00:00Is it even feasible to move manufacturing to the U.S. within that 10-year window?
00:05Is it something you're looking at doing? Are you constrained in any way?
00:11Yeah, we are definitely, it is very important for us to be in the United States.
00:16It's very important also to sell the United States.
00:21We are absolutely more than open to mixing in the United States.
00:26To move 30 billion units to the United States while finding a place, building a place, moving products, getting USFD
00:38approval, this is not feasible in two years.
00:40It is a much larger project.
00:43And this is before even considering the cost associated with it, the type of customers, et cetera.
00:52So if it's not feasible within two years, how are you viewing that two-year window?
00:56Is it an opportunity for some dialogue, some lobbying?
01:00Perhaps you would look at buying some time.
01:02Are these some of the options you're considering?
01:06Yeah, we've been in this situation a year ago.
01:09At the time, it was considered, obviously, lower rate of tariff, but it was essentially the same.
01:19And there was reason why it was not exempt.
01:22We are talking about a lot of units.
01:26And the understanding that was there, that if tariff will be there, it will just increase the cost of the
01:33product.
01:34It does not necessarily do what it was supposed to do, and this is moving since the United States.
01:40It has to be with a dialogue.
01:42It has to be with a certain agreement.
01:45Naturally, there is a lot of appreciation.
01:48The need of the United States to have operation in the United States, so I fully appreciate that.
01:54At the same time, it has to be realistic in terms of time and investment.
02:01Yeah, well, also, U.S. trade policy has been somewhat difficult to predict, and President Trump's term ends at the
02:08end of 2028.
02:09So is that something that's in the back of your mind, that perhaps the entire environment could change again within
02:16the time frame?
02:19There is a lot of volatility.
02:22The politics is one of them, but you have also other considerations.
02:27We are manufacturing primarily off-patent products.
02:32So every year, we are releasing to the market 30 to 40 new products, which at that point of time
02:40are the largest, you know, if you wish, pool of business for us.
02:47And when you are considering that, the product of 2028 are not necessarily the product of 2026 and not the
02:58product of 2032.
02:59So there is essentially a lot of planning involved, supply chain and customers and cost, et cetera.
03:11So it is a pretty complex environment.
03:17Do you imagine that that complexity and the uncertainty around tariffs, as well as some of the supply chain challenges
03:24you talk about,
03:25can you see that resulting in some more industry consolidation?
03:31I don't think that it will necessarily come to that.
03:36I think it comes to that there should be certain products or lines that essentially needs to be localized.
03:47By the way, many, many, many countries want for either because of their national security considerations or because of proximity
03:57to the customer to have certain lines in the proximity to the country or in the country.
04:04And there are places that it's much better to do it in the best location, what you call center of
04:10excellence that can make for everybody.
04:12That kind of things will eventually come to some sort of agreement.
04:19I don't envision consolidation.
04:24In terms of supply chain, China also remains the dominant supplier of many of the raw ingredients for pharmaceuticals.
04:31I know there's a desire for diversification to happen, but is it happening or is it just a lot of
04:37talk about diversification at the moment?
04:41Yes, so India became very dominant in that area as well.
04:49Right now, the level of dependency on one country or another is not as big as it used to be.
04:55You do have it in certain areas like penicillins or other type of products.
05:01But in general, it is now mostly in India and China.
05:05So when and you do have alternatives as it's related to dependency, what you have is a desire to work
05:16together, but not to dependent on each other.
05:19That is a trend since the COVID time and that's unlikely to continue.
05:26I'm wondering if you can update us about your semaglutides obesity drug.
05:31It did hit a production roadblock.
05:32How's it progressing now?
05:33When do you expect to see the production and supply resume?
05:38Yeah, we are.
05:40Indeed, we have an issue with our scale up of the product and we believe that we are solving it.
05:48So we are supposed to be back in the market in the beginning of November.
05:54So also, there's a lot of interest in these sorts of therapies as well.
05:58As those U.S. patents roll off, how crowded, how aggressive is it going to be to fight for market
06:05share in that anti-obesity segment?
06:10Yeah, this is a kind of product that many companies want to have, like to have.
06:16So it's going to be an ultra competitive with probably more than 20 players that will try to get market
06:24share.
06:24It's going to be tough, which is going to the ability to have economy of scale, cost, quality and great
06:32relationship with the customers.
06:35We need to talk about your earnings as well, which were out last last week, I believe.
06:41Can you talk to us about some of the factors that impacted that?
06:43Because we did see a bit of a drop in net profit for you.
06:48Yes, we are obviously our earnings were impacted by the semaglutide issue that you just spoke about.
06:58But in general, what we see is that outside of the end of the agreement that we had on generic
07:07revillamed,
07:08without this product, we are going double digit with all of our markets.
07:13And once we get back on track on semaglutide, we should see a very, very healthy Q3 and Q4 for
07:21us.
07:23Have you had any difficulties with the weakness of the Indian currency?
07:26Does that have an impact on your bottom line?
07:31For us, as an exporter, it has a positive impact because obviously we are, our cost is in rupees
07:40and our sales is mostly in the US dollars and euros.
07:44So for us, it is positive.
07:48Obviously, it is important that the Indian economy will be strong for the health of everybody that is in India,
07:56including us.
07:57But let's say short term, it's a positive for us.
08:02Just finally, can you tell us about what you see being your key driver for revenues in 2027?
08:07Which therapeutic areas are offering the biggest opportunities for growth?
08:13So primarily anti-cancer and obviously the semaglutide, which is the diabetic and obesity.
08:23In general, we are going to launch 27 products in the United States.
08:27We already launched six.
08:28And as well as in the other parts of the world.
08:32So we do see U.S., Europe, emerging markets are very important drivers for growth this year.
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