The first question is from Neha Manpuria: from Bank of America. Ms. Neha, we can't hear you. Ms. Manpuria, I request you to may call us back maybe from a different number. We'll move to the next question. The next question is from Bino Pathiparampil from Elara Capital.

My first question is on the U.S. business. We have seen a Q -o-Q decline in the run rate and Y - o-Y as well. So, you mentioned that there were some volume declines in the quarter. Could you comment on was it a quarterly phenomenon, some stock adjustment, etcetera? And what is that going forward on the quarterly run rate?

So Bino, we had certain products which w ere not shipped out some of the main products like Enoxa and we plan that to ship back in the next coming quarter. On demand side, we don't have any issues here in terms of the forecast what we have received from our customers. It is just a shipping timing thing which instead of Q3, we will be probably planning for next quarter.

So next quarter, we should see a significant Q -o-Q improvement in numbers. Can we assume so?

Yes. So next quarter, this will be compensated by the some of the products which I mentioned, which would happen next quarter.

Understood. And this quarter, the margin ex-Cenexi has come in strong. So, despite the top line being low, what has led to that?

So gross margin, do you mean or EBITDA margin?

Both, I think. GLAND Gland Pharma LimitedFebruary 03, 2025for the same period of the previous financial year and stood at 4.3% of the revenue fromoperations on an ex-Cenexi basis. The total R&D expense for the 9 months was INR1,419million, which was 5% of our revenue, demonstrating our continued focus in R&D. On a stand-alone basis, our effective tax rate was 25% in the third quarter and 26% for the nine months ofthe current financial year.As of December 31, 2024, on a group level, we had a total of INR27,189 million in cash andcash equivalents. After accounting for Cenexi's debt, our net cash position was INR24,122million. Cash flow from operations during the 9M was INR5,889 million and working capitalstood at INR23,060 million as of December 31, 2024.The average cash conversion cycle improved at 162 days for the nine months ended December2024 compared to 182 days in the same period last financial year. The total capex spend duringthe quarter was INR1,379 million spent at Gland’s Indian sites and at Cenexi.At India, we are spending growth capex at expanding a new bag line and increasing the packingcapacity. We are also in process of adding a new cartridge line at Suite 9which will be in additionto one existing cartridge line at Pashamylaram site. At Cenexi, as Mr. Alain mentioned, we areadding some additional high speed and new lines to improve the overall capability.With this, I request the moderator to open the lines for questions. Thank you.Moderator:The first question is from Neha Manpuria: from Bank of America. Ms. Neha, we can't hear you.Ms. Manpuria, I request you to may call us back maybe from a different number. We'll move tothe next question. The next question is from Bino Pathiparampil from Elara Capital.Bino Pathiparampil:My first question is on the U.S. business. We have seen a Q-o-Q decline in the run rate and Y-o-Y as well. So, you mentioned that there were some volume declines in the quarter. Could youcomment on was it a quarterly phenomenon, some stock adjustment, etcetera? And what is thatgoing forward on the quarterly run rate?Ravi Mitra:So Bino, we had certain products which were not shipped out some of the main products likeEnoxa and we plan that to ship back in the next coming quarter. On demand side, we don't haveany issues here in terms of the forecast what we have received from our customers. It is just ashipping timing thing which instead of Q3, we will be probably planning for next quarter.Bino Pathiparampil:So next quarter, we should see a significant Q-o-Q improvement in numbers. Can we assumeso?Ravi Mitra:Yes. So next quarter, this will be compensated by the some of the products which I mentioned,which would happen next quarter.Bino Pathiparampil:Understood. And this quarter, the margin ex-Cenexi has come in strong. So, despite the top linebeing low, what has led to that?Ravi Mitra:So gross margin, do you mean or EBITDA margin?Bino Pathiparampil:Both, I think.

Yes. So gross margin, I think, improved by a couple of percent, and that is largely a factor of the product mix at different sites. And some of the products, as you know, are high margin like vial and lyophilized products compared to ampoules. And on the E BITDA side, also the cost side, we have kind of controlled and that has showed down the benefit to the EBITDA as well.

Okay. if I can ask one more question on Cenexi. So, the earlier guidance was a positive EBITDA in 4Q of this year. So, in the opening remarks, I heard that you have changed it to a positive EBITDA in FY '26. But in FY '26, if you could let us understand how the trajectory would be. So initial couple of quarters, the losses will continue and then it will pick up? Is that h ow we should think about it?

We are estimating now Q3 FY '26 could be EBITDA positive quarter. One is we mentioned about the inspection that happened last quarter. So, we lost a few weeks because of that. So that's kind of impacting the next quarter numbers a bit and last quarter numbers a bit. So that's the main reason. So, estimating I think it will move back to a few quarters.

Next question is from Neha Manpuria from Bank of America.

following up on Cenexi, I understand that there was an inspection, but is there more to the inspection which is leading us to delay the breakeven to third quarter? I mean, have the authorities highlighted something to us, which needs us to shut down production for longer. Just wanted to get a sense of as to why 10 days of audit is delaying the breakeven by 3 quarters?

So, one is, of course, the lost time, it took almost, I think, 3 weeks inspection, there are 2 inspections that happened. So, we lost production during that time. And there are corrective measures which we need to take. So, some observations which we need to work on. So that will take some loss of production time. That's why we're estimating now it could be the third quarter.

Understood. And my second question is on the RoW business on the Saudi contract. Have you made any progress on that? We were expecting some shipments by the end of the quarter or in the fourth quarter. So, is that still on track? Or any status update on that?

Yes. I think that's one of the reasons we actually missed the revenue estimate this quarter. So, it got pushed out a bit and it didn't get dispatched. And also, it kind of impacted positively in the margin profile because it's a low-margin business. But on the revenue side, I think it got pushed out by a quarter.

And should that come through in the fourth quarter? Or is there more delay expected on the Saudi tender?

We actually got the tender. It's just allotment to the hospitals that was delayed. So, it could be this quarter or the first quarter of next year.

