Suven Pharmaceuticals Ltd
NSE:SUVENPHAR
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Suven Pharmaceuticals Ltd
Earnings Call Analysis
Q2-2025 Analysis
Suven Pharmaceuticals Ltd
Suven Pharmaceuticals reported a 12% year-on-year revenue increase in Q2 FY '25, reaching INR 2.58 billion. This figure includes contributions from the recently acquired Sapala, which has been consolidated from July 12, contributing INR 93 million. Excluding Sapala, the growth stood at a commendable 7%. The significant performance in the pharma CDMO segment, where Suven saw growth of about 40% year-on-year, underscores the company’s focus on this high-potential area.
The adjusted EBITDA for the quarter was INR 1.11 billion, yielding EBITDA margins of 43.3%. However, the company incurred one-time expenses of INR 107 million primarily due to ESOP and merger costs, which impacted reported EBITDA margins to 40.4%. Gross margins have shown promising improvement, expanding by 473 basis points year-on-year to stand at 76.3% for the first half, driven by a favorable business mix.
The ongoing merger with Cohance is a critical development, as it aims to enhance Suven's market position and operational synergies. Following the acquisition approval, the shareholder meeting for the merger vote is scheduled for September 28, 2024. Once finalized, this merger is expected to enrich Suven's capabilities notably in the API (Active Pharmaceutical Ingredients) and CDMO (Contract Development and Manufacturing Organizations) segments, with projections indicating a more pronounced growth trajectory in FY '25.
Looking ahead, the company maintains a bullish outlook for the second half of FY '25, anticipating year-over-year revenue and EBITDA growth. Suven's executives have reiterated a commitment to achieving growth compared to FY '24 across the entire platform. The financial guidance offered indicates potential for further profitability improvements as operational efficiencies and new product introductions kick in, particularly in the API domain, where growth of 8% has already been reported in first half, signaling recovery.
For the first half, Suven invested INR 694 million in capital expenditures, targeting enhancements for its R&D center and operational plants. These developments are integral to ramping up manufacturing capacities and supporting the ambitious expansion plans for the oligonucleotide segment. Initiatives such as these highlight Suven's focus on broadening its service capabilities to meet diverse customer demands.
The management expressed optimism over favorable market dynamics, particularly post-COVID as the industry moves towards supply chain diversification, supported by macro trends like the U.S. Biosecure Act. This regulatory framework is expected to create additional opportunities for Suven as pharma companies seek stability in sourcing.
In summary, for the combined platform of Suven and Cohance, Q2 FY '25 showed a revenue drop of 4.1% year-on-year to INR 6.05 billion, with adjusted EBITDA of INR 2.17 billion and margins at 35.8%. Year-to-date for FY '25, the companies have recorded INR 10.93 billion, reflecting a 9.4% decline year-on-year, influenced by various operational factors. The management remains positive about reversing the trend in H2, leveraging the expanded operational framework post-merger.
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Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '25 Results Conference Call of Suven Pharmaceuticals Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Cyndrella Carvalho from Suven Pharmaceuticals Limited. Thank you, and over to you.
Thank you, Yesh. Good evening, everyone, and welcome to Suven Pharma's Q2 and 1H FY '25 Earnings Call. I'm pleased to introduce to you all our management team today. Mr. Vivek Sharma, our Executive Chairman; Dr. Prasada Raju, our Managing Director; Dr. Sudir Singh, our Chief Executive Officer; Mr. Himanshu Agarwal, our Chief Financial Officer. After our remarks, we'll open the floor for Q&A.
Now I'll hand over the call to Dr. Prasada for him to introduce our new Executive Chairman, Vivek Sharma, and share his insights on the quarter and recent developments.
Thank you, Cyndrella. Very good evening to everyone and warm welcome to our earnings call. We extend a warm welcome to you on our Q2 FY '25 earnings conference call. It's my pleasure to introduce our executive chair, Mr. Vivek Sharma. Vivek brings over 25 years of Global Pharma leadership experience, including over a decade of [indiscernible] CEO and the Board roles within Global Pharma, CDMO organizations. His distinguished career is marked by building global businesses and driving profitable, sustainable and scalable growth initiatives is based in Boston. After its merger, Vivek will focus on strengthening and expanding Suven customer relationships and driving the global expansion of Cohance combined platform.
We are excited to have him on board. Now I hand over the floor to Vivek for his comments. Thank you.
