Ladies and gentlemen, good day and welcome to OneSource Specialty Pharma Limited Q1 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek. Thank you and over to you, sir.
Thank you. Good morning, everyone. Thank you for joining us today for the earnings conference call of OneSource Specialty Pharma Limited for the first quarter of FY 2026. We are very pleased to have with us Arun, Founder and Non-Executive Chairperson, Mr. Neeraj Sharma, CEO and MD, and Mr. Anurag Bhagania , CFO of the company, who will walk you through the key business and financial highlights for the quarter. I trust you've had the pleasure to review our results release and the quarterly investor presentation, both of which are available on our website as well as the stock exchange website. The transcript for this call will be posted on the company's website within the next week. Please note that today's discussion may be forward-looking in nature, which should be viewed in context with risk inherent in our business.
Should you have any further questions after this call, our investor relation team will be happy to assist you. I now hand over the call to Arun to make his opening remarks.
Thank you, Abhishek. Good morning, everybody. Thanks for joining us early this morning. I'm very pleased to be joining this call today along with my colleagues from OneSource Specialty . I'll make my opening commentary very short and leave the floor to Anurag and to Neeraj to discuss both the business and the financial outcomes of the company. I think we have had a good quarter. We have basically already guided this week that we will have a muted H1. Our performances are in line with those expectations. Most of you are aware that bulk of our growth trajectory comes from our business in the DDC segment, which is basically the GLPs. Many of you know, those markets open up only towards Q4 of this year.
We obviously will not, in today's call, be discussing anything about matters related to our ongoing judicial matters with Novo, along with our partner, Dr. Reddy's, as this matter is sub judice. After Neeraj's and Anurag's opening statements, I will give you a little overview on the inorganic transactions, which are related party, and therefore, I would like to present a perspective on that and how that's coming about. Now I leave the floor to Neeraj to start his opening comments. Thanks, Neeraj.
Thank you, Arun, and welcome everyone to our Q1 2026 results. I'm very pleased to share the progress that we are making on our path to meet the growth aspirations which we have laid out, which is to be a $400 million revenue company organically by FY 2028. As Arun just mentioned, and he'll give the details later, this number could be significantly higher if the inorganic opportunities come to pass. As we outlined in our previous earnings call, that FY 2026 is a significant inflection point for our business as we transition from our pre-approval revenues to our commercial revenues in our DDC portfolio. Our first half of the year primarily will be focusing, as Arun just mentioned, on executing our MSAs, while the second half will be driven by the commercial supplies of semaglutide, obviously subject to the fact that our customers will get approvals.
As a part of this journey and the transition, our Q1 performance has been in line with our expectations where we have delivered growth both on top line and on EBITDA. In fact, EBITDA growing quite robustly at 37% versus last year and the EBITDA margin being up 500 basis points. Anurag, my colleague, will walk you through the financials in more details. As far as our manufacturing operations are considered, this quarter was focused primarily on strengthening our readiness for commercial supplies in H2. That's where our DDC business, drug-device combination business, continues to deliver a very strong momentum. Our order book remains very solid. In fact, all of our customers who are going to be launching the product as the markets open up later this fiscal have actually raised and revised their forecast upwards.
In fact, which is very conducive, and the fact that all these contracts are supported by take-or-pay. This really reinforces our confidence in the trajectory ahead and bases that we are actually accelerating our phase II of capacity expansion in drug-device combinations. While this is still within the overall INR 100 million CapEx plan which we have announced earlier, but the entire implementation will be completed a year ahead of schedule. Which as you see reinforces the confidence our customers and we have. Going away from drug-device combination, another key highlight this quarter was our strategic partnership with Xbrane in biologics, which is a leading Swedish biotech company. This collaboration really strengthens our drug substance business and accelerates also the regulatory inspection of our drug substance site. Along with the biologics, our focused business development activities have been expanding our funnel across our business offerings.
