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Sun Pharmaceutical Industries Ltd
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Ladies and gentlemen, good day, and welcome to the Q1 FY '24 Earnings Conference Call of Sun Pharma. [Operator Instructions]. I now hand the conference over to Dr. Abhishek Sharma, Vice President Head, Investor Relations and Strategic Projects. Thank you, and over to you, sir.
Thank you. Good evening, and a warm welcome to our first quarter FY '24 earnings call. I'm Abhishek Sharma from Sun Pharma Investor Relations team. We hope you have received the Q1 financials and the press release that was sent out earlier in the day. These are also available on our website. We have with us Mr. Dilip Shanghvi, Managing Director; Mr. C.S. Muralidharan, CFO; Mr. Abhay Gandhi, CEO of North America; and Mr. Kirti Ganorkar, CEO India business.
Today, the team will provide an update on financial performance and business highlights for the quarter and respond to any questions that you may have. We will refer to the consolidated financials for management comments. The call recording and call transcript will also be put on our website shortly. As a part of the press release, we have added a section on state of specialty projects. In the future, we will be adding more information to this section. The discussion today might include certain forward-looking statements, and these must be viewed in conjunction with the risks that our business faces. [Operator Instructions] I will now hand over the call to our CFO, Mr. Muralidharan.
Welcome, and thank you for joining us for this earnings call after the announcement of financial results for the first quarter FY '24. Our Q1 financials are already [indiscernible]. Q1 FY '24 sales were INR 117,852 million, a growth of 10.7% for the same period last quarter. Material cost stands at 23.4% of sales lower year-on-year on account of higher specialty products and better product mix. Stock cost stands at 20.4% of sales, higher than Q1 FY '23 on account of annual merit increases and consolidation of concern.
Other expenses were at 29.3% of sales, higher year-on-year on account of increase in selling and distribution expenses and consolidation of concert business. ForEx gain for the year was INR 20 million compared to a gain of about INR 1,457 million in Q1 FY '23. EBITDA of Q1, including other operating revenues was at INR 33,018 million, up by 14.7% over Q1 last year, with EBITDA margins at 27.8%. Adjusted net profit, excluding the exceptional items for Q1 FY '24 was INR 23,454 million, up 13.8% over Q1 last year. Reported net profit for Q1 FY '24 was INR 20,225 million compared to net profit of INR 20,609 million for Q1 last year. Exceptional items include a charge of INR 1,492 million towards impairment of an asset acquired namely [ AS-012 ], which was in clinical trials for vitiligo.
As of 31st June -- 30 June 2023, net cash was USD 1.7 billion at consolidated level and about USD 436 million at external level. Gross debt decreased from the level of USD 754 million as of 31st March 2023 to USD 472 million on 30 June 2023. Thereby USD 275 million repaid during the current quarter. Let us look at the key movements versus Q4 FY '23. Our consolidated gross sales were higher by 9.9% quarter-on-quarter at INR 117, 852 million. The [indiscernible] the seasonality usually seen between Q1 and Q4, we have prominent factor of higher sales from [ Generali ] quarter-on-quarter. However, we expect [ melanoma ] sales will remain episodic in future. Material cost stands at 23.4% of sales, higher quarter-on-quarter on account of expected normalization that we had flat in our Q4 FY '23 earnings call.
Staff cost at 20.4% of sales were higher in absolute terms versus Q4 Fy '23, due to annual merit increase and first full quarter of consolidation. Other expenses were at 29.3% of sales were lower than Q4 FY '23 due to sales and distribution and R&D. EBITDA margin for Q1 was at 37.8% compared to 25.6% for Q4 FY '23. Reported net pro for Q1 stands at [ INR 20,227 ] million.
Moving on to Taro's performance. Taro posted Q1 FY '24 revenues of USD 158.9 million, higher by 1.4% over Q1 FY '23, a net profit of USD 10 million. Onetime expenses include those related to planned relocation of [ Alchemy ] operations. Excluding the impact of onetime in Q1 FY '24, net profit was USD 14.9 million.
