Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Hikma Pharmaceuticals' Susan Ringdal Trading Update Conference Call. All lines will be placed on mute during the presentation portion of the call. There's an opportunity for question and answer at the end. If you'd like to ask a question, please press star followed by one on your telephone keypad. I would now like to turn the conference call over to today's host, Riad Mishlawi, Chief Executive Officer. Please begin when you're ready, sir.
Yes, Good morning, Good afternoon, everyone. Glad to have you with us today. Just wanted to, you know, we have released our statement this morning. We'll be happy to answer any questions that you would have. In general, again, we reiterated a lot of our, all of our guidelines, actually, especially the ones that we have upgraded in the mid-year, both the generics and the branded divisions, and we reiterated the injectables. Very happy that the company is going the way it is. It's going strong. Our divisions are all doing well. And again, as we stated, we are reiterating all of our results and happy to take any questions that you might have.
Thank you. If you would like to register a question, please press star followed by one on your telephone keypad. Please ensure you are unmuted locally. If you'd like to withdraw your questions, you can do so at any time by pressing star followed by two. Our first question comes from the line of James Gordon at JP Morgan. Your line is now open. Please go ahead.
Hello, James Gordon at JP Morgan. Thanks for taking a couple of questions. Two on injectables and one on generics, please. The first one would be to injectables. So you've launched, I think, 10 products year to date. You're launching more at the end of the year. You used things like it's doing nicely. And so your growth and grew, implied, about 10% in the second half. But to what extent should we think that's a bit exceptional, or is that a bit more like the new run rate? And then when we think about next year, we should add Xellia on top of that so you could grow even faster? Or is it a bit exceptional that we need to bear that in mind?
The other question just on Xellia, can you remind me, are you still thinking that the business you bought grows at least as fast as your existing injectables business, or even a bit faster? And is the thinking still that it has OPEX, it's about the same as revenues initially, so it doesn't actually contribute any earnings, or could it actually contribute some earnings? And then the third question was just in generics. So H2, is that a bit unusually light? But if we're trying to extrapolate, should we be sort of annualizing the H2 number and thinking that's the new normal for generics, or more like thinking about the full year, 2024 number? So why was it declining? Sorry, why has it had the second half performance it's had? Is the second half performance what we should extrapolate or the full year?
I will start with the second one because the first one I heard half of it, but I will start with the second one. I think what you're asking is the difference between the first half and the second half, and if you should consider the second half as our running rate for next year or not. I think that's probably what I
That's right.
Took it.
And then adding Xellia on top.
Right. So for the generic business, I think it was just a matter of timing. One of the drivers that we have, or one of the important products that we have in generic is Advair. And in releasing Advair, it really takes a long time to do that. So you have to plan it ahead of time. It takes about 60 days sometimes to release this batch because there's a point where you have to make the product settle, and it has to go through some kind of steps. So there's a lot of the timing that has to take place in releasing products in this division. This is one of the elements why one half did much better than the second half. Not significantly better, but a little more better. So I wouldn't really take the second half as our trend going forward into the next year.
I would think that you have to look at it from the entire year, and in this case, it just happened that some of the deliveries that we had in the first half were a little bit stronger than the second half, but we believe that the trend in this business continues the way it is. We are very focused on it. We're focused also. I think one of the contributors of having lower second half is our commitment to spend more on R&D. So we have been with Hafrun joining in. We've been doing a lot of R&D and spending some increasing amount of money that we're spending on R&D. That will be continuous. I think our commitment and the reason why we had brought Hafrun in is to reinforce our commitment to having good, strong internal R&D. So that will continue.
But as a whole, I wouldn't really look into the trend of the second half and think that this is the norm for the next year. I think when the time comes, we will give you the guidelines for the next year, and I think that would be as much as we can do. So for your first question about the injectables, again, you wanted to talk about some of the products that we are introducing. I believe the first half of your question. We have a plan. As you all know, we're planning to introduce liraglutide to the market. And as you all know, Teva is authorized generic now, and they have the exclusivity of that product until the end of the year. That expires, I believe, on the 24th of December. And this is when we're allowed to sell out.
