Good evening, everyone. This is Dorwin Dias, your moderator from Chorus Call. Welcome to the GlaxoSmithKline Pharmaceuticals Limited Q2 FY 2027 Earnings Conference Call. From the management at GlaxoSmithKline Pharmaceuticals Limited, we have Mr. Bhushan Akshikar, Managing Director, GlaxoSmithKline Pharmaceuticals Limited, and Mr. Ronojit Biswas, 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 the 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, Dorwin. A very good afternoon to everyone who's graciously joined this earnings call this afternoon. In line with the practice that we've instituted over the last four years, here we are once again giving more color, more flavor on the results that were just announced for the Q2 of 2027, as, you know, post our board meeting yesterday. Just want to begin with where I've always started in the last couple of quarters, especially. As we continue to evolve as a global biopharmaceutical company, I think our priorities remain firmly anchored around the three priorities that we have set for ourselves as a global biopharma corporation.
The first one being a relentless pursuit of the top-line growth, and that means growing at both ends of the spectrum, especially in India, with a large established portfolio that we have, both on the Gen Meds and pediatric vaccine side, growing that part of the business. Then holding on the second priority, which is really accelerating all the new launches. We have an extensive array of launches coming up in the next 24- 36 months, so that will be another key priority for us. How quickly can we accelerate the launches of all the innovative assets that we have in the pipeline, from the global assets into India? Third, anything that comes in the way of these two priorities, hacking those inefficiencies and simplifying the ways of working. I think those three priorities remain at the core of everything that we do as a company.
Just quickly move on to the external landscape. These numbers are in the public domain as shared by IQVIA for Q2. If you see, after a couple of quarters, we externally, at the industry level, delivered a strong double-digit growth. So the market grew at about 14.5% overall. In line with that market growth, GSK has continued its momentum for this quarter, in line with what we had delivered for Q1 as well. I think the good news is, I will not go through each of the charts, but just pick up some of the relevant variables which make this performance, especially for our company, for this quarter, more meaningful. The first one being that after a long time, you've seen a volume growth. So it's not just led by price and new introductions.
I am talking at the industry level, and I will talk about what has happened at GSK as well. That is the first variable. I think it has been a good blend of all three variables: price, new introductions, as well as volumes. I think the second big highlight for the external landscape is the growths were quite evenly keeled, both on the chronic and the acute side, as much as the chronic segments grew by 17%. Where we operate primarily in the acute side, that market also grew externally by 13%, with a contribution almost continued at 60% for the overall market. I think we have seen this traction for the last couple of quarters. The share of multinationals has steadily been inching upwards, thanks to the innovative assets contributing to many of the multinationals, including ours.
On the middle chart, I think you have seen this, but I just want to call out, although the growth was above average across all therapy areas, some of the segments where we operate, particularly AI, which is anti-infectives, saw a slightly subdued growth, better than the last couple of quarters. But at 7.1%, it was almost half of what the industry delivered at 14%. It is ditto for respiratory. Otherwise, all the segments where we primarily operate, be it derma, be it vaccines, they all grew well. The last two charts really talk about the performance of GSK in relation to our represented markets and therapy areas where we operate. We have done well compared to both the therapy level as well as the geography level. I think it has been a very balanced performance for us, both at the overall market level as well as therapy areas.
The next slide, please. Coming straight to the competitive performance, I think in line with our Q1 performance, we have continued the momentum. I think what is heartening about this growth that we have delivered for Q2 is it is fairly well-balanced across our businesses. If you see our strategy of being broadly diversified with everything in general medicines at one end of the spectrum, having vaccines, and then, of course, building our muscles around specialty, especially in specialty respiratory, as well as the holy grail of oncology. I think that is where you have seen across all four businesses, you had some strong, robust growth delivered for this quarter particularly. It is again borne out by the fact that it is not just the numbers that we have delivered internally.