Thank you, Dr. Prasada. I'm honored to be part of the management team at Suven Pharma, one of the leading CDMO players globally. I'm excited about the cutting-edge chemistry ability and technology platform Suven has created. That is a small molecules, antibody drug conjugates and the recently acquired Oligonucleotide segment. Some commendable achievements include the strong and strategic relationship as established by Suven's team with larger innovator companies and impeccable delivery track records. This is an exciting time for the CDMO industry, especially for the Indian players.
And Suven with its amazing track record and tech capabilities is well placed to capture the market payments. It will be my endeavor to leverage my experience in Suven's capabilities to drive organic and inorganic growth strategically, integrates Suven and the Cohance platform together to unlock many growth opportunities and enhance value creation for all stakeholders.
Suven has released its first ESG report and our ESG profile is now available on our website and ESG world, underscoring our commitment to sustainability. We have also received ISO 50000 and other accreditation [indiscernible] first H1 and PCSI status. As previously shared, we are on track to deliver growth on a full year basis compared to FY '24 across the overall platform. Our key strategic initiatives are progressing as planned and we reiterate our goal to double the combined business organically over the next 5 years with M&A serving as a growth accelerator.
Now, I hand over the floor to Dr. Prasada.
Thanks, Vivek. I take this opportunity to update you all further on the appointment of our Chief Commercial Officers. Given his extensive experience in the CDMO and bio-tech space, we look forward to working with him. We have also augmented our business development team with additions across U.S., Europe and Asia. The augmented team is geared towards building strategic relationships across these regions. These new appointments and their expertise are pivotal as we deepen our engagement with large innovators and explore collaboration with select biotech farms focusing on oligonucleotide, ADC and small molecules offering.
I also wish to take this opportunity to update you on latest industry developments and our interaction sets various industry events, what we learned, we had a productive interactions with several of the existing and some of the new customers that reinforced our strong industry standing. Customer sentiment has been positive as evidenced by increased number of RFQs and in-person audits to our select core sites. This aligns well with our commitment to offering an integrated and diversified technology platform that meets evolving customer needs.
We continue to see a strong momentum favoring the CDMO sector on the broader industry front, especially in India, as Vivek did mentioned. Positive sentiment towards India is bolstered by efforts to diversify and stabilize supply chain and supportive macro environment trends, including the U.S. Biosecur Act. These dynamics strengthen our outlook for healthy growth in the medium to long term.
From a former CDMO standpoint, our strategic efforts yielding a healthy inflow of RFQs. Our pharma CDMO business has posted growth of around 40% year-on-year in Q2, highlighting our committed focus on the pharma CDMO space and reaffirming our commitment to building a robust pipeline that can drive a mid- to long-term growth.
As we have always maintained, this is not a quarter-on-quarter business. So we will not read too much into the current quarter growth, but we feel very strong and good about the input metrics, which are defined and being executed for the business by the management team. We also have expanded our Phase III pipeline by adding 1 new molecule of 2 pending Phase III readouts, we had to inform you that 1 yielded a positive result.
RFQs continue to sustain a healthy mix of mid-phase and lateral project, which is one of the strategic intent that we have taken, including some of the commercials as well. RFQs now are coming in from a broader set of customers versus the history. We are also exploring opportunities to cross-sell and leverage the customer relationship for Sapala our oligonucleotide technology platform.
In summary, we are geared up to meet customers increased demand of backward integration by utilizing our existing capacities we continue to expect growth in the second half of FY '25. I wish to use this opportunity to cover our next strategic business segment, which is specialty chemical and agrochemical business. As mentioned in our previous update, we have converted our specialty chemical service line into a new dedicated strategic business unit. As highlighted earlier, the recovery was delayed than our earlier expectations. However, we are expecting green shoots about recovery, and we have better business visibility for the coming calendar year and the potential new products are in discussion.
As we continue to build strategic partnerships, we are seeing new product discussions and fresh RFQs reflecting a positive outlook for this segment as well. We have increased our focus, included specialized resources to drive the continuous improvements and including automation, while implementing the best ESG and EHS practices as well. Moving on to oligonucleotides and Sapala, we have consolidated the Sapala business from 11th July onwards in Q2 FY '25.
In a while, our CFO, Himanshu will take you through. Our commitment to expand the oligonucleotide business is very clear, with an investment in Phase 1 of its GMP facility, which is underway in one of the U.S. FDA regulatory approved plant which will accelerate the customer onboarding as well and the commercialization of the projects. These investments enhance our capacity and broadens our service capability around the existing and upcoming of R&D pipeline, which is getting built up.
