Ladies and gentlemen, good day and welcome to the Q4 FY21 earnings conference call of Sun Pharmaceutical Industries Limited. As a reminder, all participant lines will be in the listen-only mode, and there is an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Nimish Desai, Head of Investor Relations team. Thank you, and over to you, sir. Thank you. Good evening and a warm welcome to our Q4 FY 2021 earnings call. I'm Nimish from the Sun Pharma Investor Relations team. We hope you received the Q4 financials and the press release that was sent out earlier in the day. These are also available on our website. We have with us Mr. Dilip Shanghvi, Managing Director, Mr. C.S. Muralidharan, CFO, Mr. Abhay Gandhi, CEO of North America, and Mr. Kirti Ganorkar, CEO of India business. Today, the team will discuss the common highlights, updates on strategies, and respond to any questions that you may have. As is usual, for the ease of discussion, we will look at the consolidated financials. Just as a reminder, the call is being recorded and the replay will be available for the next few days. Call transcript will also be put up on the website shortly. The discussion today might include certain forward-looking statements and this must be viewed in conjunction with the risks that our business faces. You are requested to ask two questions in the initial round. If you have more questions, you are requested to rejoin the queue. I also request all of you to kindly send in your questions that may remain unanswered today. I will now hand over the call to Mr. Shanghvi. Thank you, Nimish. Welcome and thank you for joining us for this earnings call after the announcement of financial results for the Q4 and full year of FY21. I hope you and your family are safe and healthy. Let me discuss some of the key highlights. Consolidated sales for the quarter were at INR 84,314 million, recording a growth of about 4.4% year-on-year and a decline of 4% quarter-on-quarter. Most of our businesses have done well over Q4 last year with India, emerging market, and rest of the world businesses as the key growth drivers. We continue to focus on growth, operational efficiencies, and business continuity. For the full year FY21, sales were INR 331,392 million, recording a growth of about 2.5%. All of you will remember that last year's sales included a one-time special business in the U.S., which is not reflected this year. All our businesses have recorded growth for the full year despite the challenges related to global COVID-19 pandemic. The major impact of the pandemic was felt in the H1 of the year as many countries imposed a lockdown to counter the spread of COVID-19. H2 witnessed a gradual recovery as most countries gradually lifted the lockdown restrictions in a phased manner. For Sun Pharma, the sales in the H2 were higher by 8% compared to the H1. EBITDA was up by almost 13%, and adjusted net profit was up by approximately 17%. Let me now update you on our global specialty business. For Q4, our global specialty revenue was approximately US$139 million across all markets. Specialty R&D accounted for approximately 23% of our total R&D spend for the quarter. For the full year FY 2021, global ILUMYA sales were at $143 million, up by about 51% over last year. We've recorded a good growth despite the closure of doctor's clinics in the U.S. in the H1 of the year, but supported by gradual recovery in the H2. Abhay will give you more details on the specialty business later. I will now hand over the call to Murali for a discussion of the Q4 financial performance. Thank you, Mr. Shanghvi. Good evening, everyone, and welcome to all of you. Our Q4 financials are already with you. As usual, we will look at the key consolidated financials. Q4 sales are at INR 84,314 million, up by 4.4% over Q4 last year. Material cost as a percentage of sales was 26.6%, lower than Q4 last year due to product mix and other efficiencies. Other expenditure was at 30.2% of sales, lower than Q4 last year, mainly due to lower selling and promotional expenses in the U.S. As indicated in our past earnings call, these expenses will see an increasing trend in future once the market situation reaches full normalization. Forex loss for the quarter was INR 107.8 million, compared to a loss of INR 1,420.7 million for Q4 last year. As a result of the above, EBITDA for Q4 was at INR 19,568 million, up by 55.8% year-on-year, with resulting EBITDA margin at 23.2% compared to 15.5% for Q4 last year. Let me now briefly discuss the exceptional items for Q4. Taro has made a $80 million additional provision related to its ongoing multi-jurisdiction civil antitrust matters. In Q4, the Court of Justice of the European Union issued the final judgment and upheld the European Commission's decision, dated June 19th, 2013, that the settlement agreement between Ranbaxy UK Limited and Ranbaxy Laboratories Limited with Lundbeck relating to citalopram was anti-competitive. Ranbaxy had made a provisional payment in the tune of EUR 10.3 million on September 20th, 2013. There are no further rights of appeal, this amount of INR 895.6 million has been debited to the consolidated profit and loss account in Q4. There is no cash outflow related to this as the amount was already paid. Exceptional tax for the quarter is on account of recognition of deferred tax asset amounting to INR 1,212.3 million arising out of the channel settlement. Excluding the impact of exceptional items and deferred tax, the adjusted net profit for the quarter was at INR 13,430.7 million, up 103% over adjusted net profit of Q4 last year. Reported net profit for Q4 was at INR 8,941.5 million, up 124% year-on-year, while reported EPS for the quarter was INR 3.73. Let me now discuss the key movements versus Q3 FY21. Our consolidated sales were lower by 4% quarter-on-quarter at INR 84,314 million. Material cost and stock costs at 26.6% and 19.9% of sales respectively were flat over Q3 FY21. Other expenses