I now hand over the call to Mr. Kirti Ganorkar, who will share the performance of our India business.
Thank you, Murali. I shall take you through the performance of our India business. For Q1, the sales of formulation in India were at INR 35,604 million, recording a 5.1% growth over Q1 FY '23. India formulation sales accounted for 30% of total consolidated sales for the quarter. We have shared [ Square ] launch from our global specialty portfolio in our home market of India. Initial response has been good, and we hope that it will be an important addition to order to severe dry eye treatment here. Sun Pharma is ranked #1 and holds 8.33% market share in the [indiscernible] [ 106 billion ] Indian pharmaceutical market as per [ OCD ] [indiscernible] June 2023 report.
Corresponding market share for the previous period was 8.5%. As per SMS as [indiscernible] June 2023 report, we are #1 ranked company. Sun Pharma is also ranked #1 by prescription with 12 different doctor categories. For Q1 FY '24, the company launched 10 new products in India. I will now hand over the call to Abhay.
Thank you, Kirti. I will update on the performance highlights of our U.S. businesses. For Q1, our overall sales in the U.S. grew by about 12% over Q1 last year to USD 471 million. The U.S. accounted for over 23% of consolidated sales for the quarter. U.S. Specialty business has continued to do well and has grown well over Q1 FY '23. We did witness seasonality in [ Levulan ] sales leading to a dip in revenues on a quarter-on-quarter basis. The underlying business, however, and the prescription trend for the specialty business remains strong. We remain excited about our specialty product portfolio in both near term and in the long term.
For Q1, we launched 2 generic products in the U.S. on an extra basis. I will now hand over the call to Mr. Shanghvi.
Thank you, Abhay, and good evening to all of you. I will provide an update on the performance highlights of our other businesses as well as give you an update on our R&D initiatives. Our branded formulation revenues in emerging markets were at USD 261 million for Q1, up by 6.5% over Q1 last year. the underlying growth in constant currency terms were -- was about 14% year-on-year on for Q1. Emerging markets accounted for 18% of total consolidated revenues for Q1. Amongst the larger markets in local currency terms, Romania and Brazil have done well. Formulation revenues in rest of the world excluding U.S. and Emerging Markets, were USD 195 million, up by 2.6% over last quarter. Rest of the world market accounted for approximately 14% of consolidated Q4 revenues.
We continue to invest in building our R&D pipeline for both the global generics and the specialty businesses. Consolidated investment towards R&D for Q1 FY '24 stands at INR 6,796 million, 5.8% of sales and this compares to 6.657 million, 6.2% of sales for Q4 FY '23 and INR 4,608 million, 4.3% to sales for Q1 FY '23.
Moving on update on global specialty with highlights for the quarter. In Q1 FY '24, our global specialty sales were up by 21% to reach USD 232 million. Specialty R&D accounted for 35.8% of our total R&D spend for the quarter. In June, we presented data from 2 Phase I studies of [ SUNS GLP-1 ] receptor agonist at ADA conference in San Diego. In one of the studies, GL-0034 reduced body weight after a single dose in obese individuals without diabetes. In other study reduction in body weight of up to 10.7% was observed after treatment with relatively low dose of GN-0034. I mean this was Apex duration. We are quite excited with the early results and plan to initiate Phase II clinical trials to start shortly.
Moving on to Illumina's ongoing Phase III studies in psoriatic arthritis, we've taken steps to accelerate the pace of the trial. This includes creating new enrollment at sites which have worked for us thus far as well as activating more sites. We will share expected trial completion time lines once we start seeing good traction in enrollment. Further on specialty in May 23, we entered into an exclusive agreement with Philogen for commercializing specialty product, [ Neles ] Europe, Australia and New Zealand. [ Legg ] is currently in Phase III trials for skin cancers. When approved, it can be prescribed by the same doctors as [indiscernible] as a good follow-on product for patients that do not respond to current treatment. In June 23, we received approval from Health Canada for our acne product [indiscernible].
