Ladies and gentlemen, good day and welcome to the Gufic Biosciences Limited Q3 FY 2021-22 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ami Shah, Company Secretary. Thank you, and over to you, ma'am. Good evening, everyone. I'm Ami Shah, Company Secretary of Gufic Biosciences Limited. I welcome you all to Q3 FY 2021-22 earnings conference call. I have with me Mr. Pranav Choksi, Chief Executive Officer and Whole-Time Director, Mr. Devkinandan Roonghta, Chief Financial Officer, and Mr. Avik Das from Investor Relations team, to give the highlights of the business performance of the company and to clarify the queries of the investors during the call. After the opening remarks from the management, operator will open the bridge for Q&A session. Before we proceed further with the call, please note some of the statements made in today's discussion may be forward-looking and are based on management's current expectations, and this may be viewed in conjunction with risk and uncertainties involved in our business. The company assumes no responsibility to publish or update or amend, modify, revise any forward-looking statement based on any subsequent development, new information or future events, except as required by the applicable laws in force. This call is being recorded and the playback shall be made available on our website shortly after the call. The transcript of this call will be submitted to the stock exchanges and made available on our website. I'll now hand over the call to Mr. Avik Das for his opening remarks. Thank you all. Over to you, Avik. Good evening, everyone, and welcome to our earnings call for the third quarter. We thank each and every one of you all for attending the call. It means a lot to us. As you all know, third quarter was a litmus test of our unique end-to-end business model, which is diversified across domestic branded business, exports, CMO and APIs. We take pleasure in informing you that Gufic has emerged as the third fastest- growing company among the top 100 pharma companies in India. It was a critical quarter for us as the portfolio mix transitioned back to our normal strategy, which is spread across four exciting business lines and 15 well-chosen therapeutic segments. A point to highlight here is that the growth in the core non-COVID portfolio was contributed by not just a product or a division or a therapeutic segment or a business unit. Rather, there was an all-rounded granular growth across molecules in our well-diversified portfolio, whether it was our anti-infective, infertility, or the aesthetic dermatology division. We experienced growth across the board within our core, non-COVID portfolio. This, of course, is a testimony to the hard work of our various business heads, each of whom devised an excellent tailored product-level strategy to navigate and capitalize on the transition to normal trend. As always, we continue to focus on R&D with an aim to combine the unique art and science of lyophilization to new drug delivery systems and provide the patients with affordable and advanced medications. With that, I'll quickly take you all through the updates in each of the business lines. Of course, later, the CEO will give you further light on what are the exciting new things that we are doing in each of these business divisions. To begin with, our domestic branded business registered a strong performance led primarily by our non-COVID products. The non-COVID portfolio of critical care group has shown very strong growth. This was fueled by our Penem portfolio, which has the entire range, right from doripenem, ertapenem, meropenem, imipenem, and also the entire antifungal portfolio where we cover all the fungal infections. We saw great very high double-digit growth in these two portfolios. Something very exciting, something that we've been looking forward to, our core infertility portfolio has nearly doubled now. We've seen a healthy growth in this portfolio when compared to even the pre-pandemic levels. This happened because we had certain product-level, market-level strategies, and there were some new products also which were launched in this division. Within the herbal products, we launched a range of multivitamins, which has led to high growth in this segment. Our Spark division of course has also seen great growth, and there we intend to launch a cardiac diabetic management range, maybe somewhere in Q2 FY 2023. Stellar is a very young division, and it's growing by leaps and bounds, and we are still continuing to see good traction. To further augment the sales in this division, we plan to launch at least six to eight new products in the coming six months. Our go-to-market strategy for all those products are very well mapped out. Aesthaderm, which is one of our exciting babies, in which we house our brand Stunox, continues to grow very strongly. The acceptance in the market is phenomenal and we are very, very sure and with every passing day, we are getting more and more confident that this will become one of our pillar brands going forward. Now I'll give you all a quick overview of what happened in our CMO business. The company achieved strong and sustainable volume growth across multiple therapeutic segments, so our non-COVID portfolio has grown as we were able to complete some of our backlog orders. We've seen high double-digit growth within this business segment as well. In this segment, we are very fortunate to have some of India's leading pharma companies and global MNCs as our esteemed clients, and many of whom have awarded us with new projects in the past quarter. This, of course, is a testimony to our continued effort to excel in R&D and be at the cutting edge of quality. The other new area of growth, which will become one of our big growth engines in time to come, is our export business. We've seen huge volume growth in this business. We have commenced exports to regulated markets for molecules such as vancomycin, clarithromycin, ciclopirox, and tetracycline. We have received marketing authorizations for omeprazole from markets like Myanmar, azithromycin from Kenya, daptomycin from Colombia. Our patented formulation, tetracycline injection, has received marketing authorization from Russia and Myanmar, and I think we'll be able to go to many new markets with this patented formulation. Something that exciting that has happened in the last quarter is we have broken into Brazil market, which of course is one of the most difficult markets to break into in terms of regulatory entry barriers. We've also gotten into Canada, Nigeria, and Colombia with more and more products. Now we are no longer one product in one market, but we are becoming a multiproduct in multimarket in the regulated market business itself. I think with this, our executive director will further give you insights on what our plans are on this side. We've seen growth even in the API business through our existing portfolio of antifungals and anesthetic products. As we had informed in our earlier calls, that our API, we have a dedicated R&D facility for API. Now we are coming up with an entire range, which will be in antifungals, peptides, antibiotics, certain synthetic progestins, and antibacterials as well. This is an area which we will see great growth in time to come, and it won't be on the back of one therapeutic segment, which has been our strategy even in our formulations business. It'll be a very well spread out granular growth that we see here. Another update that we have on our ongoing CapEx is about our Penem block. There's a good market opportunity for these products. To ensure that we capitalize on this market opportunity, we've shifted the location of the PN block back to Navsari. This will significantly reduce our time to market as we can leverage our existing infrastructure, such as utilities, engineering, and testing facilities. I think, with this, even before our Indore facility goes live, we should probably have our PN block ready in Navsari. With this, I'll hand over the call to our CFO, Mr. Roonghta, to give you all an update on the financials. Thank you, Ami. Mr. Choksi will take over the call. Thank you, Ami. Thank you. I'm Mr. Devkinandan Roonghta, CFO of the company. I'm going to highlight the financial highlights for the quarter ended with Q3 FY 2020-21, and nine months ended on 31 December 2021. First, I will going to highlight the nine-month financial year results for the period December 2021 compared with the financial year for the nine months of December 2020. Total revenue for last nine months was around INR 356 crore. This year, the total revenue is INR 617 crore. There is a upward of around 73% jump in the total revenue of the company. This also include around INR 150 crore revenue from COVID business. Otherwise, remaining is through our existing normal growth rate. EBITDA for last financial year, nine-month EBITDA was INR 63 crore. This nine months, the EBITDA has jumped from INR 63 crore to INR 117 crore. There is total jump of around 85%. EBITDA margin has further improved in this nine months. Last year, the EBITDA margin was 17.8%. This year, the EBITDA margin for nine months is around 19%. Profit before tax for last nine months was INR 41 crore. This year it was INR 101 crore. There is jump of around 148%. PBT margin has further been improved from 11.4% to 16.3%. Profit after tax has jumped from last year, INR 31.4 crore to INR 75.6 crore. There is jump of around 141%. Tax margin, last nine months it was 8.8%. This time it was 12.2%. There is also jump of around 50%. If I compare the Q3 of current financial year versus last financial year, the turnover for current financial year is around INR 122 crore, but actual turnover for this financial year was around INR 182 crore. This is because of the sales return of INR 10 crore related to COVID product, which was sold in the Q1 of the financial year 2021-22. EBITDA last quarter EBITDA last year Q3 quarter, the EBITDA was INR 27.5 crore. This