at 30.2% of sales are higher than Q3, mainly due to increase in SG&A across markets. We had a Forex loss of about INR 107.8 million for Q4 as against Forex gain of about INR 716.3 million in Q3. As a result of the above, EBITDA for Q4 at INR 19,568 million was lower by 16.8% compared to Q3. EBITDA margin for Q4 was at 23.2% compared to 26.8% for Q3. Adjusted net profit for Q4 stands at INR 13,430 million, was lower than the net profit of Q3 by about 27.5%. Now, we will discuss the full year performance. The full year FY 2021 sales were at INR 331,392 million, a growth of 2.5% over FY 2020. Despite the nearly 10% sales regrowth recorded in Q1 due to the global pandemic, we have been able to recover sales growth in subsequent quarters and have achieved an overall positive growth for the full year. As indicated in the past, the full year of last year included contribution from a non-recurring special business in the U.S., and hence the year-on-year sales numbers are not strictly comparable. Excluding this one time sales contribution during the last year, the year-on-year sales growth would have been higher. Material cost as a percentage of sales was 26.2%. It was lower than the same period last year, mainly due to product mix and efficiency initiatives. Stock costs at 20.7% of sales were higher than last year, mainly due to annual merit increase, addition of field force in India, impact from other regions, and include some currency impact. Other expenses were at 28.6% of sales, lower than the same period last year, mainly driven by reduced marketing, selling and distribution, and traveling expenses across markets. As a result of the above, the EBITDA for the full year was at INR 81,324 million, a growth of 25.5% over the same period last year, with resulting EBITDA margins of 24.5% versus 20% of last year. Excluding the exceptional items for both FY21 and FY20 and the non-recurring tax credit for FY21, the adjusted net profit for FY21 was at INR 59,317.8 million, up 47.4% year-on-year, with resulting net profit margin at 17.9%. Reported net profit for FY21 was at INR 29,038.2 million, with reported EPS at INR 12.1. The company has repaid debt of about $580 million in FY21, the benefit of which is visible in the reduction in finance cost. As at 31st March 2021, the ex-Taro net debt stands approximately $179 million. Let me now briefly discuss Taro's performance. Taro posted Q4 FY 2021 sales of $148 million and adjusted net profit of $31 million. On a year-over-year basis, sales for Q4 FY 2021 were lower by 15.3%, while the adjusted net profit was lower by 42.6%. For the full year FY 2021, sales were at $549 million, and the adjusted net profit was at $141 million. I will now hand over to Mr. Kirti Ganorkar, who will share the performance of our India business. Thank you, Murali. Let me take you through the performance of our India business. For Q4, sales of branded formulation in India were INR 26,709 million, recording a growth of 12.9% over Q4 last year. India business accounted for about 32% of consolidated sales for Q4. For Q4, while the chronic segment continued to show steady growth, the subchronic segment witnessed a recovery. The acute segment is still facing some challenges due to lower incidence of infection and less patient flow to the doctor's clinic. For most part of Q4, we saw a normalizing trend and pharmaceutical companies had started spending on traveling, branding, and promotion. Travel costs for MRs increased in Q4. However, there is some uncertainty now, given the significant increase in cases on account of second wave and the lockdown in many parts of the country. For Q4, we launched 31 new products in the Indian market. Let me now discuss our response to the COVID-19 pandemic. We began to fight the pandemic. The steps that we took include ensuring continuous supply of medicine to the patients, supply of multiple therapeutics used in the treatment of COVID-19 like remdesivir, favipiravir, tocilizumab, ivermectin, methylprednisolone. We have also ramped up production of liposomal amphotericin B, which is used in the treatment of black fungus, a post-COVID complication observed in patients. Sun Pharma was the first company to develop generic liposomal products in India. We have donated COVID medicines and many other items like PPE kits, masks, sanitizers, gloves, et cetera. At the same time, we have entered into two different licensing agreements, one with Eli Lilly for baricitinib and another with MSD for a drug called molnupiravir to help alleviate the burden of COVID-19 in India. Sun Pharma is the largest pharmaceutical company in India, holds approximately 8.2% market share in the domestic market as per March 2021 AIOCD AWACS MAT report. For Q4, our market share was at 8.3% as per AIOCD AWACS. We also continue to remain the partner of choice for in-licensing of products due to our strong number one position in many therapy areas, including therapies for the treatment of COVID infection, coupled with our large distribution network. I will now hand over the call to Abhay. Thank you, Kirti. I will briefly discuss the performance highlights of our U.S. businesses. For Q4, our overall sales in the U.S. decreased by 1.3% over Q4 last year to $370 million, mainly due to decline in Taro sales as the market is not yet fully normalized. U.S. accounted for about 32% of consolidated sales for the quarter. Our specialty revenues in U.S. have grown over Q4 last year, mainly driven by ILUMYA, CEQUA, and ABSORICA LD. For the full year FY 2021, the specialty business has grown over previous years despite the sharp reduction of sales in Q1 on account of the global pandemic. Growth drivers include ILUMYA, CEQUA, ABSORICA LD, and YONSA. As you may be aware, the generic of ABSORICA has entered the market in April, and simultaneously, we have also launched our authorized generic. Doctor clinics have been open during the quarter, although the situation is yet to fully