Ladies and gentlemen, good day and welcome to Orchid Pharma Limited Q2 FY 26 earning conference call hosted by Systematix Institutional Equities. As a reminder, all participants' 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 this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Vishal Manchanda. Thank you, and over to you, sir.
Thank you, Neena. Good evening, everyone. On behalf of Systematix Institutional Equities, I welcome you to the Q2 FY 26 earnings call of Orchid Pharma. We thank the Orchid Pharma management for giving U.S. an opportunity to host the call today. We have with U.S. the senior management of the company, represented by Mr. Manish Dhanuka, Managing Director; Mr. Mridul Dhanuka, Whole-time Director; Mr. Sunil Kumar Gupta, Chief Financial Officer; and Mr. Kapil Dayya, Company Secretary. I now hand over the call to the company management for opening remarks. Over to you, sir.
Thank you, Vishal. Good evening, ladies and gentlemen. I am Manish Dhanuka, Managing Director of Orchid Pharma Limited, and I welcome you to our discussion on the results for the Q2 of financial year 2026. First, we go to the financial performance. For Q2 2026, our sales stood at INR 194 crore, representing a decline of around 13% year-on-year. However, when compared sequentially, this quarter marks a modest improvement over Q1 of 2026 of around 13%. Global margins for the quarter stood at 32%, compared to 43% in the previous quarter. We have faced a dual setback this year. As you may recall from our last call, we had decided to not chase volumes aggressively in Q1 and had instead held back material, expecting that market prices might recover in the following quarter. Unfortunately, that recovery did not happen.
As prices continued to remain weak, we eventually sold the higher-priced inventory that we were carrying at the prevailing market rates. Additionally, we increased our sales in emerging markets once it became clear that volumes and prices were unlikely to recover. In emerging markets, where price realizations tend to be lower, this further impacted profitability. Together, these factors led to a significant reduction in gross margins. EBITDA for the quarter was INR 6 crore, compared to INR 14 crore for the last quarter, primarily due to the margin compression and inventory revaluation. The AMS division sales have grown by 40% since last quarter, although on a very low base. The drag from AMS division continues, however, reducing on a quarterly basis. Now, a brief discussion on the market environment. The broad antibiotics market remains under severe strain.
The downturn that began in the Q1 has persisted, and in some segments, even deepened. Our analysis of exports out of India shows that for this quarter, the overall quantity of antibiotics exports fell by 26% year-on-year, compared to a 23% decline in the previous quarter, while export value dropped by 36% compared to 37% in Q1. This persistent decline clearly indicates that there is no real recovery, either in volume or in price. The situation is similar in China. Our market sources there indicate that both domestic demand and export activity have slowed in China, particularly for the cephalosporin-based antibiotics. In summary, we continue to face one of the most prolonged and broad-based slowdowns the global antibiotics industry has seen in the past decade. A brief discussion on some strategic initiatives.
Coming to our strategic initiatives, I am pleased to announce that following our update last quarter on Allecra's insolvency and the resulting uncertainty around Orchid's royalty streams, the acquisition of global rights to emmetazobactam and the trademark Exblifeb has now been formally completed. This is a transformative development for Orchid. It gives U.S. full control over the regulatory and commercial strategy for this innovative antibiotic worldwide. According to our estimates, this asset should lead to an economically significant revenue and profits for Orchid, as we will now try to out-license the product in multiple markets across the world. All future economic benefits, including the double-digit royalties from ADVANZ PHARMA in Europe, will now accrue directly to U.S.
Globally, Exblifeb has already been licensed in Europe, MENA markets, and price approvals in five largest E.U. markets, that is Germany, France, Spain, Italy, and U.K., are expected to be completed by the end of this calendar year, which should bring in the sales. At the recent CPHI event, we held multiple discussions for further licensing opportunities. While it is too early to announce details, we hope to share concrete progress on one or more new licensing arrangements in the coming quarters. Orblycef. Our domestic demand for our brand Orblycef continues to perform well. In fact, we have exceeded our one-year targets, supported by our partnership with Cipla and the strong field presence of our AMS division. Prescriber acceptance remains encouraging, and we see this as a stable and growing segment for Orchid in the Indian hospital antibiotic space. Anti-microbial stewardship.
