ZYDUSLIFE — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
Moderator · Conference Operator
Ladies and gentlemen, good day and welcome to Zydus
Thank you, sir.
We will now open the call for Q&A session.
We will wait for a few minutes until the queue assemble.
We request participants to restrict to two questions and then return to the queue for more questions.
Please raise your hand from the participant tab on the screen to ask a question.
The first question is from Damyanti Kerai.
Damyanti Kerai
Hello.
Moderator · Conference Operator
Yes, Damyanti.
Damyanti Kerai
Hi, thank you for the opportunity.
My first question is to Dr. Patel.
Can you comment on the Mirabegron litigation update which we recently heard and what is your view on the supplies from your perspective?
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Dr. Sharvil Patel
So, I think, with respect to supplies, we continue to supply the product into the US market.
The next trial is scheduled for February of 2026, and which is related to the 780 patent and other asserted patents.
So, we will be preparing for the February jury trial.
Damyanti Kerai
Okay, sir.
Till February, the supply will go as usual, right, there is no change in your plans?
Dr. Sharvil Patel
Not yet.
Damyanti Kerai
Okay, my second question is on your specialty portfolio in the US.
So, you have this Sitagliptin franchise.
Can you quantify what kind of contribution you have seen for FY25 and how we should look at this portfolio in coming years?
Dr. Sharvil Patel
So, I think, I mean while we cannot quantify the exact number, I think, we are doing far better than our initial estimates on the franchise, both with the private, I mean the private market and the tender.
And we continue to believe that it will be also an important product for FY26 also.
So, that is our current best estimate.
And we have a national, say a contract for 5 years from the national contract point of view.
Damyanti Kerai
Okay, though you cannot quantify, but out of your 1.3 billion sales in FY25 is it a sizeable number or is it still building out?
Dr. Sharvil Patel It is a decent number but obviously, it is not a blockbuster product but it is one of the important new product launches that is there.
Okay, thank you, I will get back in the queue.
Moderator · Conference Operator
Thank you.
Next question is from Neha Manpuria.
Neha Manpuria
Yea, thanks for taking my question.
My first question is on the US business.
If I look at the quarter-on-quarter improvement, obviously we do see an uptick from Revlimid.
Is that all that drove the 80 million dollars incremental sales quarter-on-quarter or any other improvement in the larger products that we have, particularly since we saw in the last call.
Dr. Sharvil Patel
Just to clarify, at least for this quarter over the last quarter, we don't have any major Revlimid sales.
Neha Manpuria
Okay, so the quarter-on-quarter increase is then driven by base portfolio?
Dr. Sharvil Patel
Base portfolio and obviously some of the launches that we did last year and Mirabegron and other products.
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Neha Manpuria
In this case, you know, just trying to understand the improvement in the gross margins quarter-on-quarter.
I mean, we have seen a very sharp improvement in that number.
Any colour that you can provide as to you know, that uptick and how sustainable that gross margin will be if we think about next year?
Nitin Parekh
Neha, it is a mix of business as well as products.
Even base business improvement is there.
Contribution from US business, India business, wellness business.
So, wellness, we have been able to take some price increase also.
We were able to reduce our cost also in some of the products.
So, it is a mix of various things.
Neha Manpuria
So, in which case, this margins should be sustainable in the next year?
Nitin Parekh
To the extent, you know, the product specific margin, obviously you would find some impact, but otherwise yes, margins are stable.
Neha Manpuria
Okay.
Just on the US business.
If this number is not driven you know by Revlimid, in which case, is it fair to assume that 1.4-1.5 billion dollar is the base?
Obviously, Revlimid goes away three quarter out but this is the base at least for the next few quarters?
Dr. Sharvil Patel
For FY26, we believe US will still grow in single digit.
Neha Manpuria
Okay, got it.
Thank you so much.
Moderator · Conference Operator
Thank you.
The next question is from Anubhav Agarwal.
Anubhav Agarwal
Hi, thank you.
One question is on Mirabegron.
So just trying to understand our risk limit for this product.
Next litigation update is in February.
Is there a risk limit that we have in mind, let’s say the litigation continues for another year or so even after February, are we still fine with the risk limit over there?
