the biggest challenge has been the scale manufacturability, affordability and access. So with ACTX in vivo platform, it addresses all those things in very, very addressable manner. So I personally believe that armed cards, multi-targeting in vivo therapy is the future for cancer therapy will evolve, and John will give you some specific example how market is behaving in this regard. So beyond that, I think the key is that ACTX has one of the best talented teams in cell and gene therapy across the world. I can vouch for that. And also what they have is a proven track record. So we will give you the details in terms of when I introduce the team. So let me introduce one of the founding members, Dr. Paul Stoffels, who is here with us -- so Paul has been the ex-CFO of J&J. And Paul has been the ex-CEO of Galapagos. Paul, maybe you can come on the stage, please. So while I talk about you, it's nice for the audience to see you also. So all has been he's one of the industry's most renowned, admired leader, mentor, you can call him by whatever name you want to name him, but if you look at his accomplishments at J&J, I can give you an example of J&J between -- when he was made CSO of J&J in 2008 or 2009 around. So the pharma sales of J&J were around $22 billion, Paul. And after 10 years, when he left in 2020, the pharma sales were $45 billion. So he made a dramatic transformation of J&J innovative pipeline. And beyond the pharma sales, how did he achieve to do it. He did it through innovation. He introduced almost 25 new drugs into the J&J pipeline. That means every year, two new launches of innovative medicine. That was an innovation engine on FireEye can say that. And out of those 25, innovative medicine, seven of them were what we call on Delego's list of essential medicines pool. So amazingly in terms of the transformative potential I think beyond that, if you look at some of those medicines, which are still in the J&J essential list, one of the key one is DARZALEX, datuzumab. And this year's sale of daratuzimab which Paul basically got into the J&J pipeline is $14 billion. And then of course, in cell and gene therapy, all brought in cavity, which is one of the top selling CAR-T cell therapies in the world today. So with that kind of a leadership and the leadership, which Paul will introduce subsequently, I believe that for mankind, it's a great opportunity for us to be on the innovation growth with this acquisition of ACTX. And beyond that, I can tell you, Paul is one of the best mentors and a very great champion of Global Public Health. So with that, Paul, I would like you to introduce the rest of your team.