So we do have some inventory in the warehouse, and we are ready to start launching that product at that date. Today, I don't think that there has been any approval besides Teva with the authorized generics. So I think hopefully that would be a great opportunity to continue to be like that. But yeah, we're looking forward to launching this product at that time. We did have planned to launch other products, but unfortunately, some of the regulatory rules or some of the regulatory delays that we had is out of our control, and we anticipate those really coming in 2025 rather than what we anticipated to be in 2024. Other than that, I think the division is going strong. There's a lot in that division that's happening right now, especially with the addition of Xellia. As you know, it requires a lot of integration.
It requires that you will be integrating as you are basically, you have to continue eyes on running this division and continue doing it as efficiently as we used to, as you are also integrating a new plant, a significantly large plant, and also an R&D center. So there's a lot happening in this division. People are busy producing good products. Growth is healthy, and we anticipate this division will continue doing what they're doing today, and hopefully in the future, as the integration happens, it will have the opportunity to even produce more growth. As far as next year, I think we really can give you guidelines for next year. We'll do that in February, I believe, but again, Xellia is going to add important products to the division. As we said in the past, also, it will take us some time before we integrate everything in.
We're saying we're giving ourselves about 12 months. It will be really neutral to earnings for about 12 months until all is integrated, and then we can see the bigger benefits after that. Things are going on time and everything is on plan. Again, a lot of activities, but things are progressing nicely. Did I miss anything apart from the plan,
Riad? Is there anything that I missed? No?
Okay. James, anything I missed? Let me know. I thought it's muffled. The speaker is muffled, so I'm not understanding entirely the question, but I hope I answered all your questions.
Apologies for the line quality, and yes, thank you.
You're welcome.
Thank you. The next question comes from the line of Paul Cudden of Deutsche Bank. Your line is now open. Please go ahead.
Thanks very much. I have two questions, please. Firstly, retaining the $700 million-$730 million operating profit guidance range would imply some degree of uncertainty going into the last several weeks of the year. So if you're perhaps able to elaborate on some of the bits and takes there, that would be appreciated. And following the U.S. election results, I mean, to what extent may any changes in sort of domestic manufacturing and/or tariffs hamper or kind of benefit the Hikma business? Thank you.
Yeah, I'll start with the last part first. Any effect? I don't think that we will see the effect as recent as or in the next couple of months that we have left in the year. We don't know any change of policies or tariffs or anything like that that would happen later on. But we uniquely, from our competitors, we do have a lot of products that are made in the U.S. Our biggest facilities are in the U.S., in generics entirely in the U.S., and services also the market of the U.S. market, and the injectables, about half of it is in the U.S. and even more now with the Cherry Hill being in the U.S. and the rest being in Europe. So we don't depend much on countries that might be affected by tariffs or by transportation or by anything that might affect us.
There are some deals here and there that are coming from these countries where maybe with some changes in policies might be different. But I don't think the company uniquely in our position that if this happens, I think it will be more of an advantage to us than not.
For your first part, how are we doing in the last two months left?
You know, I think like always, like any business, there is a forecasting mechanism to everything that you do. You try to look at the trends that you've had, look at where you are, and look at what you anticipate is going to happen. We're confident that we will land in line to what we had promised. We have, of course, there are two months remaining, and usually it's a challenging one. But it's just business as normal, business as every day. We're focused.
We will close the year as we need to be, and we are confident that we will get the numbers that we are committed to.
Excellent. Thank you.
Thank you. The next question comes from the line of Dominic Lunn of Morgan Stanley. The line is now open. Please go ahead.
