Glenmark Pharmaceuticals Limited (NSE: GLENMARK) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Utkarsh Gandhi — Senior General Manager, Investor Relations
Glenn Saldanha — Chairman And Managing Director
V.S. Mani — Executive Director And Global Chief Financial Officer
Anurag Mantri — President, Finance
Analysts:
Unidentified Participant
Harshit Dhoot — Analyst
Damayanti Kerai — Analyst
Saion Mukherjee — Analyst
Tarang Agrawal — Analyst
Anil Shah — Analyst
Nitin Agarwal — Analyst
Tushar Manudhane — Analyst
Harsh Bhatia — Analyst
Rahul Jeewani — Analyst
Abdulkader Puranwala — Analyst
Presentation:
operator
Good morning ladies and gentlemen. Welcome to the Q4FY25 earnings conference call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the Listen on D 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarsh Gandhi, Senior General Manager, Investor Relations for Glenmark Pharmaceuticals. Thank you. And over to you sir.
Utkarsh Gandhi — Senior General Manager, Investor Relations
Thanks, Liz Ann Good morning everyone. Welcome to the Q4FY25 results conference call of Glenmark Pharmaceuticals Ltd. Before we start the Q and A, let’s review the overall performance of the company for the fourth quarter and for the full year. FY25 for the fourth quarter of FY25, Glenmark’s consolidated revenue from operations was at Rupees 32,562 million as against Rupees 30,630 million in the corresponding quarter last year, recording an overall YY growth of 6.3%. For the 12 months of FY25, Glenmark’s consol revenue was at Rs 1,33,217 million, recording a YY growth of 12.8%. In terms of some of the key highlights for the fiscal year 25 in the third quarter, Glenmark assumed leadership position in some of its key therapeutic categories in India, ranking second in dermatology and third in the cardiac segment for the fourth quarter.
Specifically, Glenmark’s Europe business continued its strong performance, growing at close to 18% for the full year. FY25 rail drift continues to do well. It was launched in more than 10 markets in FY25 and is now commercialized in 45 plus markets globally. Win Levy, our specialty product in Europe, received approval from the UK MHRA in the fourth quarter and IGI, our innovation entity, presented first time safety and efficacy data in 20 heavily pretreated patients from its phase one study for ISB 2001 at the ASH Conference in December last year, going through each of the region’s regional performance starting with India.
Sales for the formulation business in India for the fourth quarter was at Rs 9,430 million, recording a YY growth of about 0.4%. India business contribution to the consolid revenue in FY25 was at 33.7%. Reported sales in the India region during the fourth quarter were impacted mainly due to three factors continued weak growth in the acute respiratory market mainly due to low seasonal pickup, a highly competitive diabetes market which resulted in a 10% decline for Glenmark in the fourth quarter and the discontinuation of select noncore low margin brands in the hospital and trade generics segment to improve overall business margins.
Despite the reported lower reported growth, Glenmark continued to significantly perform the IPM in terms of secondary sales. As per IQVR, Glenmark India formulation business recorded a growth of 10.3% in the fourth quarter and 12% as per March 2025. This is compared to the overall market growth of 6% in Q4 and 7.7% for the MAT March period. In terms of its three key therapeutic areas, Glenmar continued to outperform in dermatology and cardiac. In the respiratory area, growth was mainly driven by our chronic portfolio which actually grew by 20 plus percent in the fourth quarter. Myanmar continues to be ranked 13th with a market share of 2.25% as of mat March.
The company has 10 brands in the IPM top 300 list and as mentioned before, in terms of key therapeutic areas, Glenmark is ranked second in dermatology, second in respiratory and third in the cardiac segment as per IQVR Q4 data. In terms of key launches, particularly in the fourth quarter, we launched empagliflozin in March. It’s a widely recognized SGLT2 inhibitor. The product was launched under the brand name Lempa along with its fixed dose combinations with Linagliptin and Metformin. We launched Lirafit last year. The product has seen good traction in the market with the doctors. We partnered with Pfizer last year to launch Jabirus which is Abdrofitinib, first of its kind, oral treatment for moderate to severe atopic dermatitis.
Again, this product has been well received and Tislalizumab and zanobrutinib are two oncology partner products with Beijing. These two products will be launched in the first quarter of FY26 and these will be transformational from the oncology point of view in India. In terms of India’s consumer care business, the sales in the GCC business in the fourth quarter were 852 million with a YoY growth of 23.5%. The flagship brands, Candid, Scalp, La Shield all continued to deliver strong growth in the fourth quarter as well as for the full year. Moving on to North America, the North America business recorded revenue of 7.146 million for the fourth quarter of FY25.
This translates into a y wide decline of 5.4% for FY25 the North America business contribution was 22.6%. The US business continued to remain challenging due to lack of meaningful launches and most of the launches that we did were back ended towards the fourth quarter so the full impact was not visible in the quarter. However, the company expects an uptick in the business from FY26 onwards, particularly on the back of potential launches in the Respiratory and the Injectable segments. Denmark has already built out a large commercial portfolio in injectables through partnerships and in Respiratory. We have mentioned we are leveraging our capabilities.
We have filed the ANDF for generic Flowant 44 MCGs and we have also filed a couple of nasal sprays. We are working on filing the NDA for the other two stents of Generic Flowint as well and we have some other Respiratory products in the pipeline. Landmark is expecting some of these products to be launched from around H1 mid of FY26 and in the meantime we continue to augment our commercial portfolio through partner product launches. In FY25 Glenmark was granted approval for eight ANDAs and we launched around 13 products consisting a mix of oral solids, semi solids and injectables and oral contraceptives as well.
