Welcome to Sanofi Management Team. Thank you. Good afternoon, everyone, and a very warm welcome to the Investor Call of Sanofi. My name is Radhika, and I head the legal, and I'm the company secretary for Sanofi India Limited. I have with me Mr. Rodolfo Hrosz, Managing Director; Mr. Rachid Ayari, Full-time Director and CFO; and Mr. Himanshu Bakshi, Managing Director of Sanofi Consumer Healthcare India Limited. Good afternoon, everyone. Good afternoon. Good afternoon. Thank you. Before we begin this Investor Call, there are two important announcements. Please note that the proceedings of this meeting are recorded. Secondly, please note our standard disclaimer that there are certain statements in this call which may be forward-looking, and the actual results may vary depending on various other factors which may impact our future performance. Moving on to the agenda, we will cover the performance of the Q1 for 2024 and other highlights. Then after, we will have a Q&A session which will end at exactly sharp 3:00 P.M. All investors and participants are please requested to keep their questions brief and avoid repetition. I now hand over to Rodolfo Hrosz, Rachid, and Himanshu to take us through the presentation. Thank you, Radhika. Thank you very much. Thank you again for joining and for taking the time to join us today. Before we get into the quarter update, I will give you a brief update on our strategic progress, on our progress versus our strategic plan, right? I think in the if we flip to the next slide. Yeah. So as you all remember and have seen, is it visible? Does it run after the digital? Yes. It's now coming up. All right. Let's click to the next page, please. Open Excel. Before we get into the results of the quarter, let's go quickly through our India for India plan, which outlines the strategies that we have in the market and what's the progress we have made along the last several months. In our India for India plan, we have four pillars, as you remember: diabetes, consumer healthcare, end-to-end innovation, and go-to-market. In our diabetes pillar, we have said we will strengthen each end of the spectrum of our offering and engage in public disease and therapy awareness campaigns. We have done good progress in all fronts. Particularly, we now see with standard reach also a growth in the volume of Lantus, both the price reduction and NLEM. We begin to see a steady volume growth coming from Lantus. We have made progress also in expanding the offering in the diabetes category with the launches of Insutage, the human insulin locally produced, Cetapin S. Now, since this month, we brought to market Soliqua, our best-in-class therapy for patients of today who are treated with three-mix insulins in India, a segment of the market in which we didn't compete. We come in with a strong product. I'm going to come back to that Soliqua launch in a couple of minutes. On the second pillar, you remember, we said we would want to double down on consumer healthcare. That pillar led to the proposal of the demerging CHC to give you a fully dedicated super expert specialist management team to be able to unlock all the opportunities in consumer healthcare quickly and to get to their fullest potential in India. That initiative is advancing very quickly. Himanshu is going to give us a couple more points of update on the process of the merger of the consumer healthcare team. On the third pillar, we said that for innovation, we will be fully leveraging local innovation, localizing supply, and engaging partnerships for reach. We have a lot of action there on that third pillar. We've launched SANOXABAN, Carmada, Cetapin S, Frisium Suspension, all local innovation. We have localized Insutage, replacing Insuman, which is our human insulin. You've seen in the last weeks, they're announcing that there are two strategic partnerships: Emcure and Cipla, Emcure for the cardiovascular portfolio and Cipla for the CNS portfolio. I'm going to come back to those partnerships in a minute. On the fourth pillar, on go-to-market, we have said we would extend reach by using customer-centric and hybrid models, deploy a trade organization, and pilot transformation models for e-commerce, HCP, and e-commerce. We've made significant progress there. We see that reflected in our OpEx. The improvements made in OpEx are quite consistent, and they derive directly from the fourth pillar of our plan, right? So that gives you a little bit of the context in terms of progress versus our plan. We outlined this plan back at the end of 2022, and we continue to walk that talk. So this is what we said we would do, and we've been consistent in progressing against those four pillars, right? Now, if I zoom into a little bit about the next slide, please, the partnerships that we just announced. There are two partnerships. We went through a very careful process to select those strategic partners to expand reach of our established portfolio, both for cardiovascular with Emcure and central nervous system with Cipla. But in those two partnerships, there are brands from Sanofi India Limited, which are listed on that page, for Emcure. The partnership with Emcure and Cardio. it includes Cardace, Clexane, Targocid, Lasix, and Lasilactone, and other CV brands from Sanofi Private. Then on the Cipla side, we have Frisium and other Sanofi brands on the portfolio side, right? So basically, a significant and major step for us, step forward for us. As we want to focus more and more on innovation, we wanted to make sure that we extract maximum potential growth from the established portfolio that we have in our hands. And to grow this portfolio, we required more channel distribution, more channel penetration. These partnerships allow us to get that additional capillarity and therefore extract more growth from our established portfolio with such leading brands. So very encouraged with the partnerships, and they are very promising partnerships