Good morning, ladies and gentlemen. Welcome to the Q3 FY 2024 earnings conference call of Glenmark Pharmaceuticals Limited. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarsh Gandhi, General Manager Investor Relations for Glenmark Pharmaceuticals. Thank you, and over to you, sir. Thank you, Lizanne. Good morning, everyone. Welcome to the Q3 FY 2024 results conference call of Glenmark Pharmaceuticals Limited. Before we start the Q&A, we'll review the overall performance of the company for the third quarter of FY 2024. For third quarter of FY 2024, Glenmark's consolidated revenue from operations was at INR 29,096 million as against INR 34,639 million in the corresponding quarter last year, recording a year-over-year decline of 16%. The lowest sales in the current quarter was mainly on account of a one-time impact on the company's India business. Excluding this impact, the approximate growth over previous years would have been around 9%. For nine months of FY 2024, Glenmark's consolidated revenue was at INR 98,991 million as against INR 96,164 million, recording a growth of 2.9% year-over-year. We'll just give some key updates on the formulation business across the regions. We'll start with India. Sales from the formulation business in India for the third quarter of FY 2024 were at INR 2,622 million as against INR 10,745 million in the corresponding quarter last year. During the third quarter, Glenmark implemented changes in its overall distribution model to consolidation of stock points and rationalization of some channel inventories, which has led to a one-time impact in sales for the India business in this quarter. However, this will help Glenmark in improving our operating margins and overall working capital in the future. The changes will also help accelerate some anti-counterfeiting packaging rollout and ensure that it reaches faster to the patients. In terms of secondary sales, we continue to outperform the overall industry in terms of growth. As per the IQVIA data for December 2023, Glenmark's India business has actually recorded a growth of about 12% in the third quarter and about 11.5% as of mid-December. In comparison, the overall market grew at about 8% in the third quarter and about 9.5% as of mid-December. We obviously, again, clearly continue to outperform the market in terms of our key therapy areas such as cardiac, dermatology, and respiratory. And Glenmark's business continues to be ranked 14th with a market share of about 2.13%. We continue to have nine brands in the top 300 brands of the Indian pharmaceutical market. And in terms of key therapeutic areas, Glenmark is ranked second in both respiratory and dermatology, and ranked fifth in cardiac, and 17th in the diabetes segment. Because of our higher growth, we've obviously improved our market share further in these key therapy areas. In October 2023, Glenmark launched in India the first triple-drug combination of the widely used DPP-4 inhibitor teneligliptin, SGLT2 inhibitor dapagliflozin, and metformin SR under the brand name Zita-DM. In January, Glenmark also became the first company to launch a biosimilar of the popular antidiabetic drug liraglutide in India under the brand name Lirafit. This launch will sharply lower the daily cost of therapy by around 70%, making liraglutide more accessible to a large number of patients in the country. In terms of our consumer care business for India, the primary sales in Q3 was at about INR 482 million with a year-over-year growth of 18%. Our flagship brand, Candid, has delivered 20% growth in Q3. La Shield has also delivered about 20% growth, while Scalpe also witnessed a double-digit 12% growth in Q3. Moving on to North America, the North America business registered revenue of about Rs. 7,629 million, which is about $91.6 million for the third quarter. This was against revenue of INR 8,373 million, which was about $102.3 million for the third quarter of last year, translating into a year-over-year decline of about 9%. Q3 sales were impacted mainly on account of a lack of significant new product launches in the preceding quarters. However, in the third quarter, Glenmark has launched about seven products. So we launched prochlorperazine maleate, sulfasalazine tablets as well as benazepril hydrochlorothiazide tablets. Upcoming quarter, we plan to sign five new NDAs. During the quarter, we have significantly expanded our injectable portfolio through exclusive product partnerships. We've launched around four products in the injectable segment, including fosphenytoin, octreotide injection, posaconazole, as well as ketorolac injection. We now have five injectable products commercialized in the markets, and these launches are likely to positively impact the U.S. business from Q4 FY 2024 onwards. Company is also hoping to restart commercialization of further injectable products from the Monroe manufacturing site from FY 2025. Glenmark