Ladies and gentlemen, good day, and welcome to Dr. Reddy's Q3 FY 2022 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 phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Agarwal, Head of Investor Relations. Thank you, and over to you. Thank you. Very good morning and good evening to all of you, and thank you for joining us today for the Dr. Reddy's earnings conference call for the quarter ended December 31, 2021. Earlier during the day, we have released our results, and the same are also posted on our website. This call is being recorded, and the playback and transcript will be made available on our website soon. All the discussions and analysis of this call will be based on the IFRS consolidated financial statements. To discuss the business performance and outlook, we have the leadership team of Dr. Reddy's comprising Mr. Erez Israeli, our CEO, Mr. Parag Agarwal, our CFO, and the investor relations team. Please note that today's call is a copyrighted material of Dr. Reddy's and cannot be rebroadcast or attributed in press or media outlets without the company's expressed written consent. Before I proceed with the call, I would like to remind everyone that the safe harbor contained in today's press release also pertains to this conference call. Now I hand over the call to Mr. Parag Agarwal. Over to you, sir. Thank you, Amit, and greetings to everyone. Hope all of you are keeping well. We had yet another quarter of good performance in terms of year-on-year growth in revenues and profits while maintaining healthy EBITDA margin and generating good cash flows. Let me take you through the key financial highlights for the quarter in a bit more detail. For this section, all the amounts are translated into U.S. dollar at a convenient translation rate of INR 74.39, which is the rate as of December 31, 2021. Consolidated revenue for the quarter stood at INR 5,320 crore, that is $715 million, and grew by 8% on a year-on-year basis and declined by 8% on a sequential quarter basis. Year-on-year growth has been supported by growth across most of our businesses and was driven by good base business performance and recent launches. Sequentially, however, our revenues were impacted on a higher base of Q2, which had a higher contribution from COVID-related products and recognition of out-licensing income in our proprietary products business. Consolidated gross profit margin for this quarter has been at 63.8% which was flat over previous year. However, the margin increased by 40 basis points on a quarter-on-quarter basis. Gross margin for the global generics and PSAI were at 57.8% and 22.5% respectively for the quarter. The SG&A spend for the quarter is INR 1,541 crores, that is $207 million, an increase of 7% year-on-year and a decrease of 3% quarter-on-quarter. The year-on-year increase is in line with our business growth and on account of continued investments in sales and marketing activities for brands in India and emerging markets. As a percentage of sales, our SG&A has been at 29%, which is lower by 20 basis points year-on-year. The R&D spend for the quarter is INR 416 crores, that is $56 million, and is at 7.8% of sales. R&D spend increased by 1% year-on-year and declined by 7% quarter-on-quarter. The product development activities continued normally during the quarter, and we continue to build a healthy pipeline of new products across our markets. The EBITDA for the quarter is INR 1,266 crores, that is $170 million, and the EBITDA margin is 23.8%. The EBITDA margin for the nine months in this fiscal is at 24% and is closely tracking our aspiration target of 25%. Consequently, our profit before tax stood at INR 971 crores, that is $131 million, which is a growth of 242% year-on-year and a decrease of 23% quarter-on-quarter. Adjusted for the impairment charges, our profits grew by 10.7% over previous year. Effective tax rate for the quarter has been at 27.2%. We expect our normal ETR to be in the range of 25%-26%. Profit after tax for the quarter stood at INR 707 crores, that is $95 million. Reported EPS for the quarter is INR 42.48. Operating working capital decreased by INR 512 crore, which is $69 million, against that on September 30, 2021. The decrease was primarily driven by a decrease in receivables of INR 616 crore, aided by higher collections. Our capital investment during the quarter stood at INR 414 crore, which is $56 million. The free cash flow generated during this quarter was a net inflow of INR 1,274 crore, which is $171 million. Consequently, we now have a net cash surplus of INR 998 crore, that is $134 million, as on December 31, 2021. Foreign currency cash flow hedges in the form of derivatives for the U.S. dollar are approximately $360 million. Largely held around the range of INR 75.4-INR 78.9 to the dollar. RUB 58.75 million at the rate of 0.9909 to the ruble. AUD 2.5 million at the rate of INR 58.74 to the Australian dollar, and ZAR 36.9 million at the rate of INR 4.97 to South African rand, maturing in the next 12 months. With this, I now request Erez to take us through the key business highlights. Thank you, Parag. Good morning and good evening to everyone. I hope you and your family are all safe and healthy. I'm pleased to share that we had a strong financial performance during the quarter without any benefit from one-off or COVID-related sales. We have grown year -on- year across our key businesses and both EBITDA and ROCE margins are closer to our aspiration and target of 25% each while we continue to invest in our future growth business. We have been able to achieve this despite certain industry-level headwinds, like a higher level of price erosion across the generic