Got it. And my last question is on the Biologics bit. I think you mentioned, one, the Dr. Reddy supply would start from fiscal '26. And there was also a second CDMO agreement that you mentioned. I didn't quite catch that with whom that was and when should we expect that to start contributing?

Yes. So gross margin, I think, improved by a couple of percent, and that is largely a factor of theproduct mix at different sites. And some of the products, as you know, are high margin like vialand lyophilized products compared to ampoules. And on the EBITDA side, also the cost side,we have kind of controlled and that has showed down the benefit to the EBITDA as well.Bino Pathiparampil:Okay, if I can ask one more question on Cenexi. So, the earlier guidance was a positive EBITDAin 4Q of this year. So, in the opening remarks, I heard that you have changed it to a positiveEBITDA in FY '26. But in FY '26, if you could let us understand how the trajectory would be.So initial couple of quarters, the losses will continue and then it will pick up? Is that how weshould think about it?Srinivas Sadu:We are estimating now Q3 FY '26 could be EBITDA positive quarter. One is we mentionedabout the inspection that happened last quarter. So, we lost a few weeks because of that. So that'skind of impacting the next quarter numbers a bit and last quarter numbers a bit. So that's themain reason. So, estimating I think it will move back to a few quarters.Moderator:Next question is from Neha Manpuria from Bank of America.Neha Manpuria:following up on Cenexi, I understand that there was an inspection, but is there more to theinspection which is leading us to delay the breakeven to third quarter? I mean, have theauthorities highlighted something to us, which needs us to shut down production for longer. Justwanted to get a sense of as to why 10 days of audit is delaying the breakeven by 3 quarters?Srinivas Sadu:So, one is, of course, the lost time, it took almost, I think, 3 weeks inspection, there are 2inspections that happened. So, we lost production during that time. And there are correctivemeasures which we need to take. So, some observations which we need to work on. So that willtake some loss of production time. That's why we're estimating now it could be the third quarter.Neha Manpuria:Understood. And my second question is on the RoW business on the Saudi contract. Have youmade any progress on that? We were expecting some shipments by the end of the quarter or inthe fourth quarter. So, is that still on track? Or any status update on that?Srinivas Sadu:Yes. I think that's one of the reasons we actually missed the revenue estimate this quarter. So, itgot pushed out a bit and it didn't get dispatched. And also, it kind of impacted positively in themargin profile because it's a low-margin business. But on the revenue side, I think it got pushedout by a quarter.Neha Manpuria:And should that come through in the fourth quarter? Or is there more delay expected on theSaudi tender?Srinivas Sadu:We actually got the tender. It's just allotment to the hospitals that was delayed. So, it could bethis quarter or the first quarter of next year.Neha Manpuria:Got it. And my last question is on the Biologies bit. I think you mentioned, one, the Dr. Reddysupply would start from fiscal '26. And there was also a second CDMO agreement that youmentioned. I didn't quite catch that with whom that was and when should we expect that to startcontributing?

So, this is an agreement with Shanghai Henlius. It's a Chinese company, which has launched biosimilars in different parts of the world, including the U.S. So, we have signed a term sheet as a second site for their pipeline of products. So that would take probably 2 years from now. Yes, once the agreement is firmed up, then it would take a tech transfer and will take time for that.

Okay. So, this is probably FY '28 onwards.

Yes, sure. '27-'28, I would say. Yes.

Next question is from Vivek Agrawal from Citigroup.

Just one question from my side. It is good to see that India and RoW, particularly the non -U.S. markets are seeing the kind of attention now that's being required. So, if you can just elaborate basically how we are going to do that? What has been lagging so far? What new basically we are going to do in these markets?

So, India, Vivek, we want to leverage our portfolio strength. We are already having a cost leadership position because of the CDMO activities. And India as a market is also growing. So, we are integrating to launch some therapies in India. And of course, we are getting various therapies as we see. We're also evaluating any inorganic route to expand our presence. So, this is something that we're doing on the India side. On the RoW side, we are now changing our approach. Earlier, we used to see RoW from an continent lens like LATAM or Africa, right. We have moved that lens to now focus on top 5, 6 top countries like Saudi, Mexico, South Africa and so on, okay, where we will really want to be aggressive in terms of partnership and filings and all of that. So, we have now divided the RoW into 3 groups, one which is high value -- high pharmaceutical value, and second is, of course, medium and so on and so forth. So, this approach, I think, will help us resource these markets well and put a new acceleration plan in place.

Next question is from Aman Goyal from Axis Securities.

Sir, my question is related to the Cenexi. So, in the last quarterly con call, you said , in Q4, the Cenexi will be breakeven at EBITDA level. Can you throw some light on any estimated time that we will see the breakeven for Cenexi business?

Like we just mentioned that we expect now to EBITDA breakeven at Q3 FY '26 next year. So, this is largely a factor of how we can push the top line to a 50 million per quarter run rate and then keep the cost under control. So that can be achieved by new high-speed lines. So, one of the additional lines is already up and running in Fontenay as Alain mentioned in his speech. In addition to that, there are also a couple of activities, which is going on at HSC and Belgium site, which will improve the output significantly without having more cost at manpower and other overheads. So, this will be happening at Q3 level because Q2 is anyway a summer