The AMS division continues to expand its engagement with hospitals and clinicians, focusing on responsible antibiotic use and AMR awareness. While still in the investment phase, it is helping position Orchid as a trusted partner in critical care antibiotics. This platform will also be a key success factor in the launch and scale-up of Cefiderocol in India, given its specialized positioning and the hospital-based prescriber audience. Now, on to the projects. The 7-ACA project continues to progress in line with our revised timelines. I am pleased to share that all perimeters have been erected. This is a critical engineering milestone for the project. Other major equipment has started arriving. We are modifying our project execution strategy to ensure delays in civil construction do not slow down other parallel activities. Despite setbacks due to unprecedented rain in the region, we continue to target mechanical completion as announced earlier.
Once operational, this facility will strengthen Orchid's API manufacturing base, reduce import dependency, and deliver long-term cost synergies. Cefiderocol project. The building structure is nearly complete on this project, and equipment deliveries have begun. We are on track for production readiness by Q4 of 2026. Operational discipline. Even as we invest in new projects and differentiated products, operational discipline remains central to our approach. Maintaining cost stability in an inflationary environment while safeguarding margins in a declining market continues to be our key focus. Persistent volume and price pressure in antibiotics continues to weigh on revenues. At this stage, we see no signs of revival in the current financial year. However, our priorities for the second half of the financial year 2026 remain very clear to U.S.
Finalized licensing deals for Exblifeb in new geographies ensured fast-track progress on both projects, continued business development efforts while maintaining a wait-and-watch approach on the global demand recovery, and maintained our frugal management strategy, built volumes and credibility in hospital sales through AMS division initiatives. With the regained control of emmetazobactam, a strong domestic hospital franchise, and major projects under execution, Orchid remains positioned to withstand short-term headwinds and prepare for long-term growth. Thank you for your attention.
Thank you. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants that you may press star and one to ask a question. The first question comes from the line of Vishal from Systematic Shares and Group. Vishal, please go ahead.
Yeah. Good evening, sir. Sir, as you said, emmetazobactam is showing a good uptake in India. If you could quantify something around this in terms of number of patients or probably value of how is it shaping up?
Around 15,000 patients have been treated, and we would have sold how many vials till now? 200,000+ vials have already been sold, Cipla and ourselves combined. With respect to our sales, we are looking at good month-on-month progress, around 10%-20% few months we get the incremental sales of Orblycef. We are even planning to expand our areas, and we have started selling, we have started our enrollment of our employees for the east also. We were already present in south, west, and north. Now we are going to start operations in the east from Kolkata.
Do we have capacities to take further volumes? I hope that's not a constraint here.
That is not a constraint. We manufacture API at Orchid Pharma. We have sufficient capacity, and the CMO from where we are getting the vials also has sufficient capacity.
Sir, would INR 20,000 per patient cost be a fair assumption on emmetazobactam India? So not from a retail point of view, but would this be a fair assumption from a manufacturer point of view, realization?
Vishal, we will not be able to share that number. I can share the retail number. It is 20 vials per patient with the INR 1,700 price. So INR 34,000 per patient is the treatment cost at retail level. Company-level margins are complicated, so we'll not be able to share that.
Okay. Okay. And sir, again, with respect to emmetazobactam, as you said, pricing negotiations have just completed for the top five countries in Europe, including the U.K. Does that mean there is no sales that we are realizing that Advance Pharma is realizing as of now in Europe, or is that the way to look at it?
Some market sales had already started. With the five largest markets of Europe, we just summarized what will happen. Germany was the first one to start one year ago. There, sales are happening. Spain, Italy, and France have started this quarter or will start by the end of this quarter, country by country. The U.K. had started last quarter.
Okay. So any sense? Do you have a number as to what would be the Europe sales as of now?
Yeah. I think we'll have the number by the next quarter. We've just completed the closure, so we are now in official contact with all the customers and licensees. We should start getting the data shortly. From next quarter, we'll be able to possibly report some numbers.
Do you think it's going to kind of any sense on how directionally how is it shaping up? Can this be a very healthy product just looking at Europe alone?