With this, I would like to leave the floor open for questions. Thank you.
[Operator Instructions] The first question is from the line of Saion Mukherjee from Nomura.
My question is on the domestic market. We have seen around 5% growth. I'm just thinking about this in the context of FFO addition that we had done last year plus some price increases, which generally takes place. And on the other hand, you have the possible impact of [ NLEM ] and [ sitagliptin ]. So I'm just wondering, this number looks lower than compared to the IPM growth. So if you can just explain the dynamics there? And how should we think about growth going forward?
And also, sir, we have seen companies getting into trade generics, there is aggressive competition from some of your peers, particularly in the chronic segment. So has the market dynamic -- is the market dynamics changing in a meaningful way to impact growth?
So I think the quarterly growth is it's become difficult to comment on. But what I can say in last year Q1, '22 to '23, we had a [ sitagliptin ] product, which was under patent, and the patent expired in July. So that time after the patent expiry, we have made the product affordable and there was a price reduction. That's why there was a loss in value but in volume terms, we are doing good. And there was another reason is the impact of [ NLM ] was also announced in the month of December and January. And the full impact has come in this quarter where we see because of [ NLM ] also, the growth has been subdued in quarter 1. But I'm very quite positive and hopeful that in coming quarters, we will see that there will be growth in line with market and try to see that we grow even better than the market.
Okay. And my second question is on sort of specialty sales. You mentioned Level I seasonality, but was it something significant this year? And if you can also give any update on the concert pharma drug in terms of filing or any other -- any other discussion that you might have had with the U.S. FDA on this product?
So if I see the underlying base business and the prescription trends of all our major products other than [ Devina ], I think we are on the right trajectory. Last year Q4, there was also a finance factor, which has to be considered, and that has had a small impact. But overall, I think we are on the right track. On the second part of the question, [ Abhay ], would you like to respond?
We don't have an update at this point of time, and we will share as soon as we have this update with you. The idea is to file this product at the earliest is what I think the focus is.
The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services.
Sir, on the R&D expense front, given these set of trials to start for the products you highlighted in the opening remarks. The full year guidance remains as it is as you highlighted at the 4Q FY '23 [indiscernible]?
Yes. I think as on today, you should consider the full year guidance. if there is a need for us to make any change, we will update.
And sir, other expenses, excluding R&D, has been sort of been volatile number varying in Q1 FY '23 to going up to almost INR 3,000 crores in FY '23 and now we are back to close to INR 27,072 -- so any particular line item, which sort of [indiscernible] other expenses?
So in our Q4 call, we already said that the sales in distribute in previous calls, but these costs have on catch up on [ unescalated ] on the same pace going forward. There may be sales related growth particular expense and selling distant going forward.
Okay. And just lastly, on the base business segment in the U.S. generics, what kind of price erosion have you wiped [indiscernible].
No, I think, ultimately, the U.S. business dynamics, all of you are aware. And we don't generally respond on specific product pricing or specific product sales.
The next question is from the line of Damayanti Kerai from HSBC.
My question is again on the U.S. so not product specific, but if we exclude Taro and Specialty, you have seen a meaningful pickup sequentially. So can you explain what has led t it?
We couldn't fully catch the question. Can you repeat?
Yes. My question is on your U.S. business, excluding Taro and Specialty sales. So if we exclude these 2 part, you have seen good sequential pickup. So just wanted to understand what has led to sequential pickup for your base generic business, whether it's good demand in channel or like improved supplies from your plants where we had some setback earlier. So a bit more of a [indiscernible] will be well.
Yes, Abhay, maybe you would like to resume.
Yes, sure. Sure. I think [ Mr. Modi ] in his readout has mentioned is that we have significant sales of it in the quarter, and that may be [indiscernible] going ahead. So in the first quarter, that was a significant contributor.
Okay. But some of your peers are talking about improved channel demand, et cetera. Are you seeing similar situation.