Thank you. Two questions on contract manufacturing, please. So I was wondering if you could expand a bit on the nature of the announced CMO contract in generics that's due to start in 2027. Is there any color you can give on the size of the contract in terms of rough annual contribution or the duration, or would you expect the contract to be back-loaded or evenly over the course of its life? And then secondly, I think you've also highlighted that the CMO contract will help improve the utilization of the Columbus facility. So is it therefore fair to assume that the deal is making use of previously unallocated capacity, or is there an element of reprioritization from in-house projects?
And then further to that, is there similar idle capacity in any of your other sites where you would look to increase utilization via CMO contracts as well? Thank you.
Yeah, great question. Thank you very much. I think we wanted to insert that in the announcement about the contract manufacturing, so two things. One is to show that we committed that contract manufacturing could be an arm or an avenue of growth in this division, having a great facility, having capacity that's available, and also with a fantastic track record that we have a quality facility that's got a lot of technology in it. The team is fantastic. They know what they're doing, so we felt that this can be easily translated or contract manufacturing can be easily inserted in as part of this business and can help in a lot of the growth that we're anticipating or we want to do in this business, so the other thing is the fact that, as you said, contract manufacturing does a lot to the business.
One, it gives some predictability in some of the revenue because it's basically anticipated. It's a service that you do. Usually, it's a product that you can have somebody else take responsibility to market. So it does really help a lot in the business, especially, as you said, utilization of an idle capacity that would help in absorption of costs and therefore would help you in your own and the cost of your own products. So we feel it's very, very positive. What we have is a great deal, a CMO deal. Unfortunately, I cannot name a lot of details. I cannot name the company or tell you a lot of details. All I can say is meaningful. It's significant. It does depend on an innovative product that will be anticipated to be approved in the next two years.
We will have to get the facility ready and the capacity allocated and added if needed to make sure that we have the capacity that is required for us to honor that contract. We think this is very positive. I think maybe in the near future, when things become a lot more clear, we can put more light on it and talk a lot more details. All I can say is it's an innovative company that we had to deal with. They were very excited and happy with what they had seen in our facility. They liked the people that they had interacted with, and they gave us a very important product that they have. And that shows the trust that they've had in the people and in the facility and the quality record that they had seen. So it's all positive.
And I feel that the fruits of this will become more and more apparent in the very near future. Today, we're really limited to what we can say, just to the respect of what our clients have asked us to do.
Great. Thank you.
Thank you. The next question comes from Victoria Lambert of Berenberg. Your line is now open. Please go ahead.
Thanks for taking my questions. I have two, please. So the first is just on the potential biosimilar launches you could have in the U.S. next year. It looks like Bio-Thera has filed with Stelara biosimilar with the FDA. And then Gedeon Richter has filed their denosumab in Europe. I don't know if you guys have filed in the U.S. yet. Just wanted to get a sense of how you think this could impact next year and maybe potential timings. So that's the first one. And then the second one is just on the generics business. Are we still seeing a similar pricing situation as the first half of the year? So sort of single-digit declines. And is this expected to continue into next year? I think Sandoz was saying they haven't really seen a change and don't really expect it to change in the next few months.
I'm sorry, just one more squeezing in. Have you seen any benefit from the supply shortages caused by the Baxter facility with regards to IV fluids? Thank you.
Okay. Well, thank you very much for the question. I will start with the easiest one, the shortage on Baxter. As you know, it's really IV fluids. We don't really have per se IV fluids. This is usually the diluents that are sodium chloride, the WFI, all of the diluents that they use in preparing products. We're not in that business. We do have IV bags, but mostly drugs, not the diluents. So we are not affected by the shortage, and it's not something that we can call opportunity for us. As far as your first question about the biosimilars in the U.S., yes, we are excited about where we are. We've seen some positive indications about us maybe getting the approval late next year. We don't know yet. Of course, there's a regulatory part at the end where you really cannot predict. It could possibly be next year.
