Saion Mukherjee

Saion Mukherjee asked about the current state of the US base business post-Revlimid price erosion, the stabilization of US pricing dynamics, and the strategy for absorbing Semaglutide sales volumes outside Canada, including 2027 volume estimates.

Answer

CEO Erez Israeli confirmed the US base business is down due to product-specific price erosion but has largely stabilized, with no significant additional trends foreseen. He outlined plans to sell Semaglutide across 87 countries, including India, Brazil, and Turkey, through direct and B2B partners. He projected volumes could increase to 15 million units or more in 2027, supported by FTO 11 capacity ramp-up.

Saion Mukherjee of Nomura inquired about the PLI income for the quarter and the growth trajectory for the CDMO business, Origin Pharma Services.

Answer

CFO M V Narasimham stated that PLI income was almost zero for the quarter and would be minimal for the full fiscal year, with more expected in FY27-28. CEO Erez Israeli reported that the Origin CDMO business is growing nicely, targeting about $100 million in sales for the fiscal year, and projected it could reach $250-300 million by 2030 by focusing on small molecule and biologics CDMO, particularly ADCs.

Saion Mukherjee asked for a breakdown of the significant step-up in R&D spending across biosimilars, NCE research, and generics. He also requested an outlook for growth in emerging markets, particularly China and Brazil, for fiscal years '25 and '26.

Answer

CEO Erez Israeli detailed the R&D allocation, stating approximately 60% is for small molecules, 20% for biosimilars (driven by clinical trial timing), and 20% for API and other initiatives. For emerging markets, he projected continued double-digit growth in constant currency, noting that China looks promising with a consistent pace of product submissions, though foreign exchange risk remains a factor.