Our marketing portfolio through March 31st, 2025 consists of 206 gender products and we have 51 applications pending at various stages of the approval process. In February 2025 Landmark entered into a settlement with three plaintiffs, Humana, Centene and Kaiser for a total of USD 7 million. This settlement was respect to the ongoing litigation related launch. These painters had opted out of the original settlement signed by Denmark in 2023 with the three main plaintiff groups and the recent settlement also makes it clear that Denmark denies each and every one of the allegations against it and settlement is not based on Denmark having conceded or admitted any liability or illicanity.
Moving on to Europe Denmark’s Europe business for the fourth quarter was at Rupees 7335 million, recording a growth of almost 20%. Europe business did well in FY25, now contributes about 21.4% to the console revenues as of FY25. The strong growth in Europe continued on the back of its branded business in all key markets. The Central and Eastern European region witnessed double digit growth across all markets and the Branded Portfolio the Branded Respiratory portfolio in CE as well as in Western Europe has sustained its momentum. Royalties continues to gain good share across the countries where the product is launched.
Going forward, Glenmark continues to focus on increasing the contribution of branded products and the branded portfolio in Europe mainly in the respiratory and the dermatology areas. As we announced, we have received approval from the UK MHRA to market Binlev in the United Kingdom and Denmark is planning to launch Winlevy in the UK in FY26. Moving on to the RoW region for the fourth quarter of FY25 revenue from the RoW region was 7,898 million recording a growth of 4.9%. The reported growth in the ROW region during the quarter continued to be impacted due to adverse currency movements in key markets.
In terms of contribution for FY25, the RoW business contribution to the total revenues was 21.1%. Our Russia business continues to do well as per IQV Matt March data, Glennmark’s Russia business recorded secondary sales growth of 10.2%. Rialtris is one of our key products there again continues to gain market share in dermatology and in the expectorant markets In Russia. Glenmark continues to be amongst the leaders. We are ranked 9th in dermatology and 2nd in the respiratory expectorant markets. Glenmark’s Latam business recorded strong double digit growth on the back of some key launches in the respiratory portfolio.
The first generic for Salmitrol 50000 MDI was launched by Glenmark in Q1 of FY25 in Brazil and continues to gain share and Glenmark continues to be ranked amongst the top five companies in the respiratory and dermatology areas in the Mexican market as well in Nia again the company continued to achieve good secondary sales growth in key markets. Rialtus again is a strong growth driver, continues to be the leading nasal spray in allergic rhinitis in South Africa and has seen strong pickup post launch in some of the other markets. And finally Asia again key markets like Malaysia, Philippines recorded double digit secondary sales growth growth and continue to grow faster than the covered market as per the IQVR data.
And once again Rialtis continues to be a significant outperformer particularly in markets like Australia and Korea just covering some of our key global brands. So again starting with Railtris, as mentioned I think Rialtis as a product continues to do well. We have submitted applications more than 90 markets and as mentioned before the product is commercialized in 45 plus markets. We expect to launch in 1012 additional markets over the next few quarters. As per the IQVR available data market share has been very strong particularly in markets like Australia, South Africa, Czech Republic and some of the other European markets.
Menarini, Glenmark’s partner in the EU has continued to witness a steady increase in market share and in terms of mainland China. Grand Pharmaceuticals, our partner there expects to receive the product approval sometime in FY26. Nvacimab Glenmark has filed Nvafilimab in around 15 markets in FY25. The first market launch is expected in FY26. The company has already received authorization for supply of NVAR Polimab to Kenya via some early access programs and we also plan to initiate a multi Global Multi Center Phase 3 study in some of the key indications like new adjuvant, adjuvant and SCLC in FY26.
Bin Levy as mentioned before, Glenmap received approval from the UK MHRA in Jan to market Binlevi in the UK and we launched product in the UK. We are awaiting approval in the other European market. Moving on to IGI IGI as mentioned before, we have a robust pipeline in IGI in oncology covering multiple myeloma as well as solid tumors. We have ISB 2001 lead asset which is in clinical development and two additional clinical assets in immunology which have been partnered out ISB880 and ISB830. In terms of ISB2001, this is a trispecific antibody that targets BCMA CD38 on multiple myeloma cells while engaging CD3 on the T cells.
As mentioned before, 2001 is amongst the first trispecific antibodies developed for use in multiple myeloma. It received often drug designation from the FDA in July 23rd and in fact recently in May 2025. The US FDA also granted FAST act designation to ISB 2001 as a treatment for patients with relaxed refractory multiple myeloma, specifically patients who have received three or more prior lines of treatment. IGI also completed the enrollment of the phase one dose escalation which is a part one of the study in March and also initiated and dose the first patient in the dose expansion expansion phase which is a part two of the phase one study in April.
In December we presented IGA presented data for IFB 2001 in an oral presentation at the ASH Conference in San Diego. This detailed out results from the dose escalation portion of the study in 20 heavily pretreated patients. The presentation is available on the IGI website as well. The laid out the data in some of our earlier updates and IASV 2001 will also data will also be presented by IGI at the upcoming ASCO conference in an overall presentation, so we’ll have some additional data coming through in the next couple of weeks. A quick update on IGI’s manufacturing facility in March 2025, IGI announced its plan to seize all CMC development and clinical supply manufacturing at its manufacturing facility in La Chaux de Fonds, Switzerland.