segment here in the U.S. market, increasing commodity prices and higher freight costs. This sustained performance shows the resilience we have been able to build with our diversified business model to mitigate such external headwinds. We also generated significant cash flow during the quarter and are now having a net cash surplus, which will enable us to invest for future growth. Let me take you through the key business highlights for the quarter. The reference of these numbers and these sections are in respective local currencies. Our North America generic business recorded sales of $248 million for the quarter with a year-over-year growth of 6% or a sequential quarter decline of 2%. During the quarter, we continued to gain market share for some of our key products, including a recent launch of Icosapent ethyl soft gels. However, the sales were impacted due to a price erosion for some of our products and has been the case for our entire sector and seasonal demand variation for few of our key products. We launched four new products in the United States during this quarter. Our Europe business recorded sales of EUR 47 million and was largely flat both year-over-year and sequentially. During the quarter, we launched four new products in Germany and one product each in France and Ireland. We are expecting few good launches during Q4, which should enable us to return to growth in this market. Our emerging market business recorded sales of INR 1,154 crore with a strong year-on-year growth of 20%, however registered a sequential decline of 11%. Within the emerging markets, the Russia business grew by 2% on a year-over-year basis and declined by 18% on a quarter-over-quarter basis in constant currency. As informed earlier, the Q2 performance in Russia was very strong and supported by seasonal demand and launch of biosimilar bevacizumab. In the rest of the world market, sales were supported by one-off sales of the COVID-related products. During the quarter, we launched 16 new products across various emerging markets. Our India business recorded sales of INR 1,027 crore with a year-over-year growth of 7% and sequential decline of 10%. Adjusted for COVID-related portfolio sales in the previous year and the last quarter, the India business performance has been fairly strong and in line with expectations. During the quarter, we launched four new products in India market. As per our IQVIA report of December 2021, we have grown higher than the market at 23.1% on net basis against market growth of 18.1%. Our PSAI business recorded sales of $97 million with a year-over-year growth of 2%, but sequential quarter decline of 14%. We expect the performance to improve in the coming quarters. During the quarter, we filed 32 drug master files globally, including two filings made in the United States. We have also filed 22 formulation products across global markets and one ANDA in the United States. As of December 31st, 2021, we had 91 cumulative filings pending for approval within the U.S. FDA, which include 88 ANDAs and three 505(b)(2) NDAs. During the quarter, we have signed a deal with Fresenius Kabi for commercialization of our biosimilar rituximab in the United States. We are also continuing with global development of five to seven other biosimilar in our portfolio that are in various stages of preclinical and clinical development. Earlier during the month, we have launched molnupiravir in India, expanding our portfolio to fight against the ongoing COVID pandemic. We are also working on certain export opportunities in line with the licensing rights obtained from Merck. As regards to Sputnik, we are now ready with capacities in India. We are working actively with the government of India to register the Sputnik Light as a vaccine and as a booster dose for Sputnik V. We have also submitted proposal to DCGI to conduct trial to test Sputnik Light as a booster to other vaccines. Sputnik continues to be a viable option for Dr. Reddy's for India and other countries. Consistent with our aspiration and healthy balance sheet, M&A remains an integral part of our growth strategy, and therefore, we are actively pursuing few deals across our focus geographies. We are progressing well to strengthen the key processes in core businesses and in the digitalization journey. Going forward, we are looking to double down our efforts on very critical important areas of innovation as well as ESG. There is a good progress to deliver on the short-term and long-term growth leaders across our businesses, and we remain committed and optimistic about this. I am pleased to share also the recent recognitions of our efforts toward ESG. In November 2021, we were positioned ninth among pharma company in the world in the Dow Jones Sustainability Index 2021. During the quarters, we were also recognized by the UN Women for gender inclusivity in the workplace. Our FTO-P1 manufacturing plant in Vizag was honored with the prestigious National Energy Conservation Award by the Bureau of Energy Efficiency, Ministry of Power government of India. We have been recognized as the Most Innovative Company for the year of 2021 at the CII Industrial Innovation Awards 2021. Earlier this month, we won a prestigious APEX Award, Sustainable Corporate of the Year at the 2021 Frost & Sullivan TERI Sustainability 4.0 Award. As you can see, ESG should continue to remain our focus area, and we are going to increase our efforts in that direction. With this, I would like to open the floor for questions and answers. 