Good evening, everyone. This is Neerav Bhagat, your Moderator for the Chorus C all. Welcome to the GlaxoSmithKline Pharmaceuticals Limited Q1 FY 2026 analyst meet. From the management of GlaxoSmithKline Pharmaceuticals Limited, we have with us Mr. Bhushan Akshikar, Managing Director, GlaxoSmithKline Pharmaceuticals Limited, and Mr. Juby Chandy, Chief Financial Officer, GlaxoSmithKline Pharmaceuticals Limited. By participating in this event, you consent to the recording, distribution, and publication of this event. Kindly note that this call is meant for investors and analysts only. All participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation from the management concludes. I now hand the conference over to Mr. Bhushan Akshikar. Thank you, and over to you, sir.
Thank you very much for setting that context. Once again, a very good afternoon, good evening to everyone who's joined on the earnings call. We already shared the financials. I'm sure all of you have seen our Q1 results, which are out there. What we'll do in the next 10 or 15 minutes is just to give you a quick color and the stories behind those numbers, and then we'll spend more time answering questions. Just wanted to recontextualize the strategy that we have set out three years ago. We continue to be one of the most broadly diversified pharmaceutical companies operating at both ends of the spectrum in the areas of prevention with our vaccine business.
As you can see, our portfolio continues to be broad and wide, with General Medicines portfolio and the foray that we are making now in the Specialty side with respiratory and now oncology. In terms of our strategic priorities, we have a laser-sharp focus to continue to defend General Medicines and pediatric vaccines portfolio, also demonstrate agility with category creation in the form of what you've seen around shingles prevention, and most importantly, bring our innovative assets so that more patients can benefit in India in the coming time, and we are seeing that kicking off with oncology. Next slide. Just a couple of slides on the external market data. So, as you know, you must have seen the IQVIA data, which is the syndicated research agency.
For Q1 of the financial year, although the industry growth was pegged at about 8%+ , our representative market, as you must have seen from our portfolio, we have a significant acute dependence, acute segment dependence, as you would see on the left-hand side of the chart. The acute markets grew by roughly about 7%. But within that, if you look at GSK's representative market, the ones that are highlighted in the middle chart, especially around anti-infectives, the derm business, that growth was slightly suppressed. I think more importantly, if you see the last chart on this slide, the specifics in terms of where we operate, whether it is the advanced oral antibiotics, most importantly, the derm business, where we have topical corticosteroids with our Vx portfolio, those are the therapy areas where we saw a muted performance, externally speaking, that impacted our growth for this quarter. The next slide.
What's more important is the health of the business. If you were to look at how we did in terms of our competitive performance, we've held the Q1 performance from a competitive standpoint. If you look at our evolution index, which is our ability to grow ahead of the market across many of the brands, from an external standpoint, our growth is ahead of the market. So we not only defended or gained market share for many of our key assets, but we've also grown ahead of the market in terms of evolution General Medicines as well as Vaccines. On the Specialty side, Trelegy Ellipta continues to grow month after month, and Nucala, which is the monoclonal antibody for severe eosinophilic asthma, continued to grow in terms of share as well as patient share.
Our ability to kind of establish the adult vaccination space continues with our investments in the shingles prevention. So even this quarter, we improved our performance. We have now a definite predictable business model around adult vaccination space with what we are doing, which increases every single quarter. I think what's important is in Q1, most of the investment and the resources that we are putting in place to launch our oncology business are in place now, and that's something that you will see in Q2 getting kicked off. Two years ago, we defined our digital acceleration roadmap, where we talked about accelerating our digital ways of connecting, commercially speaking, and that part continues, as you would see at the bottom of this graph. Next. As I said, in terms of competitive performance, we've continued to do well across all the brands, externally speaking.
However, the muted growth that you've seen for Q1 is largely in relation to the tailwinds that were much softer compared to our expectations, especially externally, and that's why in those suppressed therapy areas, suppressed growth for those representative therapy areas, although we've held our competitive performance, our growth has been lower than our expectations. Next. Similarly, for the pre-vaccine business and the vaccine business, we've held our market share both in the pediatric private setup, as well as I talked about the month after month and the quarterly performance, the Q1 performance for the Shingrix business, where we have a significantly higher trajectory both in terms of prescriptions and growth around 20% quarter- on- quarter. Next. What's important is, as I said, something that we had clearly stated in our bold ambition of delivering a double-digit growth as an organization.