It's product specific for certain products, you are right, there is a channel demand which you've seen. But for certain products, I don't see. On an aggregate level, I would not characterize it as a significant channel uptick in demand.
Okay. My second question is on your Specialty business. Abhay you mentioned you are on track for a prescription trajectory, et cetera. and excess [indiscernible] others are going as per your expectation. So can you comment on the pricing part also? Are we seeing any notable changes there? Or it's more steady?
So in the U.S. on the specialty side, I mean, the pricing generally increase that we take is really nominal. So therefore, I think there has been no significant impact on pricing in the growth of the business.
Okay. And my last question is can you provide any update on your plan to acquire remaining stake in Taro, which we spoke last quarter.
So I think what we have shared with you in the past is that we've made a proposal to the Taro Board, and Taro Board as a response to our proposal has formed a special committee. We they need to finalize the lawyers and bankers and all of that, the special committee. And then the -- at some point, the negotiation will begin. We have no further update beyond what we have shared.
Thank you.
The next question is from the line of Neha Manpuria from Bank of America.
Then my first question is on Mohali. I'm assuming we would have seen some impact from the Mohali consent degree temperate pension. Has that fully normalized? And should we expect any market share loss that we have had due to this temporary suspension to probably at least regain a large part of it in the course of the year? How should we look at normalization of supply from Mohali?
So right now, the supplies from Mohali have not really started. Whether we will be able to regain all the market share will depend upon the market dynamics and the number of competitors and the length of the contracts that the buyers have signed up at the point that we enter the market. So the second part is only difficult to estimate. We will see when we get there.
And is the supply restarting dependent on reinspection? Is that what we are waiting for? Or is it just remediation from your end, which is delaying the starting of supplies?
Yes. I think there is no need for reinspection at this. I mean, for, of course, for having the current restrictions cleared, we will need a reinspection. But for restarting supply, there is no need for a reinspection.
Understood, sir. And by when do you think both Mohali and Halol would be ready for reinspection in your assessment?
I think once we informed the agency that we are ready with for a reinspection, we will share that information with all of you.
Understood, sir. My second question is on [indiscernible] us post the halt from the FDA on the 12mg, the 8mg, have we slowed the pace of that also as we decide on what we're going to file, et cetera? Or that's going as planned, and there's no delay in the [ OLE ] studies for the lower dose?
So broadly, our understanding is that the partial clinical hold, which has been lifted now was for 12-milligram. There is no slowdown in 8-milligram dosing.
Okay. So that continues as planned.
Yes.
The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Limited.
Yes. And congrats for the good set of numbers. Hello?
Yes, yes, please.
So my first question is on the specialty business and to specialty outside of U.S. So during this quarter, we got the -- we have announced this Chinese partner, CMS has contractual for inventory commercialization there. So how bigger or how exciting the metro it is for us. And because in terms of the patient population there in the [indiscernible], if I see, then it is similar to U.S. So can it be the largest market outside of U.S. so far as the Illumina is concerned?
No. I think China can be an interesting market. Once we, I think, launched the product, we will get a better sense. We believe that CMS because of its significant existing linkage with dermatologists is quite well positioned to work for a good market share for the product.
Okay. This is also a kind of a partner for other specialty products also for us in the U.S. in China, right, sir? And can this association be kind of relatively important and larger one as far as Noble Specialty business outside the U.S. is concerned?
I mean, we have licensed 1 or 2 generic products as well as [ Squat ] them. So and I think our view is that managing multiple relationship is far more difficult and challenging than to manage a limited number of relationships. But at the same point of time, innovative products to be marketed the company also needs to evaluate its ability to reach customers cost effectively. Incidentally, CMS has existing business presence in both ophthalmology as well as dermatology, and that makes it easier for them to promote both these products.
Okay. The second question is on the -- again, Illumina product, the progress of the Illumina for the psoriatic attrites indication. So whether the clinical and commercial development of this molecule will follow the similar order what Illumina has seen for the other indication in terms of the market of approval. So I mean, even if the approval has to come, that will come in the U.S. first, then followed by other countries. Is that kind of a chronological development that we should anticipate for that, sir?