It could possibly be early the year after. Both of our products have been filed, both of which we are anticipating getting in 2026. That hasn't changed. It could surprise us, and maybe we could get it earlier, but we don't know yet. We're tracking it. We're following up on our partners and seeing if there's any questions that the FDA had presented to us that we need to answer. So we still don't know. The effect of those biosimilars, again, it's really depending on the position that the approval comes in and how the market is. Today, we're at least one year away from that. So it's just very hard to predict. This is a very fluid market. We don't know who's in, who's out, and who can supply and who can't.
I think as we get closer to this, we should be able to give you more light on it. As far as the generic price erosion, I agree with Sandoz. We haven't seen any difference from last year. It's still about the single-digit erosion, maybe very similar to what we had last year that continues. We don't know if the new policies, if there's any new policies that would make things different. But today, I think we're considering it to be very similar to what we had this year.
Great. Thank you.
You're welcome.
Thank you. The next question comes from James Vane-Tempest of Jefferies. Your line is now open. Please go ahead.
Hi. Thanks for taking my questions. Firstly, just on the CRAMS, because I didn't see any commentary, just on the others and compounding. So just wondering how that's going to progress through Q3 and what we should expect for the second half. Second question is, I know you typically don't comment on the individual products, but why are you still to launch generic Korlym? This seems to be one of the largest small molecule opportunities in a lost IP last year. And then third question is just coming back to the generic pricing. I guess you just mentioned the prior question, you're still seeing that sort of single-digit. I think from memory, your guidance was around sort of mid-single digits. So I'm just kind of curious how much of a benefit that is compared to your prior expectation at the start of the year. Thank you.
Yeah. And I'll take the last one since it is the easiest. I don't think there's anything different. I think what we expected is what we have. So there were no surprises there. And I think we are expecting that to continue exactly as we've had last year. So I don't think that's going to change anything that we had assumed. We did not assume before. As far as the compounding, I feel like we're finally getting the compounding in place right now. I feel that we are getting now some traction. As I always said, the compounding is very delicate, sensitive. It will take time. We don't want to rush it. We don't want to make mistakes as we're doing it. We are working to make sure that we have what our clients need. So there's a lot of interaction with the clients today.
We had added to our compounding sales team. It's a very experienced sales lady that she knows this market well. She just started, and then we're hoping that also she would add her knowledge would definitely benefit this business, but we're seeing some very positive indicators that this business is going on the right track, and we keep supporting this business to get to the point where we want it to be. I think your question towards the generics. I think, I'm sorry, there was one part of the question.
Yeah, just a specific product, Korlym or mifepristone. I think the patent went or the IP lost last year. Just wondering why you haven't launched that. Seems to be one of the larger opportunities.
I think this is all depending on the commercial team. The commercial team decides what to. I don't think there's. Guy, do you know if there's any? Go ahead.
Yeah. We have previously said that we settled to launch on 1st of October 2034 or early on with certain circumstances. You'll actually see that while we have filed, we don't currently have FDA approval for the product, and our intent is to launch as soon as we are approved and are able to under the terms of the agreement.
Thank you. So that's 1st October 2034. So far.
Correct. Yeah. Thank you very much. One quick follow-up, if I may, just on the CMO business. You obviously mentioned the oral kind of contract today, but just very kind of high level. Can you remind us how much across the business is CMO today? And I'm not going to hold you to it, but just to give us a feel as to how much this could potentially be at the business in five years and how we should think about how that could expand both across the orals and the generics and the injectables business. Thank you.
Today, I would say maybe around 10% of the injectable business is contract manufacturing, a little bit less in the generics. We are looking at expanding in the injectables, the contract manufacturing, but as you know, today, we have a lot of demand to our own products, so we really don't see that we are going to contribute more to the contract manufacturing as we do today. A little bit, nothing significant. We do have two major clients that we do products for, or three, and we don't intend to take too many to complicate our business. I think we have the demand that we need today, and we have the capacity fully utilized. However, with the integration of Xellia, that will give us plenty of capacity, and we are also adding another facility here in Portugal, which also will be added to this capacity.