The new growth platforms become of critical essence for us, and that's where we are spearheading our oncology launch in Q2 this quarter as we speak. We're going ahead with two of the most innovative assets from a global pipeline, pioneering solutions in gynecological malignancies for patients in India, both in ovarian cancer, which is the second biggest gynecological cancer in India, and endometrial cancer, respectively for Zejula and Jemperli. So those two assets we will go ahead and launch. In the last quarter, we've done all that that's required in terms of the go-to-market model and activations. So this is clearly getting bolted onto our existing business in the coming quarters.
To summarize our strategic roadmap, on the next slide, we will continue to build and defend our shares and deliver a competitive performance for our base business, both for our key promoted portfolio in Gen Med as well as the Pediatric Vaccine business, continue to invest in our new growth platforms led by Shingrix, Nucala, and Trelegy Ellipta. And on top of that, for Q2, we clearly have these two assets going ahead. Something that we stated upfront in our pursuit of the double-digit growth agenda was continued focus on improving our profitability, as you could see over the last several quarters. We have an EBITDA margin that we are confident of holding. And more importantly, if you see our market share, we have improved our market share for all the portfolio that we operate over the last several quarters.
So with that, I think we'll spend a quick few minutes on the financials before we open up for questions. Juby?
Next slide, please, so quickly to bring up to speed on the financials, as Bhushan building upon from what Bhushan has left, the revenue growth has been flat. That's on the context of softer than expected tailwinds, particularly on antibiotics and the derma portfolio, what we have seen. We continue to build the momentum in Specialty pre-vaccine, Shingrix, all those strategic levers we continue to invest. Spending a bit more time on EBITDA margins and PAT, you would have noticed that EBITDA margin profile, as well as PAT, has improved this quarter, despite we had a challenging top- line. Margin profile, as we speak, is 31.2, which is a 290 basis point improvement with a growth of 9.3, so clearly, we have a leverage behind it with expenses growing slower and profit growing faster.
That's on the backdrop of better management of expense, margin improvements, and productivity improvement we have seen this quarter. Seeing the same trend in PAT also. PAT has stepped up to 290 basis points, 12.7% growth in the quarter. Cash conversion is healthy with 100% of the sales for the quarter has been converted to cash, and that growth is translating into the EPS of quarter one, 12.08 with 13% growth in the EPS. That's a quick summary of the financials. Maybe we can take the questions from here.
Thank you very much. We will now begin the question- and- answer session. You can choose to ask your questions in two ways: on video or by typing it in the chat box provided below. In case you would like to ask a video question, please press Ask on the Ask a Video Question tab and follow the instructions to join the queue. By clicking on Joining as Attendee, you will be on audio only, and by clicking on Joining as Panelist, you will be on audio and video both. Before asking the questions to the management, please introduce yourself by providing your name and your organization's name. Please limit yourself to a maximum of two questions so we can accommodate as many questions as possible. Ladies and gentlemen, we will wait for a moment while the questions are assembled.
We can take our first question from the line of Kunal Bansal. Can we join as panelist and unmute your audio and video and proceed with your question? No response? We move on to our next questioner. Next, we have Gagan. Can we join as panelist and unmute your audio and video and proceed with your question?
Am I audible?
Yes, sir. Go ahead.
Yeah. Thanks for taking my question. The first one General Medicine portfolio. is it possible to split the top- line growth number into volume growth, new product introductions, and price?
Sure, Mr. Gagan. Thank you very much for the first question. As you saw in my slide, two elements there. One is competitive performance remains intact. But to answer your question specifically, for the overall company, including vaccines, there's a 2.83% price hike that we've had in terms of volume remains flat. So there's an element of so we don't have any General Medicines, at least for this quarter. In terms of the flavor of the growth, as you must have seen, we also had a supply. We had a constraint in terms of one of our CMOs having an unfortunate fire incident. So that was about we lost about 2% of growth there. But otherwise, in terms of the flat growth that you've seen, there's a 2% that we lost on supplies, and 3% is driven by price.
Actually, there's a -1 in terms of our volume growth.
Is it possible to further split the growth? I mean, for Vaccines, the volume General Medicines, the volume growth. Can you segregate that out?
So, Vaccine volume has been growing close to 8.6% each, and the value growth, okay, 8.6% Vaccines growth and General Medicines growth.
