Onesource Specialty Pharma Ltd (NSE: ONESOURCE) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Arun Kumar — Founder and Non-Executive Director
Neeraj Sharma — Managing Director and Chief Executive Officer
Anurag Bhagania — Chief Financial Officer
Analysts:
Unidentified Participant
Abhishek Singhal — Analyst
Anand Mundra — Analyst
Nitin Agarwal — Analyst
Abdul Kadir Puranwala — Analyst
Madhav Marda — Analyst
Rupesh — Analyst
Rishabh Chand — Analyst
Chirag Shah — Analyst
Mehul Panjwani — Analyst
Dhruv Gupta — Analyst
Aman Vij — Analyst
Presentation:
operator
The conference is now being recorded. It. Ram. It. Ladies and gentlemen, good day and welcome to One Source Specialty Pharma Ltd. Q1FY26 earnings conference call. 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 has been recorded.
I now hand the conference over to Mr. Abhishek. Thank you. And over to you sir.
Abhishek Singhal — Analyst
Thank you. Good morning everyone and thank you for joining us today for the earnings conference call of One Source Specialty Pharma Ltd. For the first quarter financial year 2026. We are pleased to have with us Arun Founder and non issue chairperson, Mr. Neerit Sharma, CEO and MD and Mr. Anurad Bhagania, CFO of the company who will walk you through the key business and financial highlights for the quarter. I trust you’ve had the opportunity to review our results release and the quarterly Mr. Presentation both of which are available on our website as well as the stock exchange website.
The transcript for this call will be posted on company’s website within the next week. Please note that today’s discussion may be forward looking in nature which should be viewed in context of risk inherent in our business. Should you have any further questions after this call, our investigation team will be happy to assist you.
now hand over the call to Arun to make his opening remarks.
Arun Kumar — Founder and Non-Executive Director
Thank you. Thank you Abhishek. Good morning everybody. Thanks for joining us early this morning. I’m very pleased to be joining this call today along with my colleagues from Ramsour specialities. I’ll make my opening commentary very short and leave the floor to Anurag and Neeraj to discuss both the business and the financial outcomes of the company. First of all I think we have had a good quarter. We have basically already guided the street that we will have a muted H1. We are in line. Our performances are in line with those expectations. Most of you are aware that bulk of our growth trajectory comes from our business in the DDC segment which is basically the GLPs.
And many of you know those markets open up only towards the towards Q4 of this year. We obviously will not in today’s call be discussing anything about matters related to our ongoing judicial matters with Novo along with our partner Dr. Reddy says this matters subjudice. We will also after Dheeraj’s and Anurag’s opening statements I will give you a little overview on the inorganic transactions actions which are related party and therefore I would like to present a perspective on that and how that’s coming about.
Now I leave the floor to Neeraj to start his opening comments. Thanks Neerish.
Neeraj Sharma — Managing Director and Chief Executive Officer
Thank you. Thank you Arun and welcome everyone to our Q1 26 results. I’m very pleased to share the progress that we are making on our path to meet the growth aspirations which we have laid out, which is to be a $400 million revenue company organically by FY28 or as Arun just mentioned and he’ll give the details later, this number could be significantly higher if the organic inorganic opportunities come to pass. As we outlined in our previous earnings call that FY26 is a significant inflection point for our business as we transition from our pre approval revenues to our commercial revenues in our DTC portfolio.
So our first half of the year, as you know, primarily we’ll be focusing, as Arun just mentioned, on executing our MSAs while the second half will be driven by the commercial supplies of Semaglutide, obviously subject to the fact that our customers will get approvals. And as a part of this journey and transition our Q1 performance has been in line with our expectations where we have delivered growth both on top line and on EBITDA. In fact EBITDA growing quite robustly at 37% versus last year and the EBITDA margin being up 500 basis points. Anurag, my colleague will walk you through the financials in more detail and as far as our manufacturing operations are considered, this quarter was focused primarily on strengthening our readiness for commercial supplies in H2 and that’s where our our DDC business drug device combination business continues to deliver a very strong momentum.
Our order book remains very solid and in fact all of our customers who are going to be launching the product as the markets open up later this fiscal have actually raised and revised their forecast upwards in fact, which is very conducive and the fact that all these contracts are supported by take or pay, this really reinforces our confidence in the trajectory ahead and basis that we are actually accelerating our phase two of capacity expansion in drug device combinations. While this is still within the overall 100 million capex plan which we have announced earlier, but the entire implementation will be completed a year ahead of schedule.