Dr. Sharvil Patel
Yeah, I think we have done a proper due diligence with expert opinion and everything and we still believe that the risk reward profile has not changed.
Anubhav Agarwal
Okay, if litigation were to take another year, you can still continue to sell the product.
Dr. Sharvil Patel
Yes, currently we believe so.
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Anubhav Agarwal
Sure.
And clarity on previous question Neha asked.
So, quarter-on- quarter, let’s say December quarter to March quarter, when you say previous quarter - is sequentially Revlimid contribution is lower or higher, March versus December quarter?
Dr. Sharvil Patel
It is not there, there is nothing anything significant.
So, fourth quarter, there is no Revlimid meaningful contribution.
Anubhav Agarwal
Okay.
And Sharvil bhai, when you mention that there will be single digit growth there, just trying to understand can you give some idea about the base business?
Because tracking your company has become very difficult now, Mirabegron, Revlimid, so fluctuating numbers, we have no idea about the base business here.
So, how is the base business doing in the US and overall for the company?
Dr. Sharvil Patel
So, one thing, today, as of now, we have a very strong and healthy base business growth.
This also includes when we have obviously lost share on Asacol.
But we are seeing significant opportunities on our existing products in terms of new contracts and new requests.
We being a very, I would say, resilient supply chain effort that has been put and availability of our products being very good, we are seeing a lot more opportunities for products in the US.
And obviously, with the portfolio expanding with other dosage forms including transdermal and others, we are seeing an uptick also.
I would say it is a mix of both but it is good to see that beyond Revlimid we are seeing good traction on the business.
Anubhav Agarwal
Sure.
Just one more clarity here.
So, let’s say versus last quarter, now the litigation for Mirabegron looks to be little more extended now.
So, let’s say what you guided last time was what you guiding now.
I am assuming that we have taken more sales of Mirabegron versus what you have guided, but isn’t your guidance still the same as what you have guided earlier for the US?
Dr. Sharvil Patel
Sorry, maybe I didn’t get your question the way you tried.
Maybe you could clarify a little bit.
Anubhav Agarwal
Yes, I am just trying to say that you know, versus the call that we had in January, when we had the December results versus now, so the expectation, at least my understanding was that Mirabegron will at least sell till the first half of this fiscal 26.
Now, looks like because of the litigation date which is delayed a bit, at least till end of fiscal 26, we will continue to sell Mirabegron at least till the end of this fiscal.
So, ideally the US sales guidance should have been more than the single digit increase in fiscal 26.
I am just trying to think from that perspective.
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Dr. Sharvil Patel
So, we had not assumed that we are not going to be able to sell Mirabegron.
So, our guidance cannot change because it is still, we still continuing with the same guidance that we will continue to sell Mirabegron.
So, we have not built in for more sales of Mirabegron this year.
Anubhav Agarwal
Okay.
And on Sitagliptin, can you just give what kind of market share, IQVIA I think, still shows a low single digit market share for all three brands of Sitagliptin.
So, is that a good representation at least on the CVS front?
Dr. Sharvil Patel
I think, we will see a further traction on CVS conversion.
But we can definitely say that for our earlier estimates, what we thought we would do on Zituvio franchise, we have done multi fold better.
So, we are doing well.
It is a good product.
We are going to stick around for the next two years.
I think with the 5 years contract also, national contract, we will continue to do that.
And we would see more uptick I believe in the coming quarters.
Anubhav Agarwal
Okay, that’s helpful, thank you.
Moderator · Conference Operator
Thank you.
The next question is from Bino.
Bino
Hi, good afternoon all of you.
Just a couple of follow up questions.
Sharvil bhai, earlier, whenever we have spoken on calls, your guidance was that Revlimid would be coming up lumpy in Q1 and Q4. So, how come it changed in this Q4?
There was no Revlimid, if you can share.
Dr. Sharvil Patel
So, I think, generally we always get most of business in the last 10 days of March and all.
So, this time, with the negotiation that went through and obviously there has been challenge in negotiation and pricing, we have pushed it out to the first quarter in terms of sales, first quarter of the financial year in terms of sales.