Okay. And the NLEM portfolio, you wouldn't have been able to take more than 1.5% or 2% sort of annual price increase, right?
That's right.
Okay. So final one from my side, sir, for Zejula and Jemperli, is it possible to give us some idea of what's the current addressable market? What's the current first line of treatment, if at all? And obviously, this probably will be the standard of care. So how do you see this evolving? If possible, can you enumerate and give us some idea of where you aspire to be in a three- to five-year timeframe with these?
Sure, Mr. Gagan. Thank you very much for that question. Again, just to qualify, you asked the question around the WPI. So most of that price is also still kicking in. We didn't get the full benefit of that in Q1 of the price hikes for the products included in NLEMs. So that should get fully realized in Q2 and beyond. Coming to your question around oncology, so we are making our first foray re-entry after almost a decade in oncology, beginning with our two products, Zejula, in the area of ovarian cancer, and Jemperli in endometrial cancer. So if you look at the prevalence of ovarian cancer, I talked about ovarian cancer being the second most widely seen gynecological malignancy. If you just see the prevalence, five-year prevalence, we are talking about more than 120,000 patients.
In terms of incidence, which is the number of new patients that come into the system, that's in excess of 52,000 new patients that get diagnosed with ovarian cancer. It belongs to a category of drugs called PARP inhibitors. We still have the patent for a few years. There are other molecules within the same category, but this is an innovative medicine that we are launching in the area of ovarian cancer. So just to give you eligibility, we will have at least 5,000 patients who will be potentially eligible to receive this innovative medicine within the remit of the 50,000 patients that I just talked of earlier in terms of the incidence, the new patients that come into the system. Similarly, for endometrial cancer, currently, we have indication for second line. We are also expecting our indication in the first line.
But even within the 20,000 patients that we see as the incidence for endometrial cancer in the country annually, which is the new patients coming into the system, and then you have a prevalence rate of 44,000 patients, which is patients available over a three- to five-year period, we'd still see an eligibility of at least 1,000 patients who will be eligible to start with Jemperli to begin with. So those are the two indications in which we will go ahead and launch. As you would expect, we have ongoing clinical trials. We are a part of the global clinical trial landscape. So specifically, for example, for the dostarlimab, which is Jemperli, which is a type of immunotherapy, it's a PD-1 antagonist, blocks the PD-1 protein on the T cells and thereby acts.
We have ongoing clinical trials in at least four cancer types, including head and neck, colorectal, as well as non-small cell lung, so as and when each of these indications opens up, we will pursue those opportunities, but to begin with, we're going ahead with the indications for which we have the marketing authorization in the field. I hope I answered you, Mr. Gagan.
Yeah. Yeah, sir. Just one clarification there. These will not be first-line treatments. These will be second-line or third-line treatments. Is that what you're saying?
Jemperli, globally, we already have the first line in endometrial. Currently, in India, our label is second line. Our approval is we are in the process of getting the first line as well. So that's where we are. But currently, as the label is, we are in second line. And the eligibility that I talked of in terms of 700-1,000 patients are in second line that I talked of.
Same for Zejula?
I'm sorry, Mr. Gagan?
Is Zejula also a second-line treatment, or is that a first-line treatment?
Zejula is already indicated for ovarian cancer in first line as well.
Will you be needing sales force additions for this?
We've already done the recruitment. So these teams are already in place. That's why I said in Q1 of this year, we've already put the teams in place. Team is in place now, including a market access team, the medical team. So we are hitting the ground in the next 10 days. So the product is already available from this month.
Thanks. I'll get back in with you. I wish you all the best. Thank you.
Thank you.
Thank you. Our next question comes from the line of Pritesh Chheda. Kindly join as panelist and mute your audio and video and proceed with your question. Also requested to introduce yourself and your organization once before you proceed with your question.
Hello.
Go ahead. So you're audible.
Can you hear me?
Yes, sir. We can.
Okay.
Pritesh Chheda, kindly unmute and proceed with your question. We have lost the connection for Pritesh Chheda. We take our next question, a text question from Aniket Singh. Can you explain why respiratory or derma growth is muted? Also, do you see some pickup in July?