So which as you see reinforces the confidence what our customers and we have going away from drug device combination. Another key highlight this quarter was our strategic partnership with Xpirane in Biologics, which is a leading Swedish biotech company. This collaboration really Strengthens our drug device, sorry our drug substance business and accelerates also the regulatory inspection of our drug substance site. Along with biologics, our focused business development activities have been expanding our funnel across our business offerings. We have added multiple new RFPs and secured new deals in the quarter.
Now along with the business moving in. The right direction, what really gives us a matter of really strong pride for us is our compliance track record which was once again reaffirmed this quarter as we saw successful back to back inspections and approvals by us, FDA and nvisa and which really really shows our commitment to quality. In fact, during the quarter Apart from these two, we have had almost 25 inspections done by either our regulatory agencies or our customers across all our sites and all these being successful. Along with this we also continue to invest in the leadership and in building the organization which is really key to supporting our growth.
In fact, we have announced the recent appointments both to our board and to our leadership team and these have really added, you know, strategic and commercial depth to our organization on one side and on the other really reinforced our commitment to maintaining a very high standard of governance which you know we and the group is really known for. Of course, you know we saw, you know in a really exciting development last evening. Our our board has given go ahead for us to evaluate the potential transactions. Arun will be giving more details on this and these are really very good fit with our injectable business and will give us a global footprint.
Of course we’ll keep providing updates on this as we go along. Finally I just want to say that all the hard work which we have done, our teams have done together with the customers during the MSA phase is now on the verge of coming to fruition and we are really looking forward in the coming quarters especially in the second half of this year. Really excited that the commercial supplies will begin.
We really thank all of you for your continued support and I will now hand over to Anurag to take us through our financial highlights. Thank you.
Anurag Bhagania — Chief Financial Officer
Thank you Neeraj. And a very warm welcome to everyone joining us on the call today. I am pleased to present our financial performance for the first quarter FY26. As Neeraj mentioned earlier, the Q1 FY26 we reported revenues of 3273 million INR. It reflects a 12% growth year over year. The profitability for the quarter EBITDA grew 37% to INR 885 million with margins improving 27% to 27% in this quarter and translating a 500bps margin improvement adjusted pack for the quarter is about 371 million compared to a negative PACT comparable previous year. Adjusted earnings per share on an annualized basis fully diluted stands at INR 3.2 per share.
As you all know, our PAT and EPS is adjusted for exceptional items and amortization of scheme related intangibles. As we mentioned earlier, our target debt to EBITDA to stay below 1.5 during the course of this year as we are accelerating some of our CAPEX investments. The timing of these investments there may be a few quarters as we see where this might go slightly higher than 1.5 but we are fully committed to get back. This is a temporary phenomenon and we are expecting to get back well in time to the same number that we I want to highlight, you know on the back of the previous quarter where we had a credit rating upgrade this quarter again we another upgrade.
Proud to say that one source is now part of the A family. This development is reflective of continued confidence in our financial management and provides us better access to capital and on much better terms. As you know, over the last few quarters we have prepaid significant amount of high cost debt and we are consciously balancing our approach to leverage access to capital and debt and along with our internal accruals and customer participation in our CAPEX programs. Looking ahead, we continue to build scale and capability investing into the future of the business. We reinforce our earlier guidance on the financial metrics and expect to expect to be 1.5 times EBITDA times EBITDA on our debt metric.
The quarter continues to be extremely transformative for one source and we’ve made significant progress over the years and what we see ahead of us sounds even more exciting and looking forward to that. Thank you once again and we are very happy to take questions if one statement.
Neeraj Sharma — Managing Director and Chief Executive Officer
Sorry. Yeah, thanks. Thanks Neerajan and Raj. So I just want to give a little bit of overview of these two assets and the and the background behind it. So as you all know that one source is a culmination of an NCLT process where three parts of the business is the group combined. And at that time both the Polish facilities and the Baroda joint venture with Brooks was still in the making and was complicating the NCIT process. As part of our roadshows pre ipo, we as promoters made commitments to investors that we would bring our CDM assets in the group or in the family office under the Monso umbrella.
And this announcement, subject to various approvals is the beginning of that commitment that we made as promoters in terms of the businesses. The Polish facility is a USFD approved plant with very significant capacities and it is approved both for pharmaceuticals and biologics. As we speak. We are fully committed for our capacities. We manufacture for marquee customers, including Europe’s largest anesthetic branded product which is currently contracted to be manufactured on a very long term basis with our facility in Poland. The plant is also approved by all other regulatory agencies like the European agencies, obviously being in Poland, but also in Australia and Canada.