I will now briefly discuss Cohance's performance based on the Cohance presentation. As stated in their investor presentation, Cohance is back on the growth as of YTD October, Cohance overall business has delivered growth with a confirmed annual order book to deliver FY '25 full growth. ADC segment expected to grow year-on-year in FY '25 with shipment schedules largely towards second half of the year. There has been a decline in H1 on a year-on-year basis, driven by phasing of orders with shipments scheduled in second half of the year, when compared with first half of the year.
Cohance is also receiving more number of inquiries on the new existent payload platforms. And one of the new adjacent payload platform development, followed by the process validation is on [indiscernible].
And one of the payloads and new orders have come from the new customer existing commercial products are progressing very well with a very latest information of some of the therapeutic indication expansion, which is also going to drive mid- to long-term growth as well. From a non-ADC CDMO segment, it was our pleasure to share that [indiscernible] Cohance, one of the large pharma innovators Phase III product has received U.S. FDA approval and we expect it to contribute towards mid- to long-term growth of the CDMO business at Cohance.
Regarding API plus. Cohance has experienced demand recovery, which was evident in Q1 itself, and has reported 8% of year-on-year growth in this segment in first half of the financial year. The order book remains very healthy and it is completely set for deliver the growth on a full year basis.
Coming to the overall outlook, the outlook is unchanged at the platform level. First half of the year has been in line with our estimates, while second half will see a better growth trajectory. As Vivek shared, we have reiterated our guidance for overall platform growth on a full year basis. Now I request Himanshu Agrawal, our CFO, to walk you through our financial performance and provide further updates to you. Thank you.
Thank you, Dr. Prasada. Dear investors. Suven's Quarter 2 revenue increased by 12% year-on-year to INR 2.58 billion. This includes Sapala, which has been consolidated from the date of acquisition being 12th of July. While excluding Sapala, the growth has been 7% year-on-year. The pharma CDMO segment reported a growth of 40% year-on-year, and we expect it to deliver growth on a full year basis for the financial year FY '25. The gross margins have expanded 473 bps year-on-year, driven by the business mix as well as Sapala's addition.
Adjusted EBITDA was at INR 1.11 billion, with EBITDA margins being 43.3%. Adjusted PAT margins were 34.1%, reflecting our current investment to steer Suven towards the next growth chapter. EBITDA as a onetime cost of INR 52 million, largely being ESOP cost as well as merger cost. Factoring for which the reported EBITDA margins for the quarter stood at 40.4%. On an H1 basis, revenue declined 15.6% to INR 4.88 billion, while gross margins expanded by 378 bps to 76.3%. Adjusted EBITDA of INR 1.99 billion, with margins stood at 40.7%.
The onetime expenses of INR 107 million were largely due to ESOP as well as merger cost. In first half, we spent a total of INR 694 million on CapEx, primarily on Phase I of our R&D center at Genome valley of which INR 229 million has been operational since June '24 and on the Suryapet plant of approximately INR 164 million. In first half, Suven has generated a free cash flow of INR 1.10 billion, with a cash and bank balance standing at INR 6.56 billion at end of September '24.
This includes the first tranche payment towards the acquisition of Sapala of INR 2.58 billion. As mentioned by Dr. Prasada, we have started consolidating the Sapala business as on 11 July, which contributed to a net revenue of INR 93 million in the second quarter. Regarding the proposed merger with Cohance, we have received approval from a stock exchange and SEBI. And we have received an order from the Honorable NCLT Mumbai Bench to host the shareholder meeting for the voting on the merger. The meeting is scheduled for 28th September '24. Subject to shareholder and other regulatory approvals, we expect the merger to complete in next 4 to 6 months.
Moving to Cohance. According to Cohance's presentation, the quarter 2 FY '25, the following are the key takeaways. Cohance has posted a revenue of INR 3.47 billion in quarter 2 FY '25, a 13% decline year-on-year. For H1 FY '25, Cohance reported revenue stands at INR 6.04 billion, a 4% decline year-on-year. The decline, as mentioned, is largely due to the shipment schedule being faced for the second half based on the current order book visibility Cohance impact on the growth part.
The API plus segment has posted a growth of 7% year-on-year, driven by healthy product launches and demand recovery. Scale-up in the ADC led CDMO business is tracking well with growth in existing commercial and new orders from new customers. However, the shipping schedule for ADC like CDMO is weighted towards the second half of the current year.