We have added multiple new RFPs and secured new deals in the quarter. Along with the business moving in the right direction, what really gives us a matter of really strong pride for us is our compliance track record, which was once again reaffirmed this quarter as we saw successful back-to-back inspections and approvals by U.S. FDA and ANVISA, which really shows our commitment to quality. In fact, during the quarter, apart from these two, we have had almost 25 inspections done by either our regulatory agencies or our customers across all our sites, all these being successful. Along with this, we also continue to invest in the leadership and in building the organization, which is really key to supporting our growth. In fact, we have announced the recent appointments, which both to our board and to our leadership team.
These have really added strategic and commercial depth to our organization on one side, and on the other, really reinforced our commitment to maintaining a very high standard of governance, which we and the group is really known for. Of course, we saw in a really exciting development last evening, our board has given go-ahead for us to evaluate the potential transactions. Arun will be giving more details on this, these really have very good fit with our injectable business and will give us a global footprint. Of course, we'll keep providing update on this as we go along.
Finally, I just want to say that all the hard work which we have done, our teams have done together with the customers during the MSA phase is now on the verge of coming to fruition, and we are really looking forward in the coming quarters, especially in the second half of this year, really excited that the commercial supplies will begin. We really thank all of you for your continued support, and I will now hand over to Anurag to take us through our financial highlights.
Thank you, Neeraj. A very warm welcome to everyone joining us on the call today. I am pleased to present our financial performance for the first quarter FY 2026. As Neeraj mentioned earlier, the Q1 FY 2026, we reported the revenues of INR 3,273 million. It reflects a 12% growth year-over-year. The profitability for the quarter EBITDA grew 37% to INR 885 million, with margins improving 27% —to 27% in this quarter, translating a 500 basis points margin improvement. Adjusted PAT for the quarter is about INR 371 million compared to a negative PAT on comparable previous year. Adjusted earnings per share on an annualized basis, fully diluted, stands at INR 3.2 per share. As you all know, our PAT and EPS is adjusted for exceptional items and amortization of scheme-related intangibles.
As we mentioned earlier, our target debt to EBITDA to stay below 1.5x during the course of this year as we are accelerating some of our CapEx investments. The timing of these investments there may be a few quarters as we see where this might go slightly higher than 1.5x, but we are fully committed to get back. This is a temporary phenomenon, we are expecting to get back well in time to the same number that we guided earlier. I want to highlight on the back of the previous quarter where we had a credit rating upgrade, this quarter again, we had another upgrade. Proud to say that OneSource is now a part of the A family. This development is reflective of continued confidence in our financial management and provides a better access to capital and on much better terms.
As you know, over the last few quarters, we have prepaid significant amount of high-cost debt, we are consciously balancing our approach to leverage access to capital and debt along with our internal accruals and customer participation in our CapEx programs. Looking ahead, we continue to build scale and capability, investing into the future of the business. We reinforce our earlier guidance on the financial metrics and expect to be 1.5x EBITDA on our debt metric. The quarter continues to be extremely transformative for OneSource, we've made significant progress over the years, what we see ahead of us sounds even more exciting looking forward to that. Thank you once again, we are very happy to take questions.
You want Arun's statement?
Yeah.
Arun.
Sorry. Yeah. Thanks, Neeraj and Anurag . I just want to give a little bit of overview of these two assets and the background behind it. As you all know that OneSource is a culmination of an NCLT process where three parts of the businesses, the group combined. At that time, both the Polish facilities and the Baroda joint venture with Brooks was still in the making and was complicating the NCLT process. As part of our roadshows pre-IPO, we, as promoters, made commitments to investors that we would bring our CDMO assets in the group or in the family office under the OneSource umbrella. This announcement, subject to various approvals, is the beginning of that commitment that we made as promoters.
In terms of the businesses, the Polish facility is a U.S. FDA-approved plant with very significant capacities, and it is approved both for pharmaceuticals and biologics. As we speak, we are currently fully committed for our capacities. We manufacture for marquee customers, including Europe's largest anesthetic branded product, which is currently contracted to be manufactured on a very long-term basis with our facility in Poland. The plant is also approved by all other regulatory agencies like the European agencies, obviously being in Poland, but also in Australia and Canada. More importantly, this also gives us the ability to de-risk the concentration risk that our customers have been emphasizing.