More importantly, this also gives us the ability to to kind of de risk the concentration risk that our customers have been emphasizing. While we have no capacities available for sterile injectables, the plant has got ample space to expand to GLPs. And we believe that it is pertinent for one source to have an additional site to take care of the increasing demand or increasing customer concentrations that we have and the risks attached to those what our customers have been asking us to de risk. So we had the option, we have an option to set up an additional line in time for the markets in both Europe and US to open up.
And that would give customers, I believe, a stronger sense of relief coming to the second facility which is our the plant in Gareda, which also partnership with Brooks. We had acquired 51% of this company several years ago. Since then the company has been transformed to have completed the US FDA approval inspection. Rather, we have invested heavily to now have an integrated capability because in the antibiotics space, API control, especially for sterile is important. So this facility has got adaptive API conversion capability which it captively use. We also have our first products approved in the US and that’s a very unique strength of Penem which we are again the first company to launch that product.
And it will also have the ability to offer ertrapenem in its life size forms in the next couple of months when we expect approvals from the US we are already approved in the European market. Our capacity has been contracted quite significantly. This business, both these businesses in Poland and in Baroda report very healthy numbers. We currently have approximately $65 million of revenues for this year with an ebitda in the 36 to 40% rate range and fully booked and committed to deliver $100 million of revenues at the bare minimum in the next year. 36 to 40 million dollars of EBITDA.
The business is expected the whole transaction will go through a new NCLT process which will take approximately 12 to 18 months and go through the rigors of SEBI approval pre approval before we file to the NCLT followed by shareholders approval which will include a fairness opinion by a first class banker and then of course it will be a function of additional shares based on valuation. All of these are early days. At this time we really have an independent committee of three directors being formed to evaluate these options and once that comes through and there is alignment between the shareholders and one source, we will obviously take it through the next steps.
We believe that both these assets will add significant value to the long term plans of unsource, which obviously will also mean that our Targeted revenue of 400 million with 160 will now will have an upward trajectory in excess of 500 million and slightly in excess of $200 million at EBITDA. Both these businesses on closure would be near debt free or under 7 to $8 million of debt on a $40 million of EBITDA run rate for 27. And like I said the book is fully contracted so these are not a business case but more contracted business that we will look at to vending to one sources.
It will not require any apart from an equity dilution it is not required wants us to lever any kind of debt or add debt to its books. So this will be accretive from that nature. But obviously these are very early days and we will keep our investors and analyst community fully updated as we progress on this. I have a hot stop at 9:45 so I’ll be happy to take questions related to any specifics that you guys may have. But Neeraj and Anuradh and the rest of the team would be more than happy to address your queries.
And as always we are available for one on one conversations or through our investor desk. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char n1 on the touchdown telephone. If you wish to remove yourself from the question queue you may press char and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Anand Mundra from Source Wealth. Please go ahead.
Anand Mundra
Good morning sir. My questions are related to Canada market. So what is your view? How many players will be launching in this market during the first phase and how many generally their market would be there in semi to the tide in Canada. That was my first question. Sir, I have two more questions.
Arun Kumar
Yeah I’ll just answer this so you know it’s your your quest is as good as good as ours. We are seeing right now there are a few Companies who have filed in Canada now which ones will get approval, we really don’t know. But our guess is these are, you know, these are complex products. So we don’t expect the market to be crowded as when the market gets formed. So you know, in our view they will be, at least at the time of launch, they will be limited number of players into the market.
Anand Mundra
Second question with respect to approval. So what is your assessment or sense on January 2026 as a launch for SEMA generics? Is there any risk for delay for. Is there any risk of delay for approval?
Arun Kumar
Again, what I would only say here is that these are complex products, but also the companies who have filed are some of the biggest and the top generic players who are used to handling complex products, who are used to getting approvals. We have already seen some companies getting approvals of Lira Glutide both in Europe and in US I think that gives confidence that companies will get approval. Now when that approval it comes and you know who comes first, I think it’s. It’s really, you know, very difficult for anyone to answer that.
Anand Mundra
Okay, sir, but in the process of.
Neeraj Sharma
Getting approval, can you get the gentleman back on cue because we do have a few people just.
Anand Mundra
No problem. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Nitin Agarwal from Dam Capital. Please go ahead.
Nitin Agarwal
Thanks for taking my question. Two questions on the capacity that you talked about. Now if you can just clarify, when does the 200 million capex planned from here on? When does the 200 million wild capacity come through? Cartridge capacity come through now.
Neeraj Sharma
So Nitin, what we had said, right, that we will be the capex we are building, you know, we will be having all capacity up and running by FY28. Now we have actually brought it up significantly because we have advanced our third line actually also earlier. So we would be having now this capacity all capacity up and qualified by end of calendar 2026.