As IGI is progressing its pipeline, it is anticipated that higher quantities of finished product will be required for future clinical programs and IGICMC development and ongoing future clinical programs. Manufacturing of ongoing clinical programs will be to a network of well established global contract development and manufacturing organizations. Some key notes on the P and L and Balance sheet Forex loss during the quarter was around rupees 11 crores. R&D expenditure during Q4 was around 236.7 crores which was 7.3% of sales for the fourth quarter. For the full year the R and D expenditure was around 930.5 crores which was 7% of the FY25 sales.
Investment in IGI in the fourth quarter was $13.8 million and for the full year was around $61 million. But during the fourth quarter there was also an exceptional loss associated with the closure of the LA manufacturing facility as well as associated with the Generic ZR litigation. This was detailed out in the P and L note as well. Adjusted for this exceptional loss, The PAT was 346.6 crores with an adjusted PAT margin of 10.6%. Total asset additions in the quarter was 309 crores of which tangible asset addition was around 226 crores and intangible was around 80%.
For the full year the total asset addition to the block was 698 crores. Net debt as of March 2025 was around 489 crores as of March 2025. Net working capital in terms of number of days of sales was 104. Before we start the call, just want to lay out some key targets for FY26. In terms of our guidance for FY26 revenue growth guidance is 10 to 12%. EBITDA margin guidance is 19 to 20%. We are guiding to a cash generation of around 300 to 400 crores in FY26 and in terms of more granular guidance including region wise growth, the management will provide the same during an Investor Day in July which will detail out some additional points on each of the regions and each of our other businesses.
We have the management of Glenma Pharmaceuticals on the call today. Mr. Glenn Saldana, Chairman and Managing Director Mr. VS Mani is on the call. As previously announced, Mr. Mani will be retiring from his role as Executive Director and global cfo. We extend our gratitude to him for his contributions. And Mr. Anurag Mantri is on the call as well. Anurag has recently assumed the position of Executive director and global CFO. He brings with him over 30 years of leadership and management experience. So we warmly welcome him to the organization. With that, we can open the floor for Q and A.
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 in one on the attached tone telephone. If you wish to remove yourself in the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line. Harshad Dood from Diamond Asia. Please go ahead.
Harshit Dhoot
Hello, Am I audible? Yes, please, am I audible? Sorry.
Glenn Saldanha
Yeah, go ahead.
Harshit Dhoot
Yeah, thanks. Thank you also for the opportunity and good morning. Just a couple of questions from my side. Given the unsung executive order in the U.S. have you told by the global Pharma that valuations for all the originating products might recalibrate? So any update on this, sir?
Glenn Saldanha
Well, I think you know the. I mean given the executive order, right. Towards the most favored nation clause. Right. I think the. There’s still clarity still needs to evolve on that whole thing. Right. But our view internally is that the major impact will be for brand pharma as compared to generics.
Harshit Dhoot
Okay. Nothing on the other products like the companies like IGI are working on that something like IG2001 that we are working on.
Glenn Saldanha
IGI still at a very early stage. They’re not commercial. So there’s a long way to go for commercialization.
Harshit Dhoot
Okay, so you don’t foresee any impact going backward to the chain licensing deal and all, keeping in mind the pricing going ahead?
Glenn Saldanha
No, we don’t see any impact.
Harshit Dhoot
Okay. And second question, sir, how do you see the investment going forward? So as we know that you are basically working on the licensing deal in the ifc. So the investments will be led by the partner or you will also put in some money. How should we see that?
Utkarsh Gandhi
We didn’t get the question.
Glenn Saldanha
Yeah, there’s a lot of the. The voice is not clear, but I’m guessing your question is towards investment in IGI going forward. So we clearly said that, you know, post closing a deal. Right. We will, IGI will be self sustaining, at least for the next three, four years. Right. And we would not need to invest anything in IGI post closing a deal.
Harshit Dhoot
Okay, thank you.
operator
Mr. Harshit, sir, maybe request that you use the handset mode while speaking and not the speakerphone.
Harshit Dhoot
Am I audible now?
operator
Yes. So much better. Please proceed.
Harshit Dhoot
Yeah, thanks. Of course I missed the guidance part. I heard that 19, 25% EBITDA margin guidance. Anything else that you have said?
Utkarsh Gandhi
No sir, I’ll just say that again. So in terms of FY26, we are guiding to a revenue growth of 10 to 12% EBITDA margin of 19 to 20% and a cash generation of 300 to 400 crores.
Harshit Dhoot
Thanks. Thanks a lot. Thank you sir.
operator
Thank you. We move on to the next question. That is from the line of Damianty Karai from hsbc. Please go ahead.
Damayanti Kerai
Hi, good morning and thank you for the opportunity. My first question is on your diabetes portfolio in India. So when we understand it’s a space where competition is definitely rising up but the kind of weakness we are seeing in the portfolio, it’s bit difficult to understand. If you can help explaining what is leading to such muted performance there.