has also leveraged its strong development capabilities in the respiratory therapeutic area to build a portfolio for the U.S. market. We have already signed two NDAs for generic nasal sprays, which are awaiting approval. In addition to that, the ongoing clinical trial for generic Flovent pMDI has been completed, and we expect to file the NDA for the same in the first quarter of FY 2025. We are also planning to file at least one more generic respiratory pMDI for the U.S. market in FY 2025, and we'll continue finding momentum across the respiratory product segment beyond that as well. Moving on to Europe, Glenmark's Europe operations registered a revenue of INR 6,357 million as against INR 4,932 million, recording a strong growth of about 29% year-over-year. Our Europe operations continue to continue the strong growth trajectory driven by a robust uptick in the branded business and also sustained growth in the generics business. Western European business continues to clock 20% growth for Q3, mainly led by all key markets like the UK, Germany, and Spain. Multiple product launches have also aided the growth in Q3. Across markets in the CE region, which is where our branded business is primarily sold, we have recorded strong double-digit growth. The Czech market recorded about 40% growth in secondary sales, and Poland also recorded about 20% growth in secondary sales. Respiratory portfolio, which has been launched by Glenmark in Europe, continues to do well. Key brands such as Ryaltris, Salmex continue to sustain their market share both in terms of value as well as in terms of volume across the European markets. Moving on to ROW, for the third quarter of FY 2024, revenue from the ROW region was INR 7,250 million as against INR 6,541 million for the corresponding quarter last year, recording a year-over-year growth of 10.8%. We continue to witness growth in the base business across all subregions of the ROW market. For Russia, as per IQVIA Q3 and MAT data, we recorded 7% and 18% growth in value, respectively. In terms of our key therapeutic areas in Russia, we continue to do well in dermatology, where we recorded 20% growth as compared to the overall market growth of about 8% as per the IQVIA MAT December data. We are ranked ninth in the dermatology market in Russia, and in the expectorants market in Russia, we continue to be ranked second. We've launched a few key products in Russia in the first nine months, which are also aiding our growth. Ryaltris continues to gain market share as of nine months of FY 2024. The Asia region also recorded 20% growth in secondary sales driven by markets like Philippines, Malaysia, Sri Lanka, and Vietnam. Top contributing brands both in dermatology and respiratory segments have contributed to the strong growth in the third quarter. We've also received around 10 new product approvals across markets in this region, mainly in dermatology, respiratory, and oncology. Ryaltris, which has been launched in the Asian markets like Australia, South Korea, and Malaysia, continues to do well across these markets. Middle East Africa region also recorded about 15% growth in sales during the third quarter. The company continued to achieve strong double-digit secondary sales growth in Kenya, South Africa, Saudi Arabia, and other markets. Ryaltris has been launched in Saudi Arabia in Q1 of this year or Q1 of FY 2024, and the product has done well. It has received good response in the market. Ryaltris continues to be the leading nasal spray for allergic rhinitis in South Africa, where the product was launched about 18 months back and is already the leading product there in terms of allergic rhinitis. We've also launched Ryaltris in four additional Middle Eastern markets during the third quarter. Latin America witnessed strong growth of 30% in Q3. Respiratory, again, is a key contributor for Glenmark across the key markets like Brazil and Mexico. We continue to maintain our rank amongst the top 10 markets in the covered market of the chronic respiratory segment in Brazil and Mexico. Moving on to Ryaltris, so as of the end of third quarter of FY 2024, we have signed marketing applications for Ryaltris in more than 70 markets. Product has been commercialized in 31 markets, including the major markets that we spoke about previously. Further, product has also been approved in 18 other markets, where it will be launched over the course of the next 3 months-6 months by either Glenmark or our partners. Glenmark's commercial partner in the U.S., Hikma, continues to see strong use prescriptions, and sales force is focusing on high-prescribing physicians. Our partner in mainland China, Grand Pharmaceuticals, is progressing the application and registration process and expects to launch the product in mid-2025. We also provided some market share data for Ryaltris across our key geographies in the MD&A document. Moving on to Glenmark Life