Glenmark Pharmaceuticals Limited (NSE: GLENMARK) Q1 2026 Earnings Call dated Aug. 18, 2025
Corporate Participants:
Unidentified Speaker
Utkarsh Gandhi — Senior General Manager of Investor Relations
Glenn Saldanha — Chairman and Managing Director
Anurag Mantri — Executive Director and Global Chief Financial Officer
Analysts:
Unidentified Participant
Damayanti Kerai — Analyst
Saion Mukherjee — Analyst
Tushar Manudhane — Analyst
Nitin Agarwal — Analyst
Amlan Jyoti Das — Analyst
Bino Pathiparampil — Analyst
Anubhav Goel — Analyst
Presentation:
operator
Sa. It sa. It. Sa. Foreign Good morning ladies and gentlemen. Welcome to the Q1FY26 earnings conference call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarish Gandhi, senior General Manager, Investor Relations for Glenmark Pharmaceuticals Limited. Thank you. And over to you sir.
Utkarsh Gandhi — Senior General Manager of Investor Relations
Thank you. Liz Ann Good morning everyone and welcome to the Q1FY26 results conference call of Glenmark Pharmaceuticals Ltd. Before we start the Q and A, we’ll review the overall performance of the company for the first quarter of FY26. In Q1 FY26, Glenmark consolidated revenue from operations was at Rupees 32,006,44 million, recording a YoY growth of 0.6%. We’ll take you through our regional performance and then we’ll talk about our IGI business as well before we introduce the management and open the floor for Q and A. Starting sales for the formulation business in India were for Q1FY26 were at Rupees 12,399 Million, recording a growth of 3.7% while Glenmark continued to deliver robust growth across the cardiac, respiratory and dermatology therapy areas.
Reported growth in the quarter was impacted on account of the discontinuation of some tail end brands announced earlier and underperformance in the diabetes segment. Glenmark India business continued to outperform the overall industry in terms of secondary sales growth as per IQVR June 2025 data. Glenmath India formulation business recorded growth of 15.1% in the first quarter and 11.8% as of mad June 2025 compared to 8.5% and 7.7% respectively for the Indian pharma market. As mentioned before, Glenmark continued its robust growth and outperformance in terms of key therapy areas like cardiac, dermatology and respiratory. Glennmark’s India business continues to be ranked 13th with a market share of 2.3% as per IQVM MAD June data.
The company is ranked second in dermatology, third in respiratory and fifth in cardiac segment as per IQVR mad June 2025 data and we continue to have 10 brands in the IPM top 300. Glenmark has improved its market share as well, especially in its core therapy areas in terms of Key launches Glenmark and B1 medicines had entered into an agreement for the marketing and distribution of Tislalizumab and zanobrutinib in May 2024. Glenmark launched both these products towards the end of the first quarter under their respective brand names Devimbra and Zukinza. These launches mark an important milestone in expanding the innovative oncology portfolio in India and providing access to patients across multiple solid tumors as well as hematological malignancies.
The company expects these two brands to gain momentum and meaningfully contribute to the India business over the next 23 years. Glenmark also had launched empagliflozin towards the end of Q4. This is a widely recognized SGLT2 inhibitor India. The drug was launched under the brand name Glempa, Glempa L and Glempa M and of course Lirafit has been an important product launch for us in the diabetes segment. Glenmark was the first to launch the biosimilar of Liraglutide under the brand name Lirafit. It has seen a strong traction with more than 50% market share in the molecule and the company plans to launch other GLP1 agonist as well.
Moving on to India’s consumer care business the consumer care business of the company operates in the Indian consumer healthcare market with a primary focus in dermatology and over the counter products and leading brands such as Candid, La Shield, Scalp, Episoft and Aloe Vera. The business is well positioned for sustained growth supported by rising consumer awareness and increasing adoption of self care solutions. Primary sales for GCC in the quarter recorded a YoY growth of 20%. Candid powder continued to lead its category with 60 plus percent market share and the other two key brands, Lashield and Scalp also delivered a high growth in Q1.