Nitin Agarwal
Okay. And secondly, you also mentioned in your comments about, you know, existing customers increasing their increasing order sizes, new customers coming on with lot of take and pay agreements along with it. So if you can probably help us understand a what proportion of the capacity that right now, I mean is covered right now with firm contract and generally speaking is it fair to assume that all of this capacity is backed by takeoff?
Neeraj Sharma
So I can, I mean what I would say here is that, you know, the ones which we are launching, especially the markets which are opening up early starting January next year, all the customers who are scheduled or planning to launch in all these markets all have take or pay contracts. We have take or pay contracts with all of them. And they will take up significant part of the capacity, especially over the next anywhere between 18 to 24 months. Because as the launches ramp up and the volumes ramp up in the market, they will, you know, that’s what we are looking at.
If it, if it answers your question, Arun, please.
Arun Kumar
Yeah, Nitin, Just to add to what Neeraj is mentioning and to be very specific, at this time we have capacities only for 40 million units. It’s safe to assume that a large part of that will be consumed for the early markets that are opening up. And as you know that the early markets that are opening up are only mainly Canada and then Brazil and Saudi Arabia and of course a lot of emerging markets to that extent. We are now very confident that our capacity is very largely sold on the take or pay concepts that Neeraj is alluding to.
The incremental capacities would. It’s a function of hacks first having the equipments up and running. I think what we are saying is that we believe that the demand is significantly greater than what we had anticipated in terms of timing and therefore we are bringing forward the CapEx and the capacity for 26, technically, technically would be only from that 40 million unit and from 27 onwards will have a significantly larger number.
Nitin Agarwal
There’s been a lot of this news around the loan audit cutting, the guidance for F26,25 and the concerns around the outlook for Semagutide and how is, how, you know, how are your clients reacted to it and is there any change the way we’re looking at the business on the industrial.
Arun Kumar
Well, I think we share your concerns. Sorry, Neeraj, apologies. We share your concerns, Nitin, but it’s just the fact that we are a CDMO and we go by what our customers contract with us, right. And at this time they are increasing forecast willing to pay upfronts. And we can only go by that we believe that an improved price point and there is obviously no worse. We can’t specifically comment on a company, but I think it’s also to do with pricing and patients falling off the regime fairly quickly. I think price points, as the genetic industry generally does, will enhance the market quite significantly.
Neeraj Sharma
I think to Arun’s point exactly, that it’s, you know, what we see is that whatever Novo is talking about in the US is also that they are losing to compounders. So the overall volume in the US is still getting maintained and the same that once the generics come in, especially in the markets which are opening up over the next year or so, I think a significant volume driver will be just access, access to product which is not there today will drive and the price delta between Tirzepatite and Sema generic will continue to drive. So we are very confident as our customers are, you know, over the next couple of years.
Nitin Agarwal
If I can take one last one after the permission, you know in the presentation we talk about nine NC minus one molecules barring. So which are these? What are the timeline for these, you know for these molecules to be coming in the market and they, I mean this includes that how many GLP1s are in the 90 minus 1.
Neeraj Sharma
This is a very specific question. I would just like to say that these are very important opportunities and NCE minus 1 generally are, they are of various molecules. There are GLPs, there are non GLPs, there are oral technologies, there are injectables across all our modalities. And these will start entering the market over the next couple of years and we’ll, we’ll keep you posted as these, as these come up.
Nitin Agarwal
Thank you sir.
operator
Thank you. The next question is from the line of Abdul Kadir Puranwala from ICICI Securities. Please go ahead.
Abdul Kadir Puranwala
Thank you for the opportunity. So first question is on I know your capacity expansion. So you mentioned about expediting the 200 million cartridges by the end of CY26. So based on today and the kind of outlook on what your customers are giving, is there a plan to further expand this from where we are or where we have committed in terms of the platter’s capacity?
Neeraj Sharma
So I think as you see, right that this is a moving market, right? How the, how, you know, what we knew a year back is when different from what we know now and market continues to evolve and we are, you know, we are continuously engaged with our customers. As we mentioned based upon our customer forecast, we have advanced our CAPEX program and if it is required later on and our customers want, you know, we would be doing that. Arun already mentioned that you know, if the assets, especially the one in Poland, if it comes, we do end up closing the acquisition.
You know, that’s an area where we would be doing our next expansion. So we are, you know, we are open and we are thoroughly engaged with the market development.
Abdul Kadir Puranwala
Understood. And sir, in our revenue guidance and. You know the ebitda guidance for FY28. We are not factoring the Poland and. The Baroda facility is what getting evaluated, is that right?