Anyways we only have 8 to 10 days in last month, in March generally and this time we had to wait and negotiate better for the quantities.
So, we have postponed it to the first Q.
Bino
Understood.
And going forward, next year in Jan, the sort of exclusivity is getting over.
So, would your entire quantity or your allocation for the year will all that get over Q1 itself or is that what your thought is?
Dr. Sharvil Patel
No, I don't think, we will have all sale in 1Q.
I think it will be staggered.
Exactly, still it is very difficult to say how the ordering will happen and how much ordering will happen after the first buys.
So, we have to wait and see but our current best estimate is 11 of 22 that it will be spread across for the next 2 to 3 quarters.
It won’t be lumped in Q1.
Bino
Got it.
And on the US guidance you gave, if I understood correctly, it is a single digit growth in US sales in FY26 over FY25. Is that right?
Dr. Sharvil Patel
Yes.
Bino
And looking ahead into FY27, of course it is too early, but do you see a sharp fall-off from the FY26 level in FY27, or will it be you know more or less plus/minus those levels?
Dr. Sharvil Patel
No, I mean, see, we have important launches in FY27. So, assuming we are doing well with our approvals and regulatory front, we don't see any major fall-out.
Bino
Got it.
One last question if I could push in, any margin guidance EBITDA major guidance for FY26?
Dr. Sharvil Patel
So, FY26, we believe, we will exceed 26 or around 26% comfortably in terms of EBITDA margins and that’s our current best estimate.
Bino
Thank you.
I will join back in the queue.
Moderator · Conference Operator
Thank you.
The next question is from Surya Patra.
Surya Patra
Thank you for the opportunity.
Sir, my first question is on the US business again.
Sir, although you have given some clarity about the change of around 80 million dollar this quarter versus last quarter what we have seen.
See, if there is no Revlimid this quarter and there is a jump of 80 million dollar, what is that is contributing?
Is it driven by Mirabegron or there is a kind of any licensing income or anything is there this quarter that is why we are seeing a kind of consequent improvement in the gross margin?
What is really driving this US business this quarter?
Is there any one-off kind of licensing income or any sort of that?
Can you justify please?
Moderator · Conference Operator
Thank you.
The next question is from Amey Chalke.
Hi Amey, requesting you to please unmute and ask the question.
Okay.
We'll move to the next question.
The next question is from Bino.
Bino
Hi, just a follow up question.
We recently got approval for this product Deflazacort which I believe you are launching with the under a brand name.
Now, I believe there are already a couple of generic players in the market for this.
So, can you explain the strategy behind launching this product with a brand name?
Dr. Sharvil Patel
I think, earlier our strategy was, it could be a branded launch.
But with the genericization, I think it will not be a particular branded launch anymore.
Bino
Okay.
Got it.
Thank you.
Moderator · Conference Operator
Thank you.
The next question is from Tushar Manudhane.
Tushar Manudhane
Hi sir.
Am I audible?
Dr. Sharvil Patel
Yes.
Tushar Manudhane
Thanks.
Thanks for the opportunity.
Sir, just on the margin guidance for 26%.
Just to sort of understand, while probably the 14 of 22 competition in generic Revlimid might keep profitability under check, but then we continue to sell Mirabegron, which given that it is also a limited competition product, will help get better margins which will offset Revlimid.
So, just trying to understand that in FY25, we ended with a healthy margin of almost 30% and then we are guiding for FY26 for 26.
So, what is dragging us down by almost 300 bps?
Dr. Sharvil Patel
Revlimid is obviously going to be a driver because there is challenges in pricing and competition.
And we have lost Asacol also since last year.
Plus R&D expenses upon Saroglitazar we would have at least 100 basis points higher than last year, at least.
So, all of that will lead to our guidance right now.
Tushar Manudhane
So, basically.
So, R&D expense how much should one take for FY26 on overall basis?
Dr. Sharvil Patel
8%.
Tushar Manudhane
Okay.
Secondly, on Mirabegron, while since you as well as Lupin continues to sell the product.
So, from a generic competition perspective, do you see any threat coming through?
Dr. Sharvil Patel
I am sorry, I could not understand the question.