Well, making new medicines as part of a life mission. It's also part of building great teams and expert teams will focus on exceptional signs, transformational science with very good development. And I had the opportunity to lead multiple fantastic teams who drove these drugs to the pipeline and brought them to the market. It's also a mission of saving lives and saving quality generating quality of life and maximizing that through science. I'm a physician, 35 years of the pharmaceutical industry experience, always in R&D before there was in Africa on the ground working in HIV and made it a mission to solve HIV to medicines. Had the opportunity to work with Dr. Polyansen, a great leader, the founder of Jansa Pharmaceutica, who taught me on how to lead teams, select science and make sure to make a difference. I'll come back to the CAR Ts. I have the pleasure here to introduce Dr. John Mellors, Dr. John Mellors was my partnering crime in the beginning of HIV John is a world-class physician scientist, bringing immunology translational medicine, research, target discovery and therapeutic innovation, including on the next-gen cell therapy. But John is particularly known in the world for the person who validated the viral load as a biomarker for HIV drug approvals. And he was able to convince the FDA and the authorities that a six-month viral load was the measure in order to bring new generations of medicines instead of counting debt before John's signs, we were counting a number of debts in order to get a drug approval, after which we measured via load and John was instrumental on making multi combinations for HIV, combination therapies, leading to normal life expectancy are almost close to normal life expectancy. That was where John became one of the virologists an infectologist and viruses are the basis of CAR-T. So the virology signs is the basis where you can translate virus expertise to oncology. The next one is Peter Hagen, we've been with -- we have been partners in crime in creating new companies for the last 35 years. And Peter is a very particular person. He has his hands in his brain. In all biotechs in the Benelux, but particularly we formed argenx now 18 years ago, from a Belgian startup with three people to a company which is now the #1 biotech in Europe with a market cap of more than $50 billion. And Peter has been the brain, the senior guider who has built that company. And then last but not least, main. We worked together for several years in galapagos Willman is an expert as a physician, expert in cell therapy with all the strategic planning and run the corporate development for cell therapy and translated that into results. She's also in previous McKinsey, very well organized to run the company. So the combination of the team here, element for the new company, Peter Jon and I are on the board and John is the Chief Scientist, and it will be complemented with a number of mankind Board members as we go forward. So on CAR T, First of all, because of the big challenge of oncology. I think I can tell that nobody in the room doesn't know whether in the family or in a near environment a person living with cancer. And today, you have certain treatments and you can prolong life, but it's often big toxicities, real challenging therapies and very rarely, people get fully cured. There are already some diseases who can get cured. Breast cancer is a very good example. A lot of cancers can be prevented. But it's a field where most likely we need to get the most progress in the next in 20, 30 years. This has to be the focus of the world to get this to either a chronic disease or a cure for cancer. 20 million cases globally every year. is going up very rapidly. The new cancer cases in India, 1.5 million, as already mentioned. And with that, it's a great market opportunity, but it's more -- it's, first of all, a human mission to do this, make in cancer therapies and the result is that the business will flourish if you do a good job. And I learned that in J&J, I put my old teams all the time on years of life safety and years of quality of life generated -- it generated fantastic machines, great business and an exceptional company on growing in value and in sales. As there is a big innovation has been happening a big innovation, starting in the 40s with chemotherapy, then soon after that, not in the 60s, 70s with small molecules and antibodies, more targeted therapies. Then a big invention was the checkpoint inhibitors with unleashing the immune system, whether your own body is activated to fight your cancer and the antibody drug congugates, bringing with antibodies chemotherapy, almost to the tumor, that was the next step. Now you have recently the T cell engagers. It has become a big business in the world, redirecting the T cells to the tumor. And then suddenly, and John will explain more about it. Part one injection of a cell therapy getting remission for 10, 20 years in certain patients. And also that was my experience. I worked for 15 years, almost 20 years in multiple myeloma. We started with the first small molecules. Tembra Azelex as already mentioned, Alex created like four, six, seven, eight years of life in combinations to patients, but the disease was never really gone in the patient. People need to use this therapy life long. And suddenly in China, Legend was the first to come forward with the BCMA targeted for multiple myeloma. We saw that in PAH in the different presentations. 20 patients, next time, 60 patients. And the data were real. And we decided that J&J for the first time, to bring cell therapy to the U.S. We did that in a joint venture with a Chinese company. So we agreed to do this together on a global basis. And the results were amazing. And that's why I focused on next stage of life on how can you get to CAR T cells, which bring transformational medicine. And I was responsible with my teams doing the clinical trials. I'm very proud to say that the people who joined clinical trials five, six years ago and all had a life expectancy of one to two months. 50% of these people today are still disease-free. And that is a remarkable observation, a remarkable result. There are relapses. Yes, about 50% are disease-free, including a few of my close friends who have been able to help with this. So it's about one shot. No chemotherapy afterward, sometimes some treatment for side effects in the first two months. But besides that, no medical interventions anymore, deep responses and durable. And that is the step we are taking with ACTX now to bring to the next level. And I invite John to give you some information on the science and how we are going to go forward. John?