in terms of accelerating the growth of established products while we focus on bringing to market new products and launching best-in-class and first-in-class products. All right. So in the next slide, quick update on the innovation. You've seen that slide before. Before, we had no green checks when we first showed it to you. Now, you see all checked out with green. Frisium came to the market, SANOXABAN, Carmada, Soliqua just coming out, Insutage, and Cetapin also coming. And the next one up in that original plan is, of course, Allegra, which is going to be our de-merged entity as we go through the merger, right? So significant progress in renovating the portfolio, and there is more to come, right? Next slide. With them going back to the focusing specifically on the Soliqua launch, this is a very relevant launch in India, right? This is a best-in-class therapy for a segment of the diabetes market where we are not competing. This is a product that enters the premix segment, which is a category that is as large as the category in which we compete today, the basal insulin. Sanofi today competes in the basal insulin with Lantus and Toujeo. And adjacent to that basal insulin category, there is a category with similar size and similar growth pace, which is the premix category. Now, with Soliqua coming into the premix category with significant advantages versus the products that are in that category, it brings an advantage in terms of reduced risk of hypoglycemia. There is an advantage in terms of weight. Soliqua brings a slight increase in weight, and the insulin brings a slight increase in weight. Altogether, there is a weight advantage and weight benefit for the patient and for the therapy in itself. And it's one touchable, one tritratable. While competing products end up utilizing more injections in the same way. So those are significant advantages, and that's what we call best-in-class products in a given category. So very enthusiastic about it. The first month went very well with results in line and slightly above the high expectations we had for the product. Very promising launch, and we hope to see it really change the way diabetes is managed in patients with diabetes that are managed by healthcare providers in India with a superior solution going forward. All right. In the next slide, I'm going to show you a little bit the repercussion of this launch, right? A lot of the media picked up on our recent trend of bringing new products to the market. Specifically, Soliqua picked up a lot of press because of the relevance of this launch, because of the fact that it is a best-in-class and it is the first of a series of best-in-class launches that we intend to bring to the market. Now, before I hand over to Rachid to talk about the quarter's results, I would say that it is a quarter that requires attention in terms of analyzing, right? When you look at the underlying performance of the quarter, removing all the exceptionalities of the quarter in 2024 and the exceptionalities in the quarter of 2023, it is a good quarter, right? So strategies advancing and underlying performance is corresponding, right? But then when you get to the published figures, they do include a number of exceptionalities that made it more difficult to analyze. But I think that's the point that you want to explore, Rachid, in your presentation, right? Yeah. Exactly. So then let's move to the next slide, and I hand it over to Rachid. Thank you, Rodolfo Hrosz. So just a small introduction. As Rodolfo Hrosz has mentioned, the two quarters in comparison are not really comparable. So the first point, which is the most, let's say, important one, is related to the NLEM implementation. So as you know, NLEM was implemented in April 2023. So Q1 2024 is still impacted by this price decrease. And for the rest of the year, we will not see this impact year-over-year. We have to mention that in last year, in Q1 2023, the export was quite significant, +30%. And this is mainly due to the volume, but at the same time, favorable FX and it generates certain gross margin positive impact related to the freight outlay, okay? In the other income, in Q1 2023, significant bookings of the interest on bank deposits before dividend distribution and one-off interest on income tax. If we sum up everything, it's a kind of 19% growth coming from this line. As mentioned in last investor's call in Q1 2023, we had the highest profit for 17th month quarter. It was exceptional. We can see in the next slide the level of the operating profit. Exceptional items as well related to the sales of assets in Q1 2023, which is around INR 18 crores, which is in the published P&L. And finally, the strategic partnership with Emcure and Cipla in Q1, which is a value added for the shareholders and bringing an important volume increase for the business, is leading as well in the sizing of the team and at the same time, payment of the best package around INR 27 crore. Can you move to the next slide? Yeah. So the first graph in the left side is reflecting Q1 2024 versus Q1 2023. And in the right side, we see it's Q1 2024 versus Q1 2023. So if we focus in the first graph in the left side, so we see if we exclude the total domestic retail sales, it's around INR 548 crore. And in Q1 2024, we are moving to INR 566 crore. So in domestic sales and retail business, the growth is at 3%. And if we exclude the impact of NLEM, the growth will be at 8%. This is significant, let's say, significant growth for the quarter. So at the end of the day, the results are good, as mentioned by Rodolfo Hrosz. Now, another point, which is very positive related to India for India strategy, is related to the expense part where we are maintaining flat expenses and even certain savings. The profit before exceptional items and tax, we see that we are moving from INR 246 crores to INR 105 crores -12%. And this is as explained at the introduction by the different elements