Neeraj Sharma
Yeah, that’s correct. We have mentioned that that 400 million revenue we gave was through organic growth. And if, you know, if we do end up closing these acquisitions, you know, it will be significant. Arun already mentioned that, you know, FY27 numbers for these will be about 100 million revenue, about 40% EBITDA. So these would, you know, these would add significantly to our guidance. And once it is closed, we will be sharing a revised guidance.
Abdul Kadir Puranwala
Okay, understood. And just lastly on, you know, your current quarter performance. So if I have to see the current quarter, you know, can you throw. Some color on how, you know, the. Three segments of the business would have performed?
Neeraj Sharma
So, you know, I think we as we have said that, you know, all parts of our businesses have performed obviously the drug device combination, a lot of work we executed on MSAs. So it’s always the key driver. But at the same time our injectable and soft gelatine business also did this also, you know, both our base business of gelatine and injectable have some seasonality built in because as you know, antibiotics are seasonal, some of the large cold products are seasonal. So it had some seasonality built in into that part of the business. But let’s say all businesses, all our service offerings have delivered bases, our expectations.
Abdul Kadir Puranwala
Got it, sir. Thank you. Now.
operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Madhav Marda
Hi, good morning. Thank you so much for your time. I just wanted to get some more additional views on the commentary that you made about customers significantly revising their guidance upwards for the I was for the semaglutide supplies. Could you give us some sense in terms of how the volumes could play out in markets like Canada, Brazil, you know, where the innovator was present already and maybe some of the markets other EMs where they probably didn’t launch or you know, in early phase of launch as well, like including India. So. And you know what’s changed when you say forecast is higher, so maybe in the last two to three months since our Q4 call, you know, why are they revising the guidance upwards? Just wanted to get some more feedback.
Thank you.
Neeraj Sharma
I think I can. What, what I would really like to say here is that it’s all a matter of access, right? The numbers which you see right now in IQVR in both Canada, Brazil and some of the other markets are primarily a factor of supply. You know, it is not a factor of the inherent demand, the patient population, the incidence of diabetes and obesity, which is very significant in these markets. But the numbers have been really constrained by the supplies from Novo. And if we do the right analysis on how the patient population is, we will realize that these markets are really underserved.
And with generics coming in, we see the access is what is going to drive the volume. And as market you see the products coming in, the market expanding. Very clear example also in India where moment the product is launched you see a significant uptick. And we see the same picture in these and I think on that basis the customers have increased their forecast.
Madhav Marda
Got it. And just a follow up there, if you could maybe give some feedback separately for markets like Canada and Brazil where innovator was present there, you know, what’s your sense on sort of volume in calendar year 24 or 25, how the run rate is, you know, how the volumes could expand as generic opportunity opens up. And maybe for if my understanding is that There are like 80 plus emerging markets where semaglutide generics can be launched. You know, could you give a ballpark number in terms of how many of these countries nouveau didn’t launch itself? So these could be like new markets where generics probably formed the market in the first place.
Thank you.
Neeraj Sharma
Yeah. So to your first point on both Canada and Brazil while Novo had launched, but again as I said, the supply had been really constrained. If you know that Novo has really been focused on supplying the markets which are primarily US and US and Western Europe. And these markets had very limited supply. I mean just you know we have that 2024 number of total, total GLP1s in Canada for example at just about 12, 12 and a half million. And I think it’s for us it’s clear and same as Brazil, it’s you know, less than half.
We see both these markets to be significantly more and end of the day obviously we as CDMO have to follow what our customers say. I mean they are, our customers are the who’s who of the generic industry. And I think there is nobody better than them to really forecast the market. So we just make sure that our customer demand is met and we are set to meet that forecast.
Madhav Marda
Yeah. And just to follow up on the emerging markets with where, you know, out of the 80 plus countries, how many, you know, where Novo didn’t launch itself anyway, broad number is fine, like don’t need an exact number. But is it like 30 countries, 40 countries where.
Neeraj Sharma
I don’t have. I can come back to the specific data but I can say that, you know, it’s Many of these markets no one didn’t launch. I mean you can have a clear example that the diabetic capital of the world, the second largest diabetic corporation in the world India they launched as recent as a month back. Right. So many, many markets they have not launched. We don’t have that number. We can come back to you but market formation in those markets will help. And our customers, we have global customers and global customers have global footprint.
So you know when we supply to them it’s for our customers to choose which market they would like to supply.
Madhav Marda
Thank you.
operator
Thank you. The next question is from the line of Rupesh Tatia from Sri Rama Managers pms. Please go ahead.