Overall, Cohance expects year-on-year growth on a full year basis across both segments, that is API as well as CDMO. Improved demand and utilization as well as product mix has helped increase the adjusted EBITDA margins to 25.4% in first half. The quarter 2 FY '25, adjusted EBITDA margins were at 30.3%. Cohance has invested INR 1.06 billion on CapEx in the first half of which INR 415 million is towards the new facility in Vizag and intermediate capacity near the existing unit bought from [ Agra ] synthesis. And a capitalization of Ankleshwar Block 5 as well.
On a combined pro forma basis for Suven and Cohance, the numbers look as under quarter 2 FY '25, revenue were INR 6.05 billion, declined by 4.1% year-on-year, while the gross margin stood at 70.6%, expanding by 364 bps. Adjusted EBITDA stood at INR 2.17 billion, with margins at 35.8%, and adjusted PAT was at INR 1.48 billion. The reported revenue in first half was INR 10.93 billion, which declined by 9.4% year-on-year. The gross margin expanded by 206 bps to 69.3%. Adjusted EBITDA was at INR 3.56 billion with EBITDA margins at 32.3%.
At a combined platform level, we anticipate a higher growth trajectory in second half of FY '25 with year-on-year growth in revenue and EBITDA and further growth acceleration from FY '26 onwards.
And now I would hand it over to Cyndrella.
Thank you, Himanshu. Operator, we can open the floor for Q&A.
[Operator Instructions] We'll take a first question from the line of [indiscernible] from JM Financial.
Congrats to the management on good set of numbers. First question I have on the Pharma CDMO side on within Suven, which has registered around INR 200 crores revenue which is a good double-digit growth. Also, you have mentioned there that it is led by BD effort and micro environment. So if you can -- if management can explain -- elaborate more on this line for the BD effort and the micro environment, what has changed during the quarter? And also if they can provide color within CDMO or whether it has been led by development revenues for the...
[indiscernible] respond to you. We caution against reading into a single quarter growth because we remain optimistic due to the overall sustained customer interest and a strong pipeline, broadening the relationships. However, quarter growth should not be read beyond what is expected to. However, as we have also discussed in the previous calls, we have created additional bandwidth from business development side because customers also wanted to have more touch points with them. And the prospective engagement is happening and reading their pipeline and offering our services to them. And deeper engagement levels with the customer is actually supporting us. This is the first point.
Second, from a macro standpoint, data is available in the public domain. In the first 9 months of current calendar year '24, there are 3,000-plus small molecules have actually got introduced into the overall clinical pipeline. Out of which close to around 52% belongs to the small molecules and ADC and specialty chemicals. So coupled with macro and BD, we are able to see the traction of the RFQs as well as the growth as well.
Sure. So Mr. Prasada, so for us for Suven specifically after new management have come in have -- are we seeing a traction which is now resulting into good growth? Is that the right understanding?
Yes.
Is this growth basically is led by our efforts since last one year is what we are putting what I mean to say.
So I would say additional efforts, which we have put in because some of the efforts which we have kept -- which were kept by the previous management and coupled with our additional interventions on this time that's right way to read it.
Sure. And second question I have on the G&P side. What opportunities typically are we seeing from the innovator side for the GLP-1 product?
It's a very interesting evolving space to watch, 2 types. One is predominantly prepared based and there is also research what we learned [indiscernible]. Definitely, the space is going to be much more exciting going forward.
But in terms of Suven what role could it play in this value chain?
At this stage, it's too early to comment right now. You should allow us for some time until such time something gets materialized.
We will take our next question from the line of Darshit Shah from Nirvana Capital.
Sir, so on this Suven Pharma CDMO, as you alluded, there were 2 readouts that are going to happen. So both the readouts have happened. And out of that, one readout for Phase III is positive? Is the understanding correct?
That's right. That's.
Okay. And even on the Cohance side, we have one Phase III approval by the U.S. FDA, so in total we have 2 molecules that have cleared Phase II, right?
Slight differentiation in the Cohance product, it has moved from clinical to commercial, which means Phase III has actually been approved for launch of the product, meaning it is in the commercial phase. On the Suven side, launch will take time.
Definitely, the results are positive. Results are positive. The way to read here is the extent of uncertainties are minimized, predictability of the revenue coming in for midterm to long term is much higher.
Okay. So from what I understand is Cohance will have a little early commercialization as compared to the Suven Pharma CDMO molecule, which has just cleared Phase III.
That's right. Darshit.