Sciences, external sales for GLS in Q3 FY 2024 were INR 4,129 million as against INR 3,756 million in Q3 last year, recording a year-on-year growth of about 10%. We announced in September regarding the definitive agreement which was to divest 75% subsidiary. The transaction is ongoing and subject to customary closing conditions, including receipt of regulatory and shareholder approvals. Moving on to Ichnos Glenmark Innovation. So recently, Glenmark and its global fully integrated subsidiary biotech subsidiary Ichnos Sciences announced the launch of their alliance, Ichnos Glenmark Innovation or IGI, to accelerate new drug discovery in cancer. This alliance combines Glenmark's R&D proficiency in small molecules with those of Ichnos in novel biologics to continue developing cutting-edge therapy solutions to treat hematological cancers as well as solid tumors. The newly formed IGI features a robust pipeline of three innovative oncology molecules targeting multiple myeloma, acute myeloid leukemia, and solid tumors, and all three are undergoing clinical trials. Two of these molecules have also received orphan drug designation from the U.S. FDA. Additionally, IGI has two autoimmune disease assets that have been outlicensed to leading companies. Going forward, all of Glenmark Group's investments on innovative assets will be channeled through the IGI alliance. Just a quick update on GRC-54276, which is part of the IGI portfolio now. This is being developed as an orally administered neoadjuvant therapy for patients with solid tumors. This is an HPK1 inhibitor. Part 1A monotherapy phase of the study is ongoing in India since July 2022. Additional subjects are being recruited in the 50 mg monotherapy batch cohort. Phase 1, Part 1B combination study of GRC-54276 with pembrolizumab and atezolizumab was initiated in India and the U.S. in Q1 and Q2 of FY 2024, respectively. As of the third quarter, 2 dose cohorts of GRC-54276 with these molecules have been completed, and patient recruitment and dosing is ongoing for the third quarter. Just some notes to the results before we open the Q&A. Forex loss for the quarter was at INR 16.8 crores. Also, we had a INR 48 crore impact due to hyperinflationary accounting in Argentina. Both of these are recorded in other expenses. Exceptional item for the quarter comprised of legal costs associated with the U.S. litigations as well as remediation costs, primarily in the manufacturing site in India. R&D expenditure in Q3 was at around INR 308.8 crores. The consolidated asset addition for the quarter was at Rs. 236.8 crores, of which tangible asset addition was about INR 178 crores and intangible was about INR 58.8 crores. Gross debt for the period ended December 31st was at INR 4,953 crores. Net debt for the period ended December 31st, 2023, was at INR 3,523 crores. In terms of working capital, at the end of December 2023, inventory was at INR 3,402 crores. Receivables was at INR 3,056 crores, and payables was at INR 2,301 crores. We have the management of Glenmark Pharmaceuticals on the call today, Mr. Glenn Saldanha, Chairman and Managing Director, and Mr. V. S. Mani, Executive Director and Global Chief Financial Officer. With that, we can open the call for Q&A. Over to you, Lizanne. Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question may please press star and one on your touch-tone telephone. If you wish to remain on the question queue, you may press star and two. Participants are requested to use hands up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is being filled. The first question is from the line of Damayanti Kerai from HSBC. Please go ahead. Hi. Good morning, everyone. My first question is on India business restructuring. So Glenn, can you elaborate a bit more? What has prompted you to take this restructuring, and what are the key points which you want to achieve through this process? And after this process, do you think India business is now in good shape to cater to your requirements? So that's my first question. Sure. So I think the primary reason we did the one-time restructuring was because we had certain inefficiencies in the distribution channel, which we wanted to correct, right? What we did is by consolidating all these stock points, right, we are reducing the inventory substantially in the channels, which is also helping us with regards to our working capital management, helping us in terms of margins. Also, a lot of the secondary sales that IQVIA reports will be very close to what we report going forward. So we really thin the inventory in the channel. It's an inefficiency that we had since our inception, which we are now correcting. And this is a one-time thing. So obviously, Q4 will be back on track in terms of our normal sales, which trends at around INR 1,000 crore a quarter for India. And I think going forward, you will see India growth coming strong, right, very similar to what