time it was INR 34.2 crore. There is jump of 25%. EBITDA margin last year was around 16.5%. This year it was 19.9%. Profit before tax last Q3 was INR 20.5 crore. This Q3 is INR 28.7 crore. There is a 40% jump. PBT margin last Q3 was 12.3%. This Q3 is around 16.7%. Profit after tax last year was 15.5%, this year was 21%. There is a jump of 36%. Gross margin last Q3 was 9.3%, this year 12.3%. These were the financial results for the quarter and nine months ended. Thank you very much. Sure. Thank you, Roonghta sir. Hi, Pranav here. Before I go ahead. I hand over to our MD, Mr. Pranav Choksi. Thank you, sir. Before I start, I'll just check my mic because I'm trying a new mic today. I hope I'm audible and everything is fine. Can someone just acknowledge that? Then I'll go ahead. Yes, sir, you're audible. All right. Thank you. I think perfectly said by Avik and Roonghta, sir, about you know the different salient features of your company. I just want to elaborate on certain key points. I will also you know first talk about in general, and then I'll take it for the SBU, the strategic business unit-wise. As Avik said, you know if everyone has been following the investor calls since the last you know since June and then in September also, we have already mentioned there was a 25% traction of COVID-related revenue in the first quarter and around 5% revenue traction to black fungus and I would say residual COVID, but more related to black fungus in the Q2. This is the first quarter where we have seen almost not only zero involvement, but I would say negative involvement of COVID products as related to the returns which we had to take because of non-movement in the market of certain COVID drugs. Otherwise, this is the first quarter where we have seen a complete organic business being represented in its most efficient manner. Just to add to points, I would say division-wise, the domestic business, as mentioned by Avik, has seen that growth going on. Of course, infertility division led the growth percentage this time because, you know, as and when the normal overall life was coming back to normal, we saw a lot of, you know, pregnancies, a lot of IVF, you know, procedures which were kept on hold had come back to normal. Also, with the launch of certain PFS in terms of enoxaparin as well as certain, you know, new launches in terms of hormonal gels and also an improvement in our offering of our HMG portfolio, where we have come with not only more drug delivery systems but also come up with an improved product, where we have seen a lot. I mean, I would see a very accelerated growth in the infertility segment. Coming to critical care. Critical care continues to be the number one division of Gufic, and I feel even without having any new launches in October to December, because we had a, you know, a big inventory of products which always were lying with us. Apart from the, I would say, the COVID drugs, the non-COVID drugs came back to normal and we saw a good traction there. A lot of planned surgeries and lot of other, I would say, existing procedures, similarly like in the critical care space, got activated once again. In the critical care space, we have just launched in the month of February the Xarbod, which is the botulinum toxin version, which is mainly focused on urological conditions. So as we have Stanox, which is dedicated to the Aesthaderm division for only, you know, cosmetic purposes. Now Xarbod will be another, I would say, feather in our cap, which will drive the business forward. Xarbod will of course have a higher traction, reason being that, you know, the Aesthaderm division is being promoted by 33 people and now we're gonna expand there. Here with Xarbod being the number one division which we have a critical care, we will have almost 200 people, you know, focusing on this and trying to create an equity with the, you know, the neurological, I would say, community. More importantly, we have, I would say, a lot of feedback in terms of use, in terms of trials, in terms of, you know, applications which we feel that we will be giving the, not only the competition, but also giving a big boost to the market also. Coming to Xarbod should be another launch. Also, we'll be gearing up for our expansion and capacity is also going forward in Navsari, which I had mentioned earlier also. The Indore will still take time. Indore should be ready by, you know, March 2023 or a little bit before that because right now we are on schedule. Before I talk on CapEx, let me focus on the impact on the critical care division. We foresee that, apart from the normal products we are coming out with a new sign, I mean a new basket, the new pipeline of certain critical care products which are mostly targeted for primary healthcare and a separate division separately dedicated for micro care. These will be offshoots of the critical care division, where there'll be 2-3 products launched in the month of February and two more in the month of March. I mean around a new drug delivery system coming in April, which should further fuel the growth and you know, keep the consistent, you know, numbers going on. As Roonghta sir rightly mentioned, the main challenge and the main objective we have to do, which we have to focus on, that this year almost saw INR 150 crore, you know, increase in revenue purely due to COVID. We know for a fact that this INR 150 crore also came at the cost of certain other division business, which of course will come back to normal. At the same time we also have some, I would say, not some, we have in every division around 2-3, I would say, traction points which will help us to not only recover this COVID business, but also to ensure a growth in the future years to come. Coming to the herbal products, as we have mentioned, healthcare I would say more than herbal, because now we are coming with a lot of nutraceuticals. We are coming up with a specific, you know, liposomal, combination with nutraceuticals in, which can be used on day-to-day basis. Plus we are coming up with certain unique, you know, single dosage products for kids because sometimes when we see nutrition of kids are very important for us and sometimes the, you know, the kids, forget. I mean they are. Since the schools are starting once again, sometimes if they forget to take the syrup in the morning or a soft gel in the morning, they have to wait for the entire day. We are coming up with some new small handy packs of certain products which will be launched by Q2 or Q3 2023, which will be unique to multivitamins, to iron and to basically overall nutrition, which can be, you know, packed in the form of, you know, their tiffin box or in the form of a snack box which can be carried by them in very tasty and very cosmetic and elegant-looking products which can be in the Taken in the form of a jelly or in the form of a liquid shot or in the form of a, you know, suspension, which, you know, which helps them to take care of their daily requirements. These are just some of the products which we are looking at, either for oral use. We're also working on certain topical, I would say, you know, massage oils for infants, where they get the nutrition via the topical route, via massage. You know, these are just small, I would say, incremental innovations which we are trying to do, which help the patient's compliance, which helps the overall, you know, administration of drug also much more consistent and much more unique and much more, I would say, organized. So similar in Spark, we are... Avik rightly mentioned, apart from the antibiotics Gufidox, which we launched, which right now in the last two months got traction because of the upper respiratory infections along with which was a side by-product of this third wave of COVID. We could manage. I think the only product which we could actually make some dent was the Gufidox, because that's the only product which was prescribed in COVID in terms of this fever. Thanks to God and thanks to everyone and thanks to the science now, a lot of people were not admitted to the hospitals, and because of that, not much traction was there. A lot of people recovered just by taking the normal routine standard of care or basic antibiotics or basic, I would say, vitamin C and, you know, I would say normal nutrition, and they were fine. So Spark with the, we. The reason why we are launching this cardiac diabetic annual as part of the Spark division is we have seen that because of COVID, a lot of increase in, you know, sugar levels and diabetic is being seen on a much more broader basis. We foresee that we have some unique offerings which will be coming in the next year, which will be the anchor products for us, which will offer us some differentiators. That, along with the common basket of antidiabetics and cardios, we will have... Which will be an important, I would say, booster tool for us going forward. In adult population, the diabetes penetration is 10%, but there are certain data which is available in the market as per experts, where we can see this 10% going to almost 16%-20% in the next few years because of the impact of COVID, and that is the increase in diabetes market overall in the country. Coming to Stellar, we of course got a good traction because of certain prefilled syringe and certain products. But what we realized also, that in pain management and, you know, gynecology, we have a good portfolio, but in terms of the ortho segments, we lack certain, I would say, allopathic options, which can be unique in nature, which can help us drive the Stellar business. Those became out of the brainstorming which we did in the month of December. We hope by the month. We already have launched one molecule, which is an extension of Sallaki, known as Sallaki Max, which is a good option for, you know, the ortho physicians for this quarter. In the next quarter, we are hoping to launch three more products which will be helping us, you know, to ensure that the gap in the treatment