So do you mean [indiscernible] group?
No, no.
Yes, I think the plan is, of course, to file the product first in the U.S. But also since it's an additional indication, in the other geographies, we should be able to get that filed in a relatively short time. And the idea would be to augment the indication in all the geographies that we are marketing the product.
Okay. Sir, just an extended one from this question only. So let's say, the R&D spend, if I see, excluding of the specialty. It is remaining in the kind of a similar range and higher numbers. So whereas the filing of [ NDA ] if we see for U.S. that has, to some extent, got moderated. So how should we see that? Is it right to think that -- now our focus is diversifying our strength, R&D capability and all for developing products for not only U.S. market but all major markets, including India. And also leveraging the products of the U.S. could be the specialty products for other markets?
So I think my understanding, and I don't have exact response. But one of the reasons why I think the filing numbers that you see is lower is also because of the ransomware attack that we have seen. So since we were unable to redrive the data of many of the products, it impacted our filing capability. So -- but as I think we are going back to normal, we should then be able to file those products.
Sure, sir. Sir, just one single line of listing question. Sir, for the Special -- Global Specialty business, outside of the U.S., whether it is a kind of a low double-digit number in terms of share. Can you give some sense? Because we are seeing multiple development outside of the U.S., either it is Canada for multiple products, various other, Europe, Japan now, Australia and New Zealand and all that. So have we seen a kind of a low double-digit kind of a share for our global specialty business outside of U.S.?
No, I think it's difficult for us to quantify overall value. But generally, people say that typically for most of the companies, Rest of the world, especially for biologics, would represent anywhere between 25% to 35% share of the global market. Now in that, Japan is a major -- I mean sorry, Europe is a major market. And in Europe, we don't capture the full value of sale. We only capture the value of sales that we make to [ Amira ] in our numbers.
The next question is from the line of Nithya from Bernstein.
One question on Taro. If you can help us understand the strategic intent behind consolidating the assets as well as how you're thinking about bringing it back on the growth path?
I mean, what is the question? Is that why are we buying it now?
Why are we buying? Why are you buying it? Why are you buying it now? And once you do consolidate what will change in terms of the strategy for Taro? How can we -- how can you bring it back on the growth path, which has been lacking for the last several quarters.
So my own excess spend is that. The dermatology business, which is focused on which is the primary focus for Taro. Is a business under constant what you call, increasing competition pressure. And as a stand-alone company, it will be very difficult for Taro as an independent company to continue to operate that business profitably. So that broadly is the reason why we felt that it's useful for us to consider integrating that with Sun Pharma.
Why -- so I understand that it then gets assumed under a lot of other things you're probably doing in the U.S., but would there anything that you would change to try and inject some growth into that business?
No, I think there are -- I mean, some of these issues that you're raising, I think, is difficult for -- because it will then be selective disclosure or disclosure on behalf of Taro. So I don't think I would it's appropriate for me to respond at this point.
All right. Second question on your R&D strategy when you're thinking about specialty. If you look at the kind of assets you're working on, while the dermatology assets are obviously complementary to your existing portfolio, but osteoarthritis or a diabetes asset -- these are, again, assets for which you will actually have to take it to a very different type of deficients probably at least in the U.S. So how are you thinking about the long-term strategy when you're working on so many different therapeutic categories?
I think these are valid questions, and we are also questioning some of those best options for us is that whether we are the best company to commercialize this asset or we should consider licensing. But osteoarthritis, I think once we get psoriatic arthritis indication. There is a certain amount of overlap with the potential risk drivers in some of the geographies.
And I think for diabetes or weight loss or even in NASH or any other indication where GLP1 potentially can be used generally, a large field force requiring indication. So it's possibly closer to when we need to take a decision. We will need to get co-marketing partners for many of the geographies. But in emerging markets, India and in other markets where we have significant share in prescription business, I think we are well positioned to leverage that product to become very successful.