Rupesh
Thank you. Thank you for the opportunity sir. And I must appreciate Arun for bringing all the injectable assets in open source and my best wishes for the scheme and the whole process. I have two questions, one on X Brain and one on Brazil. So in the Brazil will both Ozempic and Begovi be launched in 2026 or WeGovy is a little later and then are we present at market formation in Brazil? Are we part of wave one launches and then how is the client concentration in the Brazil? Are we dependent on a single large customer or there are multiple large customers? So this is the question.
One on Brazil.
Neeraj Sharma
Yeah. So you know the Brazil obviously we are seeing both ways. The first launch is of Ozempic. But the way the Brazilian, the way the Brazilian patent regime works, they don’t know normally allow any change, any separate patent expiry for the same molecule. So it is likely that they will come. But again that’s for our customers to answer and handle. From a customer point of view I can tell you that we have a large customer base which includes global customers, regional leaders, country specific leaders. So we have a fairly diverse customer base. It is true not only for Brazil, it is true for the whole for the global market and I think that’s where which is true also for Brazil.
Rupesh
Just clarification, we will be present at market formation in Brazil as well. Right.
Neeraj Sharma
So again you know if our customers get approvals we have already said that our site got a visa approval and you know we are all set, we are all ready from from all our approvals point of view. But obviously it will depend upon our customers product approvals in the market for for us to be there, you know or for them to be there as market formation.
Rupesh
Fair enough sir. And then on Xbrain sir, I think the question. Sorry, turn it up.
operator
Mr. Rupesh, may we request you to turn to the question queue for a follow up.
Rupesh
I just asked one, I had one more on Xbrain. So I think if you can give opportunities,
Neeraj Sharma
please, please go ahead.
Rupesh
Yeah. So what is the quantum of investment, sir, in Xbrain? It wasn’t mentioned, I think in the press release. And then when do we expect the technology transfer process for Ranid Zumar to begin and in which year can you give some timeline on when can we see some commercialization of this molecule? And then finally how many more future products this partnership will have? This is the question on Xbrain. Yeah, yeah.
Neeraj Sharma
So Rupesh Xbrain is, you know, Swedish biotech. You know, they have very strong R and D capabilities, you know, very strong pipeline. And with this, you know, with this investment we have access to their pipeline. And the fact that some of the assets which they already have will get transferred. They have assets in the products which they manufacture outside would come to us. And the tech transfer, to your question, when the tech transfer will start? I think in fact the process is already initiated. This is a biologics. This is a biologics product. You know, it’s a pretty long tech transfer process.
So we expect the tech transfer to be completed over the next 12 to 18 months. And that will also trigger our inspection both from Europeans as well as from fda.
Rupesh
Okay, but the investment amount, can you give Some range for 100 crore, 50 crore, 200 crore, some range. What would be our investment in that? X brain?
Neeraj Sharma
I think. Yeah, I don’t think, you know, that’s what we are discussing right now. As I said the investment is for us to get access and you know, and we have a stake in the company. I think we will leave it at that for now.
Rupesh
Okay. Okay. Thank you. Thank you. I’ll come back in.
operator
Thank you. The next question is from the line of Rishabh Khan from Sacheti family office. Please go ahead.
Rishabh Chand
Yeah. Hello sir. Am I audible?
Neeraj Sharma
Yes. Yes, please.
Rishabh Chand
Thank you for the opportunity. You give a lot of information regarding. The acquisition of the two brands. Just wanted to ask how do we. See the return ratios and payback for such acquisition? That’s my first question.
Neeraj Sharma
So I think as Arun mentioned we have initiated. The process is just initiated. We’ve just had the board approval to start the evaluation process. So even now we are going to be engaging bankers for valuation and so on. So once that is done I think we will be able to come back to you if Arun would like to add something. Arun, please.
Arun Kumar
Yeah, Neeraj. Thanks. So I think to answer your point, first of all, although we have interests across various companies, you need to appreciate that we will not recommend a transaction unless it meets all the governance criteria. And that is why we have a very robust governance process across group companies to ensure that the minority shareholder interests are of the highest order. We believe that these transactions will be accretive and typically all transactions that you’ve done should be accretive to the listed company. Like Neeraj mentioned, this is early days. You will have the opportunity to evaluate your question when you see the data that should be available in the next couple of months when all the advice’s and the friend’s opinion is out.
And I think that would be an appropriate time for us to have more pointed questions around that. Got it.
Rishabh Chand
Thank you, sir. The second question was regarding the compounded glp. Like if you can tell how big is the compounded GLP market right now and do we also target this kind of a market or our customers targeting compounded glp? Yeah. No.
Neeraj Sharma
So it’s, the compounding is a, is a, is a phenomenon which is unique to us and few, few countries in Western Europe you know where. But how big the size of this market is anybody’s guess simply because this market there is no, it’s no fixed for the molecule. It is whatever molecules are in shortage. The compounders are allowed to compound. That’s how the compounding market works. There is no quick size of this market. Obviously because of the huge shortage which was there in us both for, both for Novo and for Lilly, they were allowed to compound.