normalize. Compared to the first nine months of the year, the travel and branding and promotional costs increased in Q4. Let me now update you on our U.S. generics business. As you have all seen, the U.S. generics business continues to be competitive. The Sun ex-Taro generics business has recorded year-on-year growth driven by a combination of new launches, better supply chain management, and incremental upsides from shortages. I will now hand over the call to Mr. Shanghvi. Thank you, Abhay. I will briefly discuss the performance highlights of our other businesses, as well as give you an update on our R&D initiatives. Our sales in emerging markets were $192 million for Q4, up by about 2.7% year-on-year. The underlying growth in constant currency terms was higher at 5.3%. Emerging markets accounted for about 17% of total sales for Q4. Formulation sales in rest-of-the-world markets, excluding U.S. emerging markets, were $163 million in Q4, up by about 5.5% over Q4 last year. Rest-of-the-world markets accounted for approximately 14% of consolidated Q4 revenues. API sales for Q4 were at INR 4,357 million, down by about 9.9% over Q4 last year. Our R&D efforts spans across both specialty and generic businesses, and we continue to invest in building the pipeline for various markets, including the U.S., emerging markets, rest-of-the-world markets, and for India. Consolidated R&D investment for Q4 was at INR 5,571 million, accounting for 6.6% of sales. For the full year, R&D investment was INR 21,499 million, accounting for about 6.5% of sales. Our current generic pipeline for the U.S. markets includes 94 ANDAs and nine NDAs awaiting approval with the U.S. FDA. In addition, we are evaluating development for some biosimilars, which can be classified amongst the third wave of biosimilars. The board has proposed a final dividend of INR 2 per share for the year FY 2021, in addition to the interim dividend of INR 5.5 per equity share declared on January 29th, 2021. Lastly, on the guidance for FY 2022, given the uncertainties of the pandemic in the near term, we are refraining from giving a guidance for FY 2022. However, all our businesses are well-positioned, and our endeavor will be to grow all of these businesses, notwithstanding the near-term uncertainties related to COVID-19. With this, I would like to leave the floor open for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Neha Manpuria from JPMorgan. Please go ahead. Thank you for taking my question. On the specialty revenue in the quarter, there seems to be a moderation on a quarter-on-quarter basis, even though data on the year shows good prescription traction sequentially. Some color on what drove the moderation here? I think it's a combination of three factors. Like I said on my last call, December, which is the end of the financial year in the U.S. context, there is a higher buying. In January, a lot of insurance sets in or resets rather. Patients change either the provider or the kind of insurance they have, and then the verification process takes a little more time, and it goes into Q4 really seems normalized. The third, I think, which is also important for us to remember is that during the period of December the pandemic situation in the U.S. was into what we see today, the new cases are over 300,000 almost on every single day. The combination of three factors. I'm quite satisfied that we are well-poised to deliver on our own objectives. Okay, understood. One other question around specialty. If I look at the traction in CEQUA, there seems to be some, let me say, the market share seems to have stabilized over the last few weeks and months. Is there anything specific that we are seeing there now that the U.S. is opening? Are we now seeing enough traction on CEQUA? I think CEQUA will continue to grow, and my personal sense is that doctors have accepted the product. The team is also now able to make a lot more face-to-face calls and participate in live conferences, which for a new company, I think is important to be able to be seen by your customers. I think that will help us. The initial phase for a newer product to be able to do this all in a virtual environment was a challenge that's gradually going in the U.S. I feel pretty good about the product. Okay. You expect continued momentum on the market share front. We certainly hope so. Understood. Thank you so much. Thank you. Thank you. The next question is from the line of Nithya Balasubramanian from the Bernstein Research. Please go ahead. Hi. Thank you. My question is also on the U.S. portfolio. The first one is on Taro. We have seen that for the last several quarters, it continues to contract both at the top line and the bottom line level. Just want to understand what is the outlook for the business. How do you see the shaping over a calendar year or so to come? Uday, in his calls on Taro, has actually been speaking to this. The only thing which I did not get into, but I can see that overall in the dermatology portfolio and market, there is definitely lesser patient flow even up to the end of the year. Taro, of course, has a lot of products which are either number one or number two with the positive high market share and therefore the pressure on Taro to hold on to its market share is higher. I think it's a combination of all this, but we recognize your point, and I think the task for us as a company is to try and find ways to grow the Taro business as well. I think all of us are hoping that things will hop back to normal at some point in time, and I think you also commented that clinics have started operating. If COVID is not a factor anymore, do you continue to see this as a business that's going to shrink because prices will keep eroding? The commentary we heard from Taro as well was that the environment is not great. Do you see this resolving at some point in time? I will speak to the dermatology segment. Even today, if you read different reports, and different