Moving on to North America, the North America business registered revenues of Rupees 7780 million which is about 91 million US dollars for the first quarter of FY26. This is a YY sorry a QRQ growth of about 8.9% despite a relatively challenging environment. The company recorded Q on Q growth on the back of gaining share in its injectable product launches and other partner products. In the first quarter of fiscal year 26. Glenmark also launched three products mix amphetamine IR tablets which are generic to Adderall, epinephrine injection and Olepatidine hydrochloride ophthalmic solution. While the company did not file a new NDAs in the Q1, Glenmark does plan to file one application forthcoming quarter five to six applications for the full year Glenmark is building out a large commercial portfolio in injectable products.
We’ve mentioned this before, we already have nine or 10 injectable products in the market today. The Company expects approval of its generic respiratory NDAs as well starting H2FY26 and we are also working on filing the NDA for the other two strengths as well. And the Company continues to augment its commercial portfolio through partner product launches. Glenmark’s marketing portfolio through June 30th consists of 208 generic products authorized for distribution. The company has 52 applications pending in various stages of the approval process, of which 24 are parafor applications. The company subsidiary Glenmark Pharmaceuticals Inc. USA was named in the multi district multiple antitrust and consumer protection lawsuits including class actions consolidated in the Eastern District of Pennsylvania.
These relate to industry wide allegations concerning price fixing, market allocation and related anti competitive conduct. Plaintiffs include putative classes of direct purchases, NPAs and indirect purchase of gendered drugs as well as numerous private direct action plaintiffs. Glenmark USA continues to deny all allegations and has been defending these matters vigorously with a view to resolve this dispute and avoid uncertainties. Glenmark USA has agreed to enter into a settlement with the putative Direct Purchaser class for a total of USD 37.75 million. The settlement is subject to approval by the court overseeing the litigation. The settlement makes it clear that Glenmark USA denies each and every of its allegations against it and the settlement is not the basis of Glenmark USA having conceded or admitted any liability or illegality.
Moving on to Europe Glenmark’s Europe business has recorded more than 25% CAGR over the last three years and has gained significant scale across its branded products, particularly in the respiratory segment. Glenmark Europe operations revenue for the first quarter was Rupees 6678 million, recording a decline of YoY decline of 4%. The company anticipates the Europe region returning to double digit growth from the second quarter onwards and expects to record double digit growth in FY26 during the quarter. Branded business growth, particularly in the respiratory segment remains strong. Branded respiratory products including Rialtris continue to grow on a month on month basis across own and partner markets.
The company continues to focus on sustaining the increasing contribution of branded products and portfolio from in the European markets, particularly from the pending respiratory product launches. We recently got an approval for two additional respiratory products and we have also launched Windlevy in the UK and we are planning to launch it in other European markets as well by the end of the year. This year FY26 excuse me. Moving on to emerging markets, Glenmark’s emerging market business has recorded 10% CAGR over the last three years and has recorded strong performance across all EM regions, particularly in the dermatology and the respiratory segment.
For the first quarter of FY26, revenue from the emerging markets region was Rupees 5721 million, recording a YoY growth of 0.2%. While the first quarter was affected by lower seasonal demand in some Latin American markets, the rest of The EM regions grew 9% in the first quarter. The company anticipates double digit growth in FY26 for the emerging markets on a constant currency basis. Talking about the individual regions in em, as per IQVR, Glenmark secondary sales recorded growth of 21% in Q1 in terms of key therapeutic areas. Glenmark recorded 17.4% growth in value terms in dermatology versus overall market growth of 15%.
Glenmark continues to be ranked 9th amongst dermatology companies and second in the respiratory expectorant market In Russia. Key brands such as Ieltrace, Ascorel have continued to gain and sustain high market share in their respective categories. Glenmark Latam region as mentioned witnessed some challenges in Q1 mainly due to lower seasonal demand in key markets. Glenmark does maintain its top 10 rank amongst the companies in the covered market of chronic respiratory segment in Brazil. Alice launched multiple differentiated products in the respiratory segment in the region which will help business growth in future quarters and Dialtis has been launched in Mexico and is awaiting approval in Brazil.
