Con call notes:
- 10% of revenue comes from new launches.
- The second half will a marginally little better than the first half.
- Continue to focus on regulated market.
- Focus on becoming profitable in Europe. We are determined to reduce our cost base. If the macroeconomics gets better, growth shall be back 4 to 6 quarters. But profitability will come sooner. Rejig business.
- VMF commercialisation- May one oner per year.
- Albendazole sales- Peak 3 years 15% of total business. Today it is less than 10%. Traction is better, but price pressure. Volumes is ok. Demand increased, and prices decreased.
- The current production setup does not have much scope to transfer manufacturing in India.
- Europe- Since we have front-end distribution. Other companies are interested in using our front end.
- Bremmer Germany- Plan on track for US FDA inspection.
API
- The macro environment has impacted our end customer.
- CDMO- Start of supply for CDMO. This quarter started. Hope this may be 10 million sooner, but it may be impacted. This is not even a pro rata number. This is just a start, it may ramp us up in future. But management has not stressed this enough, so it looks like the initial ramp will be very slow, and it may not impact API revenue in the next 3/4 quarters.
- The second half is a little better, but not much better.
India
- Key formulation business
- Indian market is growing at 8-10% and the ambition is to grow much faster.
- Acquisition EBITDA margin- High teens
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