reports obviously will quote different numbers, but I think the maximum number that I see of patient footfalls returning to the doctor clinic in derm is around 70%. That is the addressable market now in terms of patient visits to doctors in the derm space. That's a challenge that the businesses which are in derm will continue to face. We hope going ahead the situation will improve because of the higher rate of vaccination in the U.S. and certainly loosening up of social distancing norms which are now taking place. That's ahead of us. Got it. Thank you. Can we also assume that as the I think Levulan was a bit of a drag in Hectare even for you for the same reason. Now that again, volumes are picking up and patient footfalls are increasing, is it likely to become meaningful contributor again? I believe we saw a little bit of an uptick in the Q4 as compared to the previous quarters. Going ahead, of course, if the situation normalizes in terms of elective surgeries and procedures, then I think Levulan should pick up. Will it happen, I think is anybody's guess. I mean, the situation is fluid, not just in the U.S., but I think globally. Got it. Thank you so much. I have one last one on biosimilars. It was briefly mentioned in the opening remarks. If you can give some color on what you meant by third wave. Are you looking at it more as a portfolio which will support your specialty portfolio, or is this a standalone business that you're trying to develop? No, I think we are looking at products which have significant future patent expiry dates, so that we can be amongst the first approvals. That's the focus and priority. There are multiple priorities and also finding a way by which we can leverage our presence in market so that we can successfully build a biosimilars portfolio. Understood. Can we take that to mean it's beyond 2028, 2030 timeframe? That's the kind of launch date we're looking at? That's correct. Thank you so much. Thank you. The next question is from the line of Prakash Agarwal from Axis Capital. Please go ahead. Yeah, thanks for the opportunity. I just wanted to understand the scale-up in R&D from here, given that we have started additional trials. How do we think the R&D and other expenses going forward for the year 2022 and 2023? They will gradually go up. Two things will happen. One is total R&D expenses will go up, and within that, the percentage of the money spent on innovative R&D also is likely to go up. I think, because since we're not giving any specific guidance, but generally we've tried to keep our R&D spend between, or let's say 8% to 9% of our turnover. This year, because of the significant disruption in the clinical studies, the clinical trial spend this year was much more subdued than what we would have liked it to be. Some color on other expenses in terms of the scale-ups is largely done in terms of specialty or when we see the impact of lockdown and pandemic going down, it will again come up. General guidance is that what you see as a significant reduction in the marketing spend in all markets is likely to go up. We will try and see that we don't go back to the previous percentage spend, but in some markets, that may not be possible, for the U.S. may be an outbreak in this part. Okay. Thank you. Second question on ABSORICA. How are we seeing in terms of, as you said, AG has started to see competition. Since it's a single player entry, have you seen a bigger impact or it's a very marginal impact? We don't have clarity because this was launched only towards the end of April. May has not closed for me, so difficult to assess impact. Fingers crossed and I'm watchful of what is likely to happen. Having said that, we also launched our own authorized generic, and we have locked up a few customers whom we had targeted for our share of the market. Okay, perfect. I said after because you just made a comment on guidance that you are well-positioned to grow across business segments. We built that specialty as well. That's it. Yeah. Abhay, would you like to respond? No, I'm not clear what the question was at the end. Sorry. Despite the competition in ABSORICA- Righ. AD coming in, which I assume would be India-based business, U.S.-based business. The question was, since you made a comment on guidance, well-positioned to grow across- Lost you again. Sorry. I lost you again. The question was, can you repeat, please? Am I audible now, sir? Yeah, much better. Thank you. Sir, question is on the growth guidance, well-positioned to grow across business segments on the backdrop. Right the ABSORICA generic competition coming in. If I understand you correctly, you think that will keep specialty business grow despite the competition we have in ABSORICA. Is that the question? Yes, sir. Yeah, that's the idea, that's the plan, and that's how we are approaching the whole issue. ABSORICA is one of the products that we have in the specialty business. There are avenues and opportunities for us to find ways to grow in other products. Of course, as an organization, we also have to be always looking at another M&A opportunity. That we will continuously evaluate and keep our eyes open to opportunities that come our way. Right. Okay. Thank you and all the best. Thank you. Thank you. The next question is from the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Thank you very much, and greetings, everyone. First question is on ILUMYA. Can you share some color on the repeat prescribers and repeat patients in this? How is the underlying dynamic? It's a great question, Sameer, to be honest. I really do not have that kind of granular details because it is not as simple to get that data. Even if we get, it's quite expensive. In the recent past, internally, we have tried to do our own kind of modeling and made assumptions and trying to come to a certain picture. Even now, to be honest, Sameer, it's quite sketchy as far as I'm concerned, and a lot of assumptions go into it. For me