And I think at their peak they were able to get a very significant share, anywhere between 8 to 10% of the total share they were able to take. Now that the FDA has withdrawn or asked them to stop compounding, it’s anybody’s guess. But I think it’s important thing is what it shows is that there is very significant difference demand in the market. You know, which if, whether it’s Novo or when there are generic launches will come. The patients are all, you know, available to take the product.
Rishabh Chand
Got it, sir. Thank you so much.
operator
Thank you. The next question is from the line of Chirag Shah from White Pine Investment Management. Please go ahead.
Chirag Shah
Yeah, thanks for the opportunity. Two questions. Question one is on the potential MMA that you are again embarking on. So is it more of the same or will the additional capabilities either in terms of technology or in terms of customer. I know you would have, you have already indicated earlier that a brief rewind would be helpful. How does it add up in terms of value to and I’ll ask the second question.
Neeraj Sharma
So I think I mentioned, Arun also mentioned, you know these if obviously if approved, you know these, these sites bring in significant strength to our core injectable business. You know, they add, they add multiple capabilities. They add, they add to our existing capabilities. They are very synergistic to the fact that we have our panems add to our antibiotic franchise which is already there with penicillin. We have very significant expansion to the US business. The customers are some new and some common swab in increases leverage with them. And a very important point which this covers is that this acquisition would give us a global footprint which is very key for a global CDMO like OneSource.
And obviously the Polish site has got huge expansion capability to add our drug device combination suite there to service our both European and American customers.
Chirag Shah
Okay, second question was we have been focusing on generics. Any thought on being part of Innovator or what are the challenges over there? And would this Polish acquisition help you to be part of the innovative supply chain? Especially what after the catalytic deal which has happened, you are in a sweet spot in that sense.
Neeraj Sharma
Absolutely. Your point you’re making is absolutely valid. So just to say that we already have innovated customers. In fact we said that in our biologics business we already have innovate our customers with a new biologic entity and we continue to act. But your point on the Polish entity facilitates addition of innovator customers, especially the ones with the next wave of GLPs. It will really facilitate working with innovators.
Chirag Shah
Would you like to just call out what part of the revenue, what percentage of revenue would be coming from innovators or Polish? A broad range also would be fine. If you can help us understand it would be helpful.
Neeraj Sharma
So I think as a CDMO we, we really do not look at specifically what kind of customers it is as long as it is diversified, as long as we have the capability. So we don’t really do this segregation here but we would be happy in the long term once the business has stabilized, especially in the biologics field. We would be able to share as we progress.
Chirag Shah
Okay, thank you and all of it.
operator
Thank you. The next question is from the line of Sivan Mittal from mfc. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. I just have one question in continuation to a previous con call. You had mentioned that we aim to. Be significant player in high viscous free pill syringes. So these two acquisitions of USFD facility is one of the first steps to create A foundation in the specialty injectables. Mainly with a vision of being a significant player in that. And secondly, if you can be a significant player can can we somewhere you. Know mirror our growth and scale in. DDCS and some 2, 3 a perspective on that.
Neeraj Sharma
So you’re talking about the. The new side we. We mentioned today. Right? That’s.
Unidentified Participant
Yes, yes, yes. In continuation to a previous con call. Where you had mentioned that you know. We aim to be significant players in. The longer term for society and general.
Neeraj Sharma
You know that. Right. That we have a very long legacy in the group to be a strong style injectable player. And you know these, the sites which come in, you know they both supplement our capabilities and complement capabilities which we don’t have. And whether it’s in the area of ampoules, an area which we don’t have right now in one source to the area of very large manufacturing of vials. Again it increases our scale of manufacturing multiple times because of very large capacities which are there especially at the Polish site. Pre filled syringes get added. So both complementary to what we do and.
And add capacity to what we are doing. And the very fact that there are significant more. I mean we all know everybody follows the patent expiries which are coming over the next five to six years in biologics. We also need to look at the significant number of pattern expiries coming in the field of strial injectables. So we are and want to remain a very significant CDMO partner in this area of injectables. And this acquisition will strengthen our game there.
operator
Thank you. The next question is from the line of mehul Panjwani from 40 cents. Please go ahead.
Mehul Panjwani
Hello sir. Thank you so much for the opportunity. So one question I have is about the commentary. You mentioned that the revenues will pick. Up from the second half of the year and also you mentioned about Q4. There will be a lot of pickups by the customers. So can you please elaborate? I’m new to the company.