So, this is an agreement with Shanghai Henhus. It's a Chinese company, which has launchedbiosimilars in different parts of the world, including the U.S. So, we have signed a term sheet asa second site for their pipeline of products. So that would take probably 2 years from now. Yes,once the agreement is firmed up, then it would take a tech transfer and will take time for that.Neha Manpuria:Okay. So, this is probably FY '28 onwards.Srinivas Sadu:Yes, sure. '27-'28, 1 would say. Yes.Moderator:Next question is from Vivek Agrawal from Citigroup.Vivek Agrawal:Just one question from my side. It is good to see that India and RoW, particularly the non-U.S.markets are seeing the kind of attention now that's being required. So, if you can just elaboratebasically how we are going to do that? What has been lagging so far? What new basically weare going to do in these markets?Shyamakant Giri:So, India, Vivek, we want to leverage our portfolio strength. We are already having a costleadership position because of the CDMO activities. And India as a market is also growing. So,we are integrating to launch some therapies in India. And of course, we are getting varioustherapies as we see.We're also evaluating any inorganic route to expand our presence. So, this is something thatwe're doing on the India side.On the RoW side, we are now changing our approach. Earlier, we used to see RoW from ancontinent lens like LATAM or Africa, right. We have moved that lens to now focus on top 5, 6top countries like Saudi, Mexico, South Africa and so on, okay, where we will really want to beaggressive in terms of partnership and filings and all of that. So, we have now divided the RoWinto 3 groups, one which is high value — high pharmaceutical value, and second is, of course,medium and so on and so forth. So, this approach, I think, will help us resource these marketswell and put a new acceleration plan in place.Moderator:Next question is from Aman Goyal from Axis Securities.Aman Goyal:Sir, my question is related to the Cenexi. So, in the last quarterly con call, you said, in Q4, theCenexi will be breakeven at EBITDA level. Can you throw some light on any estimated timethat we will see the breakeven for Cenexi business?Ravi Mitra:Like we just mentioned that we expect now to EBITDA breakeven at Q3 FY '26 next year. So,this is largely a factor of how we can push the top line to a 50 million per quarter run rate andthen keep the cost under control. So that can be achieved by new high-speed lines.So, one of the additional lines is already up and running in Fontenay as Alain mentioned in hisspeech.In addition to that, there are also a couple of activities, which is going on at HSC and Belgiumsite, which will improve the output significantly without having more cost at manpower andother overheads. So, this will be happening at Q3 level because Q2 is anyway a summerPage 9 of 18 shutdown, and we want to also utilize like last year to build up all those new additional capabilities we are putting in. So Q3, we estimate that would be a time where we expect the top line to touch 50 million or more and then have EBITDA breakeven.

On last call, we talked about the GLP -1 contract on the CDMO side. So, we have 3 different customers on GLP. Could you throw some light on that, like the size or revenue to be started in the commercialization?

So basically, it's two customers and three products contracts. And revenues, the patent landscape, it depends on which markets and all that. So, we can't really give the numbers to you, but slowly we'll start seeing some numbers in FY '26.

Next question is from Harsh Bhatia from Bandhan Mutual Fund.

On biologics/biosimilar contracts for Reddy's, you had mentioned this as nonexclusive contract and you have a certain capacity, mammalian drug substance capacity. That was biologics CDMO, biologics/biosimilars contract. Is the nature of the contract with the Chinese company also very similar in terms of the contract commitment of the volumes or the size of the contract? Or is it materially different?

I think materially this could be different . The contract still needs to be signed up. It's a term - sheet we signed. But it's a whole pipeline of biosimilar products, what are already commercialized and also what is still there in the pipeline, which will go off patent in the next few years. And it could be a second site. So, we're already looking at expansion of the drug substance side to increase the capacity to 15 KL to meet the demand. So, it will be substantially different compared to what we have done earlier.

So, you already have an 8 KL capacity, and this could in the foreseeable future go to 15 KL capacity?

No, an additional 15 KL capacity.

In terms of the Cenexi contracts and the customers, your aim was to sort of move their RoW capacity from the Cenexi site in Europe to the India site over a period of time. Where are we on that as of now?

So, we are having currently some business by customers, and it's too early to comment at this point of time. But we are seeing interest from their customers, and the work is going on.

Few of them must have already visited your India facilities, right?

Yes, some have.

In terms of heparin. Can you explain , at a macro level, China does control a lot of capacity in terms of the raw materials as such. So, anything incrementally that you could think could be a second order derivative for the tariffs from that angle? GLAND Gland Pharma LimitedFebruary 03, 2025shutdown, and we want to also utilize like last year to build up all those new additionalcapabilities we are putting in.So Q3, we estimate that would be a time where we expect the top line to touch 50 million ormore and then have EBITDA breakeven.Aman Goyal:On last call, we talked about the GLP-1 contract on the CDMO side. So, we have 3 differentcustomers on GLP. Could you throw some light on that, like the size or revenue to be started inthe commercialization?Srinivas Sadu:So basically, it's two customers and three products contracts. And revenues, the patent landscape,it depends on which markets and all that. So, we can't really give the numbers to you, but slowlywe'll start seeing some numbers in FY '26.Moderator:Next question is from Harsh Bhatia from Bandhan Mutual Fund.Harsh Bhatia:On biologics/biosimilar contracts for Reddy's, you had mentioned this as nonexclusive contractand you have a certain capacity, mammalian drug substance capacity. That was biologiesCDMO, biologics/biosimilars contract. Is the nature of the contract with the Chinese companyalso very similar in terms of the contract commitment of the volumes or the size of the contract?Or is it materially different?Srinivas Sadu:I think materially this could be different. The contract still needs to be signed up. It's a term-sheet we signed. But it's a whole pipeline of biosimilar products, what are alreadycommercialized and also what is still there in the pipeline, which will go off patent in the nextfew years. And it could be a second site. So, we're already looking at expansion of the drugsubstance side to increase the capacity to 15 KL to meet the demand. So, it will be substantiallydifferent compared to what we have done earlier.Harsh Bhatia:So, you already have an 8 KL capacity, and this could in the foreseeable future go to 15 KLcapacity?Srinivas Sadu:No, an additional 15 KL capacity.Harsh Bhatia:In terms of the Cenexi contracts and the customers, your aim was to sort of move their RoWcapacity from the Cenexi site in Europe to the India site over a period of time. Where are we onthat as of now?Ravi Mitra:So, we are having currently some business by customers, and it's too early to comment at thispoint of time. But we are seeing interest from their customers, and the work is going on.Harsh Bhatia:Few of them must have already visited your India facilities, right?Ravi Mitra:Yes, some have.Harsh Bhatia:In terms of heparin. Can you explain, at a macro level, China does control a lot of capacity interms of the raw materials as such. So, anything incrementally that you could think could be asecond order derivative for the tariffs from that angle?

I think it's more to do with the direct imports into U.S., not to the materials what we buy from China. So, I don't think there will be an impact on that.

Sir, but do Chinese players, again, just very broadly this China or Chinese players directly supply these raw materials into the U.S. market as of now?