As you will see when Ron presents the financials, you had the highest value delivered on a quarterly basis this quarter. But it is also borne out by what is represented externally. If you see our competitive performance across our businesses, beginning with general medicines, all our flagship brands in general medicines have delivered higher than 100% Evolution Index, which means we have grown significantly better than the market.
Not only that, we have added market shares. As you can see in that chart picked up from the IQVIA subset, we have pretty much done well across the portfolio, except for a couple of areas which we are working on for the subsequent quarter. I think what is also heartening is that we did have some supply challenges globally for a couple of our vaccines, but I think as before we close out the quarter, we were able to service that demand. We got the vaccines in time to be able to cater to that demand.
I think even in the pediatric vaccines business, we've not only held our leadership position in the self-pay private market business, but also gained market share in a few of our flagship brands in the pediatric vaccine segment. Adult vaccination continues to be the growth area for us and investment area for us, and I think this quarter again was another quarter where we continued to see not only increase in the number of prescribers, but if you've seen a significant pivot that we made because of the data that we now have, which clearly establishes, for example, the shingles prevention and the bidirectional linkage in cardiovascular events. That's something that we've been dialing up, and I think that's played well to our advantage. So Shingrix had another great quarter in Q2. Last but not the least is our specialty portfolio.
Many of these assets didn't exist 24 months ago, but whether it's Nucala, whether it's JEMPERLI, or ZEJULA, all three assets clearly playing out in the specialty side. Each one of them was able to create some new breakthroughs for this quarter. Exactly a year ago, last year in Q2, we had launched our oncology portfolio, beginning with the gynec malignancies in ovarian for ZEJULA and endometrial second line with JEMPERLI. I think this quarter was one of the best quarters in terms of impacting lives of almost 300 patients on a quarterly basis with these two assets. So it's been a great, well-balanced quarter for us across all business units, and that's really played out in the numbers that we will present. I need Ron to quickly take us to the financials before we spend more time on the question and answer session. Over to you, Ron.
Thanks, Bhushan. Good afternoon, everyone. Delighted to have you all here with us on our quarter two and H1 FY 2027 earnings call. I'll be focusing predominantly on the three months ended September, and I'll touch on the half year towards the end. So we've been talking about this. For India, we have two engine models, and that's to competitively grow our established products business, and by that we mean the general medicine pediatric vaccines, and use that scale and that trust equity and cash generation to build on our innovation platform. So that's the oncology, adult vaccines, and respiratory. So very pleased to share with you, there are several proof points at this quarter of momentum and performance across all the segments of our business. I'll start with the revenues.
Our revenue during the September quarter increased 21% versus the previous year quarter to INR 1,180 crore. As Bhushan mentioned, this is the highest quarter of sales we've recorded. To be clear, there were a few tailwinds. There was a low base effect, there were some supply chain disruptions, there was a GST 2.0, which has helped. Even excluding that base effect, our growth would still be double digit and underlying at about 12%-13%. Importantly, we are seeing good volume growth, mid to high single digit volume growth on our established products business. Just to elaborate on the low base effect, in the previous year same quarter, we had a sizable impact from our CMO fire at one of our key production sites, as also the GST 2.0 impact, which has depressed the base.
When we strip that out, the repeatable growth is about 12%-13%. To touch on our drivers of growth has been quite broad-based during the quarter with every segment contributing. I'll start with our innovation portfolio, and this portfolio continues to become more meaningful. To be clear, by innovation, we mean a portfolio which is patent protected, IP protected, so that's the oncology, the adult vaccines, specialty respiratory. These are really high growth assets, high quality of sales, strongly differentiated. These are now contributing 7% to overall revenues. This was just about 3% same quarter last year, so it's more than doubled in contribution. A quarter of our overall growth now comes from this innovation portfolio in a matter of 12- 18 months.