to give you an answer would never really be correct. I'm not trying to sidestep your question, Sameer. I really do not have. I wish I had. That would have made my life much easier. I don't, that's a fact. No worries on that, sir. What will get you to the next $100 million increment on this product in the U.S.? I'm thinking, is it the mining of the current prescriber, or do you think you still need to go out and get more and more doctors in the fold? As far as I'm concerned, it will be a combination of three things. I think one of the most important things is not mining of customers, but mining of data that we have on the product and being able to continuously communicate something new to the customers, which keeps the interest alive as far as they are concerned in our conversations with them. I think that's the first and most important thing as far as I'm concerned. The second is continuous involvement of our key opinion leaders to give us podium time and speak favorably on the product. Third, of course, is a combination of both mining of existing customers as well as expanding the prescriber base. I think it's all of these put together, and therefore, I think execution by the team on all these fronts becomes so much important. Okay, great. Thank you so much. With your permission, one last question from my side. Dilip, can you just update us on Halol, any tentative timelines over there? How should we think about new launches until Halol opens up? I think as we have shared with you in the past, I think we are waiting for the agency to inspect. We've requested an inspection. I think it's up to them to come and inspect the facility. Hopefully, this time we should be able to clear it successfully. That's the focus. I think we are, as I said in the beginning, that we expect all our businesses to do well and grow. We are also expecting the generic business in the U.S. also to grow. That's based on the visibility that we have with approvals that we can expect. In case Halol gets approved during the year, if we get new approvals, that will potentially add to our bags of growth. Okay, great. Thank you, sir. Thank you. Thank you. Thank you. The next question is from the line of Damayanti Kerai from HDFC Securities and Capital Markets. Please go ahead. Hi. Thank you for the opportunity. My question is on ILUMYA trial for another indication, psoriatic arthritis. We understand COVID has disrupted the progress, can you provide where we are in that indication studies and when we are expecting to complete the phase III and do filing? I think it got affected at two levels. One is because the patient footfall in the clinics, which we had already started as a clinical trial site, had come down. Their ability to recruit patients had come down. The second was the CRO's ability to start multiple new sites. That also got affected. Hopefully, we've seen some pickup in starting new sites in last few weeks, and hopefully, that should help us during the year. In this uncertainty related to the recruitment, difficult to give you any kind of specific timeline for the completion of the enrollment, because I think you have to first enroll the subjects, and then the subjects we have to monitor for a year. Okay. Got it. My second question is on specialty spend. Some clarification there. In earlier communication, you have indicated that we have broadly optimized DTC and other marketing costs for key specialty brands, and you also commented with U.S. market opening up, we expect these costs to go up. How should we look at the specialty spend over next few quarters? My answer would be, I think, what Dilip said a while ago. If I look at current trends, I think with more and more doctors allowing in-clinic visits and some of these virtual conferences going back to being face-to-face and live, consequently, Halol will make every attempt to see that we don't go back to the original level. In a fluid pandemic situation, I think as a company and as a team, we need to be constantly agile and nimble to be able to make change in decisions very rapidly if we have to. Okay. Got it, sir. Thank you. Thank you for your answers. Thank you. Thank you. The next question is from the line of Surya Patra from PhillipCapital. Please go ahead. Yeah, thanks for this opportunity, sir. My first question is on the U.S. Is it fair to believe, sir, U.S. portfolio should be seeing a kind of profitable growth in FY 2022, driven by at least two factors. One is that kind of a steady progress what we are witnessing on the specialty front, and the second part will be possibly bottoming out of the operating underperformance or bottoming out of the Taro's operating performance, what we have already seen in the recent past. What you mentioned, of course, it is correct, sir, that the prescription trend seems like almost down 29%, 30% in last entire one year period due to COVID in the pharma side in the U.S. It seems like Taro has significantly outperformed that with a flattish kind of a prescription trend. Is my understanding is correct that we could see, driven by these two large component of the U.S. sales, Taro as well as specialty, we can really see a kind of profitable progress on the U.S. business front? Taro standalone, when you see the results, they are already a profitable business. As far as Sun is concerned, we haven't given business line-wise profitability numbers, so difficult to answer your question. Yeah, broadly, of course, yes, I mean, you are in business at the end of the day to be running a profitable business, and that's the objective for any given business. My point basically was that obviously we will see a sequential volume growth with the opening of the U.S. market, will that be along with the margin expansion in that market? Basically that understanding I wanted to have by the word profitable progress. I think my answer remains the same. That's the objective, that you increase your margin as you go along. Specific