In Middle East Africa regions, the company witnessed double digit growth in secondary sales across major markets. Realtris continues to be the leading nation today for allergic rhinitis in South Africa and has seen successful launch in other key markets of the region and Glenmark continues to be ranked third in the overall market in Kenya. Asia Pacific region recorded subdued performance in first quarter. Key markets such as Philippines, Malaysia recorded high single digit secondary sales growth in the first quarter. Raeltris continues to do well in the Asia region. We recently received approval for Thailand as well and Glenmark remains one of the leading players in the dermatology segment in the APAC region.
In terms of our key global brands, Raltris as of June, marketing applications for Altris have been submitted to more than 90 countries and product has been commercialized in more than 45 markets. It is expected to be launched in 10 to 12 additional markets over the next few quarters. As per IQVR data, Railtrace continues to see robust performance in terms of both value and unit market shares across the key markets where the product has been launched either by us or by our partners. As mentioned before, Menarini is our partner in the EU has witnessed a steady increase in market share across all its licensed markets.
Yuan Corporation Glenmark’s partners South Korean market also continues to perform well and landmark partner Mainland China Grand Pharma expects to Receive approval for IELTRIS in China in FY26 Kinhayo which is Enva Polymap Glenmark has filed in IO in 15 markets in FY25. First market launch is expected in FY26. The company has received authorization from regulatory authority in Kenya for suppliers of Kinayo in via some early access programs and we have also initiated a Global Multi Center Phase 3 study in your adjuvant as well as adjuvant NSCLC Win Levy which is partnered with Cosmo Glenmark announced its approval for Win Levy in the from the MHRA to market it in the uk.
Glenmark has launched Win Levy in the UK and is expecting approval in other European markets by the end of FY20. Talking about IGI IGI features a robust pipeline of innovative oncology molecules targeting multiple myeloma and solid tumors of which ISB 2001 is in clinical development. Additionally, IGI has two autoimmune assets which have been out licensed to leading companies and are also in clinical development currently. During the quarter, IGI presented promising full dose escalation results from IS Phase 1 Triad Night 1 study of ISB 2001 in refractory multiple myeloma. This data was presented as a rapid rural presentation at the ASCO 2025 annual meeting demonstrating a sustained overall response rate of 79% and a high complete stringent complete response rate of 30% across the seven active doses in heavily pretreated patient population with a very favorable safety profile.
Recently, IEI also announced its global commercialization strategy for ISV 2001 following its landmark partnership with AbbVie. Under the terms of the agreement, IEA partnered with ABBVIE and granted exclusive rights to globally develop and manufacture and commercialize IFV 2001 across North America, Europe, Japan and Greater China, while Glenmark will develop, manufacture and lead commercialization activities of IB2001 across emerging markets. This partnership validates IGI’s multi specific platform technology and positions it as a leading biotech company in the forefront of innovation in oncology while also helping Glenmark to further expand its oncology franchise, particularly through innovation in emerging markets.
We have the management of Glenmark Pharmaceuticals. On the call, Mr. Glenn Saldana, Chairman and Managing Director and Mr. Anurag Mansi, Executive Director and CFO. With that we can open the floor up for Q and A. Over to you Hilizan.
Questions and Answers:
operator
Thank you. Ladies and gentlemen. We will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchstone telephone. If you wish to remove yourself in the question queue you may press star and two participants request a pus answer while asking a question. Ladies and gentlemen, we will wait for a moment for the question queue center. The first question is from the line of Damianty Karai from hsbc. Please go ahead.
Damayanti Kerai
Hi, good morning all and thank you for the opportunity. My first question is on India business. So this anti diabetic portfolio which is some pressure I think we discussed earlier but it seems despite launch of Lirab glutide we are yet to see any meaningful relief there. So can you talk about it like how long do you think it will take to really get over this antidiabetic portfolio drag? And then this difference between your secondary data which is 15% against 8% IPM there is huge difference between the 15% and around 4% reported growth. How we can assume this will converge and when that will likely happen.