To touch on oncology specifically, we saw some really accelerated momentum with JEMPERLI, ZEJULA benefiting from a full year of market presence and their significant patient impact, which we just touched on. In adult vaccines, we saw Shingrix doubling its sales versus the same quarter last year. We continue to do well in the cardiovascular and metabolic specialties where we build science and equity. Within our theme, which we've been talking about, which is growth combined with a continued portfolio transformation remains strong. As you saw in the slides that Bhushan presented on the Gen Meds brand also, Augmentin, Calpol, Neosporin, T-Bact, all did extremely well. Strong Evolution Indexes implying that we are growing faster than the competition. In the pediatric vaccine segment, we continue to maintain our leadership and share in the self-pay private market. I'll move on to EBITDA.
For quarter two, our EBITDA was at INR 400 crore and growing 20%, and our margins are maintained at the 34% mark. Again, if you strip out the tailwinds which we talked about, the underlying EBITDA growth was also around 13%, still strong and double digit. One of the call-outs is we are seeing some hardening in input costs this quarter. Our gross margins are There's a dilution of about 120 basis points, and this is really the impact of rupee depreciation, and there's some oil related inflation on our raw materials, which is having some impact. We've been managing this very carefully as, you know, as you know, exchange rates have hardened for a while now, and it's just now that some impact is showing through.
What we are also seeing is that procurement prices of several key input materials, APIs, packaging materials, these are all oil price. These are kind of significantly oil price related. We expect the geopolitical situation to have an impact for a few quarters until the oil prices stabilize. Importantly, we are and will continue to take measures to improve our cost of goods, you know, and use levers such as competitive price increases as we have done in the past. Notably, you will see the adverse gross margin impact is offset by a better spend ratio, which improved by roughly one percentage point, so that operating leverage is helping. The overall EBITDA margins remain broadly similar to our historical trends at 34%. Moving to PAT, profit after tax for the quarter grew 33%. Notably, there is a one-off benefit.
We received an income tax refund, and there was an interest component on the refund, which is of about INR 42 crore, which is inbuilt into the PAT, and if you remove that, the underlying growth will be in line with our sales growth at roughly 21%. Our earnings per share for the quarter was INR 19.76 per share, which is up 32% versus last year. Plus, you would have seen our balance sheet. It continues to be strong. We remain zero debt, and we closed the quarter with INR 2,200 crore of cash on the balance sheet. We continue to be very focused on cash generation and tight working capital management. Our cash conversion ratio is running at 98%. Just to touch on the first half of the year, what this means is revenue growth was 18%, EBITDA growth was also 18%, and PAT growth was 29%.
Some strong numbers both for the quarter and also for the half year, but factoring in that we have got some tailwinds which are helping our H1. Underlying growth remains double digit and strong. Thanks, sir. Revisiting our transformation journey, we have got the first block to the left, which shows the transformation to an innovation and a more specialty business. This remains on track, and the important thing is we are doing this profitably. We are very excited about our launch of BLENREP, which is going to happen in the December quarter. This will take us into. This adds to our oncology portfolio. It takes us into the hematology oncology space with an ADC in multiple myeloma. If you move to the top right, it shows how we have been consistently managing our growing, maintaining our EBITDA margins as we move through the transformation.
Finally, on the bottom right, this is more on our established products, the market shares which we continue to protect these cash engines in our established product business, which is a significant portion of our sales today. To sum up, during the quarter, we continue to see tangible proof points of portfolio transformation as we move towards innovation. We are retaining our competitive growth in our established portfolio and doing so profitably. All of this together keeps us well on the trajectory towards building a more balanced business for GSK India. With this, we conclude our financial update and welcome any questions. Over to you, Dorwin.
Thank you. We will now begin the question and answer session. You can choose to ask your questions in two ways. The first is on video. By clicking on Join as Panelist, you will be on audio and video. To ask an audio question, please press Join as Attendee. You will be on audio only. Before asking the question to the management, please introduce yourself, providing your name and your organization's name. The second way is by typing your question directly in the chat box. Please limit yourselves to a maximum of two questions so we can accommodate as many questions as possible. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first is a text question from Arun Kumar of Unifi Capital.