Mr. Shanghvi, is in your energy and R&D money is better spent on more assets that are complementary to your existing portfolio. While I'm not denying that there might be -- there is option value here?
I mean -- if I look at our evolution as a company, I think, generally, we've found a way to enter markets using a successful good product and then gradually expand our businesses to different specialty. And that can -- and will continue to work for us in emerging markets in India.
In large international markets. I think for acquisitions as well as for licensing products, we are looking at ophthalmology and dermatology as our focus only for let's say -- and for other products, we want to look at what is the best option for us. I think we are also not ruling out future acquisitions, which can also help us in ability to market this product more effectively when they are closer to market. Thank you.
The next question is from the line of [ Venu altiParapil ] from Elara Capital.
Just 2 questions. Abhay you had some mention about [ Loral ] sales in your opening comments. But I couldn't quite understand. Did you mean the June quarter and [indiscernible] is higher than March quarter or lower than March quarter?
Exact numbers as a competitor, we generally will not disclose. But for the quarter that we are talking about, it's a significant part Okay.
Okay. So you don't want to say which quarter was bigger?
Hello/.
Yes, that's the answer, which are [indiscernible]
That's what I said.
Second on the ForEx loss, one-off ForEx loss that you booked in Nigeria. What is that -- what nature is that? Is it a write-off of inventory or receivables or something what exactly will that be?
So this, you're talking about the onetime write-off.
Correct.
More than of the.
The readout, we had mentioned that we have provided for about INR 114 million towards quite intangible which was under development, which is [ AE012 ] for clinical trails for [ vertiligo ].
No, I'm not asking about that. There is a tax loss -- one-off ForEx loss included in your one-off items, there is a product loss [indiscernible].
So the ForEx loss in the month of June, the Nigerian Central Bank had removed the trading restrictions on its official market, which eventually led to the Nigerian currency dropping significantly record low to U.S. dollar and risk provision exceptional items towards that.
Yes. So is that on the inventory or receivables or some assets that is my question.
It is a mark-to-market payable.
The next question is from the line of Kunal Dhamesha from Macquarie.
So the first one on the specialty R&D. So sequentially, if I look at almost $25 million specialty R&D has gone up to around 30 million. And in quarter 3, it was somewhere around 21 million. So would you say the primary driver for this, let's say, jump from quarter 3 levels to the current level would be concerned from?
So our recommendation would be that probably looking at the quarterly R&D numbers may not be appropriate. However, Shanghvi already mentioned that we're working towards the various clinical trials of various candidates, what we have, and we are on track to achieve R&D guidance for the year.
But would you say that concept has already been factored in? Almost fully that [indiscernible] is ongoing.
Yes. Yes. [ Concern ] is part of our R&D guidance.
So I'm saying [ concert ] is fully factored in this quarter because that [indiscernible] is onward. Perfect. Okay.
And second for Mr. Gandhi on the Illumina since we have Illumina biosimilars have been launching over the last 1 quarter. Have we seen any impact in terms of acquiring new patients for Illumina? Or would you say the new patient growth trajectory largely remain intact for us?
We haven't seen any negative impact because of the of the [indiscernible].
Even on the new patient acquisition?
No, we haven't.
And let's see, [indiscernible], we conduct [indiscernible] psoriatic [indiscernible] if you get an approval, how does the exclusivity period work for the new [indiscernible] biologics?
So my understanding broadly is that there are product patent, which basically means compound patent, then there are method of use patent. And then there are indication patents. So and many of the products which I see like [ Humira ] have multiple indications. So -- and depending on the geography, people have to do both multiple indication studies as well as interchangeability studies because these are all chronic treatment products.
My question was more related to -- from the U.S. FDA data exclusivity generally for biologics is around [indiscernible], right? But if we get the same product approved for another indication, do we get another air data exclusivity for that indication with a separate [ 12 ] years? Or how does it kind of work?
No, honestly, I don't think I have looked at. My -- I think our focus would be -- I think we would have some kind of payment on indication. And that basically means that people will have to will not get this indication on their label.