Thanks. That’s my first question.
Glenn Saldanha
So Damyanti Glenmark now with the ISB 2001 deal and our move towards becoming more of a branded company, I think going forward our vision is to focus more on, you know, focus more on high margin products, right? So a lot of the tail end brands we are moving out of, right Like a typical branded company. The idea is to keep moving up the value chain and focus more on the margin profile of the high value products and the branded products. So I think going forward this quarter and maybe Q2, right from Q3 onwards we expect the secondary sales growth of India and the reported growth will be very close.
Right from then onwards. The other thing about India is you talked about diabetes so now we have full supply for the first time of lirafit. So from Q2 onwards you should see diabetes sales improving significantly. In addition the launch of both and Brukenza, right, the two big products happened in July, right. So this quarter you should see good offtake of these two products since both of them are commercially launched now. So I think these. So overall look our India business as you can see in IQV as well as the data is very strong. So our growth is very strong in the market and if you take a slightly longer term View CAGR India will grow between 10 to 15% CAGR over the next three to five years.
So we are very confident that the India business growth will be strong. The other segment is our OTC business, the Denmark consumer care which we spun out. The growth there also is upwards of 20%. Right. On a CAGR basis. So I think overall India will continue to be a very strong market for us. Right. I think post Q3 you should see the numbers play out quite significantly.
Damayanti Kerai
Sure. If I can ask a related question. You are moving towards more profitable branded products etc. Which is in line with your long term goals. But will that lead to a situation again you have a high dependency on few products, sell a few big brands and again that concentration risk will play out later as well.
Glenn Saldanha
No, that’s not the case. I mean see if you see the GCs have already started improving, right. With the knocking off of some of the tail end brands. And I think going forward you should see continued improvement in the margin profile. With regards to your question on specific brands. Right. Look, we have Glenmark, we have very strong brands spread across different segments. Right. And even as we mentioned, you know, our otc, DTC brands which are coming up now, tavembra, Brukenza will be two big brands which will help Lira fit. Right. Which is Liraglutide. Right. Will become a strong brand.
So it’s much more broad based than concentrated. Right. Given the branded nature of our business.
Damayanti Kerai
Sure. I have two questions on the US business. So you mentioned around nine to 10 injectables out there in the market, some of which came through partners as well. So first, any update on Monroe and if Monroe gets clear, how many injectable products we can expect for say next 12 to 15 months in the US and then second question on the US is how much of these litigation enterprise issues are still remaining for you if you can have, if you could provide some color there.
Glenn Saldanha
Sure. So on the US Business, right. I mean so as you’ve seen, we grew Q on Q right. In the first quarter. In the second quarter we are launching three more injectable products through partner product through partnerships that will drive the second quarter growth and we expect a good second quarter. Also in Form H2, we are hoping to launch some of the respiratory products, mainly generic flow vent. Right. 44, which we think will be a big launch for us. And then in addition some of the partnership products we continue to commercialize even in Q3 and Q4.
So I think all in all us there is a clear trajectory to see Higher growth going forward compared to what we’ve had historically. With regards to Monroe, as you know, we had five observations from our last inspection. We’ve responded to that and we are waiting. We are working with the FDA to resolve that. We are hoping that this year we will restart commercial manufacturing. That’s our view on Mongo.
Damayanti Kerai
Sure. And the litigation which are still like out there.
Glenn Saldanha
Yeah. So on, on, on litigations, you know, I mean our view is we have just one major litigation which is the, the multi district litigation which is ongoing. We settled with the DPPs, as you’ve seen in the first quarter, done a settlement with the DPPs. There are a couple of more classes which we are continuing to litigate on. I can’t give you any visibility on any timeline.
Damayanti Kerai
Okay, thank you. I’ll get back in with you.
operator
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star. Anyone? Participants, if you wish to ask a question, you may please. The next question is from the line of Sayan Mukherjee from Nomura. Please go ahead.
Saion Mukherjee
Yeah, hi, good morning. Can you provide the net debt number. At the end of the quarter please?