Management has shared the aspiration of reaching about INR 8,000 crore in revenue, roughly double FY 2026 levels. Could you kindly share the timeline you are working towards? By our calculation, this would need about 20% annual growth by FY 2030, 16% by FY 2031, or 13% by FY 2032. It would also be helpful to understand how much of this growth you expect from the established business and how much from new launches. The second—
Thank you. Yeah. Go on.
Should I proceed or?
Please go ahead, Arun.
As imported specialty products move from 7% to 15% or more of sales, what steady state EBITDA margin should we expect? Could you share the gross margin gap between imported innovation products and locally made general medicines?
Thank you very much for that, Arun. Thanks a lot, Mr. Arun Kumar, for both the questions. I'll tackle the first question, which is around the 2X ambition. We clearly set out an ambition of doubling the business, and not just last year. I think as a management team, we've been talking about this right since we completed the centennial year. Exactly in about a week from now, we will start the third year of our second century of operations in India. I think I just wanted to contextualize. We said that when we completed 100 years of our operations, commercial operations in India, we were roughly about INR 3,500 crore. We're not obviously going to wait for the next century to double the business, and that's the context in terms of putting up that bold 2X vision.
That remains undiluted, that ambition to grow 2X remains undiluted. To your specific question in terms of how that balance will come, one of the focal areas will be the second priority that I shared in my slide, which was about accelerating the pipeline, the launches of our global assets. Just to give you a frame of reference, four or four years ago, we barely had 10, 12 trials happening in India. As we speak today, we have more than 30 pivotal phase III and phase III-B global clinical trials happening in India of our assets, all of them in the innovation space, and many of them across indications. In the areas of oncology, across some of the big oncology indications, including lung. That really gives you heft in terms of the flywheel.
To answer your question, I think the base business that we have of established general medicines and pediatric vaccines is still critical. That is why you heard from Ron, our strategy continues to be a double engine, so to say. It is not about an either/or, it is an and strategy for us in India. We will continue to invest in our base business of general medicines and established vaccines. But clearly, the arrowheads of growth will be our specialty portfolios, including Shingrix, which we launched three years ago. And now, of course, spearheading all of this will be oncology. We also have our new assets in hepatology coming up, the first potential functional cure for chronic hepatitis B in the form of Hibsago, which just got the US FDA approval as well as the Japanese approval. And this week, we have the approval in Canada.
I think those are some proof points for us to clearly dial all those assets in our India plan. So that is where the balance will be. Your question around taking the innovation or the freshness index from 7% to 15%, will that be margin dilutive? As I said in all the earnings calls over the last four years that I have been in this job, our primary goal as a management team is to grow the top line. We will remain steadfast in our pursuit of top-line growth. We will remain steadfast in expanding our gross margins. In the process, obviously, we will remain focused on pulling out inefficiencies and therefore seeing whether we can even sustain and hold the EBITDA margin. So I think that is the way I would answer your first question.
On the second one, I think I did answer partly what you asked in terms of the margin profile. I do not know if you want to add anything there.
Just to add a little bit more, Arun, Bhushan. Obviously, this is going to be a journey. Our internal modeling suggests that three-fifths of that growth. So that, by the way, the INR 8,000 crore is an aspiration by 2031, right? Our internal modeling suggests about three-fifths of that growth we should be able to deliver from our current established products organically. That means that this portfolio needs to grow in the high single digits. And the balance two-fifths of the growth is going to come from our very promising pipeline. So, new launches, existing, and the future new launches. So that is going to be the composition of the growth engines, and that the new launch is really accelerating and building on the growth which we get on our established portfolio. That is one.
On the second question, in terms of margins, we expect our simple modeling expectation is we should be able to maintain our current margin profile that we have today. As Bhushan said, our priority right now is to grow the top line in a balanced way as we maintain our current levels of profitability.
Thank you, Mr. Kumar. Dorwin, the next one.
Our next question is a text question from Nandan Kulkarni with Bernstein.