So thank you very much for that question. The derm's portfolio, as I showed you, at the General Medicines portfolio, if you've seen over the last several years, the nature of the acute portfolio that we have, Q1 is relatively a muted quarter in relation to all the other three quarters. So to begin with, Q1, financially speaking, is our lowest quarter. We begin with a relatively smaller base. And within that, we didn't see this time, as you heard from me as well as you, the two therapy areas that we saw muted external growths were one, the entire derm portfolio, which includes the topical steroids, our entire derm range. And within our antibiotic portfolio, we saw a slightly delayed start to the monsoon season. And it was a little interrupted over Q1 between April to June.
That's why, although we have gained share, our competitive performance is higher. Brands like Augmentin definitely saw some headwind in terms of the growth. So those couple of brands is where we saw either flat volumes or volume declines, especially in the derm business. We saw significant volume declines in Q1, which we are seeing coming back, at least in the last few weeks, and we hope that we will have the growth back in Q2 as we meet again at the end of Q2.
Thank you. We take our next question from the line of Tushar Manudhane. Kindly join as panelist. I'll mute your audio and video and proceed with your question.
Am I audible?
Yes, sir. Go ahead.
Yeah.
So thank you much. So firstly, on Vaccines, the quarter growth, is that we have reached a base where now the growth would be sort of in the range of five single digit to double digit? Or do you see further scope of growth going forward?
So first of all, thank you very much, Mr. Tushar, for that question. If you recall, over the last couple of, at least the last four quarters now, we've been talking of vaccine business back in the growth territory. We maintained this growth base of at least 8%-10%. With every passing quarter, we are seeing new segments opening up for us, especially for shingles prevention. The adult vaccination ecosystem is an area where we remain committed and putting more energy. So we are confident of maintaining or growing that growth base from here on.
Okay. And secondly, for these two oncology drugs, is that the operational cost would also sort of increase, right, with maybe marketing promotional expenses? Or unlike because this is going to be more hospital-based drugs. So if you could throw some light in terms of how the operational cost or operational expenses will pan out.
Okay. So firstly, these are hospital products, highly specialized products. We will be having a very targeted, very small group of oncologists or a group of oncologists which are less in number. We will be promoting too. So the incremental operating cost will not come. We will be reallocating from within the accrual source of what we have within the P&Ls. So you will not see increased operational expenses because of this.
There's no materiality. And just to add to what Juby said, as you may be aware, for a country of our size, we rarely have 1,000 oncologists practicing in our country. So when you have innovative assets like this, the team size is also very focused, very targeted, and very small in size. So no material impact, no additional data.
Yeah.
Understood. And just lastly, if you could just replace the number of MRs, and if there is going to be any addition of MRs, not for vaccines or oncology drugs, but the other base therapies.
So we are competitive for all the categories that we are operating. We have more than 2,000 reps on the ground right General Medicines, vaccines, and now Specialty portfolio. And that's something that we will continue to maintain and hold.
Got it. Thanks. Thanks a lot for your response.
Thank you. Next question is from the line of Viraj Mithani. Kindly join as panelist. Unmute your audio and video. Introduce your company name and proceed with your question. Viraj Mithani, kindly accept the prompt. Join as panelist. Unmute your audio and video and proceed with your question. Viraj Mithani, your line is on top. Kindly continue with your question. Yes, go ahead.
Yeah. My name is Viraj Mithani, and I'm from Jupiter Financial. Sorry, I joined the call late. This oncological revenue will start coming from this quarter, or when will the revenue start kicking in for the oncological drug?
It will start from Q2. We are launching it this month. So it will start reflecting from Q2 of this financial year.
Okay. And any new more products to be introduced in this year?
We are pursuing several indications, but I think these are the two first ones that are going off the block. We'll keep you updated. As of now, we don't have line of sight of what will get accelerated. As I said, many of these are also undergoing clinical trials for other indications.
And about any other new products in Vaccine side, or this year would be launched or no?
No, we have the RSV vaccine trials ongoing. So that is another new innovative vaccine that is scheduled to launch. In terms of timelines, we'll have to see how the regulatory authorities grant approval. But that's the other new vaccine that we still have in our pipeline.
Okay. Thank you and all the best.
Thank you.
Thank you. Now we take our next question. Our next question from Nikhil Upadhyay. How much is the impact of NLEM pricing on Augmentin Duo and any other product where we see price cuts?
Sorry, I didn't get that question here.
So, there's been price cuts.
I'll repeat. How much is the impact of NLEM pricing on Augmentin Duo and?