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 please press star then one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star then two. Participants are requested to use handsets while asking a question. Anyone who wishes to ask questions, please press star then one. The first question is on the line of Kunal Dhamesha from Emkay Global. Please go ahead. Good evening, and thank you for giving the opportunity. So the first question is on the U.S. You have mentioned that the price erosion has been kind of little bit severe, but Erez, if we kind of do a back calculation, is it fair to say on a sequential basis it's somewhere in the high singles to low double digits kind of price erosion in U.S. for this quarter? We did see. I don't see it as a kind of global phenomenon. It's continued to be a product-based situation, but in Q4, a relatively larger number of our products face competition. In that respect, on the overall basis, it's more like a double digit. Despite that, we are still growing. We managed to offset this erosion with new products, with market share, as well as with the pro-productivity activity. This still remain the issue and the growth of about, I think now nine out of ten quarters we are growing in the U.S. This will continue to be a kind of the phenomenon also in the future, in which I do see growth, maybe slower than other markets, but we are still going to grow in that business. Okay. Sure. Secondly on the COVID-related contribution across our India and emerging markets, what would that be as percentage of revenue for the first nine months? It was primarily in the second quarter, not so much in the first quarter. First quarter was without a major sales of COVID products. Mm-hmm. We will see probably also more in Q4. In this respect, I'd say the main contribution of this portfolio will be in the second as well as in the fourth, not so much on the sales. In India there was contribution in first quarter as well, right? With this Delta wave. In the first quarter, not so much. That's why on the sequential basis, when you compare India, Mm-hmm. That's why there is a decline because it was relatively large contribution during the second quarter, but not so much in the third. The second, if you remember, was very much affected by the Delta wave, and this one is the Omicron wave. In between, luckily there was no another wave, therefore not so much demand. Sure. Erez, just on the follow-up on that, you know, now that we are seeing healthy COVID, you know, contribution at least for the first nine months, you know, do you see that to continue in FY 2023 or, do you see, you know, that COVID contribution, would not be a big part in FY 2023? We are preparing for that, so all the activities around prevention, whether it's vaccines or products as well as community treatments, whether it's the products that we have like Umifenovir and additional products that we are working on, they're meant for that area. Naturally, we don't know how this pandemic will evolve. It's hard to predict how it's going to be, but we are prepared for it. Okay. If it doesn't pan out, do we still have growth levers in place to grow on this base? Absolutely. We will continue to grow in the spirit that we have discussed in the past, double-digit growth, 25, while financing the business with or without COVID products. Okay. This is the extra. Okay. Thank you. Thank you, Erez. Thank you. The next question is from the line of Neha Manpuria from Bank of America. Please go ahead. Yeah, thank you for taking my question. Erez, you just mentioned about double-digit price erosion in the U.S. Could you give us some color on how this is, you know, trending in the quarter, given a good product mix? Should we see this abating to more normalized price erosion? You know, any color on that? It should be. I believe that most of the products that face the erosion, we are already there. I don't anticipate the business model, the position in the U.S. will continue as it normally does. The business model will not change in terms of the products that were affected by that. I believe that most of the effect is behind us. Understood. And just to understand, given we saw double-digit price erosion in the U.S., but if you look at our generics gross margins, they seem to have improved close to about 100 basis points quarter-on-quarter. Any color on, despite the fact that we had headwinds in terms of raw material costs, et cetera, what drove these improved margins? It is a combination of what I discussed. First launch of products which change the mix, so it's improved mix. Second is productivity activity that we are doing on the cost improvement programs and others. Third is market share with the relevant products that we have better productivity. We were preparing for ourselves for this phenomenon. Like I mentioned in my script, we are growing despite of those headwinds. I'm not so concerned about that going forward. Understood. My last question, Erez, is on the India business. Since you mentioned there was no, you know, COVID product contribution, should I assume there was no contribution from, or very little contribution from Sputnik, too, in the quarter? Yes. In quarter two, there was a relatively higher demand because it was very much affected at the time by the Delta wave. This quarter, luckily there was no such a demand in India. What we are going to see is the contribution in India in Q2 as well as we are going to see some in Q4 because of the current wave of COVID. Q3 was very less. What about the export, you know, export opportunity for Sputnik V? Are we in discussions with the government to, you know, allow us to export, given that, you know, the booster trial will just start, so that is some time away? We can export the products, our COVID vaccine as well as the other products. Okay. You've