While we have no capacities available for sterile injectables, the plant has got ample space to expand to GLPs, and we believe that it is pertinent for OneSource to have an additional site, to take care of the increasing demand or increasing customer concentrations that we have and the risks attached to those, what our customers have been asking us to de-risk. We have an option to set up an additional line in time for the markets in both Europe and U.S. to open up, and that would give customers, I believe, a stronger sense of relief. Coming to the second facility, which is the plant in Baroda, which is a partnership with Brooks. We had acquired 51% of this company several years ago. Since then, the company has been transformed to have completed a U.S. FDA approval, inspection rather.
We have invested heavily to now have an integrated capability because in the antibiotic space, API control, especially for sterile, is important. This facility has got a captive API conversion capability, which it will captively use. We also have our first products approved in the U.S., and that's a very unique strength of penems, which we are again the first company to launch that product. It will also have the ability to offer ertapenem in its lyophilized forms in the next couple of months. When we expect approvals from the U.S., we are already approved in the European market. Our capacity has been contracted quite significantly. Both these businesses in Poland and in Baroda report very healthy numbers.
We currently have approximately INR 65 million of revenues for this year, with an EBITDA in the 36%-40% range, and fully booked and committed to deliver INR 100 million of revenues at the bare minimum in the next year, and that's with INR 36 million-INR 40 million of EBITDA. The whole transaction will go through a new NCLT process, which will take approximately 12-18 months and go through the rigors of SEBI pre-approval before we file to the NCLT, followed by shareholders' approval, which will include a fairness opinion by a first-class banker. Then, of course, it will be a function of additional shares based on valuation. All of these are early days. At this time, we only have an independent committee of key directors being formed to evaluate these options.
Once that comes through and there is alignment between the shareholders and OneSource, we will obviously take it through the next steps. We believe that both these assets will add significant value to the long-term plans of OneSource, which obviously will also mean that our targeted revenue of INR 400 million with INR 160 million will have an upward trajectory in excess of INR 500 million and slightly in excess of INR 200 million of EBITDA. Both these businesses on closure would be near debt-free or under INR 7 million-INR 8 million of debt on a INR 40 million of EBITDA handrail for 2027. Like I said, the book is fully contracted, so these are not a business case, but more a contracted business that we will look at as to vend into OneSource.
Apart from an equity dilution, it will not require OneSource to lever any kind of debt or add debt to its books. This will be accretive from that nature. Obviously, these are very early days and we will keep our investors and analyst community fully updated as we progress on this. I have a hard stop at 9:45 A.M., so I will be happy to take questions related to any specifics that you guys may have, but Neeraj and Anurag and the rest of the team would be more than happy to address your queries. As always, we are available for one-on-one conversations or through our investor desk. Thank you.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Anand Mundra from Soar Wealth . Please go ahead.
Good morning, sir. My questions are related to Canada market. What is your view? How many players would be launching in this market during the first phase? How many generic player market would be there in semaglutide in Canada? That was my first question, sir. I have two more questions.
I'll just answer this. Your guess is as good as ours. We are seeing right now there are a few companies who have filed in Canada. Which ones will get approval, we really don't know. Our guess is these are complex products, so we don't expect the market to be crowded when the market gets formed. In our view, there will be, at least at the time of launch, there will be a limited number of players into the market.
Okay, sir. Second question with respect to approval. What is your assessment or sense on January 2026, as a launch for semaglutide generics? Is there any risk of delay for approval?
Again, what I would only say here is that these are complex products. Also the companies who have filed are some of the biggest and the top generic players who are used to handling complex products, who are used to getting approvals. We have already seen some companies getting approvals of liraglutide, both in Europe and in U.S. I think that gives confidence that companies will get approval. When that approval comes and who comes first, I think it's really very difficult for anyone to answer that.
Thank you, sir. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead.
Thanks for taking my question. Two questions. Neeraj, on the capacity that you talked about. If you can just clarify, when does the INR 200 million of the CapEx plan from your end, or when does the INR 200 million vial capacity, cartridge capacity come through now?
Within what we had said, right? That the CapEx we are building, we will be having all capacity up and running by FY 2028. We have actually brought it up significantly because we have advanced our third line actually also earlier. We would be having now this capacity all up and qualified by end of calendar 2026.