basket, what we offer to the ortho physicians is taken care of, and we can get a better share of the prescription in the coming months to come in the coming years to come also. Aesthaderm is anyway, I would say, you know, Stanox month by month has been on the rise. Now, along with the acceptance, but more importantly, the recognition which it's getting in the market is quite encouraging. Hence, because of this 8- 9-month data what we have of Stanox in the market made us very encouraged to launch the Xarbod also, and that is in the critical care space, in virological issue. We said we should also launch it fast because the doctors' acceptance is overwhelming. At the same time, what we realized, where we were lacking is, you know, in terms of marketing and in terms of the noise level, we have to improve. We have recruited certain experts who have a prior history in handling toxins and fillers. We hope that with them and with also some international faces who will be joining us as the advisory board for us in India, we will be having a much more amplified launch. I would not say launch, but a much more amplified, you know, noise level in the field of Aesthaderm with our Stanox range. This very soon we should be applying for the topical option also for Stanox, which should be ready for filing by April, followed by the Type A, which we'll be filing in the month of July. That is in case of the domestic market. As I mentioned, for the CDMO business, there is a lot to an R&D than what we can market. When, as Avik was saying, you know, when we talk to a particular client of ours, and we are offering them maybe four out of six or four out of eight options in a particular therapeutic, you know, I would say treatment regimen, they ask us to develop the other two, not only for the Indian market, but also to take to our international market. Like that, in the last three months, we have signed almost three MoU agreements. There are two under discussion, but three agreements have been signed, where we will be sort of a contract research and development and manufacturing partner for two big multinationals and also for two companies based in Europe, where we will be taking care of their gap in their therapeutic regimen, and we will be the, I would say, the partner ensuring that they get their entire channel taken care of. This is also in a sense, I would say, helpful. Why? Because of the backward integration of the API, which we already invested in the last three years. We've become a good, you know, API. I mean, so we start with the research in API, then we start with the research in formulation. We can offer the entire basket from scratch. Of course, in the areas of our strength. I'm not saying everything, but in the areas of our strength, and hence it makes us a good, you know, partner for as a contract CDMO in the years to come. This is gonna be complemented by the expansion capacity in Navsari, which is gonna be ready by March 2022, where we will be increasing the capacity by 400,000 vials for lyophilized, and we'll be increasing the liquid capacity by around close to maybe 1 million vials. The total lyophilized capacity in Navsari would come to around close to 4.4 million vials per month. This will be complemented by an additional capacity at Indore, which will be ready by end of next year, which will be another 5 million. We are looking at a 9.4 million vials capacity per month, which I think should make us, like I said, I had mentioned earlier, the largest manufacturer in the world. Apart from having economies of scale, like I said, in Indore, it will just not be the lyophilized products, it also would be suspensions. It would be pre-filled syringes, it would be dual chamber bags, it will be dual chamber syringes, and it would also be ampoules. The entire spectrum of injectables, whatever form, whatever way it's possible will be made there. That will make us, you know, a single window, I would say manufacturer, supplier and marketer of high-end injectables and also, you know, generic injectables also. Apart from this, the decision for us to shift Penem to from Indore back to Navsari was that we had an existing, I would say, infrastructure which could be converted and made into a Penem block much earlier rather than putting up a bigger investment in Indore. We took the option by which we, you know, preponed the commercial launch of Penems to June 2022 instead of July 2023. This just helps us to penetrate the market much faster. Because of this, and it was a great, I think, job done by my CEO and his team. I think the way we have expanded, I think we should be ready by May. However, I give the commitment that by June 2022 we should be ready with this block, and we can see revenues coming from Q2 2023. Coming to exports. Already, I think Avik has mentioned in you know the specific approvals which we have got. Keeping in mind our focus on you know multiple countries and multiple products, the pipeline continues to grow. There have been some challenges last year, reason being that most of our capacity till around July was occupied with I would say COVID and these you know black fungus and mucormycosis drugs. After that, we had a very big backlog of our export products, and we had some backlog of our domestic market also, which we got into. From, you know, January itself, we have started now taking care of new batches, new launches for, I mean, these are the new pipeline which we want to file in the international markets in the years to come. We have started the validation batches from them from January, and we foresee that again by maybe September or October 2022, we should have new dossiers lined up so that, you know, the pipeline should always be, you know, I would say kind of full, and there should be no lull period, and we should keep on getting this churning months on months. Coming to, our R&D development, which is I think the most, the backbone of us. I would start with the F&D department, the formulation department first, and then I'll come to the API one. The formulation... Formulation R&D in Navsari has already, apart from the botulinum toxin projects and apart from the normal generics we are working on, we have started now working on certain biological peptides and certain, I would say, specific niche products in regard to liposomal options and nanoparticles. This will be complemented by the Indore R&D, which is starting in the month of February. As I mentioned before, our foray into vaccines should start very soon, and that is where the Indore R&D should, you know, start not only this, but also start the various new drug delivery systems also of biologicals there. Since the projects were increasing day by day, and of course with the growth which we have seen and the cash flows which we are getting, a big chunk of our money is being invested back into R&D and infrastructure. You know, maybe certain milestones which we have planned three years, four years, five years down the line can be preponed to an earlier year. The last point, which is the most important point, is about the bulk drug, the API business. Because we going forward, we have seen a lot of interest in terms of de-risking from, you know, countries beyond us, and that is where the API R&D business has seen traction in terms of the number of portfolios. Earlier we had decided to have a team of around 25- 30 people, but we now feel the space is there to increase it to maybe 50 people, specifically dedicated to API R&D. I'm talking about the scientists and the chemists. We feel that in different therapies, apart from cardiac, anti-infective, anti-fungals, aesthetic, which is already a foray, we will expand to diabetes and we will be expanding to peptides. Whatever we offer in the front end, which should be, you know, at least, like I said, 60% of those portfolios. I mean 60% of the products which can be game changers down the line should be backward integrated all the way to API basis. Where we also try that even the intermediate and the basic scratch should be de-risked from the countries beyond us. This is a nutshell of, I would say, overall, whatever efforts the company is getting into and we are getting. I think, that's enough from my side. If I've missed any points, please feel free to ask me any question, and I'll be more than happy to answer those. I'll hand over the, I would say, the session back to the, you know, back to the moderator, I think, and you can take it forward. Thank you very much, sir. Ladies and gentlemen, we will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The first question is from the line of Rajat Sethia from IDOT. Please go ahead. Hi. Thanks for the opportunity. I just wanted to understand one thing. What really is the differentiation of our company? Is it lyophilization or is it new drug delivery system, or is it, you know, new drug delivery system within the lyophilization or something else? Hi, Rajat. How are you? Yeah, first of all, if you asked me in 2008, 2010 what are the differentiation, I would have said definitely lyophilization. But, you know, lyophilization is more of a commodity now. It's not that, you know, lyophilization is now, you know, not accessible by everyone. Still in lyophilization, the economic of scale and the pipeline is, of course, still our USP, where we offer a lot of products for the first time in India, and we also offer some new drug delivery systems, which might be sometimes first time in the world. But if We have patents by which if certain lyophilized products have patent, we always come up with our own unique, you know, process, and that's how we bypass them, and we launch it at a much economical rate. Going forward, the company has evolved, keeping in mind the basic fundamentals of, you know, innovation in mind. New drug delivery system in injections is, of course, sometimes or maybe or maybe not related to lyophilization. However, we always come up with options in new drug delivery system where