our secondary sales are reporting as per IQVIA. Sure, Glenn. Just wanting to understand, was your distribution model very different from what your peers have in India market? So I mean, we've had a different distribution model all throughout, right? And we continue to maintain the model. However, by reducing the stock points, we are just reducing the stock in the channel. Okay. So it will definitely lead to better working capital management, as you highlighted. Absolutely. Absolutely. Okay. And the sales, which were lost due to this restructuring process during third quarter, that's gone. But as you said, fourth quarter onwards, things should be back on normal trajectory. That's correct. And for India business, then how should we look at sustainable growth after all clearing up of channels, etc.? How should we look at the business ahead? I mean, India for us, if you take our regular run rate, right, India continues to grow at around 12%, 10%, 12%, right, on a sustained basis, right? And that will continue to be there. We continue to outperform the market. If you look at all the IQVIA data and all third-party data sources, right, we continue to outperform the market. So I think that will now start reflecting more closely in our reported numbers, right, as we go forward. Sure. My second question here on this IGI, Ichnos Glenmark Innovation, which you disclosed a few days back. So what is the primary reason, again, for this kind of entity formation? Because I thought you already have entity Ichnos, which is heavily focused on novel R&D, and then you have your own set of some products. So now my question is, why not take every innovative asset to one entity, keeping some in parents' book? So I think IGI is basically an alliance between the two, between Glenmark and Ichnos, where effectively, we are pulling all the oncology assets, right, under one umbrella, right? Small molecules were sitting in Glenmark. Biologics were sitting in Ichnos. So we are pulling it all under one asset. So Cyril Konto will run it. And basically, we'll derive significant synergies, right, out of the two entities. There will also be a huge from a cost perspective, right? I mean, this year, we are spending almost $75 million-$80 million will go down next year to $45 million-$50 million. So there's a massive flow-through that's coming into the lower R&D cost, and that will flow through the bottom line in terms of EBITDA margin. So we've done a lot of restructuring, right? This is all part of the overall restructuring that we are doing in terms of our innovation across the company, right? And with this heightened focus and synergies that will come out of this alliance, right, we believe there will be a significant improvement in terms of our bond, right, on innovation. So $30 million plus $30 million-$35 million flow-through, right, to the bottom line in terms of tangible numbers. So this R&D spend $75 million-80 million going down to $45 million sorry, $40 million a year? $45 million-$50 million in that ballpark. Okay. So that entire $45 million-$50 million R&D savings should be reflected in R&D – sorry, EBITDA number. Absolutely. So next year's EBITDA number, right, you'll see a significant bump-up. This is one of the key drivers. But in addition, also, because of Ryaltris and some of the other operating leverage that we are seeing in geographies like Latin America, Europe, which has always been a low-margin business for us now with the scale that we are gaining in Europe and Latin America, right, all that should help drive EBITDA strong next year. Okay. So how should we look at EBITDA numbers, say, for next two years from current level? What kind of improvement should we see? So I mean, I don't want to give a number on this call because we typically guide at the end of Q4. But if you take the R&D flow-through that we just discussed, then you assume Ryaltris improvement, all the synergies that we are seeing in the operating leverage that you'll see in various geographies, right, it will be a significant step-up in terms of overall EBITDA. And then from there on, every year, the EBITDA margins, we should improve on a consistent basis, right? Every year, you'll see an improvement in terms of EBITDA margin year-on-year purely because of the operating leverage and some of the branded products getting launched and commercialized, right, and Ryaltris gaining more scale, right, in the various geographies. So thanks for that. My last question, can you update us on Monroe plant status? So on Monroe, we have now we've put in a meeting request to the FDA. We've completed all our remediation works, and now we are ready for inspection. We've also started manufacturing at the Monroe site. So process validation batches have started. And I think post-FDA's inspection and meeting, we hope to start commercial production, right, in the Monroe site. So we're pretty much done with all the