Glenn Saldanha
Sure. If you look at the history in diabetes, genmark was a non existent player in this space. And we launched two major molecules. One is remoglyflosin and the other one is teneligliptin. Right. Remo was the first time globally that we launched a molecule in the SGLT2 class and teneligliptin in the DPP4 class. We were able to make significant headway with both these molecules till dapagliflocin went generic and cetagliptin went generic. And at that point we were unable to sustain the growth. So these two molecules were a big part of our diabetes portfolio. What we’ve done now is we transition from there to launching lirafit which is liraglutide.
We also have cetagliptin. We also have empagliflozin, the three main molecules in diabetes. And the next step will be the launch of semaglutide. So I think that will help us and grow our diabetes franchise going forward.
Damayanti Kerai
Okay, so apart from these two products, Remo and Tenagliptin, can you say like your base products are broadly stable or. We are seeing
Glenn Saldanha
base is stable. At one point these two products contributed almost 60% of the diabetes franchise. Just to tell you how big they were. Right. These two molecules. So the erosion that we saw was not we were struggling to sustain that.
Damayanti Kerai
Okay. So sitting with a couple of big launches, good launches coming up in the portfolio, you are hopeful that they should go back to the growth trajectory.
Glenn Saldanha
That’s correct.
Damayanti Kerai
Okay. And any indication like how lira is doing? Because Lira Fit has been launched for now a couple of months. Right. So any initial number or indication which you can share.
Glenn Saldanha
So I think Lira Fit overall the growth is good, the molecule is doing well. I mean we’ve had some challenges in supply. Right. And we still continue to face some challenges. We are hoping that in Q1 some of those will be behind us and we will get full supply and then we’ll be back in terms of sales. But the molecule is doing well for us.
Damayanti Kerai
Okay. Lead up, you are doing in house manufacturing or you’re sourcing it from some partner?
Glenn Saldanha
No, we have a partner.
Damayanti Kerai
Okay. And right now the supplies are not yet, you know, fully. Fully optimal.
Glenn Saldanha
Correct.
Damayanti Kerai
Okay, thanks. My second question is on your ISP 2001 asset. So you mentioned you have started those expansion studies in April. So earlier I thought you were looking for the dean closure before you start this part of the study. But just like want to understand how many patients you are planning to recruit for this part of the study and what kind of cost you are looking for this and can you complete this phase without any deal if it takes some some more time.
Glenn Saldanha
So I’ll just give you a color on 2001. So while we are doing the dose expansion. Right. Look, the clinical development doesn’t stop, right? This is a speed is of the essence. So basis that we started the dose expansion, we already have, have some patients already being dosed as part of the dose expansion and it’s progressing really well. We will present, we’ll have an oral presentation at ASCO which will give you full color on the scientific side of ISB 2001. In parallel, we are in advanced discussions with multiple partners, all big pharma partners. And the discussions are progressing really well and we anticipate a positive outcome very quickly.
We think a deal for 2001 will really be transformational for Denmark and it will overshadow anything else that we are doing in the near term. So I think you should see some visibility around a licensing deal pretty quickly. That’s the only comment I can make as far as 2001 goes.
Damayanti Kerai
Okay. And just in terms of how many patients you are looking for this part of the study and maybe so expansion.
Glenn Saldanha
The expansion phase is 80 patients in total. Three different dosing groups that we’ve initiated and it’s being run in multi geographies. Right. So us, Europe, Australia are the three main geographies where we are running the. Trials. And you will get further visibility at asco.
Damayanti Kerai
Okay. And my last question is on Your P Tempur plant. Anything to share in terms of regeneration part or anything you heard from the fda?
Glenn Saldanha
We’re still in discussions with the agency on what this means and how this will play out. But from a commercial perspective we have no launches coming out of Pitampuram, minimal amount. So there’s no real impact on the business. And most of our launches, as you know, is coming out of Aurangabad, mainly the respiratory launches. So for the near term there’s no real impact on the U.S. business.
Damayanti Kerai
Okay, I’ll get back in the queue. I have some more questions.
operator
Thank you. The next question is from the line of Sayan Mukherjee from Nomura Securities. Please go ahead.
Saion Mukherjee
Yeah, thank you and good morning. Firstly on, is there any target action date for the nasal spray or you know, generic flow vent or are there any pending CRL that we are addressing? If you can throw some color on the timelines here. And we have also seen some delay in the filing of the remaining two strikes. Trends for flow vent, any color there would be helpful.
Glenn Saldanha
So Saiyan, as you know, Flowvent is an extremely difficult product. Okay. Right. I mean I think a lot most of the industry has struggled right to develop this product. So on the 44th strength we are expecting approval towards the end of Q2 and there has been some slippage but that’s pretty normal in this environment. On the nasal spray, we expect in the second half we will launch the product second half of FY26. So that’s the only visibility we can give. The remaining two strengths. 110 is likely to get filed in the first half of this year towards in Q2 sometime and 220, you know, maybe following that towards the end of second half of this year.
Saion Mukherjee
Understood. The next question is on the guidance, Glenn. 10 to 12% revenue growth, we are seeing slowdown in India and also the U.S. you know, probably will start growing towards the second half. And I know you would probably give more color on geographies later but Isn’t it like 10 to 12 loop stretch given the fact the way the US and India is currently positioned?
Glenn Saldanha
So overall the business continues to do well. Row is strong. Europe is seeing strong growth. These two geographies are strong. Right? I mean row corrected for currency grew 10 plus percent right. In this year in FY25 and and we expect it to accelerate even further in this coming year with some big launches and particularly RialTrust also contributing in markets, you know, the 1012 markets where we haven’t launched yet. So I think all in all these two geographies will be strong. Us, some of the licensed products which we launched in Q4 are now beginning to. We’re beginning to get some good shares around it.