business-wise, we don't give the breakup. That's the most I can do on this call. Okay. Just a kind of additional point on that. Generally what it was understood that the specialty spend was elevated obviously in the initial period of the launches. Having seen kind of a ramp-up, we possibly have to curtail the DTC kind of activities for ILUMYA. Although there was a kind of additional DTC activity for CEQUA. Generally, it was understood that the overall specialty spend should see a gradual correction from the elevated level of, let's say, FY 2020. Are we on that front seeing a kind of a declining trend, although we will see some kind of a normalization in the overall SPN cost front? Yeah, I understand. I've said this in my earlier calls as well, that we are now more or less optimized what we need to spend for each product group or a BU, and I think we are comfortable with where we are and with the expansion of the increase in the top line. I think margin should definitely improve. Okay. Just second question, sir. If you can just respond on the COVID side. Do you see COVID business in kind of opportunity wise in any manner for Sun Pharma? In the sense that there is a short-term, Kirti can respond faster, but there is a short-term increase in the business for products which are specifically used in COVID. As on today, I think we are not in vaccine manufacturing or distribution business, and we haven't announced anything as yet. I think, Kirti, maybe you can respond. Sure, yeah. I think we can see an opportunity for us, and as I said in my opening remarks, products in our portfolio. Kirti, you're not audible to me. I don't know. Yeah, Kirti, you're not audible. You are breaking. Yeah. Yeah, you are breaking. Yeah. You can hear me or- Yeah, yeah. Now we can hear. Thank you. What I was saying is we have launched couple of new products for the treatment of COVID, which includes product like remdesivir, itolizumab, and favipiravir. Last year, by the time we launched the product in the first wave, almost by the month of November and December, number of cases were reduced. In the second wave from March and April, the number of cases has been increased. We will get some short-term benefit in this next financial year. At the same time, we have a good number of COVID portfolio products with us which have been used off-label and they are doing well incoming quarters. Also, there are products which will give us some benefit, but it will be a short term and we don't know how long this second wave will last. Okay. Yes. Thank you. Thanks a lot. Thank you. The next question is from the line of Kishor Manidhane from Motilal Oswal Financial Services. Please go ahead. Yeah, thanks for the opportunity. Just would like to understand on the biosimilar front, what kind of investment are we envisaging over the next three to four years on the product development side and subsequently on the manufacturing front? I don't think we have crystallized this in specifics to be able to respond. As I see our overall R&D spend, for us to be able to take care of biosimilars, both in R&D as well as if I see our annual CapEx for upgradation, new capacities and building to create additional capacity for biosimilars. It shouldn't be a big drain either on our cash flow or on our profitability. Okay, sir. Previously we were refraining from getting into biosimilars because of the lack of clarity on the regulatory front. Now that is there, at the same time we are seeing experiences of other companies, like biosimilars also having considerable price erosion in addition to spending significant amount on the development as well as on the manufacturing front. Still, do you see this as a good opportunity over the next four to five years? Yeah, I think so. Depending again on the product and when you enter the markets, I am expecting that over time with familiarity and confidence that doctors will develop on the biosimilars. We will see increasing percentage of patients being treated with biosimilars. Okay, sir. That helps. Thank you. Right. Bye. Thank you. The next question is from the line of Sayantan Bhadnik from Finebridge Investments. Please go ahead. Thank you for this opportunity. Just wanted to understand, we recently invested in this company called ABCD Technologies along with a few other companies. If you can just give us a thought process on this investment and what do we intend to do with it? That's the first question. Secondly, if you could just elaborate our efforts on ESG and what we have done, how the company has supported the community during this pandemic. Sure. Kirti, maybe you can answer. Yeah, I'll answer the first. Yeah. As indicated in our announcement regarding this development, some of the large pharma companies have come together to form ABCD Technologies, which will further invest in digitalization to make the distribution of pharma product more efficient. That is the objective. Over a period of time, it will result in a better inventory management and ensuring that the pharma products are available to patients at the right time and at the right place. Will this be some sort of competitor positioning compared to some of the online pharmacies? Is that the intent or is it just purely a back-end optimization? It's more to make the supply chain more efficient. Okay. Yeah. On the ESG-related front, we are working on both the sustainability and ESG, which I suppose covers the energy, the water, and other related aspects of the GRI standards. We will be coming out with the first edition of our initiatives and the report ideally a year along with our annual report in this financial year, both on the sustainability. The detailed reporting will be done by us. Okay. Thank you. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Thank you for taking my question. Just the first one on the India business. If you can just tell us about the field force as it stands today in terms of either numbers as well as the productivity that you are looking at. I think you put it out in your presentation. Just wanted an update on this from a FY 2021 perspective. In terms of, you're saying number of field force or- Yes. Number of field force, maybe the PCPM that they have currently today and where do you think this can actually trend going ahead? Sure. As we discussed in our last call during the last January to March, we have expanded our field force and we have added about 1,000 people in the field, which includes medical reps and managers. Now we are in excess of about 10,000 people, which includes everyone in the field, right from medical rep to all the managers put together. Since we have added the field force last year, and then we entered into a pandemic on quarter one and quarter two, the performance in that first two quarter was not up to the mark, and the field force was also new. They were to visit to the doctors, and that could not happen. From quarter three and quarter four, this new field force could visit the doctors and develop certain relationships. Generally, we don't give our PMPM, but what I can say, our PMPM due to expansion was almost flat or slightly lower than what it was in the last financial year. More important is now this field force is well settled, in the coming financial year 2021/2022, we think that we'll get a benefit of our expansion and our reach to the doctors, and we'll also see the improvement in PMPM and productivity. Got it. Very helpful. Second question is on capital allocation priorities. This year looks like we have used some of it towards reducing our debt levels. If I picked up the number, right, it's around like INR 170 million or so. How should we look at FY22 in terms of capital allocation? Also a related question on what is the CapEx for FY21 that was reported, and what are we looking at for next year? Thank you. Sure. Murali, would you respond? In terms of the capital allocation, as we have mentioned in our previous earnings call, our endeavor will be also to become debt-free gross level ex-Taro. The INR 179 million what we talked about, which is funding the net debt or our gross level what we have chosen will be our endeavor is to, by March 2022, we'll continue to wind down the debt. At the same time, with the cash what we have, the leverage we have, definitely for the growth of the business, we will be open to investments if any opportunities are attractive for growth of the business. Murali, could you also- CapEx. He wants information on CapEx. Yeah. CapEx for the FY 2022? Yeah. Average in terms of each year overall CapEx will be around about we do about INR 200 million plus across various geographies. This year, we have worked out almost to the number. It should not be much very high. Got it. Thank you, and all the best. Thank you. Thank you. Thank you. The next question is from the line of Krishnendu Saha from Quantum AMC. Please go ahead. Yes. Hi. Thanks for taking my question. I just had a couple of questions. We talk about Picosun, we talk about Apovian, but we don't talk about the sprinkle family, the Ezallor and Aurora. Is that the name? Sorry about it wrong. Are they not intriguing enough, or you don't spend much of marketing spend behind them? What are the thought there? How do you see that business also because when we talk, we don't talk about anything about the recent launch, but they're absolutely mentioned in the annual reports. Just wondering how to think about this, please. It's a niche segment, and the idea behind this product, look at a very specific niche area of, and especially within that, patients who have dysphagia. None of the products individually will be very big products. Okay. It should be a decent meaningful range when everything comes to market, and these are coming in tranches and phases, so not everything at one time. It's a small part of our business. It's an interesting area to be in because you are genuinely doing something which is needed by the patients in the long-term care centers and those who cannot swallow their medication. I personally like that segment, not for the dollar value, but because of what it does for elderly patients. I see. Do we need a whole segment? It's all already just, I think it is. Sorry, can you just repeat? Do we promote it or not? Yeah, we promote it to the doctors who visit NPC centers. We promote it. Right. Okay. One more question. We have this GLP-1 trials on that. We've seen on the specialty products, how does this fit in? We do have an upshot via Derma, via Ophthalmic. Where does this fit in the whole scheme of things if the, you say there are trials another three adults, this comes out good and see data lock in the capital position. How do you see this product fitting in? Clearly in India and emerging markets, we have presence in diabetology and cardiology, this is interesting. For large markets like U.S., Europe as well as other regulated markets, we will look at options for licensing it to somebody because it's a product that will require a large field source in excess of 1,000 people, that's not the plan for us to. Our objective would be to develop it at up to a level and then look for a licensing partner. I can only say that the early readouts that we are getting in the clinical trial in terms of everything, in terms of Weight loss in terms of triglyceride reduction, as well as in terms of potential effect on HbA1c, it's very limited because these are all healthy subjects. We are quite excited with the profile that the product has demonstrated till now. Just one last question. The reason I ask is because we launched YONSA in Japan. The ROW dollar revenue has been going down. Is that just seasonal or it is because of other reasons like the ROW? It takes some more time than the last time we discussed that it will take a couple of more months or a year to get the whole hospital business in Japan done. There's some light couple of items like the ROW revenue and