We had a discussion with ADVANZ PHARMA . They seemed positive about the molecule from whatever they have seen. It takes a little bit of time to develop doctors' confidence, plus getting approvals from the countries separately. Hopefully, in the next calendar year, we should be able to get the genuine sense. From whatever response we have got in India, the efficacy of the molecule seems good. Hopefully, if our partner markets it properly, we expect good returns.
just a clarity on the India part, 15,000 patients, is it for this year or so far till date since this drug has been launched?
It was launched last October only. just one year has just been completed.
Okay. Okay. And the traction, there is a month-over-month positive traction that you can see? While this would be a seasonal product, right? Or this is not a seasonal product?
Not really. I mean, your lung cases increase, but not significantly seasonal, I would say. The major indication is the urinary tract infection, plus hospital-acquired pneumonia. So I would not say it has any seasonality.
I've got it, sir. Thank you. I'll join back the queue.
Thank you. The next question comes from the line of Ankur Chheda, an individual investor. Please go ahead.
Hello. I just wanted to know, what do you think is leading to the decline in the demand? Is it just an oversupply problem? If you could just let U.S. know, globally, how is the cephalosporin market as a whole growing? Is it growing at a certain sort of rate year-on-year, or is it declining?
There are different factors according to U.S. Like I said in the speech, the export analysis shows that the overall sales from India to overall exports from India have declined. That does not indicate any supply issue with respect to the pricing. It's actually a demand issue, I would say. There is a decline in demand. When we talk to our customers also, they feel that some reasons could be that the last three years had shown very good growth. Some of our customers were anticipating the same this year, and they had probably taken a lot of inventories. because they could not liquidate those inventories or did not see the same growth, they did not purchase the API raw materials, which led to less demand at our end.
Secondly, I feel that sometimes it depends that the season did not come out. One of the countries, some customers said that the flu season did not come out this year. Some countries have slightly clamped down on the misuse of antibiotics. That could have reduced some demand. In some countries, the government wants to reduce its healthcare expenditure. Again, they are trying to reduce antibiotic consumption. It is multiple factors, partly geopolitical factors with all the wars going on Russia is a big market. There are some uncertainties. I think there are multiple factors at play. Difficult to point out to one single factor.
If you see the innovative molecules which are there, ceftolozane, cefiderocol, ceftazidime, avibactam, all of those which are in innovation stage are showing healthy growth globally. Resistance is a continued problem, and it is not that a new class of antibiotics is there and suddenly infections will not happen. We do not see any structural change yet. Right now, it is still market factors combined with all the cases Mr. Manish explained.
Yeah. C ephalosporin remain the most favorite class of antibiotics, and that much we are sure that it has not been replaced by any other class or any new molecule. That threat is not there.
Okay. So structurally, I mean, I remember seeing a presentation from Orchid Pharma maybe four or six quarters ago where you had mentioned that cephalosporin as a market has been growing annually at 5%-8%. I can't remember the exact number. Do you foresee this structural growth trend to continue going forward, or looking at how things have shaped up this year, you think that might not be feasible?
This year would be difficult to predict, but in the long run, markets in Asia and Africa definitely should grow as more and more people get access to healthcare. In the regulated markets which are fully matured, it would be difficult to say that this kind of growth will be there.
Okay. Okay. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Aashita Jain from Nuvama. Please go ahead.
Hi. Good day. Sir, a couple of questions. Firstly, on the pricing part that you mentioned, is this only related to emerging markets, or are you also seeing pricing issues in the developed market as well?
I believe we have been able to maintain the regulated market prices for the last two quarters. The threat always remains. The regulated customers also get a sense of reduced prices, so they do start asking for reduced prices. The only positive thing is that there is a reduction in the raw material prices also. We have to evaluate that we do not give them more than what we are getting benefit out of raw materials.
Is it fair to assume that the current gross margin that we are seeing, the coming quarter should see the benefit of the lower raw material cost inventory in the coming quarter?
That's what we are hoping for because partly it is the evaluation of the inventory on the basis of lower raw material costs and also liquidation of high-value inventory. That's what we are hoping. Yeah.
Understood. Thirdly, is it possible to quantify the drag from your AMS division in this quarter? What are the expected break-even timelines for this division?
It has come to around INR 1.8 crores per quarter, I think.