For example, mixed amphetamines and some pretty big products which we launched in Q4. So that will. You will see some of that impact coming in Q1. Right. In some of the launches even. So, I think all in all, India continues to be a strong market for us. Right. I think India growth, we pretty much bottomed out on the diabetes space. The other three segments are doing very well for us. Cardio, derm and respiratory. Right. So all in all, we feel pretty comfortable with the 10 to 12%.
Saion Mukherjee
Okay. And just one last question if I can. You know, Glenn, you talked about ISP 2001 and potential licensing agreement. Assuming that you’re able to do a licensing deal sort of gives you significant cash flow, what’s the next step? What’s the vision you have for the entire innovation piece? Will you sort of step up investments in IGI to develop more assets or you would sort of reinvest in some other businesses or give out dividend? How should we think about ISB 2001 licensing deal and the nature or the investments that you plan?
Glenn Saldanha
So the only visibility I can give you right now, Shayan, is that, you know, we will cover, I mean from the licensing deal, right. At least the next three years of IGI expenditure. Right. We’ll get more than covered. Right. So.
Glenn Saldanha
So we’re burning about $70 million a year, right. And we’ll keep it around the same level. Right. Over the next three years. That’s the way we are thinking about it as far as IGI goes, right. And you know, that will fully get funded, right. And then after that, obviously igi, we’ve always said that they have the vision is eventually to IPO that company. Right. So they will have tremendous access to capital once we close this deal. So that changes the whole trajectory for IGI and for Denmark. Obviously, by IGI covering its own cost, our margins will go up significantly over the next three years.
I mean, that’s the way to think about it. And then beyond that time, once the deal gets done, we give more visibility around.
Saion Mukherjee
Okay, understood. Thank you. I’ll join.
operator
Thank you. A reminder to the participants, anyone wishing to ask a question may please the star in one. The next question is from the line of Tarak Agarwal from Old Bridge Capital. Please go ahead.
Tarang Agrawal
Hi, good morning. Just a couple of questions on the India business. What would be the contribution of Rima and Tennelly to the Glenmark’s current diabetes portfolio in FY25.
Glenn Saldanha
So as I said, I don’t have the precise numbers, but Tenle and about 60% should have come from these two assets, right along with their extensions.
Tarang Agrawal
It used to be 60% you said. Right. So it must have come down.
Glenn Saldanha
It’s come down, but it’s the change. You know, we just launched Lira Fit. Right. Last year or year before last. Right. Then last year we launched Cetagliptin. Then we launching Empadilbrosin last quarter actually. So it’ll still take time for that transition to happen. And that’s why the diabetes business has struggled. Right. Last year.
Tarang Agrawal
Okay. But essentially the share of these two products remain in the same ballpark that you suggested. At the opening they began to come down.
Glenn Saldanha
See, I don’t have the accurate numbers. We can come back to you with that. Yeah. Okay.
Tarang Agrawal
Second, what would be the global sales for Ieltrace from Glenmark’s perspective? Primary sales in FY25 versus 24.
Glenn Saldanha
So we did $80 million last year and this year, you know, we are expecting to cross $100 million in sales.
Tarang Agrawal
And what was it in FY24?
Glenn Saldanha
It was around 40 million.
Tarang Agrawal
Got it. On the Aurangabad plant, what’s the status of compliance here? Was the last inspection
Glenn Saldanha
less than a. Year ago it got inspected. So Ahmedabad was inspected in September 2024 and we got zero observations essentially.
Tarang Agrawal
Okay. And on DHSA, what’s the loan to GHSA and the equity contribution to DHSA as in 8th March 25th.
V.S. Mani
So the on the overall basis the loans are about 2,180 crores. The one that we have about long term loan, about 500 odd crores is. That’s the one that is adding GHSA.
Tarang Agrawal
So loan to GHSA by Glenmark, loan.
V.S. Mani
To GHSA from Glenmark. As you can see in the balance sheet we have about what? $600 million. That’s it. That’s the investment
Tarang Agrawal
and equity contribution
V.S. Mani
that. Will I come back to you on that?
Tarang Agrawal
Yeah. Okay. Okay, thank you.
operator
Thank you. The next question is from the line of Anil Shah from Insightful Investments. Please go ahead.
Anil Shah
Am I audible?
Utkarsh Gandhi
Yes, sir.
Anil Shah
Yeah, Just a clarification. The guidance that you’ve given on margins and particularly the cash generation, I’m presuming that’s not factoring in any IGI deal that one would do, right?
Glenn Saldanha
That’s correct. This is only the core business.
Anil Shah
Okay. And what would be our tax rates going forward?
V.S. Mani
Yeah, it will be about 21, 22%, as you can see. I mean last year also we came down to 25. We anticipate to go down.
Anil Shah
And last question from my side on the working capital side, particularly, you know, last two years we’ve seen, you know, the balance sheet again, you know, not being able to throw any kind of free cash flows. Obviously working capital last year had gone to pretty low levels, particularly receivables. But again, when we look at this year, etcetera, elongated further. So what would be an ideal where you think you’ll settle down and will this year be we’ll start seeing some shrinkage in working capital.