started exporting it in the current quarter or not yet? In Q3 we did not export COVID products. Understood. Thank you so much. Thank you. The next question is from the line of Damayanti Kerai from HSBC Securities and Capital Markets. Please go ahead. This question is, can you share your observations on the commodity and raw material price, whether you have seen some kind of moderation compared to second quarter, and how do you see this part moving up in next few quarters? Yes, we did see it. We saw it in three areas. Some commodity intermediates, especially those that are serving us in the API. The second is in the energy cost, especially coal a few months ago, especially in India. The third is on the freight and the shipping cost. All of that we absorbed and are within the margins. We countermeasure it with other activities to offset for that. I believe that the trend is behind us in a way that I do not anticipate additional hike in that magnitude. Some of the prices did not go down yet to the original level, but I don't anticipate additional inflation in that magnitude of scale. Very broadly, we can assume that the peak is over and price might see, I'll say, more moderation from here on. As much as one can predict, it looks better now. How to predict with the pandemic and the geopolitical situation in the world. Assuming no other big event, it should be better. Thank you. My second question is, can you talk a bit about your biosimilar portfolio, which you are working on, and which are your target markets for key products? You're talking about COVID? For biosimilars. Biosimilars? Yes. We are targeting globally. We have rituximab, which we have now commercially with most of the emerging markets and the primary markets for it today is India and Russia. Then we have the rituximab and additional four biosimilars, primarily for emerging markets. In addition to that, we are in the development. As I shared in my script, we signed a deal for rituximab for United States, and with that and with Europe we will do it by ourselves. Rituximab is going to be our first global product. We have right now additional three products in clinical trials as well as additional products that are in the pre-clinical stage. Overall it's a healthy portfolio that will cover us very nicely from about 2024 until 2031, 2032, in which we will launch all of these products. My last question is, have you heard any update on your Duvada plant from the U.S. FDA? We did not receive any feedback from the U.S. FDA as of today. It normally takes 90 days. The 90 days are due sometimes next week, so around that date, we'll probably get feedback. We had two milestones to submit certain data as part of our commitment to the response to the U.S. FDA of the Form 483 that we got. We submitted it on time and in full, and we are awaiting the feedback and hopefully to get an EIR for this plant. That's helpful. Thank you. I'll get back in the queue. Thank you. The next question is from the line of Ashwin Agarwal from Akash Ganga Investments. Please go ahead. Hello, am I audible? Yes, yes, please. For my first question would be on this pre-filled syringe, which we have talked that would mostly be commercialization in Q3 FY 2022. Can you just update me the status for like what is the right now current situation on that part? Which part? Sorry, we couldn't get your question. Can you please repeat? Yeah, sure. The question is on the pre-filled syringe, which we will be launching in Q3 FY 2022. Can you just update me with the status right now? Currently it is with Alvotech. For the U.S. and Europe market we have a deal with Alvotech, and basically they have, I think guided for calendar 2022 launch. As of now that's the status. Okay. My second question would be a bit odd, but actually I wanted to understand on that part, key whenever we launch the product, what is the average duration at which we can command the premiumization compared to when that it becomes, you can say a normal or a pricing product? No, I don't think we will be able to comment on that part. Okay. No issue. Thank you so much. Thank you. The next question is from the line of Surya Patra from PhillipCapital. Please go ahead. Yeah, thank you for this opportunity. So just on the pricing erosion situation in the U.S. what you mentioned, is it largely Dr. Reddy's specific, and double digit kind of price erosion situation, and possibly could be because of more number of Para III launches by you? Is that the situation or it is broad-based double digit kind of price erosion that you have experienced so in U.S.? It's the business model in the United States. Naturally every company is facing price erosion. I think the proportion of the price erosion is very much based on how many of your products are facing competition, and what is the timing in which the customers are issuing their RFPs. In our case, we had the... As we launched, let's say in the last two years, about 84 ANDAs in the United States, so naturally those ANDAs, by design, will face competition. They are larger in proportion out of the entire basket. Let's say that's why percentage per se is less, for me at least, indicator of the health of the business. The health of the business, the way I look at it, is growth and EBITDA and ROCE. So far, it's pretty healthy, and we are maintaining the margins and even growing a little bit in United States despite those headwinds. Sure, sir. The second point is on the, let's say, U.S. has so far been the dominant revenue contributor and earning contributor for us. In the recent times, we have obviously thought about diversifying our focus towards emerging market, new market like China and