we can make the patient compliance much more easier. As I mentioned before, sometimes it's about patient compliance, but sometimes in the injection industry or the ICU industry, it's all about administrator compliance also. You see the new launches, which will come up in the next 3-6 months. Those will be specifically related to administrator compliance, where you don't have to go through much mixing and matching and, you know, by which there can be chances of cross-contamination, and there might be chances of, you know, what I say, inaccurate dosing. Hence we moved on to specific devices and used our own, I say intellect or I would say our innovative capability in terms of stabilizing those products apart from lyophilization in those drug delivery systems, which we use some new, I would say procedure. Going forward as a differentiator, one more reason is that, you know, there are certain. I am an M.Sc. in biotechnology and, you know, when I joined Gufic, we always into pharma and we continue to be... We will always try to be a force in pharma, but biological is something which we are very passionate about because that is where the core competency of the management lies in also. With my mentor, Dr. Balram Singh, who has helped us. You know, the first product being Stenox and followed by VirboD and many more. We also have a separate pipeline, which is the next strength of Gufic in the field of recombinant proteins, in the field of biological vaccines, also in the field of maybe some immuno-oncology therapy, which will be seen in the next few years. Everything is related to life-saving and niche products where we get into. Can it be lyophilization, new delivery systems, biological peptides, and lastly, you know, complemented with our backward integration in terms of API. That is where I feel our company is little bit more different. We might not be great in generics, in tablet capsule for certain products, but these are the fields which we more normally try to focus on. I hope I think I've answered your question. Yeah, yeah, pretty much. Thank you so much for the detailed answer. The other question I had was around if you can give some examples where you know you have been able to launch some products under the new drug delivery system so as to be able to understand this aspect better. Sure. Some examples. What kind of revenues, let's say, those products launched under NDDS, you know, what kind of revenue contribution is coming from such products, as of today? I'll definitely give you examples of new drug delivery systems, but revenue is something which I might be restrained from answering that, because not that I don't want to share it with you, I may be wrong in those numbers. You can always send an email to us, and we can let you know. I'll give you an example, first of all, about certain antibiotics which are in the form of, you know, a separate vial. You have a diluent, and you have to mix it. Then we come in the form of a dual chamber bag, and we make it more administratively compliant. We also give you the example of Immunocin Alpha. We have launched it in the form of a lyophilized vial earlier, which is as per the innovator in the United States. We are the first company to come up with, I would say, a prefilled syringe. You can imagine it's an intramuscular product, which, you don't want someone to go through the, you know, trouble of taking a big needle, putting 1 ml water into a lyophilized vial, then again, removing 1 ml water in the form of insulin needle and then putting it in the stomach. That entire process is too tedious, and it can lead to you know, when you're playing with 1 ml, there can be chances of, you know, inaccurate dosing or it can be chances of spillage or I would say contamination also. That is where we have come up with prefilled syringe option for Immunocin Alpha also. The same example goes for human menopausal gonadotropin. This is a product which is used in, you know, infertility, in IVF treatments. There we have come up with it, a lyophilized product which is stable for 24 months or 36 months. We have come up with ready-to-use prefilled syringes. We have come up with ready-to-use liquids where, you know, the doctor has a feasibility. You know, sometimes the doctor feels, "Oh, lyophilized." We have now come with multi-dose vials of around 1200 IU, where it's ready-to-use liquid without any dilution, without anything. The doctor can just take 1 ml and, you know, put it in the patient's body, and they are done. They don't have to go through the entire process of reconstitution and contamination and all that. If they want something even superior to that, we have an option of pre-filled syringe. We have a liquid stable. From lyophilization, we have now moved to ready-to-use liquid, where we can have, you know, sort of 150 or 225 or 300 IU ready. We can just put it in the form of, I would say, syringes going forward. In the future, what we are coming up with, you know, there might be certain powders and certain liquids which you need to mix, and then you have to give it intramuscularly. We have options of a single pre-filled syringe, where you have a powder in the front and you have a liquid behind. You just press the liquid onto the powder, it gets mixed, and directly it goes in the patient body, where you know that 100% of that molecule is going into the patient's body. This is very important in cases where, you know, certain products are only 40 mg, which is hardly to measure 40 mg or to measure maybe 0.5 ml or 0.6 ml is very difficult. When you have such a device, it ensures that the patient gets a complete, you know, I would say the right dose at the right time, and it lasts for the right time as well. Because these injections are supposed to be lasting for 28 days in the patient's body. These are all depot injections. We ensure that the patient will get their 28 days full treatment. Of course, I can go on and on and on. I can go on to, you know, topical botulinum toxin. I can go to, you know, penems in the bags and all that, but I think it'll be long. I hope you get an essence of what I'm getting into. Yeah. Yes. Yes. Pretty much. Thank you so much. The other question I had was around- Prerit, can we please request you to please rejoin the queue for follow-up? We have other participants waiting in the queue. Okay. All right. Thank you so much. Thank you. Ladies and gentlemen, we would request you to please limit your questions up to two. Should you have a follow-up question, we request you to please rejoin the queue. We move to the next question from the line of Umang Shah from Sarath Capital AIS. Please go ahead. Hi, sir. Thank you for the opportunity. The diabetes and cardiac foray, would it be oral medications or lyophilized medications? Primarily, they are oral. We are working on certain peptides, which might be, of course, of injectable in nature. Maybe lyophilized, maybe pre-filled syringe, maybe liquid, depending on their development cycle. Because, you know, as there are type 1 and type 2. When I talk about the diabetic portfolio, there might be a combination of starting with oral and eventually moving on to certain injections also. Coming to cardiac, mostly we already have a very strong cardiac portfolio in terms of contract manufacturing, in terms of injections, but we do not market those. Our idea is that we will come up with a special task force for cardiac oral first, and then, that'll be complemented by the pipeline of cardiac injections that we already have in our portfolio. We do not market them. We only offer them as a contract manufacturer. Right, sir. This is very helpful. Sir, and second question is that in your critical care segment and fertility segment, there is a lot of competition in terms of number of players, and most of them tend to be MNCs like Merck and Sanofi. So just wanted to understand, like we get better sales because of lower cost of our drugs or better marketing, or if you could shed some light on it. Sir, I think the first thing is, you know, the drug has to be affordable to the patient. That really helps, definitely. For us, the price is not the market price is not the determination factor. When we go to the head of any big hospital or we go to the. When we go and meet the doctors who are the decision-makers on which brand to be used in each patient, they first talk about quality. They first talk about that whether this company can offer me the entire basket. They also say that if tomorrow, so if something is compatible with some particular neutral delivery system, can that company offer that? Then, of course, it has to be affordable by the patient. Again, I'll not name names, but in certain cases, price works. I'll tell you how. When certain MRP of the products are maybe INR 15,000, INR 18,000, and the doctor refrains from using that product because it's not. You know, the patient cannot afford them. You know, Gufic comes and tells the sir, "Why don't you use that same molecule, that same product I'm giving you at INR 4,000." Now at least you know, you can upgrade that patient to that therapy which he or she would not have afforded just because it was out of his budget and the insurance would not cover it. Definitely in those cases we help. That's how the critical care has got traction because we have brought very, I would say, international quality products. The same product we sell in Germany, that same batch, that same product is also sold to a patient in India. Where in certain cases we have brought the price by almost one-fourth down and still making money. It's not that we do it for charity. Still we make money out of it. The only reason is the economics of scale, the product. I mean, the pipeline and also the backward integration where we have the API help also. These are a lot of factors which help us to, you know, I would say, create a mark in the market, create a dent in the market and, you know, maybe defeat our competitors. Right, sir. This is