Negative, right? Drag?
Yeah. Negative. Negative.
Yeah. It used to be INR 3 crore. Yeah. It's come to about INR 1.8 crore this quarter.
When are we expecting this division to break even for U.S.?
I think next year should be break-even, definitely.
We are looking at this division as an investment. You see, I would say that if I have to consider just my sales team, I'm hopeful that maybe in the Q4 of this financial year itself, we can be break-even. I'm looking at it from the investment point of view because we have engaged a lot of doctors and scientists who are engaged in the antimicrobial stewardship program, which is basically our, you can say, show window to GARDP and Shionogi for launching of cefiderocol, which will be run on the AMS program only. This is an investment for launching of cefiderocol, I would say. The sales team alone can be break-even by last quarter of this financial year.
Understood. Understood. On Allecra, are there any numbers in the current quarter or any one-off related to the acquisition in this quarter? How should we see Allecra merger into our numbers going forward?
I think we'll get the sales data from this quarter onwards, right? We have just finished the acquisition. The sales data will come to U.S. December quarter sales data will come to U.S. directly. We will have some sense.
To answer your question, till September, nothing is built in in the financial year.
Yes. Yes.
Understood. No one-off related to the acquisition cost or anything of that sort related?
Yeah. because all of that would be capitalized mostly, so nothing appearing in the P&L.
Okay. Understood. just two last things. One, on the emmetazobactam for the U.S. market, how are we thinking for this drug and for the U.S. in terms of out-licensing? Secondly, just the update on the Dhanuka Labs merger. These are the last two questions from my side.
On the U.S. market, since we have jus.t completed the acquisition, there were several discusions during CPHI. We are hopeful to sign a potential deal in the next 12 months. That would be our key target. With respect to Dhanuka Labs merger, we have the next hearing in the last week of November. Hopefully, it would be passed by the courts. Right now, they have asked for reports from government departments, which should come in the last week, and this merger would be completed.
I just would like to add that there is a difference between what strategy Allecra was following. They were only considering the regulated markets for licensing, whereas we feel that a large chunk of population lives in the non-regulated markets, and there is scope for this molecule in those markets also, considering our experience in India. We are also talking to companies across the globe, even Latin America, some Southeast Asian countries, which were not under consideration by Allecra. We hope we can do multiple small licensing deals in these countries, and that can add to both top line and the bottom line.
Sure. Thank you. That's really helpful. That's all from my side.
Yeah. U.S. is not the only market available to U.S. We are looking at multiple markets.
Got it. Thank you.
Thank you. The next question comes from the line of [Virasha], an individual investor. Please go ahead.
Hi. Thank you for this. All of my questions have been answered. just one question.
Virat, sorry to interrupt, but you are not at all audible to U.S. Please increase your volume.
Am I audible now?
It's low. You need to increase it.
Hello. Am I audible now?
Yeah. You sound loud and clear now.
Okay. Perfect. All of my questions have been answered. just one question on the debt side. From March, right now, the debt has increased by INR 1,000 crore. Can you help me with that as to where has been the allocation for that?
Debt increased by INR 1,000 crore?
I think there's some misunderstanding. It's not. Debt cannot increase by INR 1,000 crore.
Yes. Yes. It is not there.
Sorry.
Pardon?
I'm seeing it now.
I think there is some misunderstanding. It is not INR 1,000 crore. We'll just get you the numbers. See, that is only INR 47 crore.
Okay. My bad. Okay. Got it. Fine. Fair enough. That's it from my side. All of my questions have been answered.
Mr. Mridul, are you there?
Yes. Yeah. His questions have been answered, he said, right?
Yeah. My questions have been answered.
Yeah.
Okay. Thank you. The next question comes from the line of Sanjay Kumar from ithought PMS. Please go ahead.
Yes, [Sadhruch]. I have some basic questions on some technical questions on the 7-ACA project. Do we make cephalosporin C, that is CEPC, in-house fermentation and then do the enzymatic conversion to get 7-ACA, or do we buy CEPC?
No, no. It will be made in-house.
Oh, the fermentation will be made in-house?
Yes.
Okay. And then we'll do chemical conversions to get 7-ADCA, 7-ACCA, or those also will be enzymatic conversions?