So I think in the next, I would say, two and a half to three years, we will have the right capacity or plenty of capacity that we can dedicate to contract manufacturing. Contract manufacturing is a commitment. We cannot just continue doing it. We did it on a small level as an opportunistic business. But in the last few years, we've had big clients, big innovative companies that want to work with us. And with these types of companies, you can't just do it as an opportunity. It's a commitment. They don't want to be an opportunistic client. They want to be long-termers. And we have to treat them accordingly. So until we have capacity that we are confident that we can give up for a longer time, we would rather not engage in any contract manufacturing.
So today, we have a good amount of contract manufacturing, good clients, very few ones, but they're good and they're significant and happy. And we would like them to continue like this. Hopefully, in the next two to three years, when we add more capacity, we should be able to take on a lot more. Actually, that was part of our plan to enhance that contract manufacturing unit. We will have plenty of capacity with technologies that are desired today that we can definitely utilize for contract manufacturing. As far as the generic business, yeah, go ahead.
No, no, no, that's fine. I'll tell you to finish your answer. Go for it. It's hard for the generics business.
Yeah. As far as the generic business, contract manufacturing wasn't really. It was there, but it wasn't a big focus until last year when we changed our strategy or when we basically redefined our strategy and put contract manufacturing as being a very important pillar to the strategy. And then we created a team. The team went out, started talking to a lot of different companies. And we got a few of the innovative companies to be very much interested. And a few of them also had signed up with us contracts. And one major one is the one that we have announced today. But this business also will have significant contract manufacturing as part of it. And we will be expanding this, and we will be adding more capacity. So later on, if we decide to add more, that's something that we'll have to visit.
But for now, we're busy to what we have. And I think we have a lot. And I think it will be a very good addition to the existing business.
Thank you. The quick follow-up I was going to ask before is if today, it's sort of roughly 10%, and in two to three years, you have the right capacity. Completely understand. It's a very kind of durable business and commitment if you can get it. But if you get the right capacity in two to three years, what does that look like? Is that going to be 20% of injectables, 30%, 15%? Just to give us a feel in terms of how much of the incremental growth of this business over time, you think you can commit to that sort of CMO business outside of your kind of core product portfolio that you have in terms of materiality?
It's hard to give you a percentage because you don't know what we're growing at too. So I don't know. But I can tell you that if you take companies like Catalent, some of the contract manufacturing companies, if you take the past Ben Venue, you can see that there's a lot of money that you can earn as a contract manufacturer, especially if you have the technology and if you have the quality record. And on top of that, if you are manufacturing in the markets that those products are being sold at, which we will be. We will be in the US. We will be for the US market. We will be FDA approved. We'll be all of that.
I think there's a lot of potential business there, especially that the biosimilars and GLPs now are taking a lot of that capacity away from the normal products. So there are capacities that are needed out there. There's a lot of companies that are contacting us to see if we have the capacity that we can sell to them. So we see that there's a potential there. We will have a huge facility with six lyophilizers there that will be dedicated to contract manufacturing. So I can't give you a number, but you can pretty much anticipate that that would be a lot more than we have today and would be significant to the business. It's hard to give you a number.
Thank you. No, I understand. Last one, if I may, just as a follow-up, ask you a different way. How many years do you think it could possibly take you to double the CMO business in injectables? So rather than think on a relative basis, when you look at what you're doing today, you've got this capacity coming in two to three years. What point do you think that could double if that kind of plays out?
You're asking the same thing in different words. But let me tell you something. In three years, we should have double the capacity that we have today in lyo utilization. And today, half of what we have is being dedicated to contract manufacturing. If we are going to have double of that, so probably in three years, we should be at least comfortably more than significantly more than the double of what we do today. Is that?
Yeah, that's very helpful. Thank you. I appreciate you taking the extra questions. Thank you.
Absolutely.
Thank you. As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad. Our next question comes from the line of Christian Glennie of Stifel. Your line is now open. Please go ahead.