Thank you, Paul. I'm excited to be here, and I hope to excite you about what's to come arm cell therapeutics. So we're at a pivotal moment in cell therapy. On the left-hand side of the slide is what we're doing up until recent. That is ex vivo CAR T. What does that mean? That means the patient is brought to a leukapheresis share, billions of cells are withdrawn, brought to the laboratory, purified affected or transduced as we called it with a vector to engineer the cells grown for one to three weeks, harvested, transported back to the patient use. This can be, as Paul has outlined, lifesaving and many people who had no therapeutic options destined to die from cancer, lift and have normal lives now. The issue with this is it's logistically complicated it's technically very, very demanding. Each person gets a customized treatment that can't be used for any other patients. It also requires chemotherapy to make room for the CAR T cells and that chemotherapy is toxic and lead to hospitalization and death. And it's only available this whole complicated procedure in specialized centers that only about one in four individuals who needs life-saving CAR T therapy can access. So on the right-hand side is innovation that will expand access to global markets. So this involves injecting the engineering vector or T cells directly in the blood stream of an individual. No cell collection is required. It's an off-the-shelf product. It's not customized. One lot of vector can be used to treat thousands of patients. It can be given without this toxic chemotherapy to deplete lymphocytes. So single injection, much lower cost, global access retention. So it's truly transformative for cell therapy and life-saving therapy. Don't take my word for it, though. The capital markets have exploded, okay? AstraZeneca, after four patients were treated three who had significant toxicity, offered $1 billion for Esso biotech. In December of 2025 at ASH, four patients were presented with myeloma with a BCMA CAR by Colonia Therapeutics. Six months later, at ASCO, 18 patients were presented, acceptable toxicity, 17 out of 18 complete remission, no residual disease. Lilly upfront $3.5 billion for Colonia and other transactions have further validated the value of this transformative. So imagine a single vial with a milliliter or less vector being injected over a few minutes providing life-saving therapy for advanced cancer. This is what I'm excited about, and I'm happy to talk to you about the technical details after this meeting. Okay. How is ARM cell different than what you saw in the previous slide. On the previous slide, a single target in the case of myeloma, B-cell maturation antigen or BCMA was being targeted by the CAR T cells. As Paul and Anil alluded to, arm cell therapeutics believes in multi-targeting, more than one target hit by the car. All the approved cars hit only one target. Why is that important? Because of the cancer down regulates that target escapes, and cancer by nature is highly heterogeneous. So we believe in two or more targets being hit by the car, which reduces the probability of escape and can prevent escape. Second, Army, what is that, okay? By engineering, we can confer properties to the cell that supercharge it. What I mean by Supercharge, expand further, persist longer maintain function in the fight against cancer. It's a battle. Cancer wins, it de feeds the immune system by suppressing the immune system. We tip the balance in favor of the immune system by giving cars, but the added benefit of arming is that the car cell secrete factors, cytokines, that generate immune response from the rest of the immune set immune system to target the cancer, okay? So we're not only sending in initial troops, we're engaging mass force against the cancer. We're targeting the highest unmet need first, and I'll show you an example of that. because that is the fastest route to saving lives and also regulatory approval. So we're looking at individuals who progressed on existing standard of care. In vivo focus, I've told you why and we have a phenomenal team, and I feel privileged to work with this team every day as well as our new colleagues and friends from Mankind. Okay. A little more detail, mono-targeting and multi-targeting hits multiple sites on the cancer cell that reduces antigen escape, delays or prevents relapse and prolongs remission. And we have in our laboratory libraries of binders that can target cancer antigens and that are in the billions of specificities, and they're all fully human as opposed to mouse or camelid to which the host can generate a neutralizing immune response. The upper right-hand panel is an example of the value of Armin. Carl June and the investigators in the University of Pennsylvania armed a standard CD19 CAR T cell, they showed that doing that cause persistence of the cells for up to three years. and an incredibly low dose of 3 million total cells, and they rescued over half the individuals who had not only failed standard of care, but it already failed commercial CAR-T. So that is a prime proof of concept that this strategy can work. And I already said that Armin can enhance proliferation, persistence beyond the last cancer cell, maintain killing potency and engaging the rest of the system. So what about our pipeline? We have five assets, two are nearing first-in-human studies. The first asset is a combination of multi-targeting and arming that is unique across the RT landscape and certainly the in vivo CAR-T landscape. And this will be for an all too common disease, non-Hodgkin's lymphoma in an advanced setting. And there are many forms of non-Hodgkin's lymphoma. So the number of indications that we can get from that one product can extend to 10 different diseases. The second is solid tumor. 90% of the cancers that have been talked about are solid tumors. Harder to treat, shorter survival, shorter response duration. And we're going to take the same approach of arming and multi-targeting to achieve a greater remission, greater depth and duration. And that is the goal. This is a riskier endeavor, but in preclinical models, the armed CAR-T outperforms T cell engagers and unarmed varieties. And then beyond that, very large potential in different diseases, including multiple myeloma and ovarian cancer, which is a very high unmet need. And with that, I'm going to stop and turn it back our moderator. Thank you.

[Operator Instructions] So we are open for question and answer. If somebody has a question, can just introduce and raise your hand and go ahead, please.

Hello. Hi. This is Ashita Jain from Ashika Group. Excellent presentation. My question to the ACTX team is on the clinical development and the funding road map for the two lead assets. Maybe you can outline the time line that it will take to go from -- I mean you are already out of preclinical into first in human, and what would be the time line to reach the first meaningful value inflection point and also the funding required to reach that point?

We have the value -- excuse me, we have the funding over the next two years to reach that value inflection point, which will be a dose escalation study and dose expansion in Phase I. And that will occur over the next two years.

Understood. So would you consider that proof of concept? I also mean to harp on this is because in vivo CAR-T in the past has had its challenges as compared to ex vivo. So maybe you can outline that as well?

So the initial data was a little bit concerning about the acute toxicity. And the initial treatment with ex vivo CAR T was also alarming because of immune-mediated toxicity, cytokine release syndrome, and ICANS, which is a CNS disorder. Medicine and science evolves quickly. We've learned how to manage those side effects very effectively. And the Colonia team learned from the so Biotech team and with modest premedication, have essentially blunted the adverse effects of in vivo car. So initial hiccup, but off to what I would call an amazing start with 17 out of 18 complete remissions with minimal toxicity.