Anurag Mantri
So net debt sign in the quarter was around 1500 cr. At the end of the quarter.
Saion Mukherjee
Okay, thank you.
operator
Thank you. The next question is from the line of Tushar Manudani from Motialla Lokwal Financial Services. Please go ahead.
Tushar Manudhane
Thanks for the opportunity. Sir, just with respect to Monroe, have we started like in terms of the exhibit validation batches for other facility, I mean for the other products or do we need to wait till the observations get resolved?
Glenn Saldanha
No, the facility is continuing to take batches. So we continue to take exhibit batches of products like IM Sucrose and several others that we are working on. So that as and when we have resolution, not only could we start commercial manufacturing, but we will also accelerate some filings out of the facility.
Tushar Manudhane
And as far as observations, addressing observations is concerned, that is largely done from our side. Right. It’s now the feedback of the response from us FDA which is awaited.
Glenn Saldanha
That’s correct.
Tushar Manudhane
And sir, so this partner product strategy, if you could sort of elaborate while we do have our own facility, but so is it because we are diversifying in anticipation of these regulatory issues or is there something else to do?
Glenn Saldanha
I think strategically we are primarily focused in two areas in the US One is the respiratory products going forward and the second is injectables. And on the injectable side we have a two prone strategy of in licensing products which we think have approval or are significantly differentiated as well as filings out of Monroe. So I think longer term we will have a, you know, if you look at us in the next three to five years, we should have a strong injectable portfolio. Right. Which is evolving in the US along with a number of respiratory products.
Right. Which is filed and getting approved in the next year to five years. So I think these are the two segments which we are primarily focused on. Right. In addition to a few OSDs and DOM products.
Tushar Manudhane
So the pace of filing seems to be low as far as FY26 is concerned with just five to six filings expected in FY26, but that’s in house.
Glenn Saldanha
Okay. In addition, we do all these partnerships. Right. So typically we will launch about 10 odd products a year. That’s the minimum run rate you should expect.
Tushar Manudhane
And so just secondly, on the gross margin front, like it’s been decent for the first quarter, maybe year over year as well as quarter quarter. But what should like is it more to do with the segmental mix, geography mix, if you could elaborate. And so the outlook for full year 26 as far as gross margin is concerned.
Anurag Mantri
So gross margin side as we mentioned is that the focus is on the branded markets and which will help us continue to strengthen the gross margin and also the well diversified geographical portfolio, especially Europe and emerging market in addition to India will continue to drive the gross margin northwards. So that’s how our focus on the business is.
Anurag Mantri
So These numbers seem sustainable. 68, 69%.
Anurag Mantri
Yes. Vincent, yes. I think we believe at this moment, because of our strategic thing and the launches which we have in pipeline, we believe that this number is sustainable and achievable.
Tushar Manudhane
And sir, subsequently, anything further to do with the increase in misters or field force across these branded markets per se in fydbc.
Glenn Saldanha
I think we keep adding salesforce. Right. At every stage, wherever required. Right. A lot of it is basis the products and the product mix. Right. For example, we recently got approval for ieltris in Colombia and Thailand, two markets. We’re expecting ieltris approval in Brazil and China yet this year. Right. All this should help drive our emerging market business. Right. In addition, we have Kinio launches which will come up which may need some additional field force. India, we keep augmenting some field force every year. Right. Nominal amounts depending on the product mix and the product portfolio.
So I think we don’t have any specific number that we can guide to in terms of field force additions, but it is something we keep doing depending on our products and product mix.
Tushar Manudhane
So any broad guidelines on the EBITDA margin front for full year.
Anurag Mantri
So as we earlier guided that Q3 onwards the EBITDA margin trajectory should stabilize close to a 23% plus range. So 23% is what we are guiding from Q2. I would say that it will be because of the IGA deal flow. It will not be really presentable or the comparable number. But Q3 onwards as a business we believe that 23% margin territory will stabilize for EBITDA.
Tushar Manudhane
This is including generic flowing, right?