There is an increasing regulatory and policy scrutiny on oncology and other chronic medicine prices in India. How do you see this shift impacting your growth aspirations for the next few quarters, given your new launches and brands are high-premium chronic segment products?
Thank you very much, Nandan. Thanks for that question. Yes, we are clearly anchoring ourselves around the innovation portfolio, and the last part of that is sitting in the oncology/immunology/hepatology side. Couple of data points that prove, I mean, even if you see the last two launches that we had 12 months ago, and if you see where we are in terms of not only the India-specific pricing, but even the patient centricity, which is at the core of everything we've done, not only for the oncology portfolio, but I think GSK, with the 102 years of experience in India, has always followed an India-specific or a tiered pricing model. So I think that should allay some of the misgivings.
I think your specific question around the increased regulation, what we are seeing on the trade margin rationalization, the new announcements that have happened, especially around inclusion of 137 oncology drugs, it is great news, especially for the millions of patients who deserve these treatments, and there is a clear unmet medical need. I think in terms of how we have operated, we are within that band of 30% margin, which has been announced anyway. I do not see that. I think all our launches have always factored in, and because that is the nature of the operating model that we have had, given the experience that we have had in this market. So, to a large extent, I think we have always balanced out the access/affordability, given the specifics that we always put in place when we even launch our products in India.
So I think in terms of the modeling that we have done, including the assets that we have in the time to come, we have pretty much aligned with the principles of what it takes to succeed in India. I hope I have answered you, Nandan. Dorwin, back to you.
Certainly.
Our next question is from Ajit Lakhani. Please accept the prompt on your screen, unmute your audio and video, and proceed with your question.
Hi, am I audible?
Loud and clear, Mr. Lakhani.
Mr. Bhushan, Ron, congratulations to you and the team. Very strong set, and you guys have been executing par excellence, barring the CMO episode. Kudos to you and the team.
Thank you very much.
I have just two questions. Mr. Bhushan, you spoke and alluded at the start of your call to procurement prices rising and the gross margin dilution. Is it that you are seeing the API basket for you increasing, or was this mostly a phenomena of rupee depreciation and oil related purchase impacts?
I think the latter, Mr. Lakhani. It's largely been oil-led and the foreign exchange. I think, as you heard from Ron, I think we've been hawkish in terms of having a very tight control, because it goes in line with the slide that I shared. Simplification on a slide looks good, but what it means is across the value chain, what is it that we can do to not only pull out inefficiencies, but ruthlessly hack. I think that process continues, but I think the headwinds that we saw were largely oil related, as you would expect, from not only our industry, but we've seen that these variables hardening across sectors. Largely the latter, not the former. I don't know if, Ron, if you want to add anything to that.
That's perfectly put, Bhushan. It's geopolitical events driving, as things stabilize, our input costs will also stabilize.
Understood. Good to know that it's not API prices that is driving the dilution on gross margin side. My second question, team, is that, Mr. Bhushan, I think if you look at GSK over the last few years, when you came and took up the role, you mentioned about squeezing out a lot of the inefficiencies in the system, and essentially the journey that has been, has been fairly rich and rewarding.
Given that the 7% of revenue, which is the IP revenues, are likely to be the faster-growing piece, and of course, they are dilutive from a margin perspective, and the fact that the inefficiencies that could, or the low-hanging fruits that could be plucked are already plucked, is it fair, and I'm just hoping to get a directional sense that, is it fair to make the assessment that it's best that if you can hold the margins at this level, or because there seems to be absolutely no scope to sort of drive margins higher?
That's a great question, Mr. Lakhani. I think, again, and you hit the nail on the head in terms of the strategy that we have. Where I think I will add more color and give you a clear perspective is, one of the themes that's common for the industry is big brands are becoming even bigger. I think if you look at our general medicines portfolio or even on our pediatric vaccines portfolio, we have at least 11, 12 assets which are deemed big as defined by IQVIA, which means more than INR 100, INR 150 crore. I think that's where we will continue to find and fuel our energy.