V.S. Mani
So Anil, thanks for the question. Let me set the context here. Overall, if you look at it last year, as you rightly said, our working capital days are much lower and especially the receivables. Actually, if you look at it in this year, our overall net working capital comes to about 104 days. Is very much is in alignment with all our peers who are like global companies. Okay, so like our inventory is about 83 days. The peer is about 75 to 80 days working. Our debt receivable is about 92 peers are about 85 to 95. So I think all in all, I think these are the levels at which it settles down.
So you wouldn’t see too much of uptick from here. But number of days will obviously be the same in terms of number of days.
Anil Shah
Okay, thanks. Come back in with you. Thank you.
operator
Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead.
Nitin Agarwal
Hi, thanks for taking the question again on the guidance of 19 to 20% EBITDA margins, what will be the drivers for the margin improvement that you’re looking at without the licensing deal?
Glenn Saldanha
So obviously riot risk is a big driver, right? I mean, riot risk will be a big driver. R and D, we can get some efficiencies out of R and D. I think these two are the immediate things that of course, and we have some big products, right? Whether it’s flow end, whether it is the nasal spray that we will launch in the US all these will help drive up the overall margins of the business.
V.S. Mani
Just to add Nikon in the current year, it looks a little bit lower obviously on the back of the so many great launches in the US So that’s primarily one of the key reasons. Otherwise we’re probably even closer to what we thought.
Nitin Agarwal
Okay, and secondly, Glenn, what is, how do you explain the deviation which is there between the QPA numbers and our primary sales for the India business? I Mean where does the disconnect come through? I mean undertook the inventory correction last year so that shouldn’t have played a role this year, I presume.
Glenn Saldanha
I think we’ve listed out three, four different things. Right. Including taking out some tail end brands which are low margin based. Right. All that is impacting the reported growth. Right. In Q4 I think going forward the overall India will be a strong. The growth will be strong. Right.
Nitin Agarwal
Okay.
V.S. Mani
Just to add Nitin. Just to add Nitin. See in the beginning of the year we guided to about 4500. Okay, 1100 plus, I mean 1000 plus, a 10% growth. So we more or less achieved the numbers that we said. The first half was pretty much pretty strong compared to what we have done. So I think we take it from the Q4 where we have a couple of reasons as to why we probably didn’t get to where we wanted to. But I think going forward some of the improvements will kick in.
Nitin Agarwal
Just pushing on the India part going forward. Apart from strengthening the diabetes portfolio, what other strategic areas do you have in mind to grow this business?
Glenn Saldanha
See obviously the Beijing launches which are happening in Q1, right. Maybe June or early July. Right. Those will be huge launches. Both Tizilizumab and Xanavu and both should launch early July and that will be a big driver to the growth near term. In addition to that, you know, we continue to file some good respiratory products which we are hoping to drive our overall growth. Right. And then of course you know Telma and some of the big brands continue to do exceedingly well. Dermatology also OTC continues to do exceedingly well. Right. It’s all almost a 500 crore business now for us and continues to grow at 20 to 30%.
So I think these are some of the main growth drivers for the India business.
Nitin Agarwal
And secondly on the IGI deal with IP2001 deal based upon what are the conversations you’ve had, you’ve been having? I mean do you have a broad timeline in terms of by when we can conclude this?
Glenn Saldanha
So all I can say Nitin is it should happen pretty quickly.
Nitin Agarwal
Okay. And last bit on I missed your comment on flow vent. What are we looking at for timelines? Flow vent for approval, end of Q2.
Glenn Saldanha
Is when we anticipate we could get approval.
Nitin Agarwal
Thank you so much.
operator
Thank you. A reminder to the participants, anyone wishing to ask a question may please press star in one. The next question is on the line of Tushar Manudani from Motila Local Financial Services. Please go.
Tushar Manudhane
Thanks for the opportunity so just with respect to the plant which is shut, so what is the sort of operational cost savings that will also sort of help in margin improvement in fy?
V.S. Mani
So just to set the context, obviously we are given this exceptional item in terms of what we have, you know, incurred in terms of the severance, etc. And obviously at the end of the day we also have transferred some of the CMC activities to a contract development and manufacturing organization. So and end of the day there could be some benefits out of that. But as we guided already would be at about 70 million close to where we are. There will be some benefit. But can’t really quantify a very big benefit out of this because it’s doing well and you actually want to there’ll be cost.
So by saying that I’ve saved something, but I have some other CDMO cost may not be the right way to explain that.
Tushar Manudhane
And if you were on the India side share number of Mrs. And where do we, you know, intend to take that in HY26.
Glenn Saldanha
So the number of the sales force we are not expanding. It’s about 5,000, somewhere around five, five and a half thousand reps.
Tushar Manudhane
Okay. So like the existing team, as far as even for us, the other products within the space, we should be good enough to sort of drive the productivity.
Glenn Saldanha
That’s correct. Correct.
Tushar Manudhane
And just a clarification on royal trees we said you you would be able to cross 100 million, right? For FY6.
Glenn Saldanha
That’s correct.
Tushar Manudhane
All thanks a lot.
operator
Thank you. The next question is in the line of Damian from hsbc. Please go ahead.
Damayanti Kerai
Hi, thank you for the opportunity. My question is on your plants like where except Aurangabad you have pending issues from the FDA in terms of GMP compliance etc. So although say you mentioned not many critical launches are due, so should be okay. But what are you thinking on the regeneration part for example? Mondo. I guess we haven’t heard any update. So.