Tushar Manudhane
So, given that despite the at-risk launch like being done by Lupin as well as Zydus Life.
So, any scope for other guys getting approval, subsequent launches?
Any market intelligence if you could sort of share?
Dr. Sharvil Patel
I do not have that intelligence to share right now.
Tushar Manudhane
All right sir.
Thanks.
That’s it from me.
Moderator · Conference Operator
Thank you.
The next question is from Saion Mukherjee.
Saion Mukherjee
Hi sir.
Good evening.
Sir, the 505(b)(2) products that you have mentioned, is it possible to share the opportunity size for these two products in terms of commercial timeline in the US?
Dr. Sharvil Patel
So, as I said, we have to still file those products.
So, once we file it I think and once the IP strategy and everything is clear, we can share a little bit more.
But the one thing I can say that they are part of a very large, I mean the portfolio that we are developing, the molecule, is quite large in the market.
Saion Mukherjee
And so, you expect it to be probably FY28 or beyond that?
Dr. Sharvil Patel
Sorry?
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Saion Mukherjee
The launch is expected you know, not in the next two years.
Will that be fair to assume, given that you have to file and there are potential IP challenges?
Dr. Sharvil Patel
Yeah.
Saion Mukherjee
Okay.
And the second one was on vaccine.
You had earlier mentioned about potential tenders participation in vaccine.
Where are we?
And any expectations that you have for next year or FY27?
Dr. Sharvil Patel
Thank you for that question.
I think on the vaccines front, I'm quite upbeat and positive on the overall trajectory for the business and the opportunity.
So, as I said, it forms three important areas.
One is our India business which continues to do well.
We believe that we are a critical contender in the public tenders for the MR vaccine that has come out, and we believe that it will be an important MR tender supply for Zydus in the coming year.
We are also seeing requirements from UNICEF and PAHO for some of our pre-qualified vaccines for different markets, and we will be able to participate in some of these tenders.
So, that could offer additional opportunities in the coming years, both from the UNICEF tenders as well as the PAHO tenders.
And also registering these products in some important markets outside, like Egypt and others, will also offer us some additional opportunities on the vaccines.
So, both, I think our non-tender sales which is doing very well.
We are selling, I think, the highest doses of the flu vaccines now.
We are selling out all capacities on our rabies vaccine.
We have the other two vaccines that are coming up and the new vaccines that are getting added to the portfolio.
And with potential access now to both India public and the WHO pre-qualified public markets, we are seeing a good trajectory for the vaccines in terms of scaling it up.
Saion Mukherjee
So, the timeline, will we start seeing that scale up this year in FY26?
Dr. Sharvil Patel
Yes.
Saion Mukherjee
Okay.
Sir, if I can ask one more question on GLP-1 Semaglutide.
You had mentioned about your plans for India.
Will this be limited to India, or there are other emerging markets that you can consider for the first wave launch in fiscal 2026 or 2027?
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Dr. Sharvil Patel
Our current strategy for Semaglutide, both for India and developing markets, is that we have a novel formulation for Semaglutide that we are going to commercialize both, in India and other markets.
We are on track for a day-one launch in India, and we see it as a very and we would also partner this molecule with some companies, because we have a unique formulation with a very strategic advantage.
And we hope to take that same capability into other emerging markets.
Saion Mukherjee
Understood.
Thank you.
Moderator · Conference Operator
Thank you.
The next question is from Amey Chalke.
Amey Chalke
Am I audible now?
Dr. Sharvil Patel
Yes.
Amey Chalke
Thank you so much for taking my question.
First question is on Saroglitazar.
If I understand correctly, our data will be out by December or year-end.
What is our strategy for the PBC indication post-trial?
Dr. Sharvil Patel
Once we have the data, if we see our data to be equivalent or better than today’s treatment guidelines, we will be planning our commercial activities for launch, including obviously first filing the NDA.
That’s our current status on Saroglitazar for PBC.
Amey Chalke
Are we going to do this on our own, considering the PBC indication would be bit smaller in size?
Dr. Sharvil Patel
It’s quite a sizable indication for what we as a company can do, and yeah, we will be doing it ourselves.