Apart from what's happening with GLP-1 space, be it Augmentin, be it Calpol, be it T-Bact, be it Ceftum, I think we have at least four to five assets which are in the top 20, which will continue to see that kind of. If you look at the respective therapy areas and the therapies where these brands operate, we are either the fastest growing, and we've seen that across the last two, three quarters. All we have the EI is in excess of 105, 107. So our objective will be to continue to fund these assets which really drive not only the top line, but also the margin structure for us. So, to your question about as a portfolio moves towards more specialty driven, one is the size of the specialty portfolio.
You just heard from Ron that we are launching what will be definitely a big play for us in the blood cancers arena with the launch of BLENREP, one of the pivotal brands for us in the area of multiple myeloma. Each of these brands or the therapies in which we will operate represents a potential of upwards of INR 300, INR 400 crore individually at the brand level. So I think that connects the dots. Not only will the existing business be relevant in terms of the brands that we have in Gen Meds or pediatric vaccines, I think we'll bolt on. I think I wouldn't expect these base businesses to still continue to grow by 15% and 20% in the next three to five years.
If we grow, well and good, but I think realistically speaking, high single-digit growth is what we'll continue to aspire for, so that we still have a blended growth rate in the area of 13%, 12%-13% over the next five-year period. I mean, that's the play that we have, and I think that will give us the structure that we want. As you heard from both of us in the beginning, our focus will be relentless on top-line growth and margin expansion, EBITDA as an outcome. I think that's how we structure our processes.
Understood, sir. Thank you for that. Just one last query from my side, that could you just speak a little bit about each of these specialties that you're launching? Is there a common MR pool that is going, or are there, say, for respiratory or for oncology, are there specific MRs that you've hired? Could you speak a little bit on the sales engine that you have on the specialty side that'll help, thanks.
Sure. Again, a great question. Mr. Lakhani, no, we don't have the same reps, so we've put in completely specialized. They're not even reps, they're key account managers, because selling hematology and oncology products, we're just going to get into the big area of hepatology with the launch of Hibsago, which is bepirovirsen in the coming 12 months. We should have the launch hopefully in India. We are applying to the regulators for the launch, for the approval. But each of these businesses, therefore, requires a completely different set of functional skills, scientific skills. To answer your question, 12 months ago, we didn't have an oncology business. Today, we have a team of about 50 people, both in solid tumors and hematological malignancies, which are completely set up differently compared to the established businesses.
As I said in the last quarter's call, the advantage for these nimble-footed, agile business units is the specialties don't require casts of thousands. So you have teams of 30, 40, 50, and that's how we will replicate the model for each of the specialty business units as we start unlocking value in the coming 12 months.
Understood. Thanks and all the best.
Thank you very much, Mr. Lakhani.
Thank you. Our next question is a text question from Gokul Maheshwari with Awriga Capital Advisors LLP. We have three questions from him, sir. Would you like all three together?
Sure. Yeah.
The first, on Calpol, we had suffered loss of supply due to an issue at the supplier end. Can you give an overview of the recovery? That is, if sales were 100 before supply disruption, how much we have regained? The second is, the regulators have raised questions, certain issues on pricing of oncology drugs. How is GSK impacted in this, and does this impact your launches in this therapy? The third question, two-year CAGR for Q2 business, that is comparing September 2026 versus September 2024, growth is 8%. Given new launches in specialty segment and supplies being restored on Calpol, do you expect the business to deliver double-digit growth in H2 of the current fiscal?
As always, all great questions, Mr. Maheshwari. Always a pleasure to get your questions. The first one regarding Calpol, yes, we had a significant tailwind. I think the good news is, if you saw what I presented even in my slides, the Evolution Index on Calpol was ahead of 100 and 112%, which means we've grown significantly higher compared to the market, and that's got nothing to do with the availability per se, but the fact is that we've grown better. If you look at the underlying growth for the brand internally also, we've grown in excess of 30%-35% for Q2 for Calpol. And if you strip out and look at apples-to-apples comparison, you'd still be in the positive territory.