Sure, sure. And the last one on the generic [indiscernible] side. Since we have this Halol plant trouble around last 7, 8 years now, would we have not derisk our key products by doing a multi-location filing or multi-plant filing for the bigger products?
I think at a concept level, it works at operational level, especially when you have specialized product requiring very different kind of manufacturing infrastructure, is very difficult to execute.
Okay. And then does USFD also not look this kind of [indiscernible] very kindly because that kind of increases administrative widen them to kind of go and expect 2 plants versus 1 plant for the same product.
I think if you file from a new product, it's filed from new product. If it's an additional plant, there is a regulatory process. They can't be happier and happy about what is their regulatory process. Many multinational companies have same product manufacturing, multiple facilities. So they inspect and approve all those.
And all the best.
Thank you. The next question is from the line of [ Harsh Paja ] from [ Mandan Asset Management ].
Hope I'm audible. Just one quick question. Broader aspect, there's a lot of news flow in terms of the number of vehicles being picked off or rather losing their Medicaid coverage. So I think the last figure that equity was 4.5 million, but some sources indicate that, that could go up till [indiscernible]
I'm sorry, you're very soft spoken. Can you just [indiscernible] it up a bit, please?
Is this better?
Yes better. Thank you.
My question was very broader in nature to the sense that there's a lot of news flow in terms of the number of people losing their Medicaid coverage in the U.S. So the last figure that I could see was 4 million people, and there were some indications that it could go up to 15 million people. So maybe not in particular with regards to Sun Pharma as a whole, but any broader thoughts or anything that we should read into it from the industry perspective for the U.S. market?
So it's a very broad and sort of enough question that you wish to run. So what I would suggest is that I will brief Abhishek separately and he can share the details with you. I understand where they are coming from, but maybe a better way it would be that I believe Abhishek in turn and speak to you and give you the details.
Sure. Thank you.
Thank you. The next question is from the line of Saion Mukherjee from Namura.
Sir, just one clarification. Actually, your comment is that from Mohali, there was no sale this quarter. And it was a bit of a surprise. I think in the last call, I got an impression that things should start flowing from Mohali. So if you can just give us an update there? And is it -- is it like there's 0 sales from Mohali including generic [indiscernible] of this quarter?
I mean I didn't say there was 0 sales from Mohali. I said supplies from Mohali have not resume, but we had some inventory, and therefore, there will be some residual change that happened.
Okay, okay. But it would be sort of materially lower versus, say, versus last quarter?
That would be correct.
Okay. Great. Mr. Shanghvi, just a few questions for you at -- I remember like maybe a couple of years back, you mentioned about biosimilars and Sun Pharma's intend to build capability on that sphere. We haven't heard any sort of an update on that. So what are your thoughts now given the market has evolved to an extent? So how is some thinking about building capability in that area?
Even I think at that time, I was very tentative because that time also my concern was that product investment on individual product is very large and not very different in some cases to what you would require to invest for developing a specialty product. So and I remain equally tentative now, which means that we are not kind of all-in in biologics, unlike many companies who have significant investment and exposure to that business.
Understood. And on the other question, again, for the India market. A lot of your peers have started doing trade generic. Sun Pharma has a very wide portfolio of products, do you think strategically it makes sense to sort of take this product to, let's say, Tier 2, Tier 3 in smaller cities and towns through the trade generic growth? Any thoughts from your side on this?
Kirti maybe you would like to.
We remain focused on generating prescription through super specialty and specialties and physicians. That's a core part of our business. And I think there is a great opportunity in that business. We want to grow from where we are today. So that remains our core focus.
[Operator Instructions] We take the next question from the line of Cyndrella Carvalho from JM Financial.
Yes. Thanks for the opportunity. The [indiscernible] business. So would you be able to help us understand the shops, supply challenges, highest [indiscernible] process and lasted. So where are these opportunities? Are we seeing these opportunities across the product basket or they are largely concentrated on the investable side? And where we can [indiscernible]?