No. So, from a positive side, the companies who are actually competing with us directly in China. Now they might be impacted if this 10% thing gets implemented and on the pharmaceutical products, still it's not very clear. Then the people who are competing with us in heparin and some of these products from China will be more competitive against them in terms of several products. So that would be an advantage for us in terms of finished p roducts, and probably APIs also. But I would say, local manufacturing in China -- in U.S. anyway, is not that competitive. But I would say the Chinese players who are directly exporting finished product from China if this 10% tariff comes on to those products, then we'll be more competitive than that for sure.

And just very lastly, if there are, let's say, Index 200 in terms of the RN component for enoxaparin, heparin. How much of that would be China -based capital consumption and how much will be going outside of China, very roughly put, if you would have the numbers?

You mean within the U.S?

No. China production getting consumed within China and as compared to going out of China getting exported.

I'm not sure of that quantity, but I think globally, they control about 45%, 50% of Heparin API production, a bit more also, I think, 60%. Yes. But how much is consumed within China and outside, frankly we can't...

Next question is from Shyam Srinivasan from Goldman Sachs.

Just the first one on the U.S. business. We had 13 launches during the quarter. And despite that we have had like Q-o-Q, even in the base business, excluding Cenexi in the U.S., we have seen decline. So, could you just explain, is it price erosion that there seems to be higher?

No, I think the major drop is Enoxa which we expected to supply to Saudi, didn't happen, that's a major loss. And the launches that happened compared to that volume is lower, I would say. From margin profiles, the products that we launched in the last 2, 3 quarters is better margin products, and that's why you're seeing an improvement in margin profile across products.

I'm just looking at just the U.S. market. And I'm assuming Saudi Arabia will come in RoW, right? Sorry, I'm getting confused. The U.S. market Q-o-Q decline.

Even U.S. we didn't supply Enoxa. I think there's a decline of -- I would give you a steer percentage. But 12% down in terms of quantity variance for Enoxa and Ketorolac, the other product -- 2 products. And that's the reason -- the primary reason why we lost that decrease in the volumes.

I think it's more to do with the direct imports into U.S., not to the materials what we buy fromChina. So, I don't think there will be an impact on that.Harsh Bhatia:Sir, but do Chinese players, again, just very broadly this China or Chinese players directly supplythese raw materials into the U.S. market as of now?Srinivas Sadu:No. So, from a positive side, the companies who are actually competing with us directly inChina. Now they might be impacted if this 10% thing gets implemented and on thepharmaceutical products, still it's not very clear. Then the people who are competing with us inheparin and some of these products from China will be more competitive against them in termsof several products. So that would be an advantage for us in terms of finished products, andprobably APIs also.But I would say, local manufacturing in China — in U.S. anyway, is not that competitive. But Iwould say the Chinese players who are directly exporting finished product from China if this10% tariff comes on to those products, then we'll be more competitive than that for sure.Harsh Bhatia:And just very lastly, if there are, let's say, Index 200 in terms of the RN component forenoxaparin, heparin. How much of that would be China-based capital consumption and howmuch will be going outside of China, very roughly put, if you would have the numbers?Srinivas Sadu:You mean within the U.S?Harsh Bhatia:No. China production getting consumed within China and as compared to going out of Chinagetting exported.Srinivas Sadu:I'm not sure of that quantity, but I think globally, they control about 45%, 50% of Heparin APIproduction, a bit more also, I think, 60%. Yes. But how much is consumed within China andoutside, frankly we can't...Moderator:Next question is from Shyam Srinivasan from Goldman Sachs.Shyam Srinivasan:Just the first one on the U.S. business. We had 13 launches during the quarter. And despite thatwe have had like Q-o-Q, even in the base business, excluding Cenexi in the U.S., we have seendecline. So, could you just explain, is it price erosion that there seems to be higher?Srinivas Sadu:No, I think the major drop is Enoxa which we expected to supply to Saudi, didn't happen, that'sa major loss. And the launches that happened compared to that volume is lower, I would say.From margin profiles, the products that we launched in the last 2, 3 quarters is better marginproducts, and that's why you're seeing an improvement in margin profile across products.Shyam Srinivasan:I'm just looking at just the U.S. market. And I'm assuming Saudi Arabia will come in RoW,right? Sorry, I'm getting confused. The U.S. market Q-o-Q decline.Srinivas Sadu:Even U.S. we didn't supply Enoxa. I think there's a decline of — I would give you a steerpercentage. But 12% down in terms of quantity variance for Enoxa and Ketorolac, the otherproduct — 2 products. And that's the reason — the primary reason why we lost that decrease inthe volumes.

Understood. We should expect Q4 that there will be a recovery there or we'll start shipping Enoxa and the other product again in Q4, right?

At least U.S. Enoxa, you can expect.

Yes. Yes. I'm only focusing on the U.S. market.

Yes, correct. From price variance perspective from quarter-on-quarter, it's about, I think, 1% to 2% lower.

Understood. And in terms of pricing or any of the other on the base business, excluding Enoxa and other, has there been an erosion?

No, no, there's not much price erosion.

Understood. My second question is on the 39% core margins. So, if you could help us what was the profit share and the milestones in that number?

So, for this quarter, profit share is 11.7% and milestone is 10.2%.

So, about 20%, I'm just adding those 2 numbers is coming from at least 2, right, Ravi?

Yes, the profit -- yes, correct. And profit share should consider as part of the product only right. It's margin of the product.

No, I'm not questioning the numbers. It's just that -- I'm just trying to look at these numbers is - - 11% for us, typically, right?

Yes, typically about 20% together.

So, some quarters, it may be high, some quarter lows. So, if you say a 9-month basis, it's again 10.1% and 8.8%.

Also, but together, it's over 19%.

19%. Okay. So -- and we should assume that you get at least this kind of milestones and similar kind of profit share.

So basically, it's a simple math. The low -margin products, if you have shipped like kind of a product, it's down INR100 crores, it's like 5% to 7% margin. So that then the margin will get diluted about 36%.

Next question is from Ritesh Rathod from Nippon India Mutual Fund.