Anurag Mantri
Including
Tushar Manudhane
generic flowing,
Anurag Mantri
yeah. It’s overall business margin. Right. It’s at full business level.
Tushar Manudhane
Thank you. Thanks a lot.
operator
Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead.
Nitin Agarwal
Thanks for taking the question. On the question of the net debt what is being the sequential increase in net debt and what is driven by.
Anurag Mantri
The. It’s in the first quarter if you see on a business there were obviously there was an increase increase in some of the sales realization and all the things. Therefore there was an increase in the gross debt and the gross debt in the quarter was close to a 3200 cr.
Glenn Saldanha
I think the build up. Go ahead Nitin.
Nitin Agarwal
Yes, I go ahead.
Glenn Saldanha
The build up is. Is basically you know things like inventory, you know debtors.
Nitin Agarwal
Yeah.
Glenn Saldanha
So because payment due to LCDF one off severance payments. Right. That we had. Right. And plant closures.
Anurag Mantri
I think we had also had a couple of launches in Europe, Nitin particularly which actually got pushed to Q2. So inventory buildup was in preparation of some of these launches. So I think over the course of the next couple of quarters this number will stabilize.
Nitin Agarwal
And so just conclude the point. Where do we, you know what we see as stabilized normalized levels of working capital for us now going forward.
Anurag Mantri
So net working capital days what we continue to monitor closely is that and then 110, 115 net working capital days. That’s what we believe in a sustainable and long term basis we should continue to maintain to have a. To achieve the margin and trajectory which we are targeting.
Nitin Agarwal
Thank you. And secondly on on the in the quarterly numbers this quarter there’s a pretty large component of other operating income. A can you state what is it about and how is it booked across various segments.
Anurag Mantri
So other operating income consists of ongoing royalty income, some of the incentives income as well as some of the price debit note price adjustments. So and which is across the various market. So accordingly then it gets. So it’s a very common in a. Normal course of the business
Nitin Agarwal
the bump up in the gross margin. There’s no one off bump up in gross margin because of this higher operating. Income as you said.
Anurag Mantri
No, it’s not a one off sort of. It’s very ongoing and very pertaining to the core business.
Nitin Agarwal
And again on the ISB deal when do you see a closure and the proceeds coming through.
Glenn Saldanha
September. We are hoping to close Nitin.
Nitin Agarwal
Okay and last one, you’ve transferred the consumer business in India to a subsidiary. Any thoughts on what is the game plan here? How does it help beyond a point?
Glenn Saldanha
This is purely done to increase the focus. Right. Because we think that’s a good segment to continue to focus on. Right. So there’s no plan to do any capital raise or anything in that subsidy. It’s just a matter of heightened focus in that business.
Nitin Agarwal
Okay, thank you so much.
operator
Thank you. The next question is from the line of Amlan Das from Nomura. Please go ahead.
Amlan Jyoti Das
Yeah, hi sir, my question is what was your gross location for the quarter?
Anurag Mantri
Sorry, can you just repeat please?
Amlan Jyoti Das
So what is your gross doc edition for the quarter? Both tangible intangible that you report.
Anurag Mantri
So capex addition for the quarter was around 186 and as we mentioned guided is that the full year capex guidance we continue to remain on track.
Amlan Jyoti Das
And and could you please give the SP intangible sir?
Anurag Mantri
It’s typically 6535 that’s what the broad split of tangible and intangible six in terms of overall percentage in the quarter.
Amlan Jyoti Das
Okay sir. So what was your R D expenditure for the quarter and how much of it was innovation?
Anurag Mantri
R around 7% and so it’s the same range what we guided for the full year R and D expenditure is to be around 7 and a half so in this quarter it was around 7% and around half of it was in related to IGI.
Amlan Jyoti Das
Okay sir, thank you.
operator
Thank you. The next question is in the line of Bino Pathiparampal from Elara Capital. Please go ahead.