remediation work that we needed to do. Thank you, Glenn. Thanks for your answer. Thank you. Thank you. We'll move on to the next question. That is from the line of Krish Mehta from Enam Holdings. Please go ahead. Thank you for taking my question. So I just wanted to ask on the domestic rationalization inventory you've done in the last quarter. So if you could just quantify what will be the subsequent working capital release expected from this? Sure. So Krish Mehta, thanks for the question. I mean, broadly, we already have seen some improvement in the working capital. As we had guided, if this were there, our growth would have been almost 9%. So we're talking about INR 850-INR 870 crore of sales. So obviously, we already see an improvement in the working capital of about INR 530 crores or so, thereabouts, already in place. Okay. Thank you so much. Thank you. The next question is from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead. Yeah. So thank you for the opportunity. So just on the India business again, so with this rationalization, just wanted to understand that how does our channel inventory look like now as compared to where we were a year ago or six months ago? And going ahead, how is it inventory level going to be maintained in the market? Yeah. So thanks. As As we already told you that going forward, the secondary sales reported by IQVIA will be closer to our reported sales because of this channel inventory, whatever was there. So post this correction, it will be as per industry norms, okay? And obviously, there will be no further action required in the channel as it will be lean. We'll leave it at that because obviously, inventory also from location to location, depending on the turnover, it keeps changing. But I think broadly, this correction will help us to be very lean and manage our working capital better. And as I already answered in the previous question, this has helped improve our working capital also. Sure. Understood. And secondly, sir, on the Monroe plant, so once that becomes operationalized and full scale, I mean, what is the sales benefit in terms of that plant could add on the number of products which could be relaunched into the market? So I think there will be a ramp-up in Monroe, right? Next year, we are expecting about two products to get commercialized, right, out of that, right, in FY 2025. But thereafter, every year, you'll have a host of products coming through on the injectable side. So I think there will be a ramp in terms of the facility, right, and in terms of the scale-up, right? Today, obviously, the biggest advantage is today, we have a significant operating cost of Monroe sitting on our books, right, which obviously, from next year, once we start commercializing and selling products, right, that will help further with the operating leverage, right, that we will gain in terms of margin improvements overall. Got it. And one final one, if I may. So if you could provide the net debt number for the end of Q3, and where do you see this number, say, by FY 2025 or FY 2026? Some color on that would be helpful. So on this one, so we just read out, it is about INR 3,523 crore. As we have said that due to this divestment of GLS, we should be net cash positive at the end of this year itself, okay? As we said, going forward, we should be improving more and more. I think that's where the trajectory will be. Understood. Thank you. Thank you. Reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Kunal Randeria from Axis Capital. Please go ahead. Hi. Good morning. Glenn, so while I hear your explanation on this India restructuring, so it seemed like almost 70 days of inventory have been sort of extinguished or 70 days of sales have not been made. Since you're not going to do more channel filling in the coming quarter, I'm just wondering, how did we arrive at a situation where we had probably more than 100 days of inventory in the channel? So I think historically, Kunal, because we've had a three-tier distribution system, right, we've always had a higher inventory level in the channel, right? So we've used this opportunity to correct some of these inefficiencies and take the benefits in terms of working capital improvement and in terms of margin improvement. Also, Kunal, as we already explained, that we had multiple stock points. So we reduced quite a few of them. So obviously, when you do that, it automatically helps you to consolidate. So all these are the measures that we are taking to bring down. Sure. Okay. Okay. This has been sort of slowly built over the years, or this kind of elevated inventory levels have been present for several years? It's built over the years, yeah. It's not that we built it over a period of time. Obviously, when you have multiple stock points and you have an extra tier in the system, so obviously, all this added to the inventory. But now we realize it's the right time. As we're doing