00:00I just want to pick up on some of those remarks that Saviki was making about generics, generic GLP-1s
00:05in particular.
00:06You saw a 17% jump in adjusted generic revenues this year.
00:11How much of this is thanks to your early momentum with these therapies?
00:17What's up? Thanks for having me on your show.
00:20And I was just thinking to the comments that Saviki just made a few comments.
00:24And I think one of the most important things is to see how can you get these drugs, which can
00:31bring more people than it was doing before.
00:35Because this can certainly help address some of the lifestyle ailments that people are dealing with.
00:42And obesity is certainly one of those.
00:44So if we can help address those with a large section of people being able to afford them, I think
00:52that's a big win.
00:53And that's what we are in for.
00:55Now, specifically to what our numbers have been, we've seen in our generics portfolio a steady increase over the course
01:04of the year,
01:05particularly on a life-for-life basis.
01:06We've grown, like you just said.
01:08On the back of the peptides portfolio, we've been the first to get our Gen 1 GLP-1 portfolio,
01:16which was the Neera Glutine product in the European region.
01:22And I think that's starting to see traction.
01:24We have approval now in the U.S.
01:26And we will be looking to grow that franchise in the coming year.
01:32You say in the coming year.
01:34Can you tell us a little bit more about your go-to-market timeline for the U.S.?
01:37Because that was quite the win for you.
01:40Yeah, I mean, we're very excited with what we've got in the U.S.
01:45in terms of not just the GLP-1 product that we've got, which is the generic D-Alkutide,
01:53which is both the generic to Victo's and the generic to Saxenda.
01:57But more importantly, it outtakes very nicely with our biosimilar insulin portfolio.
02:03We're the only company, I'm going to say, which has a biosimilar insulin
02:07and a biosimilar or a generic Lera Glutine portfolio approved in the United States.
02:13That just tells you our commitment to the market
02:16and to the particular metabolic disorders that we're dealing with.
02:21It's not a surprise that the companies that have got these GLPs to the market today
02:27happen to be insulin companies.
02:29It does place us in that particular segment
02:33where we will look to leverage the capabilities in manufacturing to scale
02:39because we have a fully increasing carbon.
02:42And we will bring them to customers because we understand the patients
02:46and the devices that they use over a long period of time.
02:51Well, we were hearing from our reporter just a moment ago.
02:54I'm sure you heard Satviki talking about the amount of competitors in this space now.
02:59What's your plan for defending margins as generic versions of the Ozempic drug become,
03:08well, become more common?
03:11Yeah, and I heard that comment that we were expecting some of this to come through.
03:17Well, like I've said, even in the past, we don't see this as a spin.
03:22We see this business as a marathon.
03:25And this is something that you'll have to stay with the patient for a long time.
03:29These are chronic therapies.
03:30Like I said, we've been with our patients for the insulin's portfolio.
03:35It takes a long time to build trust.
03:38This is not just about cost arbitrage and pricing of products.
03:42That can get you through the initial, you know, through the gates and as you start.
03:48But to be with the patient and to win the trust and confidence takes commitment
03:54and takes a fully integrated portfolio, which is what I have got to ask.
03:59And we believe you're going to be there for a long haul.
04:01So that's a really differentiated strategy, not just fighting it out on cost or pricing,
04:08but to be able to offer a larger, wider portfolio of products and services.
04:15So how's your company looking at growth in biosimilars businesses in fiscal year 27?
04:21Because I'm curious about which segments you think are going to boost growth.
04:27Fiscal 26.
04:29First of all, it was a tremendous year for us.
04:31Maybe we really understand how we're going to go forward.
04:35We've got a very strong biosimilars business that we've built.
04:40And that's setting us up for a very strong growth in fiscal 27.
04:46We just talked about the genetics portfolio.
04:48We've talked about the excitement that we see there in our peptides portfolio.
04:53From the biosimilars part, we've been very successful in three therapy areas.
04:58Oncology being the leader in the biosimilars space.
05:01US leading the way for us.
05:03But we've been very successful recently, even in Europe.
05:07We've got five products launching in the US this year in fiscal 27.
05:14And we will be looking to grow that franchise in the coming years.
05:18So you will see growth coming in on the back of new product launches.
05:22And you will see us gain steady market share.
05:24We've got a fifth of the market today in opology in the US.
05:28And our insulin franchise continues to have seen now $300 million weekly.
05:33So that's just a commitment that we have to the diabetes obesity space, which we are calling diabetes.
05:43Now, I want to tell you, I'd like you to tell us a little bit about your earnings.
05:47The fourth quarter net income was a little bit of a miss.
05:50But you've been talking also about the need to consolidate heading into fiscal year 27.
05:56So can you tell us a little bit about your profit in the context of what's coming up?
06:03Actually, what was quite successful, I would put it that way.
06:07If you were to adjust the genetics business for the one-off situation with the genetics linalino mine,
06:14which we had last year, even the genetics business had a healthy growth over last year.
06:19So that's very encouraging.
06:22So that business is growing.
06:24Biosimilars, of course, grew very, very strongly.
06:27You've seen a 16% growth year on year with an EBITDA margin growth of 14%.
06:32That's just really tremendous.
06:34So I would say the full year basis and the quarterly performance,
06:38both for biosimilars and genetics, have been good.
06:42We had a research services business which went through a challenge
06:46because of a single large molecule customer who had a challenge in their market.
06:52But we've seen that recovery as well on a full year basis.
06:55That business on the services end also has grown 2% with the recovery of the EBITDA margins as well.
07:02On a consolidated basis, we've seen a 200 basis point expansion,
07:08which is quite a growth in a year where you see challenges and headwinds.
07:15So I think from a financial metric perspective,
07:18not only have we grown the top line, but it's grown profitably,
07:22which is how we're looking at the business.
07:24Most of our capital investments are behind us.
07:27We are seeing operating leverage starting to play into the numbers,
07:31which is why you are seeing the EBITDA margin expansion into the P&L.
07:40Now, just briefly, Srihas, you also mentioned in your earnings report
07:43a complex geopolitical environment, perhaps an understatement.
07:47What's your biggest risks in the supply chain at the moment?
07:50How are you building resilience?
07:53Yeah, I mean, one of the things I was listening to on your show,
07:57and clearly all of us want to see the situation stabilize,
08:02normalize very quickly.
08:05Particularly what is affecting us at this point in time
08:08is not so much of the product supply in and out
08:12because these are life-saving drugs.
08:14It hasn't impacted us from the continuity of products
08:18in and out of where we need to get them to.
08:22We built a resilient supply chain,
08:25but it certainly is beginning to see an impact
08:28on the cost of transportation of goods.
08:31Now, from the question to see how we're building resilience,
08:36we've always been present closer to customer.
08:40Being a fully integrated company, like I said before,
08:43we have the ability to set up operations
08:46closer to a large customer base.
08:49And we've been doing that over the years,
08:51even before this current crisis that we see.
08:54And that's starting to help us more and more as we go
08:58so we don't have to ship glass and water across the ocean.
09:02So that's really helpful.
09:04And you will see us do one of this.
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