all. Also accordingly reducing the R&D spend focus targeted for the U.S. market. Let's say five-year down the line, is it fair to believe that the share of North America, revenue share of North America will be meaningfully different than what currently it is? Indeed, you described our strategy for the last four years. We are investing in other markets for growth in both India and emerging markets, and this is providing us by using the same fixed assets. It's based on the portfolio of assets, our knowledge, et cetera. This is allowing us more growth, more opportunity, and with less risk. Yes, I think it's fair to say that these markets will grow faster than U.S. The United States will continue to be an important market for us. I just want to emphasize on it, and we will continue to invest and grow in United States. The other markets, emerging market in here will grow faster than the United States, so therefore the average weight in United States will decrease. It's decreasing already and will decrease over time. The capital allocation is done accordingly to the diversification efforts. Okay. Just one last question, sir, on this generic revenue. We have already launched the product in Canada, and that is also a kind of influential science market for this product. Whether we have seen the appropriate number, or the kind of revenue that the product could have generated out of Canada market, whether we have achieved the right size revenue out of it as of yet, or we'll take longer time to achieve the peak potential out in the market from that unit. Yeah. In Canada, it will take a bit longer because in the way that the Canadian process is working, you need to register it in each one of the relevant provinces in Canada, and then for each one of them to participate in the relevant sales processes with the vendors or other mechanism in which each one of the states is providing. Mm-hmm. The process is taking a bit longer. It's not the day one launch that you have, you see in the United States, in this respect. In any case, the launch in the U.S. and the launch in Canada are unrelated, as the launch in the U.S. is part of the settlement deal, while the launch in Canada is naturally a free market situation. It's not the same situation. I would not draw any conclusion from one market to another. Last but not least, we are going to launch this product not just in Canada and the United States. We are going to launch it also in Europe as well as in some emerging markets. This is going to be a global product for us. Sure, sir. Okay. Thank you. Wish you all the best. Thank you. The next question is from the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Hi. Thank you, very much, and good evening to everyone. The first question is for icosapent ethyl, which is VASCEPA in the U.S. Good job done on the market share gain. I think it's now stabilizing around 11%-12% for last few weeks, you know. Have we reached the peak or, you know, what's the outlook over here? And is it the supply that is holding you back? I think that the product is doing well, and we are planning to continue to do well also on the next quarters to come. There is still a lot of market share to gain with this product, as the innovator is still holding a nice market share. In terms of supply, it is not concerning us at this stage. Why is the market share, you know, in early double digit and not much higher if supply is not holding you back? What's the roadblock? The roadblock is the desire of the customer to take the product from us. Okay. That's a little counterintuitive because generic is a lower cost, lower priced, so most of the time customers are too happy to take generic product. Is anything different over here? No, nothing different here. Okay. Okay, that's fine, sir. The second question is on the Russia-Ukraine business. Given the geopolitical situation, what's your read of the situation? Have you seen any disruption or any problem in the business that you are doing over there? The Ukraine-Russia situation is beyond my paycheck. Russia is a very important market for us, will continue to be a very important market for us. Hopefully not, I wish not, but if there will be any adverse event, we'll have to accordingly be prepared for it, and we are. I wish that it will be only peace in the world and calmness. So far, have you seen any impact on the business? No. Okay, great. One final question, if I may, which is on your health tech platform. You know, is there any update over here? How has been the progress? Anything you can share on the physical infrastructure, you know, that you have built, especially for, you know, for online pharmacy fulfillment and diagnostic side? And how many cities have you rolled out? What's the plan going forward for next, you know, four, six quarters? Sure. It is going very nicely. We basically on the last stages of finishing the pilot. We are now present in five cities, going to 10 cities in the next few weeks. This will cover, of course, the main cities of India, including Mumbai and Delhi. Accordingly, will be the rollout of the companies that will join this platform. Our main way to grow this business is by convincing the companies to work with us and give treatment to their employees, and basically insured by our insurance in this product. Of course, rolling out a good service by physicians as well as by other vendors to provide excellent service. This is very neat project, and I'm very proud of the beginning, and we believe in it very much. It's a good thing for us, and I believe it's a very good thing for India as a whole. Okay, great. Thank you so much. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Hi. Good evening, and thank you for taking my question. Just the first one is on the PSAI business. In your opening remarks, Erez, you had mentioned we expect performance to improve quarter-on-quarter. You know, what's driving that optimism? I remember last quarter we had the issue of inventory destock from some of our customers. Just can you help us understand the dynamics in the PSAI business? Sure. If we are taking out, let's call it COVID related behavior by companies and take the business based on its consumption, the main driver of growth will be the launches that will be in the marketplace of April 2023, April 2024, and April 2025 by the customers, bought by internal use as well as external use. If we wish the Pareto, meaning the top products that used to drive this business are going to be changed by products that will be launched in that area, which will be, one, more profitable, and second, bigger in their size. This will drive the growth on the base API. PSAI is comprised also on our CDMO activities that are slightly picking up, and we very much believe in it. Most of the seeding that is done now are with small projects which are in phase I and early phase II. Actually some of these products will come to phase III and beyond that. Of course, service is growth driver for the CDMO segment of the business, which is as I discussed in the past, part of our horizon two activities, and it's seeding and picking up. The service we are selling B2B the PSAI, and it's picking up, and with launches of pharmaceutical products that we are serving in Japan as well as in some Middle Eastern and African countries. The combination of the three should grow PSAI in the future. Got it. That's very helpful. Is it early days, Erez, or can you quantify some of the non-API sections in the PSAI, CDMO, the projects that you're talking about? At this stage, the two sections are not big and we are not going to give yet a specific proportion, but they are not big. They will be more and more meaningful. Right now, still most of the PSAI comprise of API process sales. In the case of Q2, it was comprising some COVID sales as well, which was not like that magnitude in Q2. Some of the sequential trend is related to COVID. Got it. Helpful. Second question is on the Sputnik. I missed some of the early comments. You said you're actively looking to register Sputnik Light as a booster, right? What is the reason for doing the trial with other vaccines? We have to get approval from the authorities here in India for the protocol of the trial. Based on that, depending on that approval of that protocol, we will have a trial with other vaccines so it will serve as another option. Mm-hmm ... for private as well as the government for the booster in the future. We believe that the boosters will be part of our life, and we'll have to take it one or twice a year now. Mm-hmm. We believe that we want to be ready for that. Got it. Helpful, Erez. Last question. Again, on your opening remarks, you are now net cash. M&A, can you just help us understand what those therapy areas are, or is there a geographical plans as well? Which are some of the assets or products that you will be looking to acquire? We are looking for opportunities in all of our spaces, all geographies, India, naturally as well as emerging market, United States and Europe. In all of those geographies, there are now active projects. Some of them can be faster within the next few weeks, if of course will be concluded, and some of them may be later. The nature of the capital allocation will be the same as we discussed in the past. We are not in the shopping spree. We see it as complementary to our organic growth. At the same time, because we have a very comfortable financial situation, we are planning to use that. Now let's see which of the projects will actually eventually come to conclusion. Likely that we will see multiple deals in the next coming months. Got it. Thank you so much, Erez, and all the best. Thank you. Thank you. Thank you. The next question is from the line of Ashish Tapadiya from Motilal Oswal Asset Management. Please go ahead. Yeah. Thanks for the opportunity. So on the Sputnik, you said obviously we have got permission from the government to export. Can you quantify the dosage that we are planning to export, or we are open to export any amount or there is a restriction? No restrictions. I cannot specify now a specific number, but there are no restrictions that prevent us to export. Okay. These numbers will be reflected in fourth quarter, you believe so? It depends on the type of approval that we'll have for the product. For example, if Sputnik Light will be approved eventually as a vaccine, and the will be into that as a booster supplement to get the booster for other products, then we look at WHO. If all of this will happen, it can create a nice opportunity for us. And of course, the quantities will be accordingly. So it depends of course on the type of proposal that is relevant for this market at this particular time. Okay. So to get this thing clear. You cannot export till you get some sort of approvals from various agencies. Is that the right understanding? No, no. We can export, but naturally, our customers will not buy a product that is not approved for use in development markets, and for the relevant patients that want to use it. They should be approved in that specific country for the use, either as a vaccine or as a booster. This is where the -- from there will derive the quantities. Okay. But actually, I do understand, this productive approved from most of the Scandinavian countries. How about that? This is not part of our agreement with the