Amey Chalke
Sure.
Regarding the MASH indication, do you think it remains lucrative, considering GLP-1s are also covering the market now?
Dr. Sharvil Patel
Yeah, because PBC and GLP-1s have nothing to do with each other.
Amey Chalke
No, no, the MASH indication?
Dr. Sharvil Patel
So, in MASH, we are still only in phase-2, and we have only talked about commercialization for the PBC indication for the US market.
Amey Chalke
My second question is about FY27. I heard you saying that there won’t be a problem in FY27 post-FY26 once Revlimid is out.
Is it 17 of 22 possible to give some colour on the product launches which would be able to offset the fall in some of the key products?
Dr. Sharvil Patel
I had stated when the question was asked to me, that in terms of our base business, without exceptional products, we are comfortable to be above a billion dollars in revenue.
Obviously, today, we are much higher than a billion dollars.
So that’s what I had stated.
But, I said irrespective of that, we have a lot of important launches in FY27, almost 14 to 15 important, critical launches in FY27. And if many of them materialize, we will do better than that.
Amey Chalke
Thank you so much.
I’ll join back.
Moderator · Conference Operator
Thank you.
The next question is from Gaurav Tinani.
Gaurav Tinani
Hello, yes.
Congratulations and good afternoon.
Firstly, on Revlimid, after the patent expiry, given the nature of the product, the distribution, can we see Revlimid still being a significant $50 million odd kind of sustainable opportunity for FY27 and beyond that?
Dr. Sharvil Patel
No.
Gaurav Tinani
Okay.
In terms of the composition of our US base for FY27, could you give an idea of what percentage of contribution can come from NDAs or 505(b)(2) opportunities in FY27, or what’s the long- term goal there?
What percentage of US revenue that can scale up to?
Dr. Sharvil Patel
I think, it’s a little difficult to talk product-wise in terms of contribution.
Currently, we’ve given FY26 guideline, which is high single-digit growth for FY26. But, for FY27, it’s still early to say.
But, what I can say is that, we have launches that get launched.
We have some products where we have sole exclusive launch plans depending on exclusivity, which also has tremendous opportunities.
Plus, as I said, we continue to launch anywhere upwards of 20–25 products every year, so that continues to add to the base of products.
While I stated that our base business has continued to grow, so we are also quite excited that our products that we currently also sell, are seeing a higher demand.
I think all put together, we are still seeing an important… I mean, we're seeing the US FY27 also as an important.
There's a lot of background noise, maybe where you are.
18 of 22
Gaurav Tinani
Okay.
Thank you.
Moderator · Conference Operator
Thank you.
The next question is from Saion Mukherjee.
Saion Mukherjee
Hello.
Yeah.
Sorry.
Thanks for the follow-up.
Dr. Sharvil, just wanted to check with you, there's been a lot of talk on the US imposing tariff on pharmaceuticals.
Have you made an assessment for Zydus business?
What can be the potential impact?
And strategically, are you thinking about investing in facilities in the US?
Because that's an uncertainty the industry is dealing with.
If you can share your thoughts and impact on Zydus.
Dr. Sharvil Patel
So, I think it's a lot of moving parts.
It's very difficult to know what could be the impact.
Any tariff will obviously have an impact.
But with the reference pricing, which I don't know how that works on generics.
I don't know that will work on generics or not.
But I would say, on setting up facilities in the US, we do always explore opportunities to co-develop, manufacture at a third party location, both in Europe and in US for the products that we need to do sometimes.
And we are looking at opportunities where we feel that the value is there for manufacturing in the US.
But I think any of these decisions will require a lot of time for setting it up.
So, it's not something that can happen in the short term.
But we have committed to making good amount of investment in the US with our foray into speciality and other areas.
Saion Mukherjee
Okay, sir.
Thank you.
Moderator · Conference Operator
Thank you.
The next question is from Devang Sarawgi.
Devang Sarawgi
Hello.
I have two questions.
Is there any update on speciality acquisition in the orphan drug space in the US, especially for the launch of Saroglitazar approaching?
Dr. Sharvil Patel
We have acquired Zokinvy last year, which was a rare disease asset for treatment of Hutchinson-Gilford progeria syndrome.