Yeah. Hi, guys. Yeah, it's Christian Glennie from Stifel. Just on the generics and the CMO contract, and maybe anything else you can say around here on whether you're expected to be the sole manufacturer of this product, and is this their first-to-market product for this company? On the utilization, maybe any way to characterize the significance of that? You're calling it a significant contract. You're currently running, as I understand, that facility around about, say, the 60% utilization rate. When this product is in a couple of years into launch or peak launch, does that significantly move the needle on that utilization of that facility? And then the final piece on this, just on, is this an expectation you build out a BD team that over the coming couple of years, we should expect some similar announcements around sort of some similar contracts to come from that BD initiative?
Thanks.
Yeah. Okay. I'll try to go over this again. So the contract that we have with the CMO is with Innovative Company for a product that will be approved. It is an Innovative NDA product. And there's a lot of hope that this product will be big. That's all I can tell you. I don't know much about. I really don't know if somebody else will be manufacturing it. I don't know if it's exclusive. I know that what we had been told and what we had been anticipated or what we can produce is significant to us. And that's all I can say. It will be utilizing a lot of the capacity that we have. And we are working with this company to make sure that they have what they need and what they know today.
But I know, I'm guessing now. This is not something that they told us, but I'm guessing as this product launches, then it will be more and more accurate on how they are anticipating. Is it going to grow bigger than they thought? Is it going to be a little bit less than they thought? I really don't know. But as any product, there is a forecast. You look at the market, and you see what you're anticipating. You build a plan around that. And then when the actual situation takes place, you adjust. So I think this is where they are today. However, we do feel it is significant to us. We feel that they're excited about it. So this is why we call it significant. We call it significant because it's really measured to us, not to the Innovator Company.
It might be less significant than that to us. But the reason why it is significant to us is because, one, it really answers our strategic plan that we had put forward. We wanted to go after the CMO, and we did get CMO, and we did get the size of CMO that we want that utilizes capacity that we have that is idle, that gets our facility moving. And then utilize and utilize the strength of this capacity in terms of its compliance, in terms of its location, and of course, in terms of the technology that we have. So it answers a lot of the things that we were looking for, and we are excited about it. We hope that we'll be a great client to this company.
It opens other avenues and other opportunities that we can work together in helping them in manufacturing and being a bigger CMO than just one product. Maybe we can go from multiple products. We had that with remdesivir. If you remember, we did that with Gilead. And that had expanded to multiple products. And we have a great relationship with this company. And we respect them, and they respect us. And we feel that we can do that with a lot of those big innovative companies that we don't compete, but we can definitely help each other. So this is where we are with it. This is why we're excited about it. Whether we are going to add any more contracts, I don't think in the very near future we're going to add any significant contracts.
I think maybe increasing what we have today with the existing customers, maybe adding something small. But this is going to take some time. And I really think that we really want to be very, very successful with this because, as I said, it's an important product for this customer. It's a big innovative company. And I think we would like to open the doors to do more for them. So it's very important for us to succeed with this. So we'll dedicate a lot of our resources to making it happen. And hopefully, that will be launched in time, and we'll be very successful, and everybody will benefit from it.
Thanks.
Does that answer all your questions?
Yeah. Thanks for the extra insight. If I can ask one on injectables, the revenue guide, you've maintained the 6%-8%. Just maybe characterize or put that in context in terms of how your comfort on the 6% line, and could you still get to the 8%? And what are some of the things that need to go your way to get you to the top of range? Thanks.
The very top range, again, we anticipated to introduce products. We anticipated liraglutide, for example, to introduce it earlier than it was going to be introduced. We thought that the exclusivity with Teva would not really take on as long as it did. We thought that would help a lot. It would have helped us a lot to get there to the upper range. We had a couple of products also that we were anticipating that we will be launching them in 2025 because of some regulatory delays. So could we be in the upper range? I would say we would be between the range. It's hard for us. We have a couple of big months. I would say maybe we will be. I don't know. Susan, help me with this.