Glenn Saldanha
Yeah, so I think Monroe we should get inspected pretty soon. Okay, Anytime. So that’s one one update. On the GOA side we did a meeting with the FDA and you know, we’re waiting for them to come and inspect us. Okay, so that covers all the four plans, right.
Damayanti Kerai
So Monro, you have heard anything from the fds? That’s why like you’re mentioning it should happen very shortly.
Glenn Saldanha
We did a meeting with the FDA right basis which we believe they should come anytime.
Damayanti Kerai
Okay. And just on the Monroe last year you impaired part of the plant. I think you’re just focusing on the injectable. So right now what is the value which is remaining for the plant? I think you invested around $250 million right in the plant.
V.S. Mani
So today we would have an investment of about 150 million. So we did, if you remember, we did impair about 100 million-plus. So that’s where we are.
Damayanti Kerai
Okay, yeah,
Glenn Saldanha
go ahead. Yeah.
Damayanti Kerai
My second question was on your ISC trial cost. So just want to understand when like you are in this DOGE expansion trial, which are the major cost components. Actually we don’t understand like in clinical trials which are the major cost. Also if you can explain that as well or update.
Glenn Saldanha
I mean look, I mean the trial cost is a trial cost, right? I don’t think I can break it up for you, Damianji. We are dosing 80 patients and it’ll cost what it will cost, right. We’ve given a total number of 70 million, right. For IGI obviously that includes the trial cost. Okay.
Damayanti Kerai
Okay. My last question on your interest expense during the quarter, I think after like last quarter’s number, we have again seen some pickup there. So can like what is happening there?
V.S. Mani
Yeah, so like you know, it’s about 66 or so. About 5, 6 crores is basically due to the whatever interest you get on the leases. So balance it’s gone up a little bit because of the increase in the debt. But I think coming year what we have guided already. So based on that we could see close. It’s coming a little lower.
Damayanti Kerai
Okay. So should be lower than like what we saw in fourth quarter, right? In.
V.S. Mani
Yeah, a little bit lower. Yes. Yeah, in and around that.
Damayanti Kerai
Okay, thank you.
operator
Thank you. The next question is from the line of Harsh Bhatia from Bandhan Mutual Fund. Please go ahead.
Harsh Bhatia
Yeah, thank you. Just one clarification on the guidance part. And this is related to the cash generation. I think you mentioned 300 to 400. Crores of cash generation. So if you could help us bridge. The gap between the EBITDA margin and the cash generation. And I also missed a comment on. The networking capital you mentioned 110 days.
Glenn Saldanha
So I think the bridge, right, between EBITDA to cash you could take offline because that would be a pretty detailed bridge. Networking capital. We, I mean.
V.S. Mani
The number of days will be the same. Just to put it in perspective, obviously we guided to about a 19% EBITDA. We could get into detail. But just to say that that is one. Then you’ll have your cash tax, you’ll have your working capital, you’ll have some asset additions to all put together. That’s how we Arrive at the numbers. Maybe.
Utkarsh Gandhi
We can get into detail.
Harsh Bhatia
Just one clarification. The cash generation is the free cash. Generation that you’re talking about.
V.S. Mani
Yes, yes, yes. That’s what you’re talking about.
Harsh Bhatia
Thank you.
operator
Thank you. The next question is on the line of Rahul Jiwani from IIFL securities limited. Please go ahead.
Rahul Jeewani
Yeah, hi sir. Thanks for taking my question. Sir. On this EBITDA margin guidance of 19 to 20%. I’m not pretty clear in terms of the drivers for this margin improvement. You talked about Realtors. Now Realtors is going to incrementally add USD 20 million of sales. And then if we look at IGI’s investment as well, you are talking about $70 million of investment going forward. And some of these critical launches for us will contribute only from the second half of FY26. So what exactly would help us to drive this margin improvements? And can you please lay it out again?
Glenn Saldanha
I think we’ve already discussed the Rail Trust will give you some benefit. We discussed about the two launches in the US which are the big drivers. Keep in mind US Margins have been been suppressed. Right. Because of the lack of any launches. Even the launches that we are making in Q4, the margin profile will start improving from Q1. Right. So that is one thing. Then after that we discussed about R and D spends overall R and D spends some leverage coming out of that towards the overall margins. So I think beyond that I don’t think I can give any more visibility.
And we have an analyst meeting coming up at that point we can discuss, you know, give you much more granularity. Right. On how we’re getting to those levels.
Rahul Jeewani
Sure. Sir, on the R D side, can you quantify in terms of what kind of an R D spend you expect for FY26?
Glenn Saldanha
Not at this point. We’ve given an overall number. Right. Of 7%. Right. Roughly around 6 to 7%. Right.
Rahul Jeewani
Okay. So. And just a clarification on this free cash flow guidance of 300 to 400 crores. This you are indicating before interest and dividend payments or post interest and dividend payment?
V.S. Mani
No, no. Post interest and dividend. Yeah, post interest and dividend.
Rahul Jeewani
Okay, sure. Thank you, sir.
operator
Thank you. The next question is from the line of Cyan Mukherjee from Nomura Securities. Please go ahead.
Saion Mukherjee
Yeah, thanks. On ZTA Antitrust, are there any pending litigation or any other contingent liabilities that we should consider?