And we continue to look for more opportunities in the rare disease side.
With respect to it synergizing anything with Saro right now, no, that is not something that we have in our pipeline, but we will continue to look for more opportunities to synergize for Saroglitazar.
Devang Sarawgi
And the second question is about revenue guidance for emerging market and consolidated business for FY26. 19 of 22
Dr. Sharvil Patel
So, for the overall business, we are looking at a double-digit growth in revenue led by strong growths in India and international markets, and also our new growth themes like biologics, vaccines, and all scaling up.
We believe, in India, we will continue to outperform the IPM market for the year.
US, we will see a single- digit growth going forward.
Yeah, those are the hope for FY26.
Devang Sarawgi
And sir, any contribution from vaccine for this year?
Dr. Sharvil Patel
Yes, we will see some good contribution from vaccines for FY26.
Devang Sarawgi
And any guidance on emerging market scale up?
Dr. Sharvil Patel
Emerging market has been consistently growing at a strong double-digit CAGR and also improving profitability.
And that trend is also continuing and we are quite positive for a faster scale up.
Devang Sarawgi
Thank you, sir.
Moderator · Conference Operator
Thank you.
The next question is from Surya Patra.
Surya Patra
Yes, just one clarification.
Post this Asacol HD, the competitive pressure what we have witnessed in the US, how important is this entire mesalamine franchise currently in the US business for our US revenue?
Dr. Sharvil Patel
Sorry, can you repeat the question?
Because I get always some other noise from behind.
Surya Patra
Sorry for that.
Dr. Sharvil Patel
In fact, it's very difficult to figure the question out.
I know you said something to do Asacol.
Surya Patra
I was asking about the mesalamine franchise that we have created.
But one of the important product, having seen the generic competition or kind of other peer’s competition, how important this entire mesalamine franchise that we have created?
And in terms of the revenue contribution to the overall US business of Zydus, how significant is this going to be, let's say for 26 and beyond?
Dr. Sharvil Patel
So mesalamine has been a very important franchise for the organization.
Over multiple years, it has delivered strong value and shown us through the capability of complex dosage forms and how Zydus has sort of created them and also obviously created value out of them.
20 of 22 And mesalamine as an overall franchise will still remain very relevant, because we have at least three mesalamines in the market and we hope to add more mesalamine franchises to launch.
So, it's a good product.
Obviously, it has lost its hay days of the significant value, but it is still a very meaningful product and will continue to remain so.
Surya Patra
And in terms of size, let's say 10% of the US currently or any sense of how big it could be, the franchise as a whole?
Dr. Sharvil Patel
As I said, it is an important franchise and it will remain relevant.
Now, I won't be able to give you individual percentages for that.
Surya Patra
Okay, fine.
Thank you, sir.
Moderator · Conference Operator
Thank you.
The next question is from Srikant Akolkar.
Srikant Akolkar
Hi, just one question.
If you can talk about our peptide pipeline development.
And in the next two years, are we expecting any peptide launch?
That means a non-GLP1 peptide.
Thank you.
Dr. Sharvil Patel
So, I think, we have obviously a couple of peptides that are the GLP1s, including Liraglutide, Semaglutide, Tirzepatide that are either filed or under development.
And then we have some other like Teriparatide and others, but those are more on the recombinant side.
So, I would say that is the overall pipeline right now.
Beyond that, we are looking at further pipeline in terms of how to add, but this is our current pipeline.
Srikant Akolkar
Understood.
Thank you.
Moderator · Conference Operator
Thank you.
The next question is from Tushar Manudhane.
Tushar Manudhane
Sir, just one, this impairment of a product.
So, if you could just highlight which product on which we have taken this impairment in the quarter?
Nitin Parekh
It was Rotigotine.
Dr. Sharvil Patel
It is a product that we had acquired from Teva.
It is under litigation.
I said it is a product that we had acquired as part of Teva's divestment and we had acquired it.
And it is under litigation and we have impaired it.
Tushar Manudhane
Got it, sir.
And this goodwill related to this Brazil business also, if you could just elaborate?