Russians, so this will come directly from Russia not from us, with this type of markets. Okay. Got that. The next question was on this year launch, but I missed the data. We were supposed to launch in quarter three, right, through Fresenius Kabi. We have launched a product or, there's a delay? If the delay is there, why so? I did not get the question, sir. I think basically Fresenius has mentioned or indicated basically calendar 2022 is when they expect to launch the product in both U.S. and Europe markets. Do you say that we are still probably two, three quarters away from the launch? They have not specified the quarter, but maybe next one or two quarters it may happen. Obviously we don't have the specific dates. Okay. Fair enough. Just last question on this price erosion in the U.S. It's been quite a while since we are facing double-digit price erosion. As the investors understood, we felt that by the end of March, the intensity of the price erosion should gradually start coming off. In your experience and what do you see in the market, would you be on similar lines? Would you also say that price erosion intensity would eventually come off by end of March? As I mentioned before, it's price erosion and the magnitude of the price erosion is not top-down, it's bottom-up, meaning it depends on the product that is facing that specific competition. In our case, most of our portfolio faced it. It's likely that we are not going to see another round for these specific products and hence it will probably come down. It's not a top-down, it's a bottom-up. And that's from this- Mr. Kunal, your line is unmuted. Please proceed with your question. Yes. Thank you. Thank you for the opportunity. I have a question on the Chinese market. Recently we have seen there have been lockdowns in several provinces. How has been our performance in the recent quarters? We can move on. It is. Sure, sir. I do not seem to hear you. We take the next question from the line of Kunal Dhamesha from Emkay Global. Please go ahead. Yeah. Thank you for the opportunity again. On Pegfilgrastim, we are seeing that the launch can happen in next 1 or 2 quarter. Have we supplied any initial inventory to Fresenius Kabi, or it will happen once the approval comes around? And I assume that it will also take time, right, if already not supplied. Just to straighten, as part of the deal, we just have a certain financial arrangement with Fresenius. Once they will go, we will enjoy a stream of value that will come from their launch. We are not supplying and not involved in the launch, and we are not aware of the date, and we are going to be advised by them when they will decide to do that. Okay. Sure. Thank you. Next question is from the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Thanks for the follow-up. I hope my voice is audible. There seems to be some disruption. Just one final question. How are you thinking about your injectable portfolio for the U.S. market? As in how many, you know, ANDAs have been filed? And are there any complex, you know, long-acting type, you know, microsphere type, product, peptide products that you have done the filing? And, you know, when can we start to see the approval cycle begin for these? It's naturally very important to us, not just in the U.S. but also globally. The answer is yes, we do have these complex generic assets as part of that effort. Some of it took long time to develop, some we are still in development. Overall, the injectable and the complex generic will drive the growth in the United States on the generic part, and it will grow faster than the retail products. Sir, very specifically, have you filed some of these high-value complex injectables? We did file some high-value complex injectables, yes. Okay. The PAI done at Duvvada, does it relate to one such product? Some of these products are coming from Duvvada, yes. No, no, sir. The question is the PAI, Pre-Approval Inspection, done by FDA, was it related to one such, you know, complex, large injectable product? The PAI was not related to specific products like that, but naturally when you have a PAI, they are not checking only the specific product, they are checking the entire site. Okay. Got it. Yeah. Thank you so much. Thank you. Ladies and gentlemen, we take the last question from the line of Alok Dalal from CLSA. Please go ahead. Yeah. Good evening. Taking Sameer's question forward on Duvvada, would you still expect to grow in the U.S. next year if there is an adverse observation on Duvvada from the FDA? Alok, we hope not to have this adverse effect. Second, at this stage we're not looking for scenarios that we don't have these sites. These sites are very important for the growth in the United States, not just next year, but also in years to come. Okay. Erez, any update on NuvaRing? Internally, have you decided to go ahead with the launch or drop it? We did not finish all the evaluation, but unlikely that you'll see launch in the next few months. Okay. Lastly, any update on Copaxone? It's still in process. It's now in the FDA court. The ball is in their court, meaning that we have submitted all the relevant information, and we are waiting for the response. Again, I believe that at least I don't think likely to see a launch in the next few months. Got it. Okay, thank you very much for taking my questions. Sure. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Thank you all for joining us today for the earnings call. In case of any further queries, please reach out to the investor relations team. Thank you. Thank you very much, sir. Ladies and gentlemen, on behalf of Dr. Reddy's, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.