related to Q1 2024, 2023, I'm sorry. Now, if we move to the right side of the graph, and you see that it's comparable, largely comparable quarters. So we see a growth of 8% in domestic retaining sales, which is almost, let's say, the same as the quarter 1 2023 to quarter 1 2024, excluding the NLEM impact. This is the trend of the business. When we look to the profit before exceptional items and tax, we see that there is growth moving from Q4 2023 at INR 189 crores to INR 105 crores, which is exceptional results as well if we take it from this angle. Shall we move to the next slide? This slide, it's interesting to show, let's say, the consistency of the profit before exceptional items and tax in terms of percentage and absolute value. We can see in Q1 moving from INR 218, 2022, to INR 246. We can see it was an exceptional quarter last year. For this year, we are at INR 215, INR 215 crores, and remain one of the highest profits before tax and exceptional items for the rest of the quarter as well, Q3 and Q4. In terms of percentage, again, it's the same trend. So 36% in Q1 2023, which again, it's an exception. And we are moving to 31%, which remain in the same level that we are and even above the different quarters in 2023. Can you move to the next? Yeah. So finally, there are a lot of questions related to CHC. The first point that for now, we are still disclosing our financial statements as one segment. And the financial statements are audited by our external auditor, PwC. And so we cannot, as today, disclose the business in two segments as the data are not audited. So we are putting here a disclaimer that this is indicated as not audited data. But it's given the trend, and this will be audited once the company will be registered and listed. So just to give an idea, in Q1 sales, the sales should be around 30% of the total sales of the company. And in terms of operating profit, we are giving a range. So the contribution from CHC is around 37%-39%. It could be one point up, one point down. And this is once it should be audited officially, then we will disclose as per regulation. I think that's all from my side. So I'm not sure, yeah, the first is yours. Thank you. Thank you, Thank you, Rachid. As Rodolfo Hrosz mentioned, can you move to the next slide, please? So Rodolfo Hrosz already mentioned that the governance under the merger is on track. So CHC is transitioning very well towards establishing a very strong FMCG organization. Just a reminder for our key building blocks moving forward as an organization, which was presented a few quarters back. So we are consistent in terms of our building blocks. The first one is really enhancing the portfolio. So if you look at the current portfolio opportunities, there is an opportunity to increase penetration in a big way, really working with the government and the authorities on the modern OTC regulations and the role of innovation, which is really making things better for people out there. The second pillar is on building a consumer-centric mindset, which means really becoming closer to consumers, take deep dive into insights, and deepen the affinity with the consumers, driving awareness and accelerating the key legacy strong love brands that we have in the portfolio, and enhancing our presence in channels like modern trade, which is an area which we will really focus on. The third key pillar on the business is the best-in-class digital and e-commerce capabilities. We see a lot of boom here as a business. Stepping up really on the e-commerce and all the key platforms that are out there, building a world-class digital marketing organization to support all our key brands and portfolios, and also leverage our global CHC data and digital edge that we possess and leverage it and use it in the country. Now, beyond business as well, there are opportunities, and these are opportunities which we will also actively look at. This is opportunities to grow inorganically and also scale up and increase our direct-to-consumer brand activation. So this, in a nutshell, is really about the key building blocks for consumer healthcare business moving forward. Can you move to the next slide, please? In terms of our quarter one performance, it's a very strong performance in the market across all the three brands that we have. So in spite of a challenging market situation and market growth, all three brands continue to gain very strongly on share, very strongly in terms of their presence in the market. So on allergy, on physical wellness, and pain, all three areas, we've gained share, and we've gained share significantly in the first quarter. So moving ahead, it's really about now moving to the next steps. We expect the listing in the next few months. Yes, we will be reaching out to many of you and having discussion in detail about the plans for CHC going forward. Over to you, Radhika. Yeah. Thank you, Himanshu. Thank you, Rodolfo Hrosz. I think now we move on to the Q&A session. Just a quick reminder, in this session, we will respond to your queries within the boundaries of our internal policy. As required by law, we will restrict our responses to clarify on all matters which are available only in the public domain. Kindly ask your questions accordingly. There could be granular aspects of our financials like product-wise, therapy-wise, margins, profitability, which are strictly confidential, and we will not be able to comment on those. We also do not provide any future guidance. As mentioned in the registration, we will be taking questions from you in the sequence of the registration. In case multiple registrations are received from the same participant, we will take the questions first from the first registered participant and give the other the opportunity at the end of the session. I request, in the interest of timeline for giving equal opportunity to all, please keep the number of questions limited to one or two, handing over it to the agency for the Q&A. Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchscreen phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking a question. Participants connected on the webcast are requested to click on the link mentioned below the media player for the instructions to ask a question. Ladies and gentlemen, we will wait for a moment while the questions are attended. We take the first question from the line of Ameya Cha lke from JM Financial. Please go ahead, sir. Yeah. Thank you for taking my question. Also, thank you for keeping this call for the investor and analysts. First question I have on the localization strategy, which was mentioned initially. What I want to understand, is it across markets from the 70 parents, or is it only towards India market? What I want to understand, how sustainable is the initiative which has been taken about the localized innovation, etc., and autonomy given to the local management over here? Localized innovation is a global strategy for all the countries. Thank you very much for the question. The India for India plan is a strategy and a plan for India, for Sanofi India. Of course, it aligns with global strategies of Sanofi, and it is fully in sync with the global leadership of the group. But in that particular point that I think you brought up, which is the localization of supply, that is a particular point relevant for India. Of course, not many other markets that make sense for the group. It does make sense for Sanofi India. India is a pharmacy of the world. There is a very strong industrial footprint in the pharma industry in India, and we intend to continue to leverage it even more. We already have our own facility, a large and very important and very cost-effective, high-quality plant in Goa, which provides a significant part of what we sell in India. In addition to that, we operate in India with a good number of contract manufacturing organizations that provide not only to India but also to other markets of Sanofi in the world, similarly to what happens in Goa. Goa production is for Sanofi in India and also is exported to more markets. So we continue to leverage that strategy, and we have emphasized that strategy with the intention to localize more production and launch local innovations as we do. You've seen the Carmada, SANOXABAN, Frisium suspension, Cetapin S all came out. They are all locally produced. They were the unfolding of our strategy of localizing production and leveraging the local production capabilities of India to do some local innovations. Now, that makes sense for India. It doesn't make sense necessarily for other markets. I think that was the question, whether it's a global strategy or not a global strategy. It made sense for India. Sure. And the second question I have is the partnership which we have taken for the CV and CNS portfolio with Emcure and Cipla. So we said we have written on one of the slides that we will be downsizing our teams for the CV and CNS portfolio. So what was the impact of this? And I believe we also have our own brands. So we will be stopped marketing them on our own, or we will reduce our marketing on our own for those brands internally. I have a little difficulty because your sound is coming through a little muffled. So I'm going to ask my colleagues to try to pinch it together. So the partnership in the question is specifically, are they going to do everything? I got that. Yeah, I got that. Right. So thank you for the question. Yes. The partnerships that we have established with both Cipla and Emcure are partnerships for extension of our reach and acceleration of our growth. In both partnerships, both companies will be doing distribution and promotion of these brands. The company continues to own the brands, produce the brands, book the sales of these brands. So it is their own brands, more than being promoted and distributed by these two large local pharmaceutical companies. The reasoning behind that, as we discussed before, is that these companies have a much more capillary network and presence, allowing these brands now to reach Tier 2, Tier 3, Tier 4, while Sanofi by itself is mostly concentrated in Tier 1 and sometimes Tier 2. These are strong brands with leading positions, strong equities that were not made available in all tiers of India. Through these partnerships, we expect an acceleration of growth by taking these brands to more tiers of the market and therefore enjoying an additional growth coming from it. I think in the marketing and distribution area, with promotion and distribution, the brands continue to be Sanofi. They own their pharmacy, produce their pharmacy, and sales are booked by Sanofi too. My question was, will we stop marketing through our distribution because we are downsizing our team? That's what I had. I think the question is that the marketing is what we have to do. The marketing will be done by the respective partnership within the session. Can you repeat the question because I don't think I could hear you clearly? Your connection is not so good, so apologies. Ameya, are you connected on your laptop, sir? If yes, please switch to your handset. Okay. Is it audible now? Yes. Yeah. What I was asking, we have said that we will be downsizing CVS and CNS teams. So will we be stopped planning our marketing with products through our own teams? That was my question. The marketing will be done by the partners. So that's already mentioned. Yeah. Sorry. He He answered that. Yeah. The partner is doing the distribution and the marketing, both. Got it. And let's say if these products pick up really well for us, on a margins, what would be the impact? How would be the profitability of these products for us? We don't disclose tiers by brand and what by group of brands, right, and margins. So that we can't answer. Sure. Sure. Thank you so much. I will join back with you. Thank you, Amir. But in that sense, I mean, I think that in the spirit of