total revenue going down. Maybe just quick view. Just a thought process. Thank you. You're talking of sales going down in Japan? No, I'm talking about the reason I asked about Japan is because the ROW market, the dollar revenue is going down from $178- $173, $163, instead of us launching these products in Japan. Is it going to take us more time, or has the product not picked up in Japan? I'm just trying to understand coupling the ROW numbers, if I'm picking up correctly. I think, introduction of a product like YONSA in Japan will not be a huge impact in the first initial period of launch. You should not look at the Q1 impact of the product in terms of sales. We believe that over time it will become an important and meaningful part of our business in Japan, and that's the focus. The overall rest of the world market, Japan is an important component, but there are many other geographies which are also important in terms of size. Yeah. Thank you. Thank you. Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead. Hi, sir. Thanks for taking the question. Sir, on the U.S. business, two parts. One is on the generic side. If you take a two to three-year view, is the launching of our growth business largely contingent upon the approval that we get from Halol or there are other drivers in the business possible? Okay. Sorry, I was on mute. I think your question has more to do with new product introduction, right? Yeah. I'm just trying to understand in terms of when you look at the generic business, what is going to be the driver? Is it going to be new product launches? Is it largely going to be the Halol portfolio? I think new product launches clearly are important to be able to continue to find ways to grow the business. If you see, despite Halol not having been inspected, in the financial year, we were able to launch around 18 new products and also a few relaunches. There are different avenues by which we will be able to bring out new products from different facilities. It's not only Halol dependent. Secondly, ma'am, on the U.S. specialty business, again, if we take a broad brush two to three-year view, can we say that the current portfolio of products that we have will largely continue to drive growth for us or there are possibilities of product portfolio additions meaningfully contributing over this timeframe? First of all, I think the current portfolio that we have, we can still optimize and do better, and there is clearly headroom for us to grow with the current portfolio. In addition to that, as I said earlier in response to one of the questions, any company which wants to grow in the long term will continuously look at opportunities to develop its business and look at any inorganic way of growing the business. It's a combination of both, but clearly the products that we have in the basket today have a lot more headroom to continue to grow. Last question. You mentioned about the vaccine, not doing anything in the vaccines currently. From a capability perspective, do we have capabilities to do drug substance manufacturing or do you have sufficient, given the wide manufacturing network, are there any capabilities inherent in our network to work on this? I think our preliminary assessment indicates that vaccines will require a dedicated manufacturing facility, and it cannot be produced in a facility where we are making multiple other products, in addition to the specific different designs for those facilities, depending on the type of vaccine that you are producing. That's broadly our understanding. We currently don't have any facility which we are looking at for producing vaccine. Okay. Thank you, Nimish Desai. Yeah. Thank you. Thank you. The next question is from the line of Kunal Randeria from Edelweiss. Please go ahead. Good evening. Thanks for taking the question. First on Cequa, so there could be a likelihood that there might be a Restasis generic maybe later this calendar year. I'm wondering if you could share your thoughts on how this potentially could affect Cequa uptake. We still have no visibility on when they will generic. Okay. It could have been launched a year and a half, two years ago also, but we haven't seen it. To put a timeline to it and therefore look at pre-empting situation is pointless because we don't know when it's going to get launched. Right. Okay, fair enough. My second question is on ABSORICA. With this product now going generic and obviously its price will begin becoming cheaper, do you see the ABSORICA market going generic could show higher volumes maybe at the cost of some brands like Teva or Mylan? Sorry, can you repeat? So- Brands, what did you say? I was saying, ABSORICA going generic now. Right obviously becoming cheaper. Right. Do you see this market expanding at the cost of Teva or Mylan's brands or MSK? Personally, I don't believe so because isotretinoin is usually in moderate to severe. Generally we use other options before they go into isotretinoin. Direction of ABSORICA, I don't think the market really will expand. That's my view though. Abhay, what I understand he's asking is that whether the overall share of ABSORICA or ABSORICA generic in the isotretinoin market will. My answer was in the same lines. If I look at TRx, forget the value of the TRx, whether it's a brand use or a generic use, will the number of TRx sales for isotretinoin increase because there are generics available? I don't really believe so. Okay, sir. That's helpful. Thank you very much. Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to Mr. Nimish Desai for closing comments. Yes, thank you everybody for taking time out to join this call. If any of your questions have remained unanswered, please do send them across and we'll have them answered. Thank you and have a good day. Thank you. Yeah. Thank you. Thank you. On behalf of Sun Pharmaceutical Industries Limited, that concludes the conference call. Thank you for joining us and you may now disconnect your line.