very helpful, sir. Thank you so much. I'll get back in the queue. Yeah. Thank you. The next question is from the line of Ayush Agarwal from Mittal Investments. Please go ahead. Hi, Pranav. Thank you for the opportunity and I much appreciate the detailed opening remarks. I have my first question, which is that, you know, now that the domestic branded business is around INR 300 crore plus, which is a stable business now. What will ensure, you know, 20% growth for the next few years in our domestic branded business? The follow-up to this is that, you know, what could be the addressable market for our critical care and fertility care, where we are already very big? Ayush, thank you very much. The moment, you know, when the company clocked INR 250 crore in Q1 and in Q2, whatever we did that's the first question which came to my mind, which, you know, my CFO asked me, "How will you sustain this?" It's not that you know, and we all hope and we all pray that COVID should go away and we should get back to our normal life. That is where, you know, like I said, you know, options like new drug delivery systems, option like the dual chamber bags, option of Xarbod coming in critical care, options of isavuconazole, which is now I'm hoping any day in the next 2-3 months I should get the DCGI permission. Options of dalbavancin where we'll be doing our. We should be finishing a clinical trial by coming year, and we should launch it by maybe January to March 2023. Options like many more molecules I cannot name, which is in the pipeline and which we are working on, we are filing to DCGI should sustain the growth in critical care. In infertility, we have a new modified form of HMG coming in because the total market of HMG, we right now only have a you know, around 6%-7% market share. We are targeting in the next year, we should have at least 20% market share in HMG because of the offering which is gonna come. Like that, it's gonna be complemented by 3-4 other hormone either NDDS or even new molecules which will take us through. I already mentioned that, you know, in healthcare with those unique, I would say convenience in terms of products which will come for the pediatric use, followed by a strong launch in certain immunomodulators and of course vitamins should drive that growth. In Spark, cardiac, diabetes. Again, cardiac, diabetes is something which we have to play with patients because it's not something which can happen overnight, but it is something which we want to, you know, really capitalize on because we know that we have certain offerings there also which are little bit revolutionary, which you might see it in the next three years. For me to be launching something in three years, I need to have some anchor right now. My next three years, I would say in terms of creating a market and at least getting known. Because right now, no big cardiologist or diabetologist knows Gufic and maybe it's nothing for them. That is where in the next three years I need to have to create some sort of a equation, saying that we are a standard company, and that's why the new launch which we come up with will have relevance and we'll have that distribution channel and that entire market channel set up, so we are ready to capitalize on that revolutionary product. These are just some examples, like I said. You know, following Aesthaderm skincare followed by haircare. You know, in Stellar, like I mentioned, we already saw a gap in the therapy basket, and we're gonna add it up with certain products. That is an ongoing process and it'll keep on. You know, because there's also an instance that, you know, we work on 10 things, we fail at five things. Something you think will click might not click. Something which you feel will not click, will click. You know, that trial and error continues, but that is where the R&D backup and at the same time what we have as a team. I'm very lucky and blessed to have them. At least now we are not running out of ideas. My thought process will get, you know, worried if we run out of ideas in the years to come. I think I'm okay till now. That's really good to know. Just a follow-up to this is that, you know, what is the addressable market for Gufic in fertility? Sorry, I forgot to mention that. I still am not very good with numbers, but according to me, the current market size what we have is close to around INR 4,500-5,000 crore, which we are currently doing. The new products which we'll be launching in the next 1-2 years always will be adding maybe INR 500-1,000 crore XYZ to it when we open. Like Penem, we are coming with a new WAD system, so I'm sure it'll be part of the existing thing. Plus there'll be an expansion of the market also. With Xarbote also we foresee that apart from just taking a market share, we should increase the market in the neurological condition. The certain multivitamins which are coming in the form of a dual chamber syringe we should also help to expand the existing market, which is right now mostly just oral, because there if you have a better biology and a much more convenient method, then that will go through. Infertility, I think, critical care is INR 4.500-5,000 crore, but infertility is around INR 2,000-close to INR 3,000 crore and growing. That's really good to know. My next question is that, you know, what are the other therapeutics which are large enough right now, like, you know, the next two, three therapeutic segments which are large enough right now, and what are we doing to grow them, you know, half the size of our critical care and fertility business? Oh, you're talking in terms of our own existing basket, right? Correct. Correct. Yeah. Like I said, I think critical care is a very broad word now because that's why we are divided into primary healthcare, micro care, normally anti-infective, and now we are coming with neurological division. Now in critical care also we are hiving off and creating into different specialties which can be focused in much more attractive manner. Again, I would say neurology in critical care and you know, urology as a complement to infertility and Aesthaderm, which is our cosmetic thing, is something which we feel should be going up in a much bigger way. Cardiac, diabetes again, I'm saying, you know, is something which we hope to because of the anchor products, and I feel that keeping in mind the market size what we see, we should see that that also should give us a good traction. Both cardiac, diabetes and, you know, Aesthaderm and, neurology should give us a good amount of chunk in the years to come. Awesome. Awesome. That's really good to know, and wish you all the best. I'll come back in the queue for follow-up questions. Thank you. Thank you. In order to ensure that the management is able to address questions from all the participants in the queue, we request the participants to please limit their questions up to one. We move to the next question from the line of Aman Vij from Astute Investment Management. Please go ahead. Yeah. Hi, Pranav. My question is if you can talk about the capacity utilization as well as the peak sales, as well as our ranking in these three categories, which is this lyophilized injections, pre-filled syringes, and the liquid syringes. Amanji, first of all, I think since you're working for Astute, you're asking us a very astute question, which I think you'll have to repeat again for me to understand. Is it, you're asking me about my capacity and, we are utilizing and how much we are the leader? Or can you please repeat that? Maybe I missed it. My apologies, please. Yeah. Your capacity numbers are mentioned in the presentation very nicely. Right. I was asking about what is your utilization in these three parts? As well as what is the peak sales we can achieve in this and what is our ranking? Because we have 2, 3 years back numbers only. I think Cipla is number 1 in lifetime, I may be wrong, and we are number 2. What is the ranking and sales as of now, if you can talk about these three categories. Again, answering your second question first, that in terms of our capacity, how much revenue we can go for depending on the product mix which we have. I will not answer that question because, you know, we have a pantoprazole which is sold for around INR 60 or INR 50 or even cheaper in India to maybe, you know, Dalbavancin, which we'll be selling for maybe close to $300 or $400 also per vial. Depending on the product mix, of course, internally, we have a roadmap for them. I'm not saying I'm not denying it, but for me to share that right now would be a little bit more of a preliminary thing. I'll answer your first question. That is your capacity. As I mentioned that currently we have a 4 million capacity. We are right now at around 60%-65% capacity in utilization in Life Sciences products in Navsari. We are just increasing this 0.4 million in Navsari as a backup till the Indore facility comes because we foresee that with Brazil, with Canada, with South Africa and very soon U.K. coming up, we should fall short of capacity by March 2023 or maybe June 2023. At that time, we should not fall short of capacity because we always see that the domestic market also will increase, plus there'll be a natural organic growth, plus the new geographies entering, plus our pipelines will start kicking in. We have now decided for the additional capacity in Indore, which should be okay. This combined capacity should be okay for us, at least for the next 3- 5 years. If not, I'll be happy, then I'll make a new factory if required. Coming to, I would say the other facilities, I forgot to mention this before, and it's a point of relevance which you have brought about. Since a lot of our injections, we are also now planning to come up with an entire basket of oral options also. To give you one example, isavuconazole is something we'll be the first Indian manufacturer in India as injection. We also want to now start working on the oral option because we are gonna make the API