How many Chinese players are active in the U.S. injectable market? Or put it other way around, how many of the front -end companies source their raw -- source their finished injectable products from Chinese manufacturing plant. If you can give some colour -- this is in context with the tariff thing which we spoke earlier.

Understood. We should expect Q4 that there wdl be a recovery there or we'll start shippingEnoxa and the other product again in Q4, right?Srinivas Sadu:At least U.S. Enoxa, you can expect.Shyam Srinivasan:Yes. Yes. I'm only focusing on the U.S. market.Srinivas Sadu:Yes, correct. From price variance perspective from quarter-on-quarter, it's about, I think, 1% to2% lower.Shyam Srinivasan:Understood. And in terms of pricing or any of the other on the base business, excluding Enoxaand other, has there been an erosion?Srinivas Sadu:No, no, there's not much price erosion.Shyam Srinivasan:Understood. My second question is on the 39% core margins. So, if you could help us what wasthe profit share and the milestones in that number?Ravi Mitra:So, for this quarter, profit share is 11.7% and milestone is 10.2%.Shyam Srinivasan:So, about 20%, I'm just adding those 2 numbers is coming from at least 2, right, Ravi?Srinivas Sadu:Yes, the profit — yes, correct. And profit share should consider as part of the product only right.It's margin of the product.Shyam Srinivasan:No, I'm not questioning the numbers. It's just that — I'm just trying to look at these numbers is -- 11% for us, typically, right?Srinivas Sadu:Yes, typically about 20% together.Ravi Mitra:So, some quarters, it may be high, some quarter lows. So, if you say a 9-month basis, it's again10.1% and 8.8%.Srinivas Sadu:Also, but together, it's over 19%.Shyam Srinivasan:19%. Okay. So — and we should assume that you get at least this kind of milestones and similarkind of profit share.Srinivas Sadu:So basically, it's a simple math. The low-margin products, if you have shipped like kind of aproduct, it's down INR100 crores, it's like 5% to 7% margin. So that then the margin will getdiluted about 36%.Moderator:Next question is from Ritesh Rathod from Nippon India Mutual Fund.Ritesh Rathod:How many Chinese players are active in the U.S. injectable market? Or put it other way around,how many of the front-end companies source their raw — source their finished injectableproducts from Chinese manufacturing plant. If you can give some colour — this is in contextwith the tariff thing which we spoke earlier.

: Directly it is probably 1 or 2 injectables who are selling directly front end, but people sourcing injectable finished product from China would maybe 4 to 5.

And when we see our top 10 or top 25 products, such kind of Chinese sourcing or Chinese competitors? Would there be -- would there be a decent -- would they have a decent volume market share, like -- and with this tariff, things can swing in coming quarters? Is that a probable scenario?

Yes, at least some products, especially heparin, Enoxa where the front-end player is backward integrated 100% into heparin. And the margin is low. Those kind s of products it will fill the balance, yes.

And in the past, we spoke about, particularly in new launches, we saw excessive competition from Chinese players spoiling the market. Do you think in your pipeline products, such kind of competition will now be much lower than what earlier you have seen for the new launches?

It all depends on the products because some products with the margin profile is high, then probably it's lesser impact, but wherever the margin is lower than there could be an impact. I mean there they will stay away from launching, I would say.

Next question is from Roshan Chutkey: from ICICI Prudential Mutual Fund.

I just wanted to understand, going forward, if Enoxa volumes were to higher, right, one, because of like Chinese competition abating a bit because of tariffs; and two, particularly in this quarter, I guess, you have some slippage coming from the previous quarter. So, should one think that volume growth would be very high, or margins will take a knock? How should one think about this?

If Enoxa volume goes up, then overall margin as a percentage will come down. But in absolute terms of course it will grow.

Yes, Roshan, there is more data point that I would like to bring in here. So, this year, if you see our new launches in the U.S., we have launched 27 molecules and 39 SKUs of which 30 SKUs are first-time launches in the U.S. and the gross margin there is upwards of 65% or so. So, if you see, what we're doing also is strengthening our new launches, which are primarily complex generics, RTUs and all of that and being very aggressive to push that agenda, push that sales in the U.S. so that we still hold on to our gross margin in spite of Enoxa going on. And we have seen this year, for example, in quarter 3, 5% of our revenue total was primarily coming from new launches that we did in the U.S. at a higher gross margin. So, while Enoxa goes up, but we also have a plan here to improve or maintain and improve our gross margin by having a good portfolio and aggressively launching new products in the U.S. market.

Understood. With respect to Cenexi business, last we spoke, you mentioned RFPs are coming quick and fast. Can you just talk a little bit about that.

:Directly it is probably 1 or 2 injectables who are selling directly front end, but people sourcinginjectable finished product from China would maybe 4 to 5.Ritesh Rathod:And when we see our top 10 or top 25 products, such kind of Chinese sourcing or Chinesecompetitors? Would there be — would there be a decent — would they have a decent volumemarket share, like — and with this tariff, things can swing in coming quarters? Is that a probablescenario?Shyamakant Giri:Yes, at least some products, especially heparin, Enoxa where the front-end player is backwardintegrated 100% into heparin. And the margin is low. Those kinds of products it will fill thebalance, yes.Ritesh Rathod:And in the past, we spoke about, particularly in new launches, we saw excessive competitionfrom Chinese players spoiling the market. Do you think in your pipeline products, such kind ofcompetition will now be much lower than what earlier you have seen for the new launches?Shyamakant Giri:It all depends on the products because some products with the margin profile is high, thenprobably it's lesser impact, but wherever the margin is lower than there could be an impact. Imean there they will stay away from launching, I would say.Moderator:Next question is from Roshan Chutkey: from ICICI Prudential Mutual Fund.Roshan Chutkey:I just wanted to understand, going forward, if Enoxa volumes were to higher, right, one, becauseof like Chinese competition abating a bit because of tariffs; and two, particularly in this quarter,I guess, you have some slippage coming from the previous quarter. So, should one think thatvolume growth would be very high, or margins will take a knock? How should one think aboutthis?Ravi Mitra:If Enoxa volume goes up, then overall margin as a percentage will come down. But in absoluteterms of course it will grow.Shyamakant Giri:Yes, Roshan, there is more data point that I would like to bring in here. So, this year, if you seeour new launches in the U.S., we have launched 27 molecules and 39 SKUs of which 30 SKUsare first-time launches in the U.S. and the gross margin there is upwards of 65% or so. So, if yousee, what we’re doing also is strengthening our new launches, which are primarily complexgenerics, RTUs and all of that and being very aggressive to push that agenda, push that sales inthe U.S. so that we still hold on to our gross margin in spite of Enoxa going on.And we have seen this year, for example, in quarter 3, 5% of our revenue total was primarilycoming from new launches that we did in the U.S. at a higher gross margin. So, while Enoxagoes up, but we also have a plan here to improve or maintain and improve our gross margin byhaving a good portfolio and aggressively launching new products in the U.S. market.Roshan Chutkey:Understood. With respect to Cenexi business, last we spoke, you mentioned RFPs are comingquick and fast. Can you just talk a little bit about that.