Bino Pathiparampil
Hi, good morning. Can we get a little more clarity on the accounting of the the upfront payment we get from Absti. From what you said I understand we will start amortizing it in Q3. So what would be the exact amount that would come on pml
Anurag Mantri
so. Out of the overall upfront payment basically that upfront payment also it’s one time and non refundable but also it will cover the IGI expenditure for the next three years in terms of their own spends. So accordingly as per the prudent accounting guidelines we will split the accounting basically that the leaving that IGI next three year to be accounted as per Their own expenditure guidelines so that overall P and L doesn’t get a fluctuation and one time abnormalities. And the balance we will actually book it in the quarter to itself.
Bino Pathiparampil
So how much would that be? The. The. That amount which will come to the PNL.
Anurag Mantri
So broadly last time we guided that our IGI expenditure for next three years are close to be around $210 million. $210 to $225 million and balance. So you can expect to be then accordingly. Obviously there would be a tax would be one time which will be upfront in the quarter two. So accordingly let the money come. I think then we will be able to give you the more specific one. But we are also in discussions with the auditors at both the levels how we should be doing it so that investor get a fair view of the.
P and L.
Bino Pathiparampil
Understood. And once that money comes in at a consolidated level where will our net debt go?
Glenn Saldanha
To the cash positive.
Anurag Mantri
Yeah. So we are. We will be surely cash positive post money.
Bino Pathiparampil
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Damianti Karai from hsbc. Please go ahead.
Damayanti Kerai
Hi. Thank you for the follow up. I have a question on ISP 2001 study. Those expansion study where you had started patient recruitment. So you mentioned the deal with Abby will get closed in. Will be closed in September. So are. Are you continuing the study or how things will move there?
Glenn Saldanha
So currently we are continuing to run the dose expansion and obviously once the deal consumates we will sit down with Abby and decide the next steps. I can’t give you more visibility but the dose expansion continues as we speak.
Damayanti Kerai
So you are running the clinical trials as of now and the related cost etc is part of your. Your. Your expenses. Right. And only when it the deal gets closed with Abby things will move there.
Glenn Saldanha
Correct.
Damayanti Kerai
Okay. Okay. Okay. That’s. That’s all. Thank you.
operator
Thank you. The next question is on the line for Anubhav Goel from Cosma Ventures. Please go ahead.
Anubhav Goel
So just wanted a question on Monroe. These five observations we have got. Any particular observation which can set us back tougher to resolve or are we broadly confident we should get through?
Glenn Saldanha
It’s always hard to predict but we think we’re pretty confident that we should be able to restart commercial. Commercial manufacturing soon.
Anubhav Goel
Okay sir. Okay sir. And so just one more question on the Indian business. Our secondary sales is doing very well. So I think you mentioned from Q2, from Q3 we expect our India numbers to be strong. So 2Q should be soft for the India unit.
Glenn Saldanha
No, no. All we’re saying is that, you know, the secondary sales will catch up with IMS, IQVR and Avax. Right. Starting from Q3 onwards.
Anubhav Goel
And so this divergence is largely because of the discontinuation of the tail end brand.
Glenn Saldanha
That’s correct. It’s basically moving up to higher margin products. Right. And focusing on that and discontinuing some of the low margin tail end brands.
Anubhav Goel
Got it, sir. All right, thank you. Thank you so much.
operator
Thank you, ladies and gentlemen. That was our last question. I would now like to hand the conference over to Mr. Gandhi for his closing comments.
Utkarsh Gandhi
Thanks. Before we close the call, I just like to mention the disclaimer that discussion, information, statements and analysis made describing the company or its affiliate subjectives. Projections and estimates are forward looking statements based on current expectations for forecasts and assumptions that are subject to risk and uncertainties which could cause accurate outcomes and results to differ materially. This discussion should not be regarded by recipients as a substitute for the exercise of their own judgment. And the company undertakes no obligation to update or revise its forward looking statements because of new information, future events or otherwise. With that we can close the call.
The Q1 call. Thank you everyone for joining. Joining. Thanks, Lizan.
operator
Thank you members of the management team. Ladies and gentlemen, on behalf of Glenna Pharmaceuticals Ltd. That concludes this conference call, we thank you for joining us and you may now disconnect your lines. Thank you.