well and we're growing well, we should do that. Okay. Okay. So second question is on these four or five injectibles that you have been marketing, including Octreotide and other funds. What's the kind of commercial arrangement you have? So is there a marketing partner, or is there a profit share arrangement? How will it be? So Kunal, I can't get into the details of the arrangement, but these are exclusive agreements with certain injectable players, right? So we have exclusive distribution of these products in the U.S. And currently, we have four or five commercial, and we have a host additional products coming through. I mean, the whole idea is our U.S. business is predicated around two big levers, right, two or three big levers. One is our injectable portfolio. And once Monroe comes on stream, that will further drive the whole injectable business. The second is obviously our respiratory portfolio. We are hoping in FY 2025, we'll have these two nasal sprays launched, and they are pretty big products, and then followed by Flovent, right, generic in FY 2026. So I think these are the two big platforms. Then we have some drug-device products, right, which we are hoping to commercialize over the next 1 year, 2 years, and 3 years. So these are the three platforms that we've built in addition to, of course, that we always remain strong in dermatology. So that stays, and oral contraceptives, right? These are the two original platforms that we operate in. So that's the basis for some of these partnerships, right, is to further build the whole injectable platform, right, and the institution business in the U.S. Sure. Sure. And one more, if I can. On Ryaltris, we have achieved good in terms of market share in a lot of countries. Just wondering, what would be the aspirational market share you are aiming? So I mean, Ryaltris is a huge product for us, right? I mean, next year, we anticipate sales of close to about $80 million. So it's a very large product already in a short time. And we still haven't launched in many of the major markets, for example, China, Brazil. Many of these markets, we still have not yet commercialized the product, right? So I think from peak sales, this will be a substantial product for us, right, over the next five years. And in terms of market share, if we end up with 15%-20%, right, of the market, I think we would have done really well with this product. So just to add to what Glenn said in our commentary, the MD&A, we are given all the current markets where we are selling, and the market share we're all given there. Most of the key markets, we are already at 18%-19%. Yeah. Yeah. I got that. Actually, I was asking Mani, sir, on where we can go to. Can that 18%-20% go to 30%-35%? See, that was my question. Okay. Just one clarification, Glenn. When you say $80 million, do you mean the sales that you will book? Sorry. Sorry, Kunal. There are many markets where we are still at single digits. So there is a big span across the board, right? If we get to 15%-20%, that will be a big number, right, of the allergic rhinitis respiratory market. Yeah. Yeah. Go ahead. Sure. Sure. Sure. Sure. Just one clarification, Glenn. When you say $80 million, is it the sales that you would be booking, or is it the end-user sales? Because in some countries, you would be, I think, partnership. It's sales that we would book. End-user sales will be much higher. Okay. Perfect. Thanks a lot, and all the best. Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead. Hi, Mani. Thanks, Glenn. Glenn, two, three things. One is on just continuing Ryaltris. The $80 million that you talked about, I mean, typically, it'll be a very high-margin contribution because a lot of it should be profit share? Yes, Nitin. The margins will be huge. And that is exactly why we are talking about EBITDA for next year going up significantly, right? So Ryaltris, in addition to the R&D flow-through, right, that we are getting, IGI innovative R&D reduction, Ryaltris will be a big driver to the margin profile. And certainly, staying on the topic, you've talked about this licensing of this specialty oncology molecule. Can you provide your perspectives on how do you see that playing out? Sorry. Are you talking about envafolimab, or? Please? Nitin, we can't hear you. I'm saying the Chinese molecule that we licensed, the oncology molecule. Yeah. So yeah. So I mean, envafolimab, we are very excited about. It's a PD-L1 operating in a market. I mean, Keytruda is a giant player. Even in our markets, Keytruda is almost we have emerging market rights. And there itself, Keytruda is almost $3 billion-$4 billion in sales in emerging markets alone, right? So this is a very large opportunity for us, and we're very excited about it. We think this will be the next Ryaltris for the company. So the next 3 years-4 years, we think Ryaltris will dominate, and thereafter, envafolimab can be the next Ryaltris