in-house. For such capacities, we are now leaving some capacities outside, where the moment we reach economies of scale, we will be making that capacity in-house in Indore in the next two years to come. Capacity-wise, I think I'm quite okay. In terms of the leadership, which is the part, third part of the question, yes, we are in the, I would say still number 2. I would believe in the if I combine all my numbers and everything, we are still number 2. Cipla is amazing, doing great job. Of course, they are MD Seager and Tosuen have also helped them really much. Yeah, we are still number 2. In certain products, molecule-wise ranking, I might be number 1, might be number 2 or number 3, depending on those areas. In fertility, we are in the top five. Again, like I said, you know, different molecules might have a different ranking as such. Oh, sorry, the clarification utilization levels in pre-filled syringes and liquid. Oh, pre-fill, we have enough capacity. Pre-fill capacity is 3 million per month right now, and there'll be an additional 3 million coming in, Indore. Right now we are using hardly 500,000 out of the 3 million per month. Sure, sir. I have more questions. I'll get back in with you. Sure. Thank you. The next question is from the line of Gagan Thareja from ASK Investment Managers. Please go ahead. Yeah. Good evening. Am I audible? Yes, sir. Please go ahead. Sir, for my first question is around the funding of your CapEx. If you could give me the debt required additionally for funding the CapEx and the total CapEx that you require for Indore and Navsari expansion. Can I request Roonghta sir to answer this question? Because I think he'll be much more precise than me. Thank you, sir. We are expecting around INR 240 crores CapEx for Indore plant. That is fixed as yet. Another around INR 50 crore rupees will be required. Between INR 50-INR 60 crore will be required for working capital. The total requirement is around INR 300 crores. For Navsari Penem plant and other CapEx, we will be requiring around INR 20 crores. There will be a total INR 320 crore requirement. Out of total INR 320 crore, we will be borrowing around INR 150 crore from the bank, and remaining will be from internal accruals for this year as well as from next year. This total CapEx will happen over FY 2022 and 2023? Yeah. What would be the gross debt position as of now, and at what levels would it peak with the- As of now, my current EC limit utilization is 8%. Only term loan is there around INR 40 crore. After CapEx, we feel the peak will go up to 30 plus 150. Around INR 180 crore will be the peak outstanding. Okay. Okay. Right, sir. If you could help me with the OpEx that will come on board with the Indore and the Navsari facility, because, you know, these plants, when, you know, they get commissioned, there will be related costs. It's dependent upon the capacity utilization, how much we will get the market, in initial days. Whether it will be capacity between 30% utilization, 40% utilization. I can say from first month onwards, there will not be any cash losses. It will be breakeven in first three, four months, and then we will start the operating profit. What will be the total expenses depending upon the top line, what we're going to generate from the Indore plant. Okay. Also if you could give me the split of your sales- Mr. Okay. This is the operator. Mr. Thareja may be requested to please rejoin the queue for follow-up. Okay, thank you. Thank you. The next question is from the line of Runjhun Jain from Nirmal Bang. Please go ahead. Runjhun Jain, your line is unmuted. Please go ahead with your question. Yeah, hello. Thank you. This is a great set of numbers from your company. Just wanted... I'm new to the company, so the questions probably are very new and different from what you have been hearing till now. Sir, I just wanted to understand the basic strategy of the company. You are saying that you are spreading in too many 3 or 4, I guess strategies, areas, therapies. You have said you're also going to exports, you're also going into CMO. I'm just trying to understand the strategy here. Is it not spreading too thin? Do we have that kind of a capabilities in terms of management? What kind of a MR strength we do have in domestic markets? Ma'am, I'll tell you MR strength, but spreading thin in terms of too many segments or spreading thin in terms of revenue? Can you elaborate on that? The MR strength is anyway, by the way, 850. Okay. What I mean here is, sir, there are too many, you know, with the MR strength of 50, you have to cover so many therapies. Instead of going deeper in, you know, any selected therapy, we are going in three or four therapies where probably we don't have that kind of an expertise in particular therapies, so it is like spreading too thin. Is it a strategic move to diversify or is it that we don't have kind of an expertise to go deeper in that particular therapy? I think if I understand it well, I'll take an example of 1 therapy and then I think maybe just correct me if I understood the question right. When I talk about a critical care therapy, where we are number 2, as I mentioned before, in the represented market, totally. There anyway, we will keep on having new product pipeline. For let's say if I'm working on antifungals, which we will launch for the first time or I'll launch certain antibiotic for the first time, I will not expect my team to go and now start selling more of generic products which the GC contribution is less than, you know, around 30%, 20%, 10%, just so that I can get a higher revenue. For me to sustain this, you know, the pricing and for me to sustain the critical care division in the way we do the scientific marketing, we need to always be present in new and new pipelines or new drug delivery systems or maybe new therapy options in terms of new molecules or via alternate molecules in terms of technology. We never decide to go thin in those because if you see, we are a R&D and a manufacturing company where we have lot of USPs in terms of certain segments. If you honestly see them, it's mostly related to a very niche specialties. It's not that I'm a... I always say it that, you know, if you see, I think Micro has done a wonderful job in Dolo 650, and then you have Zincovit and you have all those of the world. Maybe we cannot. I mean, we have not tried, and I'm sure we might not been as good as them, but we don't get into those because those we have no USP or we don't have any differentiation which we can offer. In things where we have differentiation, we try to complement with the basket, but the aim of us is to sell that differentiation. For that there is no scope. I normally have actually studied in United States and I've worked in United States for some time, and there it's mostly not related to therapies. It's more related to what is your offering, what is your USP and your differentiation. There are certain companies which say, "Oh, this market size is INR 18,000 crores. This market size is INR 20,000 crores. Why don't I go into marketing and I launch a division so I can take a 5% share, a 10% share?" Our approach is when we see a current market of INR 18,000 crores, what are the market drivers in that INR 18,000 crores? Is there something which we have if it is different from those drivers or is there something which we have which can make that, you know, like I gave an example of certain injection, we can play the price differentiation. We can play a molecular differentiation or a technology differentiation in terms of, new delivery system or XYZ. Then we enter those markets, and then we focus on those things. Of course, since we are there, we have a basket which we complement to take that. Even the foray into Aesthaderm was because I saw botulinum toxin as a $6-$7 billion market in India and $3.5 billion market in United States with having almost 36 crore population. With India's 1.3 billion or 130 crore or 140 crore population, I saw that the numbers of 120, 150, whatever, 180, whatever numbers you have in IMS is not enough because, you know, there's a big penetration opportunity there. Hence we went into those because that molecule itself can be a big game changer going forward. Now entering into maybe cardiac diabetes also, we, like I mentioned before, we will have that basket to complement us, but the main goal is to have that anchor product launch in the next 2 years or 3 years, which will be a game changer for us. We are a company which normally try to see a gap analysis and differentiating as per our strengths and as per our weaknesses, rather than just seeing that the market is big and we have to just go there and take a market share. Because that sustaining that market share without innovation, without differentiation or without any USP will be very short-term. Then people use other mediums of, you know, spending to ensure that market share is sustained. Eventually there'll be always someone else who will come and maybe spend more or give better margins or bigger, better discounts, and they'll just take the market share away from you. That is where we come from and that is what we believe in. I don't know if I answered that correctly. Is it right or did I miss the point completely? No, this is really helpful, sir. Actually, I was more interested in knowing more of the company. Just one request. Actually, I sent a mail to Avik, sir, if he can reply to that so we can connect offline also. Just last question, what is the growth you're looking for in medium term? I'm not looking for immediate number or next quarter number. In medium term, what do you think that sustainable margins and sustainable growth is? Thank you and best of luck. Okay. Thank you, ma'am. I think, going from 487 to whatever you're clocking is a one-year scenario because of the COVID. As I mentioned before in all my calls, minimum 15%-20% year-on-year growth is something which we feel we can sustain. As I mentioned, we might have plans