I think you're fine. I mean, I think we'll be between the range. We're comfortable with the range, and yeah, we've seen very good momentum since August, so we're on track to deliver the guidance. And I mean, obviously, it depends how strongly we get through to the end of the year, but we're confident that we'll come in within the range.
Yep. Okay. Thank you.
Thank you. We now have a follow-up question from Victoria Lambert of Berenberg. Your line is open. Please go ahead.
I just wanted to ask on the branded Middle East business because we haven't really had any questions on that. So just wanted to check in your expectations in H2. Are you still feeling like there's going to be maybe some tender at I think you said it will be the benefit will be weighted to H1? Any other sort of general comments would be helpful. Thank you.
Yeah. You're right, Victoria. We haven't had much questions about the branded business, and we would like to have more questions about it because it is a very well-performing business now. It's the third year in a row. It's stable. Profitability is very decent. It's growing. Business is growing. Our ranks in the Middle East are also being growing, and we've been climbing the ranks there. And we've been competing with all the big innovative and branded companies. The most important market that we have today is Saudi Arabia. And we are ranked number one right now. And we have a lot of plans to maintain that ranking. We're building a lot, investing a lot. We have plans to build very impressive facilities there. Our engineers are working very hard in designing a state-of-the-art facility.
I think, of course, and you all know, I talked about the injectable facilities that have been added in both Algeria and Morocco. Morocco's facility is completely done now. We're waiting for approvals from the authorities to start shipping. We also had added oncology facilities in many of the countries. We're doing that in Saudi Arabia, also adding one there. We did that in Algeria. We added also a cephalosporin facility in Morocco. We're very active in investing in this area because we really believe that it has a great future. It's delivering. It's delivering good sales, good profitability. I think by adding all those facilities, we can do even better. We are also very active from the BD on the BD side. We're seeing a lot of interested companies to work with us.
I think in light of all the problems that have been happening in currencies and in wars and instabilities, I think they see us as a solution to that. We can contract one company that can service all that area, North Africa and the Middle East, and stable, very reputable and growing company. So we are benefiting in all sides in our own expansions in facilities, in expansions in our product line, and seeing some good demands, and in getting a lot of interested in-licensing partners that they would like to in-license products through us. So it's a good situation that we have. Hopefully, that momentum will continue. We see it that it is continuing. And hopefully, those numbers are going to continue going up and up in the near future.
Thank you. Thank you. And so are no additional questions waiting at this time. I'd like to hand the conference call back over to Riad Mishlawi for closing remarks.
Okay. Well, thank you very much. Thanks for all your questions. I think just as closing, I would like to re-emphasize the strength of this company. We have been delivering our numbers year on year. We have been growing year on year. All our divisions are doing well. We struggled during the generic where all the generic business has struggled, and we had to make decisions on what to do with the generic business, and we committed to do one thing, and now we're coming all to you and showing you how we're delivering. We are delivering on our promise. We're delivering on our strategy. Our strong business, injectables, is still growing with impressive numbers, still maintaining very impressive profitability, and with the addition of very good strategic acquisitions that we had last year, we think that we can maintain that.
We did also say that one thing that we wanted to focus on is R&D. And we are delivering also exactly that. We had put the management that is very much experienced in R&D. We have expanded our R&D capabilities and adding Zagreb as a center of R&D today for the injectables. And we see that it could be also for more than the injectables. Maybe we are looking at to see if we can add other divisions in that location, having very competent people and at a lower cost. So we see that expanding, and we can benefit and having more value for less cost. So we see our internal R&D just getting better and better. And again, as I said, in the branded is in a lane all alone, going fast and going well and growing.
And we are confident that this thing is going to continue like that. So all in all, I'm very happy where we are. I'm happy with what we have progressed. And I'm looking forward for good years ahead. Thank you very much.
Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your line.