Alain, can you take that question of RFPs. We have a pipeline of RFPs, which you're addressing. So, the question is around that.

Yes. So, we have a constant flow of opportunities that we are looking at. What is especially encouraging in the last quarter is that we finalized the validation batches for 2 products that will move in Q1 into commercial production.

Next question is from Jinesh Shah from RSPN Ventures.

my first question was, when we talked about that we have margin improvements in this quarter due to the product mix and core business. So, I think you did mention, I just want to reconfirm that. Is it because of the new product launches that we do, we have a better margin in that and because of that overall EBITDA margins of the core business has been shifted up in this quarter. Is that the correct understanding?

Yes. That is definitely correct. And also, the product mix we spoke about. So, both of that is responsible for this higher margin.

Okay. So, like if I have to make a prediction for the future, then we do expect that whatever we had in past, like 33%, 34% of EBITDA margins, we do expect a better margin in the coming future, right?

Yes, yes.

Okay. So, my second question is, can you -- as we had unannounced inspection in one of the Fontenay site. So, can we talk about the observations of that inspection?

Yes. So, we do -- got some observations in that inspection and we want to finalize CAPA and submit to them. So, we'll let you know once the CAPA submission happens and what outcome of that is.

Okay. Fair enough. And my last question would be like -- is there any like one-off in the finance cost in this part and like we have a significant jump in this quarter. So, is there any one off?

Yes, it is one-off. See about INR18 crores is on account of GST refund matter.

Next question is from Tushar Manudhane from Motilal Oswal Financial Services.

Sir, just on this, at least as far as Enoxa, heparin products are concerned, if you could share what is our market share for U.S. market in specific?

I think Enoxa is about 6%. I think we sell about 16 million to 18 million syringes and that's about 6%, 7%. And heparin it's around 20% -25%.

6% and 25%, right?

Yes.

Alain, can you take that question of RFPs. We have a pipeline of RFPs, which you're addressing.So, the question is around that.Alain Kirchmeyer:Yes. So, we have a constant flow of opportunities that we are looking at. What is especiallyencouraging in the last quarter is that we finalized the validation batches for 2 products that willmove in QI into commercial production.Moderator:Next question is from Jinesh Shah from RSPN Ventures.Jinesh Shah:my first question was, when we talked about that we have margin improvements in this quarterdue to the product mix and core business. So, I think you did mention, I just want to reconfirmthat. Is it because of the new product launches that we do, we have a better margin in that andbecause of that overall EBITDA margins of the core business has been shifted up in this quarter.Is that the correct understanding?Ravi Mitra:Yes. That is definitely correct. And also, the product mix we spoke about. So, both of that isresponsible for this higher margin.Jinesh Shah:Okay. So, like if I have to make a prediction for the future, then we do expect that whatever wehad in past, like 33%, 34% of EBITDA margins, we do expect a better margin in the comingfuture, right?Ravi Mitra:Yes, yes.Jinesh Shah:Okay. So, my second question is, can you — as we had unannounced inspection in one of theFontenay site. So, can we talk about the observations of that inspection?Srinivas Sadu:Yes. So, we do — got some observations in that inspection and we want to finalize CAPA andsubmit to them. So, we'll let you know once the CAPA submission happens and what outcomeof that is.Jinesh Shah:Okay. Fair enough. And my last question would be like — is there any like one-off in the financecost in this part and like we have a significant jump in this quarter. So, is there any one off?Ravi Mitra:Yes, it is one-off. See about INR18 crores is on account of GST refund matter.Moderator:Next question is from Tushar Manudhane from Motilal Oswal Financial Services.Tushar Manudhane:Sir, just on this, at least as far as Enoxa, heparin products are concerned, if you could share whatis our market share for U.S. market in specific?Srinivas Sadu:I think Enoxa is about 6%. I think we sell about 16 million to 18 million syringes and that’s about6%, 7%. And heparin it's around 20% -25%.Tushar Manudhane:6% and 25%, right?Srinivas Sadu:Yes.

And how much would be the market share of the Chinese competitors?

They'll have higher probably, I think heparin would be 40%, I would say. Enoxa, I can't say now.

Sorry, sir, how much? Enoxa, how much?

I can't tell, but still, I think 30%, 35% should be there. But I can come back to Tushar. I can take it offline.

Sure, sir. Just lastly on this, is there any way to -- I mean, practically, ultimately the source of raw material is still pig slaughterhouse, which are abundant in China. So eventually when you have to depend on Chinese raw material supply, right, that ti me be changed as per as supply of ultimate formulation is concerned. Is that right?

Yes, sir, the basic growth is still in China. Otherwise, if you go to U.S., it's more expensive. But within China, we have several crudes for heparin sources so that we could be more competitive in terms of pricing. We get some volume discussion and all that. So, it's a continuous work what we do in terms of processing of the crude to heparin and heparin to Enoxa, if you consider both molecules. But still, we have to depend on China for the API.

The next question is from Harsh Bhatia from Bandhan Mutual Fund.