Nitin Parekh
It is a goodwill which was created at the time of acquisition, and the overall scenario in terms of both branded and generic in Brazil, 21 of 22 has undergone a change.
And we were looking at our own products and pipeline and expected sales.
Basis that, as a matter of prudence, we thought it better to do the impairment of the goodwill.
Tushar Manudhane
Got it, sir.
Thanks.
Thanks a lot.
Moderator · Conference Operator
Thank you.
The next question is from Apuva Rastogi.
Hi, Apurva.
Can you please unmute and ask your question?
Maybe we can move to the next one till maybe they come back.
Okay.
We will take Gaurav's question next.
Gaurav Tirani
Yeah.
Hi.
Thanks for the follow-up.
So, would you be able to share any more color on the 14 to 15 critical launches that you expect to do in FY27?
Number of FTF launches there, number of differentiated dosage-form launches there, other limited competition.
Any colour on further breakup that you can shed light on this?
Dr. Sharvil Patel
So I think, as I said, the launch… I mean, it's difficult to answer it that way right now and it's too early, but many of them are complex launches with semi exclusive or exclusive launches also.
And the mixture of portfolio is a mix of orals as well as injectables.
So that's the current portfolio that I am talking about.
Obviously, this doesn't include other launches that we are still planning.
And it's still a development.
It’s still a growing phase because we are still sitting in April or May of this year to talk about FY27.
Gaurav Tirani
Okay.
On the acquisition of your Amplitude, I think we're expecting to close by H2 of this year.
Just one clarification, do we expect this to be earnings accretive or dilutive for FY26-27, please?
Dr. Sharvil Patel
Accretive.
Gaurav Tirani
Okay, thank you.
All the best.
Moderator · Conference Operator
Thank you.
The next question is from Jaydutt Parekh.
Jaydutt Parekh
Hello, good evening, sir.
Thank you for the opportunity.
Sir, you mentioned about multiple product launches for FY27, potentially to offset the decreasing rate of Revlimid.
Can you tell me, will this be in the existing therapy area or in any new therapy areas?
Dr. Sharvil Patel
You know, generic development is sort of agnostic to therapies.
So, we don't select products by therapy, but we select by size and opportunity and competition.
So, as I said, it forms oral dosage forms, which obviously form large part of the portfolio generally, 22 of 22 which includes liquids and transdermals, as well as topicals.
And then obviously the injectable portfolio, which also forms another sizable part of launches.
So those are the overall ways in terms of dosage forms when we plan for generics.
Jaydutt Parekh
All right.
Got it.
Thank you very much.
Moderator · Conference Operator
Thank you.
The next question is from Devang Sarawgi.
Devang Sarawgi
Hello, thank you for follow up.
When can we expect meaningful revenue contribution from medical devices business?
And what kind of scale up are we targeting for next two to three years?
Dr. Sharvil Patel
So, medical device is an important area for the organization.
And we have had important, both organic as well as inorganic opportunities that we have looked at and have been successful at.
So, we are organically building on the nephrology side.
We are organically building on the cardiovascular side with also a critical partnership that we have done for TAVI.
And we have been, we are also looking at successful closure of the acquisition of Amplitude for orthopedic implants.
So, these are the areas that we are going to focus on.
Some of these are already revenue generating and profit-making businesses.
So, we will look to add more geographies, bring down cost and grow this business.
So yes, we have an important growth theme for the business over the next five years.
But it is not going to be short term.
It is going to be… you know, the scale up we really get to see after three years.
Devang Sarawgi
Okay, thank you.
Dr. Sharvil Patel
I don't have a number right now.
But we have obviously, as a business, we have strong aspirations to make it a meaningfully large business.
Thank you.
Moderator · Conference Operator
Thank you.
As we do not have any questions, I request Ganesh sir for closing remarks.
Ganesh Nayak
So, thank you very much and look forward to interacting with you during our next quarterly analyst conference.
Have a good evening.
Moderator · Conference Operator
Thank you very much to management team.
Ladies and gentlemen, on behalf of Zydus Lifesciences, that concludes today's conference.
Thank you for joining us and you may now disconnect your line and exit the webinar.
Thank you.
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