Got it. My final question is, is there an India aspect to this ACTx also maybe perhaps the Mankind team can join. So the U.S. FDA regulatory timeline will take its due course, right? The Indian timelines have usually been faster for the Indian market. What has been demonstrated in ImmunoAct, which is Laurus' investment, there's immune Neo, which is Biocon's investment, they've done really well in the India market. So is there simultaneous India regulatory India clinical trial piece as well?

So the point basically is what in mankind. We've always thought that we should build some kind of a portfolio, which has a barrier to entry, and to become a progressive and evolving company without having science, deep science, we cannot really become very, very successful. So first, basically, when we basically acquired BSV we were introduced through BSV, so this side of a science actually. So this is one opportunity which came to us -- and in time to come, we'll be able to comment whether India market will be there in this or not. But yes, that is also -- that will always be there because when you talk about excessivity when we talk about in vivo CAR T, which is naturally at a very, very discounted rise, much better price than ex-vivo. We feel that one day, it may happen.

Also just to add to that, I mean, in vivo, there's a high unmet need for these diseases, right? And if there is success after the Phase I studies, we expect a very quick approval even at the U.S. FDA level immediately after Phase II, we expect that approvals might come in from U.S. FDA. And there will be a parallel approach to Indian CDS as well.

Next question, please.

Nadir from Axis Capital. First question to Rajeev and Mankind team. in vivo CAR-T is a very new ungroven yet, I would say, with the latest. I think the most progressive company just reporting Phase I data. So for a company that's never ventured into sees, what has kind of prompted you to take this launch?

Kunal, your voice was not very clear, but what I understood is, why Mancini looking at NCE assets?

Mankind is looking tons, that's fine, but Invivo is unproven at this stage in vivo CAR T. Yes. I hope -- is this better?

Question is, if you don't mind, if you can repeat that voice.

Is this better?

Yes, much better now. Yes.

So I was just asking in NivoCAR-T is the new frontier, not really proven yet. So for mankind, that has not really ventured into developed markets for NCE products yet, what has prompted this step?

How we basically perceive our business actually. So whenever we go in any kind of a business, we see that are we in the right therapy or not. So when you look at this Hongkou site cancer side, this is on fire. So name of cancer is there, every place in the wallet. So First is this. The second basically is what, what kind of a leadership, what kind of people are we getting with CTX. So you can say that it is a startup, not run by youngsters, some inexperienced people or less experienced people. I mean, veteran of this industry have come to us. So we see this as a great opportunity. And wherever you go for any kind of R&D, you're never sure about 100% sure about anything, but you basically bet on people and on the kind of credentials they bring in. I mean just look at the background of these people. They have amazing background. And apart from this, the vetting has happened from a call Sanjeev Lavange, who has worked with these people. So it's always like that. We basically backed on two things: the therapeutic area in which we want to enter. And the team along with that.

If I can add to it that mankind doesn't have any experience of this type of entry, but what Rajisaid, the creditor of the team. So we are just an investor of this, we will be putting money. So they have a correction and they have a proof of concept. They have shown that I Lilly, how the live acquired one company only with three patients and paid so much of money for company. The proof of ones also there. So the mines are there, our money would be there and India opportunity will definitely whenever we take any R&D, we will look for the R&D opportunity. There's always the India game play always be there, but we look for a global opportunity and India gameplay will always be there.

I think just to add the in vivo cars. The CAR-T is already validated, the VO, all the antigens like CD19, CD20, they are all validated. So the platform of CAR-T is very, very validated, as John said, Paul said, you have durable responses. You have complete responses in 90% of cancer patients in the clinical studies. So CAR-T as a platform is really validated. What has happened with the in vivo is basically how do you take the ex vivo and deliver the car into the patient T cells. That's the only technological transformation that is happening between ex vivo and in vivo. And with all data lentiviral technology transfer data, what we have seen, this is feasible. This is what lily with their Calonia data have shown that you can get these CAR-Ts specifically into the T cells. So I think it is not fair to say that there is no validation of in vivo car. In Vivo car, I feel, is at an inflection point right now where we have very fundamental signs that this technology platform is going to deliver to the patients. So I think we are all bullish about the possibility of in vivo delivering what XPO has already grown.