So just in terms of, again, Cenexi part. You've spoken a bit about these capacity expansions as well as certain capabilities across ampoules and PFS in activating vaccine as such. Any of this - - anything other than this relates to in any point towards the price manufacturing capacities of - - directly or indirectly to that extent? I hope it would be too early to comment on that.

Can you repeat that? It was not very clear, the question. We use Cenexi capacity for Gland's, that's what you're saying?

No, Cenexi's capacity for customers who are looking for GLP -1 manufacturing capabilities to that extent

Yes. So, it's part of the plan. I mean part of the capex plan we're evaluating because there's a big opportunity out there for that -- CDMO for that also. So, it's under evaluation to install capacity for that while the -- even the syringe line what we are installing now this year that also has a capability to fill cartridges. So, it has a capability, but -- the plan is future capex, we are evaluating whether you want to invest into additional capex on the bulk cartridges, which is more economical compared to sterile cartridges, which can be done on the current syringe line. Yes, but the opportunity is there, yes.

Could you just sort of help us understand what would be the cartridge capacity, let's say, at one of the Cenexi level, if possible, the bulk cartridge capacity?

I think if you utilize the complete 100% of the syringe line what we're just installing for cartridges, it can be produce about I think 40 million to 50 million cartridges.

And how much would be the market share of the Chinese competitors?Srinivas Sadu:They'll have higher probably, I think heparin would be 40%, I would say. Enoxa, I can't say now.Tushar Manudhane:Sorry, sir, how much? Enoxa, how much?Srinivas Sadu:I can't tell, but still, I think 30%, 35% should be there. But I can come back to Tushar. I can takeit offline.Tushar Manudhane:Sure, sir. Just lastly on this, is there any way to — I mean, practically, ultimately the source ofraw material is still pig slaughterhouse, which are abundant in China. So eventually when youhave to depend on Chinese raw material supply, right, that time be changed as per as supply ofultimate formulation is concerned. Is that right?Srinivas Sadu:Yes, sir, the basic growth is still in China. Otherwise, if you go to U.S., it's more expensive. Butwithin China, we have several crudes for heparin sources so that we could be more competitivein terms of pricing. We get some volume discussion and all that. So, it's a continuous work whatwe do in terms of processing of the crude to heparin and heparin to Enoxa, if you consider bothmolecules. But still, we have to depend on China for the API.Moderator:The next question is from Harsh Bhatia from Bandhan Mutual Fund.Harsh Bhatia:So just in terms of, again, Cenexi part. You've spoken a bit about these capacity expansions aswell as certain capabilities across ampoules and PFS in activating vaccine as such. Any of this -- anything other than this relates to in any point towards the price manufacturing capacities of -- directly or indirectly to that extent? I hope it would be too early to comment on that.Srinivas Sadu:Can you repeat that? It was not very clear, the question. We use Cenexi capacity for Gland's,that's what you're saying?Harsh Bhatia:No, Cenexi's capacity for customers who are looking for GLP-1 manufacturing capabilities tothat extentSrinivas Sadu:Yes. So, it's part of the plan. I mean part of the capex plan we're evaluating because there's a bigopportunity out there for that — CDMO for that also. So, it's under evaluation to install capacityfor that while the — even the syringe line what we are installing now this year that also has acapability to fill cartridges. So, it has a capability, but — the plan is future capex, we areevaluating whether you want to invest into additional capex on the bulk cartridges, which ismore economical compared to sterile cartridges, which can be done on the current syringe line.Yes, but the opportunity is there, yes.Harsh Bhatia:Could you just sort of help us understand what would be the cartridge capacity, let's say, at oneof the Cenexi level, if possible, the bulk cartridge capacity?Srinivas Sadu:I think if you utilize the complete 100% of the syringe line what we're just installing forcartridges, it can be produce about I think 40 million to 50 million cartridges.

40 million to 50 million cartridges. Okay. And what would the order book look like? I think in the first quarter of this financial year, it was somewhere around EUR 20 million, if I'm not wrong, what would the order book look like right now for Cenexi?

Sorry, I couldn't understand what is regarding fourth quarter you mentioned...

Yes. For the third quarter, what would the order book look like -- the order book for third quarter Cenexi order book.

Alain, what's the order book for the fourth quarter

I cannot answer this question off my mind, but it must be above EUR 60 million because we have a backlog that has been carried on from 2024.

So, the order book is at EUR 60 million.

Keeping in mind, we have usually a 3-month confirmed order horizon with our customers.

The next question is from Vivek Agrawal from Citigroup.

This is related to capex as well as investments. So, over the next 3 years, how the company is going to spend on biosimilars plus GLP-1 put together?

In the capex?

So, we are on biosimilar, we are currently evaluating for the 15 KL capacity. The estimate should be around $80 million to $100 million. But currently, it's a process of calculating a project evaluation.

GLP-1, we have already invested into it. The line will be installed this year, next 2 quarters. So, there's no additional investment into GLP-1 in terms of finished products. But we are looking at now that the current manufacture site also kind of maxed out in terms of capacity. We are looking at a greenfield project for the next phase of growth.

Just a basic question. I'm just trying to understand. In terms of fill/finish as well as cartridges are concerned on GLP-1, right? So, let's say, if you want to put the capacity of 100 million cartridges, right, so how long it can take? And what kind of investments that may require. Just a rough answer would be...

Around I think INR200 crores.

And how long it can be basically, how long you can complete the project which is you start...

18 months.

18 months.

The next question is from Dheeresh Pathak from WhiteOak.