Okay. Secondly, you also mentioned in your comments about existing customers increasing their order sizes, new customers coming on with lot of take-or-pay agreements along with it. If you can just probably help us understand, A, what proportion of the capacity that's right now, I mean, is covered right now with the sort of firm contracts. And generally speaking, is it fair to assume that all of this capacity is backed by take-or-pay?
What I would say here is that, the ones which we are launching, especially the markets which are opening up early starting January next year, all the customers who are scheduled or planning to launch in all these markets all have take-or-pay contracts. We have take-or-pay contracts with all of them. They will take up significant part of the capacity, especially over the next anywhere between 18- 24 months, because as the launches ramp up and the volumes ramp up in the market, that's what we are looking at, if it answers your question. Arun, please.
Nitin, just to add to what Neeraj is mentioning, and to be very specific. At this time, we have capacities only for 40 million units. It's safe to assume that a large part of that will be consumed for the early markets that are opening up. As you know, that the early markets that are opening up are only mainly Canada and then Brazil and Saudi Arabia, and of course, a lot of emerging markets. To that extent, we are now very confident that our capacity is very largely sold on the take-or-pay concept that Neeraj is alluding to. The incremental capacities is a function of us first having the equipments up and running.
I think what we are saying is that we believe that the demand is significantly greater than what we had anticipated in terms of timing, and therefore, we are bringing forward the CapEx and the capacity for 2026 technically would be only from that 40 million unit, and from 2027 onwards, we'll have a significantly larger number.
This will be the last one on that, Arun. There's been a lot of this news around the Novo Nordisk cutting the guidance for 2026, selling 2025, and the concerns around the outlook for semaglutide. How have your clients reacted to it, and is there any change the way we're looking at the business from
I think we share your concerns. Sorry, Neeraj, apologies. We share your concerns, Nitin, but it's just the fact that we are a CDMO and we go by what our customers contract with us, right? At this time, they are increasing forecast, willing to pay upfront, and we can only go by that. We believe that an improved price point, and there is, obviously no worse we can't specifically comment on a company, but I think it's also to do with pricing and patients falling off the regime fairly quickly. I think price points, which the generic industry generally does, will enhance the market quite significantly. Right.
Thanks.
To Arun's point, exactly, what we see is that whatever Novo is talking about in the U.S. is also that they are losing two compounders. The overall volume in the U.S. is still getting maintained and the same that once the generics come in, especially in the markets which are opening up over the next year or so, I think a significant volume driver will be just access. Access to product which is not there today will drive and the price delta between tirzepatide and sema generic will continue to drive. We are very confident as our customers are over the next couple of years.
If I can take one last one after the permission. In the presentation, you talk about nine NCE-1 molecules. Barring this, what are the timelines for these molecules to be coming in the market? How many GLP-1s are in these NCE-1?
This is a very specific question. I would just like to say that these are very important opportunities, and NCE-1 generally are. They are of various molecules. There are GLPs, there are non-GLPs. There are oral technology, there are injectables all across all our modalities. These will start entering the market over the next couple of years and we'll keep you posted as these come up.
Thank you, sir. Bye.
Thank you. The next question is from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead.
Hi, sir. Thank you for the opportunity. First question is on the capacity expansion. You mentioned about expediting the 200 million cartridges by end of CY 2026. Based on today and the kind of outlook from what your customers are giving, is there a plan to further expand this from where we are or where we have committed in terms of the cartridge capacities?
I think as you see, right, that this is a moving market, right? What we knew a year back is very different from what we know now and market continues to evolve. We are continuously engaged with our customers. As we mentioned, based upon our customer forecast, we have advanced our CapEx program and if it is required later on and our customers want, we would be doing that. Arun already mentioned that if the assets, especially the one in Poland, if it comes, we do end up closing the acquisition, that's an area where we would be doing our next expansion. We are open and we are thoroughly engaged with the market development.
Understood. Sir, in our revenue guidance and the EBITDA guidance for FY 2028, we are not factoring the Poland and the Baroda facilities, what is getting evaluated, is that right?