Okay. I see. So no, if you recall, we came back much stronger in terms of the volume growth over the last four quarters, five quarters now. And we don't have any price cuts as of now. So two elements of the price, almost half of the portfolio is under the NLEM, where we can potentially take only the maximum permissible WPI-led hike. And the rest, we can take up to 10% in a calendar year. There is no price cut, especially on Augmentin Duo.
Thank you very much. Next, we again ask Mr. Pritesh Chheda to kindly join as panelist. Unmute your audio and video and proceed with your question. Pritesh Chheda, kindly join as panelist. Unmute your audio and video and proceed with your question.
Chheda, your line is muted.
Pritesh Chheda, kindly unmute yourself. Due to no response, we move on to our next questioner. Next question is from the line of Abdulka der Puranwala. Kindly unmute your audio and proceed.
Yeah. Hi. So thank you for the opportunity. So first question is with General Medicine portfolio, right? and I understand that a lot of your brands are gaining market share. But if we just try to drill down and understand the overall target market and the efforts being taken to grow the entire category, could you highlight some of the efforts that you have taken, say, for Augmentin or Calpol in the recent times to ensure the kind of volume uptake which is happening here?
Sure. Mr. Puranwala, thank you for that question. So as you would see from the AIOCD AWACS data also, even on a MAT basis, Augmentin continues to be the number one brand in the pharma industry in the IPM. Yes, this was not the peak quarter for the category, but yet, we've been able to defend and grow the market share. So if you remember the numbers that I shared, even on an IPO basis, even for Q1, we grew 4% higher than the market. So we have an evolution index of 104. Plus, we gained a market share. There was a market share gain of almost 0.4% for Q1 alone. In terms of reach, in terms of activities, we clearly focused on ensuring that for the right indications, Augmentin and co-amoxiclav, therefore, as a molecule, continues to be the drug of choice for the right available patients.
We continue to focus all our science-led activities around ensuring that a molecule like amoxiclav, which even today in 2025 has one of the highest susceptibilities, which means we have susceptibility of almost 90%-93% to this molecule, thanks to the appropriate usage and the appropriate effort and the approaches that we take to avoid antimicrobial resistance have been working well. And that's an area where we continue to invest. So we work very closely with specialists, super specialists, as well as a large number of physicians, both consultant physicians and general practitioners, to work in the area of what we call as the India Infection Index to ensure that not only Augmentin, but antibiotics in general are chosen wisely and given for the right duration and the right dosage.
Those are the kind of initiatives that are helping us not only build and continue to grow the science, but also to help choose the appropriate antibiotic like Augmentin and therefore grow our shares and numbers. When it comes to the second question that you asked, I think I could go on for several brands like that. In the topical antibiotic space, we have our brand, T-Bact, which is continuing to be ahead of the market, has delivered good growth. And then, of course, within the paracetamol space, we continue to invest. If you remember, a year ago, 18 months ago, we launched an advanced formulation with Optizorb technology called Calpol 650 Plus and Calpol 500 Plus. So those continue to be our ways of extending. As you must have heard, I spoke in the beginning, we were impacted by supply shortages.
Unfortunately, our CMO had a fire incident, and for the last month of May, June, we did have some shortages from our CMO. So on the demand side, we've been working hard to ensure that we are able to fulfill that demand, but we did have some approaches in terms of the supply constraints.
Sure. So understood. Thanks for that. And sir, when you talked about the 2% impact on growth because of CMO operations, so could you also highlight the brands in which the growth would have got impacted? Is it Calpol or a few more brands as well?
It is Calpol largely and some nutritional supplements like Cobadex.
Okay. Okay. Understood. And the last one, if I may, sir, I believe you're also doing some trial for a hepatitis B drug named Bepirovirsen. So any timeline you would like to indicate on the launch of this product? And would this be a similar kind of a setup what you have done for your oncology brands which are going to launch this month?
Mr. Puranwala, yes, we have. The trial is we've been a part of the global clinical trial. We were the one. As a country, we were one of the largest recruiters and also one of the first ones to get this trial completed in some of the prestigious centers. We looked at this potential opportunity. This can potentially be the first functional cure in the area of chronic hepatitis B infection, which is a significant burden of disease in our country. Being a part of the global clinical trial, obviously, everything is tied down to the regulatory timelines. But the advantage is there's no lag in terms of our launch timelines. So as and when things get activated globally, we do foresee. Globally, the timelines for this launch are in the next 12-18 months. We have to see and watch.