40 million to 50 million cartridges. Okay. And what would the order book look like? I think inthe first quarter of this financial year, it was somewhere around EUR 20 million, if I'm notwrong, what would the order book look like right now for Cenexi?Ravi Mitra:Sorry, I couldn't understand what is regarding fourth quarter you mentioned...Harsh Bhatia:Yes. For the third quarter, what would the order book look like — the order book for third quarterCenexi order book.Srinivas Sadu:Alain, what's the order book for the fourth quarterAlain Kirchmeyer:I cannot answer this question off my mind, but it must be above EUR 60 million because wehave a backlog that has been carried on from 2024.Srinivas Sadu:So, the order book is at EUR 60 million.Alain Kirchmeyer:Keeping in mind, we have usually a 3-month confirmed order horizon with our customers.Moderator:The next question is from Vivek Agrawal from Citigroup.Vivek Agrawal:This is related to capex as well as investments. So, over the next 3 years, how the company isgoing to spend on biosimilars plus GLP-1 put together?Srinivas Sadu:In the capex?Ravi Mitra:So, we are on biosimilar, we are currently evaluating for the 15 KL capacity. The estimate shouldbe around $80 million to $100 million. But currently, it's a process of calculating a projectevaluation.Srinivas Sadu:GLP-1, we have already invested into it. The line will be installed this year, next 2 quarters. So,there's no additional investment into GLP-1 in terms of finished products. But we are looking atnow that the current manufacture site also kind of maxed out in terms of capacity. We are lookingat a greenfield project for the next phase of growth.Vivek Agrawal:Just a basic question. I'm just trying to understand. In terms of fill/finish as well as cartridges areconcerned on GLP-1, right? So, let's say, if you want to put the capacity of 100 million cartridges,right, so how long it can take? And what kind of investments that may require. Just a roughanswer would be...Srinivas Sadu:Around I think INR200 crores.Vivek Agrawal:And how long it can be basically, how long you can complete the project which is you start...Srinivas Sadu:18 months.Vivek Agrawal:18 months.Moderator:The next question is from Dheeresh Pathak from WhiteOak.

I'm sorry if you already answered this, but do you have capacity and capability for pen assembly in your current manufacturing setup? Pen or auto injectors?

Yes, we do. We do. They've already filed products from the site. We do have that.

What is the current capacity sir, on the pen side -- pen assembly side.

About 40 million?

Do you also make auto injector?

Yes.

What is that capacity sir?

It's a similar common line. So, auto injector see basically, you would do syringes and then you assemble into auto injector.

Okay. And are you expanding on this capacity or this is the capacity as of now? Is there a plan to expand this capacity?

Yes. So, one more line, we're adding this year. So, it will add another 100 million.

Another 100 million. How much are you spending on that?

Yes. So, we already spent it actually, most of it. This will come in the Suite 9) the additional one.

When does it get commissioned?

'28?

Like with month wise you can tell you like calendar '28 -- first half, second half?

Smaller volumes will come from FY '26, where the patents are expiring from RoW market and also Canadian market. But the majority will come from end of FY '27.

End of FY '27? Sorry, how much have you spent on these 100 million lines?

See we can’t specifically this because it’s part of the main site. So, it’s part of the – it’s one of the suites of what we have. But if I have to specific for the line, we can give a number. Offline, we can take it. It’s –’not a dedicated site – we need a dedicated site for this.

Due to time constraints, we ’ll take that as the last question. I would now like to hand the conference over to Ms. Runjhun Jain for closing comments.

Thank you, everyone, for joining us today. We appreciate your participation and the questions during the call. If you have any follow -up questions to this, please feel free to reach out to us. Looking forward to interacting with you in the next call. Thank you.

I'm sorry if you already answered this, but do you have capacity and capability for pen assemblyin your current manufacturing setup? Pen or auto injectors?Srinivas Sadu:Yes, we do. We do. They've already filed products from the site. We do have that.Dheeresh Pathak:What is the current capacity sir, on the pen side — pen assembly side.Srinivas Sadu:About 40 million?Dheeresh Pathak:Do you also make auto injector?Srinivas Sadu:Yes.Dheeresh Pathak:What is that capacity sir?Srinivas Sadu:It's a similar common line. So, auto injector see basically, you would do syringes and then youassemble into auto injector.Dheeresh Pathak:Okay. And are you expanding on this capacity or this is the capacity as of now? Is there a planto expand this capacity?Srinivas Sadu:Yes. So, one more line, we're adding this year. So, it will add another 100 million.Dheeresh Pathak:Another 100 million. How much are you spending on that?Ravi Mitra:Yes. So, we already spent it actually, most of it. This will come in the Suite 9) the additionalone.Dheeresh Pathak:When does it get commissioned?Ravi Mitra:'28?Dheeresh Pathak:Like with month wise you can tell you like calendar '28 — first half, second half?Srinivas Sadu:Smaller volumes will come from FY '26, where the patents are expiring from RoW market andalso Canadian market. But the majority will come from end of FY '27.Dheeresh Pathak:End of FY '27? Sorry, how much have you spent on these 100 million lines?Srinivas Sadu:See we can’t specifically this because it’s part of the main site. So, it’s part of the - it’s one ofthe suites of what we have. But if I have to specific for the line, we can give a number. Offline,we can take it. It’s -’not a dedicated site - we need a dedicated site for this.Moderator:Due to time constraints, we’ll take that as the last question. I would now like to hand theconference over to Ms. Runjhun Jain for closing comments.Runjhun Jain:Thank you, everyone, for joining us today. We appreciate your participation and the questionsduring the call. If you have any follow-up questions to this, please feel free to reach out to us.Looking forward to interacting with you in the next call. Thank you.

Thank you very much. On behalf of Gland Pharma Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines. This transcript is provided without express or implied warranties of any kind and should be read in conjunction with the accompanying materials published by the company. The information contained in the transcript is a textual representation of the company's event and while efforts are made to provide accurate transcription, there may be material errors, omissions, or inaccuracies in the reporting of the substance of the event. The transcript has been edited wherever required for clarity, correctness of data, or transcription error. The company takes no responsibility for such errors, although an effort has been made to ensure a high level of accuracy. GLAND Gland Pharma LimitedFebruary 03, 2025Thank you very much. On behalf of Gland Pharma Limited, that concludes this conference.Moderator:Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.This transcript is provided without express or implied warranties of any kind and should be read in conjunction with theaccompanying materials published by the company. The information contained in the transcript is a textual representation ofthe company's event and while efforts are made to provide accurate transcription, there may be material errors, omissions, orinaccuracies in the reporting of the substance of the event. The transcript has been edited wherever required for clarity,correctness of data, or transcription error. The company takes no responsibility for such errors, although an effort has beenmade to ensure a high level of accuracy.