Yeah, that's correct. We have mentioned that. That INR 400 million revenue we gave was through organic growth and if we do end up closing these acquisitions, it will
that FY 2027 numbers for these will be about INR 100 million revenue, about 40% EBITDA. These would add significantly to our guidance and then once it is closed, we will be sharing a revised guidance.
Okay, understood. Just lastly on your current quarter performance. If I have to see the current quarter, can you throw a color on how the three segments of the business would have performed?
I think as we have said, that all parts of our businesses have performed. Obviously, the drug-device combination, a lot of work, we executed a lot of MSAs, so it's always the key driver. At the same time, our injectable and soft gelatin business also did. Both our base business, soft gelatin and injectable, have some seasonality built in because as you know, antibiotics are seasonal, some of the large cold products are seasonal. It had some seasonality built in into that part of the business. Let's say all businesses, all our service offerings have delivered basis our expectations.
Got it, sir. Thank you. Now I'll join the queue.
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Hi, good morning. Thank you so much for your time. I just wanted to get some more additional views on the commentary which you made about customers significantly revising their guidance upwards for the semaglutide supplies. Could you give us some sense in terms of how the volumes could play out in markets like Canada, Brazil, where the innovator was present already, and maybe some of the markets, other EMs where they probably didn't launch or who are in early phase of launch as well, like including India. What's changed, when you say forecast is higher, so maybe in the last two to three months since our Q4 call, why are they revising their guidance upwards? Just wanted to get some more feedback. Yeah, thank you.
What I would really like to say here is that it's all a matter of access, right? The numbers which you see right now in IQVIA in both Canada, Brazil, and some of the other markets are primarily a factor of supply. It is not a factor of the inherent demand, the patient population, the incidence of diabetes and obesity, which is very significant in these markets. The numbers have been really constrained by the supplies from Novo. If we do the right analysis on how the patient population is, we will realize that these markets are really underserved. With generics coming in, we see the access is what is going to drive the volume. As whichever market you see the products coming in, the market's expanding.
A very clear example also is India, where the moment the product is launched, you see a significant uptick, and we see the same picture in these. I think on that basis, the customers have increased their forecast.
Got it. Just a follow-up there, if you could maybe give some feedback separately for markets like Canada and Brazil, where innovator was present there. What's your sense on sort of volume in calendar year 2024 or 2025, how the run rate is, how the volumes could expand as generic opportunity opens up? Maybe, if my understanding is right, there are 80+ emerging markets where semaglutide generics can be launched. Could you give a ballpark number in terms of how many of these countries Novo didn't launch itself? These could be new markets where generics probably form the market in the first place. Thank you.
Yeah. To your first point on both Canada and Brazil, while Novo had launched, but again, as I said, the supply had been really constrained. If you know that Novo has really been focused on supplying the markets which are primarily U.S. and Western Europe. These markets had very limited supply. We have that 2024 number of total GLP-1s in Canada, for example, at just about 12.5 million. I think for us, it's clear, and same as Brazil, it's less than half. We see both these markets to be significantly more. End of the day, obviously, we as CDMO have to follow what our customers say. Our customers are the who's who of the generic industry and I think there is nobody better than them to really forecast the market.
We just make sure that our customer demand is met, and we are set to meet that forecast.
Yeah. Just a follow-up on the emerging markets bit where out of the 80+ countries, how many where Novo didn't launch itself? A very broad number is fine. Don't need an exact number, but is it like 30 countries, 40 countries where Novo never launched product?
I don't have. I can come back to you with specific data, but I can say that many of these markets Novo didn't launch. You can have a clear example that The diabetic capital of the world, the second-largest diabetic population in the world, India, they launched as recent as a month back. Many markets they have not launched. We don't have that number. We can come back to you. Market formation in those markets will help and our customers. We have global customers, and global customers have global footprint. When we supply to them, it's for our customers to choose which market they would like to supply.
Understood. Thank you.
Thank you. The next question is from the line of Rupesh Tatiya from Shree Rama Managers PMS . Please go ahead.