your question, these partnerships, we expect accelerated growth for the reason that I mentioned, because of the expanded categories and therefore the expanded reach of these iconic leading brands, right? Thank you. The next question is from the line of Varun Bang from Bandhan Life. Please go ahead. Yeah. Hi. Thanks for the opportunity, and congratulations for Soliqua launch. And also thanks for the details that are shared in the presentation. They're very helpful. So the first question is, can you share some perspective on the revenue model in the marketing and distribution partnerships that you assigned with Emcure and Cipla? And how should this impact our revenue and operating profits initially, and how should it evolve over a period of time? Yeah. Again, it's a partnership, right? Yeah. So yeah, the model is mainly a grassroots model where the partner is taking in charge of the distribution and the marketing. So we are billing to the partner, and this is what we are booking in our group. So that's, in a nutshell, let's say, the summary of the partnership. Any perspective on the revenue model? How should it impact our revenue and operating profits? I don't know. You are talking about if there's any impact in the operating profits. That's the question, right? Yeah. Overall revenue model, if you can just briefly give some perspective. Yeah. So as you said, so it will be a gross sales to the partner, gross to net deduction, and booking of the net sales in our books. So then the impact, as we said at the beginning, that it's accretive value for the shareholders. Then the impact, if there is any impact, is already absorbed in the operating profit. So it's already improved, let's say, as we said, accretive value that the analysis is giving positive on the financial statement based on the net present value that was evaluated to take the decision on this project. Got it. Got it. And what is our MR strength at present? I mean, after signing these partnerships, and how is it structured now? And would we look at strengthening our MR count going forward, or we will look at optimizing the existing ones? Sorry, Varun, could you repeat your last question? That used to be a little bit of a. I'm going to read out all questions that you grabbed on the second question. The question is on the. Yeah. The question is on the MR strength, if you can. What is the MR strength after signing these partnerships, and what is the structure of the MR team? Would we look at strengthening our MR count going forward, or we look at optimizing the existing? Am I asking how much we reduce? Can you read out, please? No. You're asking about the field force, right? Yes. Yes. He's asking about the field force. So our. Now, in these categories, the field force that will be pushing and promoting, distributing, and promoting this brand are the field force of the partners, right, which are large field forces. In both cases, larger than we were able to do by ourselves. Now, the numbers, we don't disclose, and they don't disclose either. But the whole reasoning behind the partnership is because we tap into a larger field force capable of more capital promotion and distribution in both cases. So it is an increased number of people working with this product, taking it to healthcare professionals in more cities, going down to Tier 2, 3, 4 through Cipla and through Emcure. Now, we don't need to disclose the number by program. I believe they don't disclose that either. But I can tell you that it is more. Otherwise, we would. The question is actually on Sanofi's MR count. Post signing this partnership, what is the MR count in Sanofi, and how is the team structured now? And would we look at strengthening the MR team? I think you'll see MR. I don't know what MR is. We don't disclose our typical MR count. It's just, "Okay. Employee says that you could probably write to us, and we will give it to you." We don't publish those numbers on a quarter-over-quarter basis. So we're happy to. I just want to verify. You're asking MR, you're referring to medical reps because it's not our language. We don't refer to them as medical reps. We refer to them as a field. So MR, we don't disclose by brand, and we don't disclose also in the fields of the partner, how many there are. There is more. All I can tell you is more because otherwise, we wouldn't be able to get more capital distribution and promotion. If you want to know the full employee strength, you could write to us, and we will get that to you. No. That is there in the annual report. So just one last thing on the consumer healthcare business. What would be our focus areas within our consumer healthcare business, especially from new products perspective? And where would we look to source them? So the question is on the consumer healthcare business. What would be our focus areas within consumer healthcare business, especially from the new products perspective? And where would we look to source them? Thank you for the question. As I mentioned, we operate today in key categories like allergies, physical wellness, and pain. If you look at our market share and our presence today, there is still a lot to achieve in those categories. Most of our launches, most of our focus will continue to remain on the core for the new launches as well. Okay. Thank you. Before the next question, just to the people working with us, are we sure that the issue with the sound is not on our end? Because the second question, we had difficulty understanding the question. So can you make sure that we fine-tune and adjust the volume properly? So it is getting very distorted here. Could you please check the sound from your end? Thank you. Okay. The The next question from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead, sir. Yeah. Hi. Thank you for the opportunity. So a couple of questions here. So starting with the Soliqua launch, so could you please throw some light on how well it complements