It's in the calendar year end of 2026, not in this financial year, but we see hepatology as another evolving, significant opportunity in our Specialty play.
Understood, sir. Thank you and wish you all the best.
Thank you, Mr. Puranwala. Thank you.
Thank you very much. Next, we take our next question from Gokul Maheshwari. You have been following an omnichannel approach for enhancing distribution and generating prescriptions. Can you explain to us with some simple examples on how are we achieving more with less?
Thank you very much for that question. So to let you know, before we launched our digital acceleration strategy, we were reaching out. Our recent coverage was roughly to about 3 lakh unique distinct healthcare practitioners in this country. With the well-embedded digital acceleration that we have now in place with the omnichannel strategy, we have now consents from almost 4.5, 4.6 lakh doctors in India who allow us to reach out with their consents, to reach out via different touchpoints, be it emailers, be it WhatsApp. So it's not only the FaceTime that our rep gets in front of the healthcare practitioner in terms of promotion and detailing, but we follow through that. She follows through that with the appropriate touchpoints to the other touchpoints that I just talked of. So the idea is to really create that seamless experience on top of the rep's FaceTime.
And that's something that's well embedded now in our ways of working for all our portfolio. And that's working. So the question around it's not about doing more with less. It's largely about unlocking value using the digital pathways that most of the healthcare practitioners are also open to using on top of, of course, the face-to-face calls.
Thank you. We take our next question from Deepak Malik. There are three questions. The first question is, can you please share in more detail what preparation we have done for the launch of Jemperli and Zejula? How many MRs have we hired? How many doctors will we reach out to? What will be the price of the drug? What is the TAM for those two drugs?
Sorry, did you say TAM or DAM?
Yes, sir.
Total Addressable Market, right? Sorry.
Yes, sir.
Thank you very much for both those questions. I think I answered parts of that question earlier, but I will quickly summarize in terms of the specifics that you asked. Yes. As I said earlier, the oncology space being highly specialized for a country of our size, we have roughly about 1,200 medical oncologists, about 500 hematologists, and those will be on our coverage. The entire recruitment as we speak is done. So we have a team of about 20 key account specialists. We also have a separate access team because, as you know, oncology requires a deep-rooted understanding around conveying the burden of the disease and working very closely with authorities in ensuring that these innovative assets are available. So all the recruitment is done. Medical, also, we have dedicated resources who will focus especially on these two assets.
So that's the size of the play in terms of the number of external customers and the number of team members we have internally. We go live on Independence Day. So that's where our commitment in our first year of this second century of operation in India is to recommit ourselves to offer freedom to all those patients who deserve, who are unfortunately suffering from these gynecological malignancies and who can benefit with two innovative assets. The cost of the treatment is pretty much in line with what you would see as standard of care. Again, it would vary depending on the segments. But as you would imagine, these are immunotherapy products. So Jemperli, which is dostarlimab, is a PD-1 antagonist, and it operates in the same space as all immunotherapy drugs. It's in the range of. It depends on how many cycles the patient would need.
But typically, the cost of treatment is at least between INR 12 lakh to INR 18 lakh so to say. So that's where they're comparatively priced in terms of where we operate. I don't know if I missed out any of the sub-questions that you had.
TAM, you already addressed.
Yes, TAM. I already addressed because as we go in with the second-line indication, we have about 752,000 eligible patients for second-line endometrial for Jemperli. And for ovarian cancer, the TAM is almost 5,000 patients. So for Zejula, the cost of treatment is roughly in the same range for both.
Thank you. Second question from Deepak Malik. Can you please share the performance update on Shingrix vaccine, revenue number, of shots, number of people who have taken till now?
Thank you very much, Mr. Deepak, for that. Shingrix continues to be a growth platform and an important one for us. We launched this two years ago, as you will recall. Every month, we still are completely focused on the private segment. As we speak, we still don't have tender segments opening up. We just got earlier this year, a few months ago, the GST exemption, which means we can now participate in several of the institutional segments like the army, like the railways, and other institutional accounts. As of now, whatever you see is largely private, self-pay led. That is roughly about around 9,000-10,000 doses that we are selling every month. You can imagine there are 9,000-10,000 patients who get vaccinated to prevent shingles every year. That's roughly about our ambition on a yearly basis.
Our objective this year continues to be in excess of 100,000 doses, which roughly translates to in excess of 100 crore.