Thank you. Thank you for the opportunity, sir. I must appreciate Arun for bringing all the injectable assets in OneSource. It's really appreciable, and my best wishes for the team and the whole process. I have two questions, one on Xbrane and one on Brazil. In Brazil, sir, will both Ozempic and Wegovy be launched in 2026 or Wegovy is a little later? Are we present at market formation in Brazil? Are we part of wave one launches? How is the client concentration in Brazil? Are we dependent on a single large customer or there are multiple large customers? This is the question one on Brazil.
Brazil, obviously, we are seeing both waves. The first launch is of Ozempic. The way the Brazilian patent regime works, they don't normally allow any change, any separate patent expiry for the same molecule. It is likely that they will come, but again, that's for our customers to answer and handle. From a customer point of view, I can tell you that we have a large customer base, which includes global customers, regional leaders, country-specific leaders. We have a fairly diverse customer base. It is true not only for Brazil, it is true for the global market. I think, which is true also for Brazil.
Just clarification, we will be present at market formation in Brazil as well, right?
Again, if our customers get approval. We have already said that our site got ANVISA approval and we are all set. We are all ready from all our approvals point of view. Obviously, it'll depend upon our customers' product approvals in the market for us to be there, or for them to be there at market formation.
Okay. Fair enough, sir. Then on Xbrane, sir.
Sorry to interrupt. Mr. Rupesh, may I request you return to the question queue for the follow-up?
I just asked one. I had one more on Xbrane, I think if you can give opportunity.
Okay.
Please go ahead.
Yeah. What is the quantum of investments, sir, in Xbrane? It wasn't mentioned, I think, in the press release. When do we expect the technology transfer process for ranibizumab to begin? In which year, can you give some timeline on when can we see some commercialization of this molecule? Finally, how many more future products this partnership will have? This is the question on Xbrane. Yeah.
Yeah. Rupesh, Xbrane, as I said, it's a Swedish biotech, it's a very strong R&D capabilities, very strong pipeline. With this investment, we have access to their pipeline and the fact that some of the assets which they already have will get transferred. They have assets in the products which they manufacture outside could come to us. The tech transfer, to your question, when the tech transfer will start, I think, in fact, the process has already initiated. This is a biologics product. It's a pretty long tech transfer process. We expect the tech transfer to be completed over the next 12-18 months, and that will also trigger our inspection, both from Europeans as well as from FDA.
Okay. The investment amount, can you give some range, sir? INR 100 crore, INR 50 crore, INR 200 crore, some range. What would be our investment in the Xbrane?
I don't think that's what we are discussing right now. As I said, the investment is for us to get access and we have a stake in the company. I think we will leave it at that for now.
Okay. Thank you. I'll come back in the queue.
Thank you. The next question is from the line of Rishabh Gang from Sacheti Family Office . Please go ahead.
Yeah. Hello, sir. Am I audible?
Yes, please.
Thank you for the opportunity. You gave a lot of information regarding the acquisition of the two plants. I just wanted to ask, how do we see the return ratios and payback for such acquisition? That's my first question.
I think, as Arun mentioned, the process is just initiated. We've just had the board approval to start the evaluation process. Now we are going to be engaging bankers for valuation and so on. Once that is done, I think we will be able to come back to you. If Arun would like to add something. Arun, please.
Neeraj, thanks. I think to answer your point, first of all, although we have interests across various companies. You need to appreciate that we will not recommend a transaction unless it meets all the governance criteria and that is why we have a very robust governance process across our group companies to ensure that the minority shareholder interests are of the highest order. We believe that these transactions will be accretive and typically all transactions that we have done should be accretive to the listed company. Like Neeraj mentioned, this is early days. You will have the opportunity to evaluate your question when you see the data that should be available in the next couple of months, when all the advisors and the fairness opinion is out. I think that would be an appropriate time for us to have more pointed questions around that.
Got it. Thank you, sir. The second question was regarding the compounded GLP. If you can tell how big is the compounded GLP market right now, and do we also target this kind of a market or are customers targeting compounded GLP? Yeah.
No. See, compounding is a phenomenon which is unique to U.S. and few countries in Western Europe. How big the size of this market is anybody's guess. Simply because this market, it's not fixed for the molecule. It is whatever molecules are in shortage, the compounders are allowed to compound. That's how the compounding market works. There is no fixed size of this market. Obviously, it's because of the huge shortage which was there in U.S. both for Novo and for Lilly, they were allowed to compound. I think at their peak, they were able to get a very significant share, anywhere between 8%-10% of the total share they were able to take. Now that the FDA has withdrawn or asked them to stop compounding, it's anybody's guess.