the portfolio, what you already have, and in terms of your target market, what is the kind of population this brand could address? And yeah, so that would be pretty helpful to start with. Yeah. Excellent question. Thank you for the question. This is an extremely complementary launch. As I mentioned before, you could envision the insulin market with two main subcategories: the basal insulin and the premix insulin. Up until the Soliqua launch, Sanofi has only played in the basal insulin with 1-2 groups, right? With the launch of Soliqua, we're now tapping into the other segment of premix insulin where we were not competing. So it's extremely complementary to our portfolio because it taps into a different need that to date, we were not catering to. And we get into that different need with a best-in-class product with a clear superiority to many of the alternatives that exist today for the healthcare professional when dealing with patients that require today premix insulin. So going forward, we'll have a superior option with Soliqua. And then we anticipate Soliqua to be able to quickly gain a significant share as HCP upgrades their patients to the premix, to the Soliqua treatment. Now, you also asked about the source and source of volume, right? So Soliqua comes through scaling oral anti-diabetes patients and patients that also migrate from basal insulin to premix. So in those two cases, we were not capturing those patients with anything in our portfolio because we didn't have anything relevant in that segment. Now, we have Soliqua in that premix segment capturing that opportunity and offering HCP in-patient as a superior solution. So it's a win-win-win. It's good for patients, good for the HCPs, and good for Sanofi too. And extremely complementary because it's a very distinct segment of the market where we didn't play at all. Got it. Some of this second question is with reference to what was asked previously as well. So as I see your overall employee count towards the end of fiscal 2022, it was close to 2,600 employees. And that number, as per the latest annual report, has come down to 2,100 employees. So would it be fair to assume that this rationalization of 500-550 employees would be mainly because of this outlicensing deal? Again, we got a difficulty with the sound. I think we really need to check what's going on because every question is becoming difficult and burdensome. But you asked about the headcount by the end of the year 2022 and the end of the year 2023. And what are the explanations on the difference? This is what your question was, right? So there is one important difference in the way we measure the headcount in 2022 and the way we measure the headcount in 2023. In 2022, we measured headcount with the number of people that have worked with Sanofi throughout the year. So if an employee worked for six months, it would count in 2022. From 2023 onwards, it is the actual count of employees working in the company by the end of the year, by December 31st, right, or the last day of the count. There's a different methodology going through, right? Okay. Okay. Okay. Fair enough. So just last one on the consumer business, which the deal is in process. So this category will inform the vote. But in terms of the new brands, so I mean, how do we look at this portfolio from a 5-10-year perspective, whether there would be a similar strategy as what you're calling for your Rx business or India for India, where there would be new molecules which may or may not be a part of the parent's portfolio would still be launched? And we made an entire consumer kind of business to focus upon? Strategy will focus on the products such as and by the parent we use in the country, yeah? Yes, of course. So the vision of CHP is bringing health into people's hands and becoming the best FMCG company in enterprise design. So there are definitely a lot of good global portfolios which we will be evaluating for the future launches in India. Having said that, again, we are great in our current portfolio itself. There are still a lot of opportunities that we need to leverage. But going forward, new brands, new products will definitely be evaluated from the global portfolio. Understood, sir. Thank you so much for answering your question. Before we go to the next question, I'm going to ask you more detail to repeat the question because in the room, it is getting very distorted. So if you're getting a better, more clarity, ask you to help us repeating the question that you asked. For a second? Yes, ma'am. Thank you. Before we take the next question, a reminder to all the participants: anyone who wishes to ask a question may press star and one on their touch-tone telephone. Participants are requested while asking a question. The next question is from the line of Gagan Thareja from ASK Investment Management. Please go ahead, sir. Yeah. Good afternoon. I hope I'm audible. Yes, you are. Go ahead. Yeah. So the first question pertains to the outlicensing deals. Could you clarify whether the deal is signed between Sanofi India and these companies or between Sanofi Global and these companies? Deal is signed between Sanofi, yeah, and these companies. There was no outlicensing, so. There's not a licensing deal. It's a distribution and promotion deal. Agreement, okay. It's an agreement of distribution and promotion signed by Sanofi India with those companies. Okay. As I mentioned before, I want to address this because it's very really important. Sanofi continues to own, manufacture, and book the sales under its brands. Are all of these brands manufactured by Sanofi India in their facilities? No. Some are manufactured in India. Some are imported as well. The reason I ask this question is that the brands, while they are marketed by Sanofi India, are owned by Sanofi Global. And if they are going to be distributed and marketed by another entity, what is the and perhaps not even manufactured by Sanofi