for more, but some things work, some things don't work. It's not in our hand. Environmental factors start kicking in. At least when we know that we are insulated for 15% plus year-on-year. Margin, sir? Margin, I think Roonghta, sir. I don't wanna say something which is positive. Roonghta, sir, can you elaborate on those, please? Yeah, yeah. Thank you, sir. We are expecting the EBITDA margin will be around 10%-20%. The PAT will be in the range of around 12%-13%. Thank you, sir. Avik sir, if you can reply to my mail. Thank you. Thank you. I'll do that for sure. Thank you. The next question is from the line of Ishita from Ashika Stock Broking. Please go ahead. Hi. Thank you for the opportunity. I apologize if something you've already answered. Just quickly on Stanox, if you can. You mentioned that it's been some months that Stanox has been on the market. If you can tell me what the sales have looked like. Just to understand the IP arrangements with Prime Bio, does the IP rest with Dr. Dusa, and is there a royalty set up, or what does that look like? What is our R&D spend just as a percentage of revenue? Ishita, thank you. I'll first answer. Yes, it's a product which is developed in principle by the the strain has come and the main development part is done by Prime Bio. We have I would say partnered with them in terms of the formulation development and in terms of the entire regulatory process going forward. We have a profit share where the net margins are divided between both the companies in a particular percentage. That is quite a win-win model, and it's quite substantial for Prime Bio also going forward. Answering your first question, that is about Stanox. Stanox was launched in February 2021, just before the second wave came in. The actual launch has since been completed, but we did it in around June and July, whatever we could with the mobility which we had, which was still restricted. For the first six months, we saw a doubling happening in terms of numbers. In the last three months, we have seen a 10% growth month-over-month. I mean, sometimes 15%, but sometimes 10% growth month-over-month. I, at this point, would not like to disclose the numbers specifically about Stanox because there are other parameters associated with it. Of course, when the time is right, I'll be more than happy to share those numbers with you. Going forward, as I mentioned, it's gonna be a very, it's gonna be a pillar brand, specifically. If you have access to ORG IMS, you can just get an indication of what the numbers are because there it's something which is public. That is what we are. I think, what was your question? Did I answer both the questions or was there a third question also? R&D spend. Yeah. R&D spend overall, apart from Stanox and the vaccines and everything, I think if I include all, I believe, Roonghta, sir, numbers you are better than me, so can you elaborate or I should not make any wrong mention. Yeah. Roonghta, sir, are you there? Yes, sir. The question is, sir, R&D spend is how much, sir? R&D spend is depending upon year to year. This year we are expecting it will be in the range of around 8%-10% because the top line will be around INR 775 crore. We will be spending around INR 50 crore-INR 60 crore this year in R&D. Next year also, the plan will be around INR 40, 50-60 crore we're going to spend in R&D. Just to clarify, Roonghta, sir, this is, without, of course, the capital expenditure, and this is without the regulatory outcome, right? Without the capital expenditure. This is a revenue expenditure we have, which we're going to charge this full year. Yeah. Of course, clinical trial expenditure might be little bit more than that, specifically for certain candidates in the future. Yes, like Roonghta sir rightly said, that clinical expenditure will be little bit beyond that INR 60 crore-INR 70 crore mark in the next year. Got it. Thank you. I have many more questions, but I don't think I have time. Thank you. Thank you, Ishita. Thank you. The next question is from the line of Ankit from Rambo Capital. Please go ahead. Yeah. Thank you. Thank you for the opportunity and, congrats for a good set of numbers. I wanted to understand, you know, around INR 300- 320 crore of sales in the domestic business, how much of that sales comes directly from selling to the hospitals? Sir, your question is related to hospital or you are mentioning specifically critical care? Specifically the domestic business. Yeah. I think if you look at clocked somewhere around INR 300-310 crores of revenue for the nine months. Out of this, you know, INR 300-310 crores of revenue that you have clocked for the nine months, how much of the sales is directly to hospitals? Yeah. Do you also count nursing homes and, I would say, basic single centers also as a part of that or you are talking only about tertiary hospitals? Yes. When we talk about the critical care products, I think the entire sales of critical care is from hospitals, and that is primary, secondary and tertiary nursing homes and critical care and single chamber, I would say, clinics. Our IVF, the infertility also, the majority of IVF centers which may be part of the hospital or standalone, like you have Indira IVF and you have many others of that sort. Of course, when you see our Aesthaderm also there are cosmetic clinics and which may be or may not be part of hospitals I would say that. When you say about those normal physicians and standalone doctors who prescribe would be around 35%. Those would be 35%. I think 30%-35%. Okay. Yeah. Because I wanted to, you know, understand this from your perspective. This institutional sales would relatively come at, you know, very high discount compared to, let's say, prescription sales. As a company, when we transition to diabetology and cardiology, I think in that case, in those segments, the prescription sales will be much higher as compared to our existing sales. When we transition to that company, how do you think, you know, we'll build our field force as well as, you know, try to build this portfolio? If you can elaborate on that, it would be great. Yeah, absolutely. But as you know, you know, the scalability of these divisions will be always much faster and much more accelerated. Let's say in terms of a PCPM and because you mentioned the field force. You know, you have a PCPM where critical care is, you know, normally around INR 10 lakhs-INR 11 lakhs per month, you know, a person is selling that. Where you of course, luckily being a manufacturer and being in those segments where we also do on a backward integration and we have that economies of scale, so we don't have that erosion. Yes, you're right. I think sometimes when there's a 70%-80% gross margins in orals, year-over-year you get only around 50% or, you know, 45%-50% gross margins. That is where the PCPM and the new launches and the new drug delivery systems help us to manage that on a year-over-year basis, and that basket keeps on growing. You know, when I come to maybe a healthcare, we have INR 1.5-2 lakh PCPM, and then we have Spark, which is INR 1-1.5. With Stellar is where we have high margins. We have almost 1.5%-2%. Our focus and our, I think, even when cardiac diabetes is coming, where you know big company and I have a lot of respect for them. When you come to INR 3 lakh-INR 5 lakh PCPM on a I would say oral sort of a division or a multi-specialty division where you have a 70%-80% GC. In a critical and in IVF, you have a 45%-50% GC, but then you come with a PCPM of around INR 10 lakh-INR 15 lakh on an average. That is something. Maybe in critical care, much more. IVF would be around INR 8 lakh-INR 10 lakh. Yeah. Sure. On this front, it's Ankit Mehta, you've requested, please rejoin the queue for follow-up. Yeah, this is just a follow-on with respect to the question I had asked. Yeah. If you don't mind. I think please go ahead, Ankit. No problem, I think. Sure. Pranav, you know, how do you see these margins panning out for us once we scale up this, you know, new businesses like maladies and cardio? Because I think the margins will be higher. When both these divisions scale up, how do you see the margins of the company being impacted? Ankit, I think what I feel, till we have that anchor launched in after 2-3 years now, I will never see the cardiac diabetes, you know, evolve to that fast sort of a, I would say, number as how a critical care IVF and my export and my CMO and other divisions will go up. You get my point? Even I'm sure in the next 2-3 years, cardiac diabetes will kick in, but their GC will not. Also when I launch a division anywhere apart from the RM, PM, as you say, the GC, there's a lot of other expenditure which goes through, you know, in terms of developing a market, you know, getting the relationships settled, getting those trials done and all that. Of course there'll be overall an improvement in margins because we have export coming in, economies of scale coming in, PCPM of people going up, you know, backward integration going on. That is what we commit and we continue to do so. I would not say that a cardio-diabetic scale-up will be so fast that in the next 3-5 you will see that playing a big role as compared to the other divisions. Because the other divisions have their own roadmap, you know, of growth, which will be maybe much more and because they are our core competency. Till the anchor is not launched, where I know that I have a good margin, I think the cardio-diabetic will play a role, but not so much as what we think in terms of the margins. My organic business will help in the margin much more. Sure. Thank you so much, and I wish you all the best. Thanks. Thank you. The next question is from the line of Rohit Balakrishnan from iThought PMS. Please go ahead. Hello. Hi, am I audible? Yes, sir. Yes, sir, you're audible. Please go ahead. Yeah. Thank you for the opportunity. I just a couple of questions. One was just a bookkeeping one. One was if you could just share what was