for us, right, especially operating in a very large market. Thanks. And certainly, Glenn, on the U.S., in terms of the products that you're looking to launch in FY 2025, FY 2026, I mean, would it be possible to give a broad market value that you're looking to target, which for which products will be launching in FY 2025? A rough sense of, I mean, it could. I don't think so, Nitin. I think, I mean, we've given you enough of thoughts on how we are thinking about the U.S. business, right? I mean, respiratory injectables, these two platforms will be major contributors in FY 2025, right, along with some oral solids and some drug-device products, right? But I think the focus is clearly on these areas, right, to build these areas over time. Certainly, on oncology and the innovation part of oncology, what are the timelines for the milestones to sort of track over the next few quarters now? I mean, 2001 and 1442 should read out in the current year, right, in FY 2025, basically. Both these assets should read out in and, of course, 54276, the HPK1. All three should read out in FY 2025. So that will be that will be pretty significant, right, for the IGI piece, right? And we clearly recognize that all three will not move forward, right? But even if one or two of these go forward, they are all blockbuster potential, right, all these three assets. So that will give a good runway in terms of our pipeline, right, going forward. And is it fair to assume, Glenn, that whatever moves forward will move through a licensing route only in the sense we will not be doing the entire forward sort of future trials on our own on whichever product moves forward? That's correct. I mean, partnerships are a given for us, right? All these assets, I mean, we will partner at some stage. Right. And lastly, Mani, what should be the working capital level we should work with now for FY 2025? I think we can work at about 100 days, yeah. As you mentioned. 100 days at that point? Yeah. Yeah. It's already come out. So it'll be closer to 100 days. Okay. And last thing, Glenn, for the India sales, we should look at what analyzed number of, what, INR 1,100 crore-INR 1,200 crore per quarter for next year, right? This base should not. That's how we should look at for primary sales next year. Yeah. Yeah. So I mean, the run rate right now is about INR 1,000 crore a quarter. That will grow by about 10%-12% next year. Okay. Sure. Thank you. Thank you. The next question is from the line of Viren Deshpande from Alphapeak Investments. Please go ahead. Vereen, your line is in the talk mode. Please proceed. Yes. Good morning, everyone. See, I would like to know, what is the out of this one-time impact which we have taken, what is the write-off of the stock? There is no write-off of the stock, Vereen. As we just explained, that there was extra inventory in the channel. All we have done is we have not supplied to the channel. That is why, if you look at it, even IQVIA continues to report at about 11.9% growth in the last quarter. So the secondary sales are very healthy and doing well. It was just the channel inventory was there. We have not supplied more. That's it. As simple as that. Okay. So that supply will get postponed in the next quarter? Not get postponed. See, obviously, in a way, if you look at it, now going forward, your secondary and your reported all will be in line, okay? So there was some inventory built over the years in the channel, which I have used up now to supply for this quarter. So secondary sales are good. That is why you see the improvement in the working capital also. That is how the debtors went down. So that's the way to look at it. Okay. And with respect to the stake sell, we expect to get about INR 5,600-odd crore. Is it correct? Yeah. Yeah. And obviously, net of whatever, taxes, etc., we should get about INR 5,000 crore, yeah. We should get around INR 5,000 crore. And I think we have to pay that U.S. liability out of that, say, about INR 7,800 crore, no? No. For your information, in the current year, we already paid off almost currently, I mean, beyond even double third quarter, almost $60 million we have paid off. Only $30 million remains. So I think we should be able to manage that. So. Only [INR 200 crore] Let me explain. That money will go purely to pay off the debt which we have in our books, which is close to whatever, INR 4,900 crore, I said. So that's why we are guiding that we'll be net cash positive at the end of the year. By March end, we hope to be debt-free? Yeah. Obviously, because this transaction should get culminated in the month of early March. So once we are done with that, the money comes in. That is why we say net cash positive, that most of the debts could get repaid, but some because of approvals, etc., because of ECBs or some. So therefore, you may have taken some time to pay. But broadly, at a net cash, we'll be positive. Okay. In the last