Got it. And sir, one more thing on -- just a suggestion. I think the results and the presentations come out pretty late. So I mean, by the time we are going through the presentation, the call is already out. So -- maybe you can schedule it a little later or the next day, that would be helpful for shareholders like us to go through it and then attend the call.
Point very well noted Darshit, thank you.
Yes, I got the presentation itself on 6:25 or 6:30, I think by the time just tried to log in, in the call.
Point very well noted, Darshit.
And sir, just one bookkeeping question, maybe it would have been answered in the earlier call, but I have just missed out -- so post this merger with Cohance, 11 shares of Suven to be issued for 295 shares of Cohance. What was the share capital of Suven? I mean number of shares, currently it's INR 25.4 crores, if I'm not wrong.
So Darshit, this is Himanshu. So there would be 38.11 crores share would be outstanding.
38.11 crores shares will be outstanding post merger, right?
Yes.
Got it. And sir, last Spec Chem side, we haven't seen much revenues and either any growth in the first half, and now we are seeing it the segment to be bottoming out. So when can we probably see some growth happening in this segment maybe in the second half or probably next year, what's our estimate?
As we understand the complete bottom down has already happened, and we don't expect any further bottom to happen, it's all done. At the same time, we also have started seeing the early signs of recovery. And definitely from a bottom number full year of next year, which is [ CY ] of FY '25, we expect the growth to come back to us. Not just only the chill product, there is also a discussion around the new products as well.
Okay. Including the newer product as well, you see growth coming in from next calendar year?
So in a sense, the accelerated growth is going to happen in FY '25, '26.
[Operator Instructions] Next question is from the line of Arjun Sindhwani from Goldman Sachs.
This might have been answered in the previous question. Probably this question has already been answered in the last set of questions. Just want to understand on the Spec Chem and Ag Chem side, like just on the presentation, where there 0 revenues booked for this quarter for Spec Chem.
And like just the second part of the question is that you mentioned like the growth -- early signs of recovery you started seeing in the segment. So we are expecting some sort of pick up from the second quarter onwards? Or will we see most of it from the next year?
Arjun, thank you for your question. So yes, -- this quarter, there is a 0 revenue for Spec Chem, Ag Chem. And to the second part of your question, I mean, the H2, we do expect that there would be orders. So -- and that would get recorded in the H2 of the current year. And as Dr. Prasada mentioned in the previous question, we would be looking at the growth for FY '26.
Okay. But the majority of growth is expected in FY '26 is what then probably that's the expectation for management because H2 is [indiscernible] coming in towards the end of the year then?
I would not conclude to that. I would say that there would be an execution in FY '25 and it would also be over and above a delivery in FY '26 as well.
So Arjun, the way to look at here is from the coming quarter onwards, we see deliveries kicking in.
[Operator Instructions] Next question is from the line of Vivek from Citi.
So just my question is related to CDMO segment. Sorry. So the question is related to CDMO segment. So over the next 2 years, let's say, right. So as far as the growth is concerned, is it going to be completely dependent on the products where you are working or involved with the innovator, let's say, from the clinical stage phase I, phase II, phase III or the last or in the recent time, have you added any product which is already commercialized or the customer might be trying to diversify their supply chain or adding, let's say, another CDMO like you.
So how to look at? Or do you see this kind of opportunity, let's say, for the near term? Or are you in any kind of discussions with any of the innovator or any -- for a big pharma company like that.
Thank you, Vivek. Obviously, March '23, our Phase III products stands at 3 products and 6 intermediates. As of today, as September '24, we have 7 Phase III products covering 12 intermediates. Definitely, there is going to be a component of new product addition that's going to drive the growth in the midterm. #2, we also have discussed and made strategic interventions of looking for potential laterals, which also we are able to see some evidences. Combination of these 2 will definitely going to drive the growth.
Understood. So have you added any potential lateral product that is already in market or already commercialized at this point of time?
We do have a few examples. We were able to create few case studies in the last few quarters. Earlier, it was an intent, but we have an evidence in our hand, which is quite difficult to promising for us.
Okay. And over the next couple of years, we can see any of these kind of laterals.
That's right.
We'll take the next question from the line of Ashish Sriram Thavkar from JM Mutual Fund.
I had a question on this entire biosecure Act. So as and when it becomes a law in the U.S., where do you see the first part of benefit coming in. Would it be the -- at the early stage of clinics like discovery stage or you feel it could immediately also flow to the custom synthesis side of the business?
I would request Vivek. Can you just take up this question.