It is process-to-process. It would depend what intermediate we are making. Some are enzymatic, some are chemical. But those would be done in Orchid facility. The 7-ACA requires only enzymatic.
To answer your question, CEPC will be made by fermentation, and it will be enzymatically converted to 7-ACA.
Got it. Got it. Okay. An extension to that, some of the beta-lactamase inhibitors, say our own Emmetazobactam, Sulbactam, they're all made in the penicillin side of things where you start with 6-APA and then do PENG and then go on downwards. Do we plan to do that also in the future once we have capabilities for fermentation?
No. As of now, we don't plan because we are not manufacturing PENG. Those are synthetic products. They don't give you any significant leverage outside.
Got it. Okay. Okay. Are there any other fermentation adjacencies that you're looking at?
Right now, our focus is these two projects: cefiderocol, selling our products in hospitals, trying to be part of the B2C sphere in the Indian pharma industry, and backward integration in 7-ACA.
Got it.
I think I am hopeful that a significant revenue stream will be generated from the out-licensing of Exblifep.
Okay. Okay. Got it. Thank you, Sir. That's it from my side.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Sagar Arya from X ponent Tribe. Please go ahead.
Hi, Sir. I have a few questions. Starting with the base business, obviously, we've seen gross margins rose to about 32% because of the inventory situation and assuming pricing as well. Now, at least with the inventory situation almost behind U.S., when do we expect these margins to—margins to the gross margins normalize to 40%-42%? Is it something that you anticipate could happen over the next couple of quarters itself, or are we anticipating a longer period for this reversion?
It would not be correct to give you exact guidance. We still need to see the recovery and the demand from our regulated customers. They are the ones who take these margins on the higher side. That still needs to be validated. It would not be right to give you a confirmation on this at this time.
Sure. Do we have any indicative sense on when will the inventory at the customer end also clear up, or is it something that we will only find out with time?
Generally, all Western customers, after the Christmas only, they evaluate their coming demand.
Sure. Understood.
The work would be very less in November, December in the Western countries.
Okay. Okay. What are the numbers for Dhanuka Labs? I'm assuming that business may also have been impacted because of the current situation. What revenue and EBITDA are we looking at there for the first half?
Yeah. First half, sales were INR 196 crore in Dhanuka. There also, around 25% reduction in sales. It's the same. I think the trend remains across the industry. The same.
What EBITDA did we do with Dhanuka for the first half?
Not have the EBITDA. It's a non-listed. I would not have the EBITDA ready in this.
Okay. Okay. I think in the last call on emmetazobactam, you mentioned—correct me if I'm wrong—that you will be getting royalties from August onwards for the sales of the product. Is that still the case that we will get royalties or will we start getting royalties now post this acquisition materializing?
Yeah. The economic effect will be with effect from August 1st. Since the acquisition is completed now, we will get all of that data, and then we will know what number was there actually with effect from August 1st. Since the sales are very minimum, as we explained, the price approvals are still happening, the relevant numbers will start flowing in only from the next financial year.
Understood. Understood. Did you also get a sense on why Allecra was not able to find a buyer in the U.S.? because obviously, it's been approved since February 2024, right? Were there any specific reasons they couldn't find a buyer?
Nothing specific is available. Most of the people who were involved in that time in Allecra had left due to the bankruptcy, so we were not even able to communicate with them when the insolvency had started. Talking to market participants, what we are given to understand is Allecra's expectation was this to be a—I do not know—maybe a billion-dollar kind of a number, and the other side did not think it that big. Maybe a valuation mismatch kind of thing was there. We do not have any details. These are just, you can say, rumors.
You said that you'll get hopefully a partner in the next 12 months. That seems to be fairly conservative, right? I mean, for a patented product, which I'm assuming has decent potential, should we not be targeting to get a partner ASAP and be really aggressive at least on this front?
because we have to start from scratch, any large investment, anybody would be investing millions of dollars to get the product to market, set up the sales team. These kinds of deal negotiations take time. obviously, our interest is to do earlier, and like Mr. Manish announced, possibly before the U.S., we will be able to announce a few deals. We are working across the globe, not just the U.S., but signing a relevant partner and actually getting the product on market, all of these things will take time.