India, then what is the rationale of routing the transaction through Sanofi India? The entire arrangement could be a pure outlicensing arrangement with these products being marketed by Cipla and by Emcure, with Sanofi India having nothing to do with it at all. I'm just trying to understand, in the future, could something of this sort happen? It's not in the plan to be. I understand your question. It could be one way to arrange it. It's not the way we decided to go forward with it. This is a local initiative between Sanofi India and those companies. They were already structured in this way that I just described and that Rachid also described. So we sell products to vendors, another distributor involved, a strategic distributor, and also there is the promotion of these brands in the market. But that's the way we're structured. We're moving to a potentially different model, which isn't the model that we have utilized in these partnerships. There is no plan to do it in a different way going forward, which doesn't mean that we couldn't, one day, change the model that we operated with. But today, we don't intend to change the model. The model is the one that we implemented. Right. When you report sales pertaining to these brands in your books, you will net out the distribution margin that will be given to these companies. Then you report the sales and adjust it for the cost. You'll report the margins on your books. Is that how it is? Yeah. It's a gross-to-net model. So the invoice is going in gross minus the gross-to-net. And this is the only booking that we have in our books, okay? All the expenses are not related to Sanofi India. It's what should be booked at the partner level. It's not at our level. So it's a different model as well. So we are not outsourcing the promotion here. So it's a totally gross-to-net model without keeping any expenses at our level. Okay. Emcure, in one of their calls, indicated that they might eventually possibly be manufacturing these brands in-house as well. And that is the reason why I'm asking this question. I'm sorry if I'm repeating it. But if the counterparty seems to indicate that at some point in time, there's a possibility that they'll manufacture it, then they'll manufacture, they'll market. What will Sanofi India be doing? And therefore, what will accrue on your P&L? At the moment, it's not part of the agreement that we have. This is not the intention of the agreement. You're right in a way in which everything is possible in the future, but this is not part of the plan today. So today, the agreement and what we're working on is the expansion of reach and acceleration of growth of our established products that currently exist through these partnerships with Cipla and Emcure in the Indian market. Now, if a new extension of one of these brands is introduced to the market in the future, and if it happens to be produced by one of them, we'll have to take that topic in the future. But it isn't part of the initial plan, and we don't have that based into the initial plan. Okay. A final question, if I can take one more. That is for the consumer healthcare business. Is it possible to help us understand what the new OTC regulations bring to the table for companies? I mean, does it give you the opportunity to expand your distribution through general trade, whereas it might not be the case now? Have the OTC regulations, new ones, been notified already? The regulations are still in the draft stage. All OTC companies are partnering with the government to have the right regulations come into force. To your point and all the things that you mentioned are definitely getting discussed at the right level. The moment it gets notified and regularized, we come back to you with details. If I may add to that, Rachid, I think that when we look at the regulation on OTC media and compare it to the regulation of OTC in most other markets, we see significant opportunity for evolution, right, both in terms of distribution but also in terms of consumer engagement, right? Around the world, regulations for OTC in such that allow companies to more directly engage with consumers, educate consumers, and therefore drive the business in that way. Now, in India, we are a few steps behind still and with a big opportunity for modernizing those regulations and then unlocking those drivers, both in terms of distribution but also in terms of communication with patients. Does that make sense, Himanshu? Absolutely. On the OTC piece, I mean, if you are facilitated to market through the general trade channel, the three categories that you showed on your slide, two of them are already going at a healthy double-digit number, and one is going at a high single-digit number. If the distribution can ramp up very substantially post the regulations being notified, does it give you headroom to accelerate your sales growth from the existing brand in a very substantial or sizable way? And over and above that, you obviously have new brands that you can sort of bring in. So are we looking at an accelerated growth phase for the consumer piece subject to the OTC regulations coming through as you see them or as you intend for them to come through? You're absolutely right. In terms of one of the key levers, as I mentioned, penetration is key for us, which means definitely in terms of expansion, in terms of your general trade, in terms of pharmacies, in terms of all the key outlet classes that we have, including Modern Trade, e-commerce, we still need to accelerate and put in the right inputs there. So the idea, again, is to go behind it, invest behind it, and make the penetration bigger on the brands, which definitely means a promising growth for the business moving forward. Thank you. I have one more question. Can I take it, or would you open the mic? Sorry, Gagan. We are close to 3:00 P.M., and I think we need to move to the next one. Next one will be the last one, please. Okay. Thank