Neeraj Sharma
Yeah, I think it’s what we just mentioned that you know our first half is about executing our MSAs in our drug device combination business and readiness for commercial manufacturing and launches. And we will, you know, we’ll be manufacturing. We have got confirmed purchase orders from number of customers and the manufacturing will be done in the second half and as the approvals come in and as the patent expires, you know that’s how the revenues will start coming in from the second half from all the sematine launch.
operator
Thank you. The next question is from the line of Dhruv Gupta from Sagun Capital. Please go ahead.
Dhruv Gupta
Yeah, hi, thank you for taking a question. My question was beyond JLP1, are there any other therapeutic areas or delivery platforms where you see potential for platform expansion?
Neeraj Sharma
Yes, absolutely. So you know I think I mentioned earlier in previous earning calls that our strength in one source is drug device combinations. Right. So and products which where there is an interface between drug and device and that’s what is key. We’ve got today 10 different molecules in the drug device combination which we are working for our customers and only three of these molecules are glb. So you can imagine that there’s a very large expertise which we have, we have expertise in, in filling drug device combination, in assembling them end to end. And now you see most of or a lot of new R and D and products getting approved are in the area of self administration.
And self administration is really supported by drug device combination. And you see products which, which we. Our first product approved in US for our customer is a non GLP drug device combination. Our first product approved in Europe is a product which is a drug device combination in biosimilar area. So we are always working on various products in drug device combination outside of GLPs and outside of drug device combination are very strong business both in sterile injectable and the soft gelatin is really strengthens our core base.
operator
Thank you. The last question for the day is from the line of Aman VIJ from Astute Investment Management. Please go ahead.
Aman Vij
Good morning. Questions one is on our three products. Lira, glutide and teleperatide. We were supposed to launch these products in Europe for a while now. Can you talk about the revised timelines? Do we expect this quarter or it will take two, three more quarters? And what is causing this delay? That is question number one.
Neeraj Sharma
Yeah, so you know we already, you know he said our customers have got approvals. It’s also cdmo. It’s not always dependent upon. It’s both dependent on customers and customer priorities and customers ability to supply us all the materials. Because our job here is to manufacture as per customers requirement and also customers priorities. Right. So it’s key for that. So that’s what I would say. Having said that Lina Bluetooth for Europe. We have already manufactured this quarter and our customer will be launching the product. And Terry Paratite is exactly the same. In fact we’ve already manufactured for our customers and the actual launch will depend upon again as customers options and when they want to launch.
Aman Vij
Is it expected in say first Half of this year or next? Second half of this year, both the launches.
Neeraj Sharma
So we have both. In fact we have both. For us, for us both the products have been manufactured and you know, as far as one source is concerned, you know, the launch will be in first, first half.
Aman Vij
Sure. My second and final question is on the GLP1 market. So could you talk about how important is India market according to you for us utilizing that say 40 million and 100, at least the 100 million full finish capacity we have. Do you think Indian market can be like as big as Canada or Brazil market or it will be much smaller market? And just to complete this thought, do you think at least for next 12 years, given we are present with almost most of the customers who are launching in India, Brazil, even Canada, do we expect we will have almost like 40, 50% kind of market share in semaglutide generics in the next two years?
Neeraj Sharma
Okay, so on India. So if you see obviously at the face of it, India is the second largest diabetic population in the world. So there is a very, very strong inherent demand which is there. Now whether you know, we will supply or you know, for us it all depends upon our customers. We have global customers, customers and if India is their market, you know, they would launch, we as a CDMO are completely geography agnostic. Right. It doesn’t matter. We will supply. We have agreements with the customer and they decide whichever market they want to supply.
So I cannot really say whether they will supply or not to India. But yes, you know we are open and we are open to supply in all markets. To your question on our shares, we have really global who’s who of generic companies, whether it is the global leaders, the regional leaders in specific large markets and I don’t know what next two years. But in steady state, if we see our looking at our customers base, it could be anywhere up to a third at least of the generic market as it develops could be serviced by the customer segment which we have.
Aman Vij
Sure. Sir, thank you for answering the question.
operator
Thank you ladies and gentlemen. That was the last question for the day and I now would like to hand the conference over to the management for closing comments.
Neeraj Sharma
Yeah, thank you on behalf of one source. Really would like to thank you for the interest and for all the questions, very insightful questions which have been asked and I know it’s never enough, we are never able to take everybody’s questions. But we really would like to ask you if you have questions to reach out to our investor relations team on our website and we’ll be very happy to respond and answer your questions. Thank you once again for being with us this morning.
Arun Kumar
Thank you.
operator
Thank you. On behalf of One Source Specialty Pharma Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.