V.S. Mani
So as I have given in the note, there were four opt out cases, three we have settled. There is just one more left. Okay, that’s it. One Party still left.
Saion Mukherjee
Okay, understood. And then on this Baijin assets that will be launched in India, what’s the market size? How should we sort of map the market and sales potential?
Glenn Saldanha
So the current, you know, the PD1, PD L1 market is over $200 million in India right now. So it’s a very large opportunity. Right. And you know, we think we can actually get a good share of that in the near term with Tizzalizumab. And in addition, the BTK product that Baijin that we’ve analyzed inside is actually best in class has got some great clinical data. So that can actually be pretty significant. Much smaller than Tizzily, but could be significant. So these two products can make a reasonable impact to the overall performance.
Saion Mukherjee
Okay. Okay, sir, thank you.
operator
Thank you. The next question is from the line Nitin Agarwal from Dam Capital, Please go ahead.
Nitin Agarwal
On the US I think barring the fluent PME filings that you quickly do, I mean, how are you thinking about investments in the US on a going forward basis? Any specific areas or what kind of opportunities do you see?
Glenn Saldanha
So we are basically going, you know, investing in two areas. One is respiratory, right. And the other is injectables out of Monroe. These are where the bulk of our research efforts are going.
Nitin Agarwal
And in the respiratory barring flow vent. When do you see the next set of filings coming through?
Glenn Saldanha
We have a host of filings. We have one more MDI getting filed in Q2 of this year outside of the 110 and 2. So we’ll have three MDI filings this year. We will have at least two or three nasal spray getting filed this year.
Glenn Saldanha
Okay. Okay, thanks. And secondly, on the Monroe asset, you know, somebody mentioned that we’ve got $150 million of investment still there. So that is right now largely on the injectable. And what nebulizer lines are on the injectable line right now?
V.S. Mani
Mainly it’s only injectable lines and the utilities along.
Nitin Agarwal
And sir, you know, with whatever is going on in the US around the local manufacturing, then is there a provision for us to, you know, is it a possibility at all to write back to get some write backs on the expenses that you’ve written up or those plants or those lines are completely unviable situation?
Glenn Saldanha
Nitin, our goal is to get that plant up and running functional and operational. Right. We have some good filings coming out of there and we truly believe that longer term this portfolio will do well for us right in the US market. So I don’t think there’s Any question of.
Utkarsh Gandhi
No, I think what he was asking is can we write back some of the items we did OSD line. But I think, Nitin, from a digit point of view, injectables is what we are focused on. From inverse manufacturing point of view, I think we. Once the plant comes up and running injectable, all our injectable filings and injectable business for the US Will be out of Monroe. So that’s the way we’ll continue.
Nitin Agarwal
Thank you very much.
operator
Thank you. The next question is from the line of Abdul Qadar Puranwala from ICICI Securities. Please go ahead.
Abdulkader Puranwala
Thank you for the opportunity.
operator
So your audience breaking up, Mr. Puranwala?
Abdulkader Puranwala
Yeah. Is this better?
operator
Slightly better. Please proceed.
Abdulkader Puranwala
Okay. Yeah. So my first question is in terms of your guide for. For the margins. So would it be the second?
Utkarsh Gandhi
Abdul, we can’t hear you. I think we’ve probably dropped off. We can take the next question.
operator
Sure. Ladies and gentlemen, we’ll be taking the last question. That is in the line of Tarang Agarwal from Old Bridge Capital. Please go ahead.
Tarang Agrawal
Hi, Glenn. Just to understand the PD L1 market that you spoke of currently, who are the principal players in that market? Is it? And what gives you the confidence for the levels that you’re looking at in this market?
Glenn Saldanha
So the two big players are. Ketoda is the biggest there. Right. Which pretty much dominates the market. And then we have Nivolumab. Right. Of Vista. These are the two big players in the market.
Tarang Agrawal
Okay. And how about similar dynamics for the subsequent product?
Glenn Saldanha
So the BTK market is small because it’s a relatively niche indication. Right. But even there, being best in class, right. We have a good opportunity to gain some market share.
Tarang Agrawal
Correct. Last, I mean, I think to an earlier question based on. I mean, would you be open to using the Monroe plant to probably expand in light of the US Requirement for domestic manufacturing, or would your interest in the plant be limited to only ingestible manufacturing that you’re focusing on right now?
Glenn Saldanha
So currently we want to first get the plant cleared and reinitiate manufacturing of the injectables. That’s our first goal. And we have some good filings currently underway right from that facility in addition to the products already filed and approved. So I think the goal is first to get the injectable portfolio up and running before we look at expanding into other areas.
operator
Thank you, ladies and gentlemen. That was the last question. I now hand the conference over to Mr. Utkarish Gandhi for his closing comments.
Utkarsh Gandhi
Yeah, thanks, Lizan. So just to read out the disclaimer before we close the call. The discussion, information, statement and analysis made describing the Company or its affiliate objectives, projections or estimates are forward, forward looking statements and these are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties. No representation of warranty, either expressed or implied, is provided in relation to the discussion and should not be regarded by recipients as a substitute for the exercise of their own judgments and the Company undertakes no obligation to update or revise any forward looking statements, whether based on new information, future events or other.
With that, I think we can close today’s call. Thank you everyone for joining the Q4 call.
operator
Thanks thank you members of the management team. Ladies and gentlemen, on behalf of Glenmark Pharmaceuticals Limited, that concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.