Sure. So I think, in some ways, we are already seeing the traction. People are starting to talking to us about derisking their supply chain. When the act becomes real, I think it's with the changes in the government and all that, we don't know. But in general, we are seeing the traction already that you are talking to us. In my view, it's not about early stage or commercial, it's about China, right? So whatever work people have in China, they will try to migrate.
So we have some early stage discussions going on from last supply chain discussions going on. But keep in mind, there is time for people to make that decision. But we are excited about the potential that we see out there for us to help our customers de-risk it [indiscernible] channel.
Okay. That's fair enough. Sir, and since -- and obviously, you said 4 to 6 months, the time that is there for consolidation. So as we move ahead, 2 to 3 years beyond, do you -- would you feel the need for more M&As in order to possibly add more capabilities to your offering?
Yes. So our strategy, I think as we have said very clearly, right, it's organic as well as inorganic. You have seen the company has done inorganic acquisitions to add capabilities in the past. And I think that remains a key focus. We will continue to look at capabilities that are better to buy than build. So that's a key part of our strategy, and we'll continue to evaluate those opportunities as they come across.
Just I'd add to Vivek has mentioned, our commitment on the platform technologies is completely unwavering. We are definitely poised for looking for such kind of opportunities to offer wider offerings to our customers.
So by any chance, would you guys also be there on the GLP-1 side of the thing?
As I was just mentioning to some other question than [indiscernible] has asked, it's too early for us to comment. And definitely, we'll be more than happy to come back to you once we have some answer [indiscernible].
Fair enough. And just last question from my side. So you said second half will be a recovery, but given the fact that first half saw revenue decline, are you seeing for the full year of FY '25, we will see a growth.
Ashish, as we have mentioned that at the platform level for full FY '25, we would be growing versus FY '24.
[Operator Instructions] We'll take our next question from the line of Darshit Shah from Nirvana Capital.
Sir, just want to ask, sir on both these molecules which have kind of cleared Phase III. Can you let us know, throw some color on which therapeutic segments they are focused into and a little bit more on if you can highlight some opportunity or market size of where these drugs are going to be launched and all the that would be.
I can only say because we are governed by the GDS that we have executed with our customers. Hope you can understand. But definitely, this is one of the most fastest growing space in the therapeutic segment. It always stands for top 5 of the therapeutic segments for the last 10 years. .
Got it. For more rather than [indiscernible].
You can draw the conclusion.
For both the products, right?
For one.
For one, okay. And sir, lastly, when we say that FY '25 on a full year basis as a platform combined, we might see some growth happening. So just to clear, would it be on the revenue side or also on the profitability side?
Darshit, it would certainly be on the revenue side. But you do understand that profitability is a function of many, many elements. So at this stage, once we have more visibility of the order pipeline, we'll come back to you.
[Operator Instructions] Ladies and gentlemen, that was the last question for today. I now hand over the call to the management team for closing comments. Please go ahead. I'm sorry, there is one question in the queue. I'll take that. We have a question from the line of Ashish Shriram Thavkar from JM Mutual Fund.
So on the API side of the business, the kind of filings that we have appeared that almost 50% to 60% are niche in nature. So when do you see the monetization of these pipelines starting?
It's continuously happening, Ashish, and we are very happy to inform you that even first quarter and the second quarter half yearly basis, around 7% to 8% of the growth has already been demonstrated. It's going to be better in the next half of the year. Monetization of these products are very happening. And the uniqueness of this asset is the pipeline is healthy. Last year, 5 validations have happened. This year, at least 7 to 8 new products are going to be introduced in the platform so that the midterm to long term is fully secured.
And lastly, sir, would you be open to consider international M&As? Is this something which is on the cards?
So whatever our commitment on technology-led platform, if it means for us to go outside of this country, we will be open-minded.
We'll take our next question from the line of [ Karthi ] from Suyash Advisors.
Just one clarification. Can you give some context on the appointment of Mr. Vinod Padikkal. What exactly does he bring to the table and some context, please.
I'll cover that. I think Vinod, as you would have read in the noted, Vinod is a pointee from a Berhyanda perspective. So he is a nominee of Berhyanda. And he represents the Berhyanda by virtue of Platinum Copy investment in Berhyanda.
Thank you. Ladies and gentlemen, that was the last question for today. I hand over the call to the management team for closing remarks. Over to you.
Thank you, operator. Thank you, everyone, for giving your time and we look forward to interacting with you on next quarter's call. Thank you, everyone.
Thank you, members of the management team. On behalf of Suven Pharmaceuticals Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.