One more for the ACTx team. If I heard you correctly, the issues associated with ex-vivo like CRS ICANS,ou have managed to kind of subdue those issues, and we should not see a lot of these safety signals in Phase I? Did I understand correctly?

That's correct.

This is Kunal from Macquarie. The first, on the chronic share increasing to around 50% by 2030 from current 39%. So what kind of investment would it require both from the manufacturing front, field force front? The number of products to be launched, how the portfolio would need to expand? And the 39% going to 50%, what kind of growth it assumes and the breakup of that growth into new product volume of existing product and pricing? That would be great.

I just have look at the history that it was in 2018 only. We had 28% correct? And now we have reached to 39%. And this was done by just conventional wisdom and reaching to every nuclear corner. Into 2021 onwards, we started working on the specialized side. And now we realize that we have basically learned lessons from a number of companies. For example, take the example of Glenmark or other companies that by just giving one brand's different variant or different reasons, stand reasons. If Telma can become a brand double the size of mankind, why tell me in cannot become one. The second basically is what when a brand becomes bigger, it can become even bigger. That's the plus side. And I just mentioned you, we will be launching many chronic divisions, which was not happening in the past. These divisions we were totally focusing only on the chronic side. And our model is not like any other company. The model simple is that instead of reaching to a certain percentage of doctors will be reaching to MBBS onwards, let's say, play will play over there. Like, for example, any company in chronic side has 350, 400 people, we will have 800 medical reps as to Visa. So that our reach is huge. So as far as the investment is concerned, only in the team, not in manufacturing facilities, we have had equipment featuring facilities.

Sure. And then the near-term field force expansion, which you just suggested on cardio, et cetera. So these 18,500 number, how should that move in FY '20?

You always said that approximately 5% to 7% will be increased. We stick to that. Same percentage maximum 5% to 7% to 8% will be increased. That's all. But having said this, whenever we basically increase the strength, we make sure our productivity is continuously increasing. It's never ever that we have increased number of people and our productivity has gone down. Last year, our productivity was maybe 7%, 7.2%, and now it is 7.4%. We have increased people. We're quite cognizant to the fact that on one side, we are increasing our expenses, putting people, but it should really improve. Productivity should improve because that will definitely, I mean, reflect in the bottom line.

So this would be more like a satellite division in a way because you just said 800 per division, like we just said like four, five division that should be like a big number, right, 4,000 people.

No. I mean, when you say that we start the process in the month of, say, January division would be launched in six months' time slowly and gradually, the new divisions. So on year-to-year pace, you'll always find annualized base, you'll find that percentage would be approximately 7%, 8%, not more than that.

And what is our current launch run rate in terms of new product in India on an average for the last four, five, -- do we expect a lot of acceleration in that?

Quite selective in launching new products. And with this intent that whatever we're launching, it should be backed by substance backed by right marketing strategies. We don't believe we have learned this that by launching new products, there's no guarantee that they will become successful. If they are not being properly backed by medical marketing, the conviction of the team that also is required.

And plus we have launched some brands last year, selective brand, and they have become #1 and #2 in their respective segment. Like Rajiv showed in this presentation, MPCB going along, Dana, they are one, two in the respective time. So selective port launching, but that should be a substance one and two.

I just like to add something that in the last two years, we had a lot of people correction. So our focus was to bring the volume growth back. And now your NI will start improving even better because last two years was more about realigning the team and now it's more launches with volume growth improvement.

That was more on acute side, right?

Across.

And one for the CTX team on the second lead asset on the solid tumor side. So what gives you comfort on solid tumor side? What is the difference with your lead asset because CAR-T typically has been good for the non solid tumors?

I wouldn't describe what I feel is comfort. I feel that in preclinical evaluations, the armed CAR-T that we have outperformed the other types of therapies. You're right on to suggest that the risk is higher, and I agree with that. But we have to take our strategies forward in solid tumor because of the huge unmet need. We have a unique binder for DLL3. We have unique army. It performs very well. We have a pipeline of additional arming strategies that we can add to that. We need to get into clinic to see if the preclinical translation occur. And there is proof of concept in the literature and in presentations that solid tumors can be effectively treated by CAR and that army makes a huge difference. We're not close to the 90% response rate, but it's moving upward. And with the persistence of the CAR-T engagement of other immune cells and the preservation of function, we hope and believe from based on data that we will have an impact.

My question is to the CTX team. If you could help us understand the background of these assets, and I believe it was originated at Galapagos, but eventually also deprioritized by them. So if you could help us understand what were the reasons for that? The sign sounds very promising. So we would love to understand the reasons for the deprioritization.