I think it's important thing is, what it shows is that there is very significant demand in the market, whether it's Novo or when there are generic launches will come, the patients are all available to take the product.
Got it, sir. Thank you so much.
Thank you. The next question is from the line of Chirag Shah from White Pine Investment Management. Please go ahead.
Yeah. Thanks for this opportunity. There are two questions. Question one is on the potential M&A that you are again embarking on. Is it more of the same or it brings an additional capability, either in terms of technology or in terms of customer? I know you have already indicated earlier, but a brief rewind would be helpful. How does it add up in terms of value to OneSource? Question one. I'll ask the second question after that.
Yeah. I think I mentioned, Arun also mentioned, obviously, if approved these sites bring in significant strength to our core injectable business. They add multiple capabilities. They add to our existing capabilities. They are very synergistic to the fact that we have our penems add to our antibiotic franchise which is already there with penicillin. We have very significant expansion to the U.S. business. The customers are some new and some common, increases leverage with them. A very important point which this covers is that this acquisition would give us a global footprint which is very key for a global CDMO like OneSource. Obviously, the Polish site has got huge expansion capability to add our drug-device combination suite there to service our, both European and American customers.
Okay. Second question was, we have been focusing on generics. Any thought on being part of innovator or what are the challenges over there, and would this Polish acquisition help you to be part of the innovator supply chain? Especially after the Catalent deal which has happened, you are in a sweet spot in that sense.
Absolutely. The point you are making is absolutely valid. Just to say that we already have innovator customers. In fact, we said that in our biologics business, we already have innovator customers with a new biologic entity and we continue to add. Your point on the Polish entity facilitating addition of innovator customers, especially the ones with the next wave of GLP-1s, it will really facilitate working with innovators.
Would you like to just call out what part of the revenue, what percentage of revenue would be coming from innovator for Polish? A broad range also would be fine. If you can help us understand, it would be helpful.
I think as a CDMO, we really do not look at specifically what kind of customers it is, as long as it is diversified, as long as we have the capability. We don't really do this segregation here. We would be happy in the long term, once the business has stabilized, especially in the biologics field, we would be able to share as we progress.
Okay. Thank you. All the best.
Thank you. The next question is from the line of Suvaan Mittal from MFC. Please go ahead.
Hello, sir. Thank you for the opportunity. I just have one question. In continuation to your previous con call, you had mentioned that we aim to be a significant player in high-viscous prefilled syringes. Is these two acquisitions of U.S. FDA facility, is one of the first steps to create a foundation in the specialty injectables, mainly with a vision of being a significant player in that. Secondly, if we can be a significant player, can we somewhere mirror our growth and scale in DDCs and some two, three perspectives on that?
You're talking about the new site we mentioned today, right?
Yes. In continuation to our previous con call, where you had mentioned that, we aim to be significant players in the longer term for specialty injectables.
You know that, right, that we have a very long legacy in the group to be a strong sterile injectable player and the sites which come in, both they supplement our capabilities and complement capabilities which we don't have. Whether it's in the area of ampules, an area which we don't have right now in OneSource, to the area of a very large manufacturing of vials. Again, it increases our scale of manufacturing at multiple times because of very large capacities which are there, especially the Polish site. Pre-filled syringes get added. Both, as I said, complementary to what we do and adds capacity to what we are doing. The very fact that there are significant more, I mean, we all know, everybody follows the pattern expiries which are coming over the next five to six years in biologics.
We also need to look at the significant number of pattern expiries coming in the field of sterile injectables. We are and want to remain a very significant CDMO partner in this area of injectables, and this acquisition will strengthen our game there.
Thank you. The next question is from the line of Mehul Panjwani from 40 Cents. Please go ahead.
Hello, sir. Thank you so much for the opportunity. Sir, I have one question I have is about the commentary you mentioned that the revenues will pick up from the second half of the year, and also you mentioned about Q4, there will be a lot of pickups by the customers. Can you please elaborate? I'm new to the company.