Thank you. The third question from Deepak Malik. Post soft first quarter, will we be able to achieve double-digit revenue growth in FY 2026?
Thank you very much for that question. Definitely, we have the stated, explicitly stated intent that we have put out for our business. And as I said, the base business has got sizable steam. Obviously, as I said earlier, our Q1 is always a little soft. It was softer than expected given the external headwinds or, to better put it, we didn't have the favorable tailwinds, externally speaking, for some of our assets. But as we are in the peak season between Q2 and Q3 of our financial year, the expectation is for the base business to come back to volume growth. We also have an element of price hikes coming up, kicking in in these two quarters from here on, from Q2 to Q3.
And on top of that, we have the growth platforms that I talked of, not just about Shingrix or Nucala and Trelegy Ellipta, but the new oncology assets in oncology. So those three put together and the focus on driving volumes is still. We still remain committed to our growth ambitions.
Thank you. Next question comes from Jayesh Poladia from M K Poladia. What percentage of sales from NLEM category price control in June quarter?
So every quarter is the same because we have almost 44% of our 40% of our portfolio is in NLEM. So that's a constant. So that's about 40%.
That's not driving any issues in the quarter because once in five years, the NLEM prices are reset. After that, it is not having a price erosion, right? So we'll take the normal price increase what the government allows. That's where it is. So it's close to 40% NLEM portfolio we have in the business.
Thank you. Next question comes from Senthilk umar Natarajan from Joindre Capital Services. What's the reason for the 17% drop in other expenses? Do we have any one-offs in the base quarter?
It's largely the phasing of our advertising and promotional expenses. Given the low seasonality, you would see that a proportion of that kicking in into Q2. But I'll ask Juby to add.
Yeah, close to INR 12 crore-INR 13 crore of expense we faced to the next quarter because as we've seen regular rains and monsoon dynamics, we had to move expense to the next quarter where the sales is going to happen. So there's a phasing element of INR 12 crore-INR 13 crore in that one. So there is kind of a one-off phasing going from this quarter to the next quarter.
Thank you. Next question is from Mehul Sheth from HDFC Securities. As for IQVIA data, growth in key brands like Betnovate-N and Eltroxin was muted. What were the reasons? Also, when to expect normalization in Calpol? More so, derma and pain management category is underperforming the market growth. You on this?
So I just said thank you very much for that question, Mr. Mehul. As I said earlier, the biggest hit externally that we had across our portfolio was in our derms portfolio. Within that, specifically the Vx portfolio, the Betnovate range, is where we found the most significant headwind in Q1. And that was, again, what happened to us will happen to the market in vice versa. Obviously, we have found reasons. We are working very closely to ensure that we are able to bounce back much stronger in Q2 and Q3. But that's one of the big ones. I talked about losing about INR 12 crore on Calpol alone in Q1. So in this quarter, July, August, we hope to stabilize. The CMO is working round the clock to ensure that apart from all the corrective measures, the supply continuity is ensured.
So that's another one where we are confident of getting that to a certain rhythm in the coming weeks. Juby, you want to add something there?
No, I think you completed it.
Thank you very much. Next question from Mehul Sheth. Any plan to launch RSV vaccine in India?
Mr. Mehul, yes, we've been a part of a global clinical trial. It is slated for a launch in the calendar year 2026. We'll not be in this financial year, but we are a part of the global footprint. Therefore, we will definitely be. We have plans to get this innovative vaccine there as well.
Thank you very much. Ladies and gentlemen, we'll wait for more questions. Participants, if you wish to ask a video question, please press Ask a Video Question tab and follow the instructions to join the queue. By clicking on Join as Attendee, you'll be on audio only, and by clicking on Join as a Panelist, you'll be in audio and video mode. Participants, you may also type in your questions in the chat box provided below. Participants, we wait for a few minutes for the questions. We take next question from Aniket Singh. What is the view on impact of trade generics on branded market growth?
It's a very good question. So as you are probably aware, at both ends of the spectrum, the organized channels you have retailers on one side. And of course, you have organized trade in the form of pharmacy chains having their own private labels. So at both ends of the spectrum, we definitely see an impact. It's very difficult to quantify and say what percentage of business or what kind of share. These respectively they're not being tracked by either of the syndicated research agencies, both AIOCD AWACS or IQVIA as of now. But my estimate is at least 7%-10% over the next three years is what we will see in terms of volumes. Obviously, a large part of a large number of patients are also coming into the system.