I think the good news is, as Ron explained earlier, the volume growth for our underlying Gen Meds business, and I'm not just talking Calpol, is a healthy 5%-7%. And I think, as we all know, in our industry, volumes and units are the closest linkage to the prescriptions that are generated. And I think that therefore gives us the health of the business, an indication of the health of the business, and hopefully that should flow into the second half as well, which is the third question, and I'll take that first before I talk about pricing. If you remember, our Q3 last year, we bounced back. So obviously, as Ron said, this quarter we definitely had variables which helped us. There were tailwinds which have given us that 6%-7% incremental delta.
But our underlying growth, even otherwise, this quarter was in the range of 12%-13%. I think, something that we stated, I've been saying in every single investor call is, our aspiration is and continued objective is to deliver double-digit growth, given not just the equity that we enjoy with our established portfolio, but more importantly, the new launches that we see. I just talked about the 30-plus global trials that are happening in India, and that allows us to really crunch timelines. So, I think that's something that we will continue to work on. You heard from Ron that in Q3 of our financial year, we should launch BLENREP. Again, one of the most significant opportunities for us to unlock value.
At any given point of time, we have an approval for second line in multiple myeloma, which is one of the most significant blood cancers, given the refractory relapsing nature of this type of blood cancer. And at any given point of time, we have about 8,000-10,000 patients who are on treatment for second line and third line in multiple myeloma. I'm just giving those numbers to give you a sense of the opportunity that is on hand for us. So, that's what will happen in Q3. In Q4, we are pursuing more indications. It's a question of whether we get the approvals in the right time. But the idea is to keep growing our base business ahead of market or at least in line with the market.
And then bolt on, as I said a couple of times before, the steroids of our growth will be really the specialty businesses. The second question that you asked me was about the pricing. I think I just answered the same question when Mr. Arun Kumar had asked that earlier. We had launched two products last year, both JEMPERLI and ZEJULA, in endometrial cancer and ovarian cancer. In 12 months' time, we've noticed, we are exactly within. To begin with, if you remember, the Department of Pharmaceuticals and the ministry has come up with this objective with the intent of rationalizing the margins because of the nature of where these oncology products get sold, and the margin that gets retained in the channels very often.
I think, to begin with, for our assets, we've always ensured that we were always within the guardrails set up, even before this margin was clearly defined at 30%. We were always operating within that margin. For us, as we not only for the existing business, but the products that we will launch in the coming two quarters of this financial year, we don't see that impacting or even ahead of time. I think those would be my responses to all the three questions. But thanks for the question, Mr. Maheshwari.
Thank you. Ladies and gentlemen, if you wish to ask questions, you may please click on the Ask a Video Question tab on your screens or put your question in text in the chat box below. Our next question is a text question from Senthil kumar with Joindre Capital Services Limited.
Has the recent Government of India order on pricing of generic oncology medicines had any impact on the company's business, particularly in terms of pricing, margins, and revenue?
I think, Dorwin, I just answered. Mr. Senthil, first of all, thank you again.
Good to hear from you.
No, I just answered this question. So, it has not had any impact for us because our prices remain the same. As I said, this was not a price reduction exercise. It was a trade margin rationalization exercise in the process leading up to where brands were offering significant margins. In our case, we were always within the guardrails, so it's not really having any impact, both favorable or unfavorable. So, we will continue to deliver on the assumptions that we had. Nothing changes for us.
Thank you. Ladies and gentlemen, once again, if you wish to ask questions, you may click on the Ask a Video Question tab on your screens or put your text question in the chat box below. We have no further questions, ladies and gentlemen. Thank you. On behalf of GlaxoSmithKline Pharmaceuticals Limited, we conclude this conference. Thank you for joining us. You may now disconnect.
Thank you very much, Dorwin. Thank you to all for joining. Thank you.