I think what we just mentioned that our first half is about executing our MSAs in our drug-device combination business, and readiness for commercial manufacturing and launches. We'll be manufacturing. We have got confirmed purchase orders from number of customers and the manufacturing will be done in the second half. As approvals come in and as patent expires, that's how the revenues will start coming in from the second half from all the semaglutide launch.
Thank you. The next question is from the line of Dhruv Gupta from Sagun Capital. Please go ahead.
Hi. Thank you for taking our question. My question was, beyond GLP-1, are there any other therapeutic areas or delivery platforms where you see potential for platform expansion?
Yes, absolutely. I think, I have mentioned earlier in previous earning calls, that our strength in OneSource is drug-device combinations, right? Products where there is an interface between drug and device. That's what is key. We've got today 10 different molecules in the drug-device combination which we are working for our customers, and only three of these molecules are GLP-1s. You can imagine that there's a very large expertise which we have. We have expertise in filling drug-device combination, in assembling them end-to-end. Now you see a lot of new R&D and products getting approved are in the area of self-administration, and self-administration is really supported by a drug-device combination. You see products which our first product approved in U.S. for our customer is a non-GLP drug-device combination.
Our first product approved in Europe is a product which is a drug-device combination in biosimilar area. We are always working on various products in drug-device combination outside of GLP-1s. Outside of drug-device combination, our very strong business, both in sterile injectable and the soft gelatin, really strengthens our core base.
Thank you. The last question for the day is from the line of Aman Vij from Astute Investment Management. Please go ahead.
Good morning. Two questions. One is on our two products, liraglutide and teriparatide. We were supposed to launch these products in Europe for a while now. Can you talk about the revised timelines? Do we expect this quarter or it will take two, three more quarters? What is causing this delay? That is question number one.
liraglutide already, you said our customers have got approvals. CDMO is not always dependent upon us. It's both dependent on customers and customer priorities, and customers' ability to supply us all the material, because our job here is to manufacture as per customers' requirement and also customers' priorities. It's key for that. That's what I would say. Having said that, liraglutide for Europe, we have already manufactured this quarter, and our customer will be launching the product. teriparatide is exactly the same. In fact, we've already manufactured for our customers and the actual launch will depend upon, again, as that customer's options and when they want to launch.
Is it expected in, say, first half of this year or second half of this year, both the launches?
For us, both the products have been manufactured and, as far as OneSource is concerned, the launch will be in first half.
Sure, sir. My second and final question is on the GLP-1 market. Could you talk about how important is India market going to be for us utilizing that, say, 40 million and at least 100 million fill finish capacity we have? Do you think Indian market can be as big as Canada or Brazil market or it will be much smaller market? Just to complete this thought, do you think at least for next one, two years, given we are present with almost most of the customers who are launching in India, Brazil, even Canada, do we expect we will have almost 40%-50% kind of market share in semaglutide generics in the next two years?
On India, if you see, obviously at the face of it, India is the second-largest diabetic population in the world. There is a very strong inherent demand which is there. Whether we will supply or For us, it all depends upon our customers. We have global customers and if India is their market, they would launch. We, as a CDMO, are completely geography-agnostic. It doesn't matter. We have agreements with the customer, and they decide whichever market they want to supply. I cannot really say whether they will supply or not to India. Yes, we are open and we are open to supply in all markets. To your question on our shares, we have really global who's who of generic companies, whether it is the global leaders, the regional leaders in specific large markets.
I don't know about next two years, but it's fairly said, if you see, looking at our customer base, it could be anywhere up to a third at least of the generic market as it develops could be serviced by the customer segment which we have.
Sure, sir. Thank you for answering the question.
Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to the management for closing comments.
Thank you. On behalf of OneSource, really would like to thank you for the interest and for all the questions, very insightful questions which have been asked. I know it's never enough. We are never able to take everybody's questions, but we really would like to ask you, if you have questions, to reach out to our investor relations team on our website, and we'll be very happy to respond and answer your questions. Thank you once again for being with us this morning.
Thank you.
Thank you. On behalf of OneSource Specialty Pharma Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.