call, we had mentioned that excluding GLS, that is this Glenmark Life Sciences, after that, currently, we have the operating margins of around 15.8 or 16-odd. And we hope to reduce our R&D cost by about 1%-2%. And so the margins should be in the range of about 17%-18%. Is it correct? Yeah. You're better than that. So I'll guide you. So there is a trajectory to that. Obviously, I'll tell you later on. But what I would like to tell you is that the improvement in the margin will come through reduction in the innovative spend. Ryaltris, some of the expansion in the market, all this will add together to obviously improve our margins. Okay. Thank you, sir, and all the best. Thank you. The next question is from the line of Harsh Kothari from Mizuho Bank. Please go ahead. Yeah. Good morning, everyone. My question is that you mentioned in your commentary that excluding this one-time India rationalization, the growth in revenue would have been about 12%. So I just wanted to get some information on that. So on what basis are we saying that excluding this eventually, we need to say that this quarter would have been about INR 1,200 crore if the rationalization wouldn't have been done? It would have been closer to INR 1,100 crore because India, we report about INR 260 crore. What I'm saying, you'd have done about another INR 850 crore or so. So it would have been about INR 1,100 crore. So that would have been actually, India would have been a growth of around 6% or so. That IQVIA shows about 12%. So obviously, there were some distortions like this. So we wanted to take a one-time correction. That's why we did. If you add that and take it from the last year, the arithmetic is simple. You get to 12% on a year-to-date basis. Okay. Thank you. Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go ahead. So just clarification on the R&D spend, particularly for 4Q FY 2024. And then you had already highlighted about FY 2025 R&D spend going down by $30 million-$35 million. But let's say for 4Q, how much do we consider? So broadly, the run rate will be the same. We have been doing it about $290 million-$300 million. It will be around the same. So obviously, we have guided the streak to about 8.5. Subject to this correction, it would have been around 8.5. Okay. Okay, sir. Thank you. Thank you. The next question is from the line of Ramana Murty Malla from Ramamoorthy & Co. Please go ahead. Good morning to everyone. The company has taken a lot of steps to improve the working capital management and inventory management. Now, from the finance side, I have a query. Thank you for giving update on stake sale in the Glenmark Life Sciences. Money is expected to be received sometime in the month of March 2024 or so. Now, my point is the dividend distribution has been very low. Now, what is the company policy to pay dividends to the shareholders? Second thing is one-time gain, whatever you are going to make on the stake sale. Plus, there are two interim dividends who are declared, one in the month of March and in the recent past also. So are there any policies passing on the dividends to the shareholders through the Glenmark lens, basically, that will help you to save taxation, number one? Otherwise, you end up paying tax on the amount, whatever dividend you receive from the subsidiary. So I just want to know from the taxation point, what is the company policy? So two things. First of all, this money doesn't come to me from the subsidiary. This company has sold the stake. So obviously, I get a long-term capital gain from the acquirer also. Yes. Correct. And as far as the dividend policy is concerned, obviously, we've been frugal over the years. But we'll discuss it appropriately at the year-end board meeting, okay? And we'll come back. Sure. Sure. Sure. Sure. Yeah. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Utkarsh Gandhi for his closing comments. Thanks, Lizanne. Before we end the call, we'll just read out the disclaimer. The discussion during this call, including information, statements, and analysis describing the company's and all its affiliates' objectives, projections, and estimates are forward-looking statements. These are based on current expectations, forecasts, and assumptions, and are subject to risk and uncertainties, which could cause the actual outcomes to differ materially depending upon economic conditions, government policies, and other incidental factors. So this document should not be regarded by recipients as a substitute for the exercise of their own judgment. And the company undertakes no obligations to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With that, we can close the call. Thank you, everyone, for joining us today. Thank you, members of the management team. Ladies and gentlemen, on behalf of Glenmark Pharmaceuticals Limited, welcome to this conference call. We thank you for joining us. And even now, disconnect your line. Thank you.