What would be a realistic expectation to get a U.S. partner at least?
Yeah. I said within the conversation that.
Okay.
Yeah.
because the conversation, I'm assuming, will be going on already, right? We must be talking to.
Yeah. As soon as it's completed, we could not have said the acquisition is complete till it was complete, right? It will start now. Yeah.
Okay. Do you have any updated—I mean, any sense on—you've often spoken in the past that this could be a $250 million product. Is there any change in that number on the lower side or higher side? Any more sense on how large can this molecule be?
At this stage, no. Hopefully, once we have a few more licensing deals, it will give U.S. the confidence to come up with a forecast. Maybe by the end of this financial year, when we are sharing the end-year number, maybe we might have something.
Okay. Okay. That's it from my side, Sir. All the very best. Thank you so much.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Sanjay Kumar from ithought PMS. Please go ahead.
Hi. Thanks for the follow-up. Sir, my question is on Allecra and Advance partnership that they signed for Europe. Do you still think Advance is the right company to take emmetazobactam to the market there in Europe? because if you look at other drugs, all the other last-line antibiotics, they do well in Europe than the U.S. Of course, there are antibiotics towards Cipla in the U.S., which restricts the market in the U.S. So far, are you happy with Advance's performance? Can we renegotiate the agreement to remove the exclusivity? Can we look for another partner in Europe? because Europe, in my mind at least, is a bigger market than the U.S. for last-line antibiotics.
Actually, that is not true. If you look at the U.S. versus Europe for all the new last-line molecules, the U.S. is much bigger than Europe in total value. Secondly, at this stage, I do not think we are in a position to comment about ADVANZ PHARMA . I think they have done a good job in getting all the approvals from Europe. There is no option of actually getting out of the agreement. We should continue to partner with the people we have done and trust them to perform while we continue to sign new licenses rather than opening discussions where the revenue stream is already set and locked in.
Okay. Okay. I know you said that you're going to start negotiations for the U.S. Does it mean there are no negotiations on the table at the moment?
Unfortunately, this is the level of detail we would not be able to share.
Okay. Okay. All right. Fair enough, Sir. Okay. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Raj, an individual investor. Please go ahead.
Hi, Sir. I just have one follow-up question on AMS. I want to understand how we should be evaluating AMS in the sense of they are being from the reach perspective and things like that in terms of that they are ready for a secondary or a call launch.
What I can tell you is that our focus is tertiary care hospital. Although our molecule is in the first line of therapy, it is better to launch it in the tertiary care hospital where the customer or the patient comes after using the other generic molecules. If I have to give you an idea, there are about, I think, tertiary care about 1,200 hospitals in India. We already have reach in 120 hospitals. I can say we have in the last one year, we have reached 10% of the most important hospitals. We have our product available in Max. We have product available in Fortis. We have product available in Apollo. We have product available in Manipal. All the large chains, we have an entry. When we launched last year, we had missed the annual tender scheme of these hospitals.
We are hopeful this year we should be able to win some of the annual tenders as well.
Got it. Understood, Sir. You do not expect to see any increase in terms of the sales force? The sales force is sufficient enough to reach that number, right?
We have a budget and sanction of a sales force, but it is difficult to find good manpower in the industry. We are not able to fill our vacancies. That is the challenge we are facing right now.
Got it. Got it. Okay. That's all, Sir. I'm sorry. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Raj, an individual investor. Please go ahead.
Sir, I have one small follow-up question. Will you be able to share the split between regulated and unregulated market revenue split?
Normally, the split for Orchid has always been 40/60. 40% regulated, 60% unregulated. We share that on an annual basis. This quarter number, I do not have.
[Kalka B, Swaruppa T].
Okay. Okay. Thank you, Sir.
Thank you. As there are no further questions, I would now like to hand the conference over to management for closing comments.
Thank you. I would like to thank our shareholders, partners, and investors for their continued support. Financial year 2026 remains a muted year operationally, but we are using this time to build a stronger foundation for recovery and sustainable growth ahead. Thank you once again for your participation. Good evening.
On behalf of Orchid Pharma, that concludes this conference. Thank you for joining U.S., and you may now disconnect your lines.