No, I don't know whether you understood the question, but I can't fully [indiscernible].
I could not understand the question. [indiscernible], can you refurbish.
Sure. So I was asking, we are hearing the highest number of trust offices in the U.S. market on the generic side and largely concentrated on the injectable side. So are we also experiencing some opportunities from our product basket by us. And if we are able to participate and how long do you see any visibility on these kind of opportunities on one time by that you are seeing in the marketplace now specifically on the U.S. generic side.
Right. Now I understand. I think whenever the buyers or from market into, you have to know about a certain product being in short supply. We do an overwrap analysis and see whether it's something for an opportunity. As of now, for our range of products, I haven't seen any big opportunities, which can soon be [indiscernible].
But also Abhay we don't have a very large portfolio of injectable products.
We don't and yes.
Right. And specifically on the [indiscernible], we are seeing some price on the volume side. Any commentary on that? Are there any strategy change that we are working on which is helping us?
Sorry. Can you again repeat we have seen a what? We have seen a what? [indiscernible].
In case of -- in case of [indiscernible] volumes, we are seeing some uptake. So would you like to comment if any specific strategy helping us around here or any trends which are working in our [indiscernible]?
So I think if you look at the overall context of [indiscernible] it's important that you understand this. If I look at the branded basket of products that is we essentially complete, you can't compete with the generics on price out of the almost 10 branded products in acne we have a 26% share of market. And in terms of, let's say, number of customers who have used the product, 91% of acne prescribing doctors have given a -- I heard something.
Continue sir [indiscernible].
Yes. So I think this indicates to us that the product is accepted by the doctors. And we, of course, continually try to see that we improve the access. And one of the reasons for the uptick that you saw is because of one important player agreeing to cover the product a couple of quarters ago. So that has been one of the major reasons. And it's an ongoing process. We continue to work on improving the access every single day, every single quarter and we hope that the momentum [indiscernible].
The next question is from the line of [ Rishit Jain ] from [ Basic ] Stock Broking.
My first question is maybe a little into the future, but what is our assessment on capturing the market for due [ ruxolitinib ] given that there is another [ JAK ] inhibitor that got approved recently and is a much more convenient dosage of once daily, whereas our product is twice daily.
Abhay you will respond.
Yes, I can. I mean, when we see the data for our product, we feel we have already competitive product. And for the indication that we are talking about, which is [ LPTA ], I mean the patient involvement is very high. So to get better results I think an OD versus a BB dose did not really change the uptake in what we see.
Got it. And my second question is, so products like [ Xelpros ] are currently under supply shortage in the U.S. as we're in the process of shifting them from Halol to a regulatory compliance unit. Can you provide an update on that?
It will take us some time to come back to market with the product. We will eventually and the work is being done towards that end.
Got it. And in terms of [indiscernible], it's been half year since launch. If you can give some idea on how the uptake has been last question.
And I think in one of the earlier calls, I said this, I mean it is not a single source of purchase we have to go hospital [indiscernible] in all different stakeholders right from the purchase committee to the technical committee and so on. So it's a gradual uptick that we see, not an immediate big spurt.
Got it. I mean, I guess that would probably be the [indiscernible] since it is probably first in line treatment or for product that is that correct? In our indication?
No, sorry, I didn't get that question.
So it is the first part.
[indiscernible] oversell, right?
Yes, I am. Yes, I am.
So doctors will always have 2 options. We will either use [ penumbra ] or they could use limited [indiscernible], doctors have 2 options. And depending on the doctor, they will have a different line of considering what is essentially our slide. But through years of experience and in [ Finabaitan ] as a molecule really has a very good acceptance.
Thank you very much. That was the last question for the evening. I would now like to hand the conference back to Dr. Abhishek Sharma for closing comments.
Thanks, everyone, for dialing in for any remainder questions that you may have, which are unanswered. You can reach out to the IR team. Thank you, and have a good day.
Thank you.
Thank you very much. On behalf of Sun Pharma, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.