you. Thank you. We'll take the next question from the line of Premal Sanghavi from Vama Financial Services. Please go ahead, sir. Good afternoon. Can you hear me? Yes. Hello. Can you hear me? Yes. I hear you. I see if we can understand because our sound here is not working so well today. My question is on the type 2 diabetes, which you have recently launched, Soliqua, in the month of April. I believe the price point is around INR 1,800. So can you just share what would the market size of this opportunity of this drug in India could be like? And the second question would be, what is the diabetes portfolio new launch going forward for the company would be? All right. So what is the second question? The diabetes portfolio of Sanofi looks like in the next 2-3 years. What are the new launches happening? All right. So first one, Soliqua. Soliqua is relevant. We don't use forward-looking estimates, right, much less on a particular brand. But I can speak about the size of the market, which is where you asked. So the size of the market is around the INR 100,000+ crore, right? Yeah. In euros, it's EUR 1,000 crore, which is the same size of the market where we compete with Lantus and Toujeo, right? It's a very large market where we don't compete. And we believe Soliqua has the strength to achieve leadership in that segment of premix, that segment of INR 1,000 crore today. But then you can make your own projections if you will. But we think that the advantages of Soliqua give the credentials to, over time, achieve leadership in that segment, right? I can go beyond that. I mean, but it is a relevant market with a launch, with a product, with potential to achieve leadership in that relevant market, right? So that's question one. And then I think that if you want to get a few numbers, you have to do your own projections, right? But then the second question about the future of the portfolio, we have just introduced a number of products, and we need to leverage them, make them make the most of this portfolio. We're going to be focusing on bringing Soliqua up to its full potential in the market in the coming months and years, right? That will be a priority for us. Parallel to that, we continue to work on the expansion of Lantus volumes in India. Coming out of the NLEM with the price reduction on Lantus, we see an opportunity for Lantus to expand its penetration and grow its volume. As I mentioned before, we already see a volume expansion. We believe that this volume expansion is going to accelerate and be sustained for a prolonged period of time, generating more growth for the business and penetration for bigger insulins in the market, right? In addition to that, we still have a recently launched Toujeo, which is growing at a very fast pace and gaining more and more the preference of HCP for a segment of the patients that we treat for diabetes type 2. So right now, we have a relatively ample portfolio in terms of insulins in India, tapered into each specific segment, each of the key segments in the market. In addition to these insulins that I mentioned, Lantus, Toujeo, and Soliqua, you will remember that we mentioned Insutage, which is the insulin locally produced, coming to the market also this time. So we have clearly strengthened the portfolio already. And that is going to be a lot of our focus and work in the coming months and years also bringing this product to their full potential in our market. Beyond that, you may have read, you may have seen, that the Sanofi Group has acquired a company called Provention Bio, which has developed a product called TZIELD. TZIELD is a first-in-class product for diabetes type 1. Now, we are also evaluating bringing that product into the Indian market as well, as there is a high prevalence of diabetes type 1 in the Indian market as you know. So a lot in the portfolio right now in terms of insulin. We have also strengthened the order of our new anti-diabetes portfolio with the Insutage, right? And we may bring soon our first-in-class therapy for diabetes type 1 as well. So very rich portfolio and very rich pipeline at the same time. I hope that answers your two questions. Yes. Yes. Yes. Yes. Thank you very much. If you can just share, what would be your market share in the insulin market in India? If you have some data, what would be your market share in insulin market in India? 14%, roughly. And total insulin, I mean, basal insulin, what is the market share in basal insulin? Basal insulin would be about 38%. 38%. And today, we have 38%. Let me put it that way because that's a more important thing for you to understand. Imagine two big segments, basal and premix. Basal, we have 38%. Premix, we have zero. Now, we have Soliqua, which we believe can achieve leadership in that segment and both same size, right? Basal and roughly same size, basal and premix. So that's the market share figures you need to have in mind. Thank you. Thank you very much. Wish you all the best. Thank you very much. Thank you. So I think we are almost past 3:00 P.M. But thank you very much to all the participants for attending this investor call. Thank you very much. Actually, I want to thank you also for the quality of the questions. Very good questions, very thoughtful questions, which allowed us to advise some of the key points with you, which is always a pleasure. I apologize on our side for the distorted sound. We worked to make sure that next time we don't have that problem. But it was a little difficult for us to capture what you were asking, except for Radhika, that seems to be able to get the question very clearly despite the distortion. The three of us had a little difficulty. I apologize deeply for that issue on our end. Thank you very much. Thank you. Thanks for listening. Thank you. Thank you. Thank you. Ladies and gentlemen, on behalf of Sanofi India Limited, that concludes this call too. Thank you for joining us. And you may now disconnect your line