the export sales in the 9 months, and the percentage growth in exports, as compared to the last 9 months. I mean, 9 months FY 2021 versus FY 2022. That was one. And should I ask my second question also, or- Yes, yes, of course. Please, please ask your second question also. Pranav, just one question on this merger with Gufic Life Sciences, and please correct me if I'm wrong. I just want to understand it much better. Right. This, I think, Gufic Life Sciences was valued at INR 140 crores, if my calculations are right. Just to understand, I think they had sales of about INR 45 crores and at this merger led to a valuation of about 70%. Just wanted to understand what was the rationale, given that of this high valuation during the sales and also any capability that we acquired. I just wanted to understand that in more detail. Your question is that how is this INR 45 crore business which was of Life was valued at INR 140 crore? Is that the question? Why it was so highly valued? Correct. Okay. Of course I'll, Roonghta sir will answer the valuation part, but I'll give you the answer in terms of the business sense. Okay? Maybe that'll throw some light over it. Before I answer the question, I'll go to your question number one. I think, Avik, maybe you can help me out. I know that there's definitely an 80% growth over last year about exports, but how much percentage would that re-export be, how much percentage of our revenue? Can you elaborate on that? Exports was roughly 12% of our total revenue. All right. Twelve percent of our revenue is exports, and you can just do the math with the 9-month data. Around 80% what I believe was the growth, specifically of course, because of geographies and because of the multi products. I'll go to the next question now, which is, when we say Gufic Life Sciences, Gufic Life Sciences is valued not only on numbers but also because of the, I would say, the geography access what it would offer. Also because of the economies of scale and manufacturing what it would offer. Also because of, you know, the overall, you know, there are certain product lines, in terms of liposomal and in terms of PFS, which of course Biozyme did not have at that time, which it offered. Of course, Biozyme had the R&D, but in order to scale up, you needed, you know, certain things which if I go and make at that time, the infrastructure itself would cost some X amount of money. When you club that with two years of gestation or three years of gestation after that, after construction, you have to wait for two to three years in order to get the different regulatory approvals of regulated markets. That's another cost associated with it. Third thing is, you know, I mean, you can just see the benefit last year when we had Life Sciences capacity to help us and we had an opportunity of delving into immunosuppressants, alphas and remdesivir and the black fungus. That was a capacity which, you know, helped me reach those numbers in spite of my capacity of Biozyme, which already helped me to take care of my organic business and my basic business which was going through. Tomorrow also, why Indore then? You know, why Indore we are going for? Again, when you have a regulated factory, I would say. It's always cheaper sometimes in terms of opportunity cost to, you know, get something ready rather than go and create and then wait for a long time. The very fact maybe Indore might be needed in 2024, maybe I'm saying. Maybe. Right now, what we foresee in an optimistic manner, we should be running out of capacity in March 2023. With Indore coming in, not only the de-risking part of it there, because we already are almost gonna be full capacity. The new product lines which we'll offer in terms of, again, the ampoules and the dual chamber bags and the dual chamber syringes, something which makes sense for us, and that's the call which we are taking right now. For that. Again, I think, the business sense in terms of that makes much more sense for us, for it, for us to go for that. However, I think in terms of valuation, Roonghta, sir, would you like to add something to this? Roonghta, sir, are you there? I think this really helps, Pranav. Yeah. All right. No problem. Yeah. The other question that I had is that, I mean, typically see that new products tend to face competition after 4-5 years. Right. The margins tend to erode both in domestic and exports markets. More in exports, less in domestic. In general, there is a lot of competition that comes in after 4-5 years. Just wanted to understand in terms of our top 5 products, where are we in that life cycle and how do you see that panning out in the next 3, 4, 5 years? Just in terms of our top 5-7 products, if you can just give some comment on that. The top five products continue to be in the mid or the, I would say, you know, I would say in the middle segment only because again, when we talk about these. It's, it's all also about molecules, but we'll talk about some improvement which we get in that. Let me give you an example of vancomycin. When we entered the German market with vancomycin, I think we might be almost on the tail end of their product cycle, where we know that we are playing a, you know. I mean, we are competing with the worst pricing possible ever. The advantage of the vancomycin is, you know, once we get that entry through, then we follow it with the teicoplanin, where we are in the first window where, you know, teicoplanin is still a molecule which is, still not gone through that same process. Again, it's not about the top five or the top ten because, you know, it's all geography-wise and it's all strategy-wise in terms of placement. That's the ever-growing pipeline. At the same time, you know, the backward integration helps us to take care of the erosion. Yes, there will still be erosion, there will still be things. Even when in the height and the peak of erosion, we should be having that economies of scale and that product market penetration. Still I'm looking at my numbers of maybe right now we have done INR 620 crore. If I take extrapolate my representation on a global level where the reach is there, even with the pricing which I've offered, I've never seen those margins which maybe a company might have seen earlier in a U.S. or a Europe or XYZ. Even in India or be it beyond, I've always entered the market with a sort of an aggressive or, you know, those tail end or maybe middle end margins also. But the new things and the new innovation which we'll come up with will always help us to always amp the game in terms of margins going forward. And that is where the ongoing pipeline is gonna determine the way going forward. Still, like I say, in peak load of, I would say, the tail end of the product cycle also, we have enough to sustain us and ensure that those margins keep on coming in because of the economies of scale and backward integration. The products are not gonna be stopped using. They are gonna be used. I mean, I wouldn't say word perpetually, but they will still be used for a long time. That is where the Indian market combination with the international market helps us for the use to go ahead. Right. Got it. Can I ask another question? I have one more question, if I'm allowed to. I'm a little before. I don't know if, you know, the coordinator will crucify me for that. Coordinator, your call. What can you do? Sir, you can continue. Thank you. Thank you very much. I just wanted to know about the global market, global demand for lyophilized products. I mean, if you can just talk a bit about what is the global market in terms of size and which therapies and which products are used the most. I mean, going forward, I was just trying to understand, going forward, if there is going to be greater need for such products, and if you can just broadly give a sense what rate is the market growing at. I mean, that's it. Sir, this is the most amazing question which you can ask me because, you know, I'm gonna answer in a very short way. If I tell you why I'm getting into something and why I'm going to do something in my future because of XYZ and Z reasons, what would be the novelty inside here which is left behind with me? The very fact we are very bullish upon it is because of some internal data and numbers which we have really worked very hard in accumulating and getting it such. I would not like to give it away on a free scale to any competitor or anyone in the market. Yes, I can just assure you there are a lot of independent reports and published reports by ACNielsen or even Thomson Reuters or even for that matter, IMS, which you can just go through. Just take that example of the last two years where a lot of life-saving projects, products in different fields have come up with lyophilization. So how much percentage, how much all growth? I mean, we have a business plan. You know, I'm sure if you become part of Gufic and you want to join us, we'll be more than happy to share as part of business development to you in the times to come. Right now, I feel this platform is not the right platform to share all those intricate details on this platform. I hope you understand. Please don't take it any way, Rohit. It's just- Sure. Yeah. Yeah. Sure. Yeah. Thank you. Ladies and gentlemen, due to time constraint, this was the last question. I now hand the conference over to Ami Shah for closing comments. Over to you. Thank you everyone for joining this call. I hope we have clarified all your queries. In case there are any further queries that have remained unanswered today, you can reach out to us or to Mr. Deven Dhruva from SJA Investor Relation Partners. The contact details are provided on the last slide of the presentation uploaded on the website of the stock exchange and also on the website of the company. Thank you so much. Please stay safe and take care. Thank you. Thank you, members of the management. Ladies and gentlemen, on behalf of Gufic Biosciences Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.