So the trade-off there and how you therefore ensure that you continue to remain relevant is where the focus will be. But to your question, I think it's in the range of 5%-7% to begin with.
Thank you. Next, we take question from Mehul Sheth from HDFC Securities. As for MFN price requirement, we are planning to increase price in our portfolio to meet standard price across U.S. and India.
So our Mr. Mehul, I'm not sure I understood the question. But again, from a listed entity standpoint, our portfolio, except for the ones that are imported and that are not manufactured here, we have a model that's very clearly focused on India. Most of the products that you sell here, that you would see here, are based on the global pricing, floor prices that we have. I don't see an immediate impact. I don't foresee any impact given the nature of our portfolio here. Not sure if I understood the question correctly. As an MFN, there's no impact for us.
We don't have any impacts. We are manufacturing all the General Medicines, mainly. whatever ones come from, not from the U.S. So we don't have any impact.
We don't have any products coming here from the U.S.
Yeah.
Thank you. Participants, you can choose to ask questions in two ways. You can type your questions on the chat box provided below, or you may join as a video participant by clicking on the Ask a Video Question tab and follow the instructions to join in the queue. Participants, we have time only for two questions. We will wait for a moment while the question queue assembles. Next, we have Tushar Manudhane. Can you unmute your audio and proceed with your question?
Yeah. Am I audible?
Yes, sir. Go ahead.
Just one clarification about the impact on, in terms of growth for the quarter. As I understand, we had two headwinds. One is the lack of supply from one of the CMO and another is sort of a weakness in a couple of therapies. If you could just separately quantify the impact for the quarter.
We have answered that question before, so we have a flat quarter, so 1.5% of the sales, 1.7% of the sales, we have an impact from supply issues due to fire at one of the CMOs, so if I exclude that issue, the underlying growth is 1.7, which means we have a flat growth with a 1.7% lost already because of the supply issues.
Apart from that, the weakness in the industry level also impacted the growth of the quarter in certain therapies?
Largely, yes. And that's exactly what I said in my earlier opening slide, that the represented markets in which GSK operates largely in anti-infectives and derms were the two areas where we were significantly impacted. As much as we gained share and we did better than the market, the market was significantly soft. And that's why we had a flat quarter.
And just lastly, in terms of sourcing of the material, if I put it into two buckets, CMO and GSK parent, if you could just share the percentage of sort of sourcing from these two entities?
Close to 35%-40% is coming from GSK facilities and remaining.
This is a Nashik factory.
Nashik factory. Remaining 60% is coming from CMOs.
I think oncology drugs and all will also come from CMOs or from GSK?
No, no, no. They will be imported. They will be imported.
Got it. Thanks. Thanks a lot for this.
Thank you very much, Mr. Tushar.
Thank you. We take next question from Gagan from ASK Investment Managers. Our first quarter operating margin sustainable going ahead. What advantage does niraparib have over olaparib, if any?
I'll take the second question first in terms of the advantage. Now, when you look at the competition that you just mentioned, we have good data around overall survival. Almost 40% of the patients at five years, that's the number that we have. Our overall survival, overall survival as per our PRIMA study, is almost 40% at the end of five years, which is significantly better. And the progression-free survival at the end of five years is something that we have versus the competition. Those two are clearly both in terms of overall survival as well as progression-free survival, we have data which is comparative or even better. As you will see from those trials.
On the margin side, we expect to maintain the margin levels. We will see some price increase coming in the coming quarters as well as we'll see some increased expense also coming quarters on phasing of expense, which we just mentioned before. So we'll see increased expense, increased price, so hence we'll be maintaining the margins.
Thank you. One more question from Gagan. Are margins on innovative products lower than General Medicines?
That's right. The margins from innovative products are General Medicines. it's a traded product, so hence the margins are lower. But that General Medicines portfolio grows, we'll be able to maintain that absolute margin. And the impact on the margin dilution will take a little bit longer term to see. At least in the next two, three years, we'll not see a dilution of the margins because the ratio at which General Medicine, the larger base growth will dilute any margin dilution we would see from the above.
Thank you very much. Ladies and gentlemen, on behalf of GlaxoSmithKline Pharmaceuticals Limited, we conclude this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you very much, sir.
Thank you.
Thank you.