Mankind Pharma Limited — Q4 FY25 earnings call

We said that the synergy will take 12 to 24 months, that is how we basically have taken. When we acquired BSV, it came to us with TTK products - prescription brands, which we have integrated in Mankind because for that, Delhi Mankind is an appropriate company. On the second side, actual BSV, is super-specialty, very high-entry barrier products, that is over there.

Clarifies the strategic approach to BSV integration, differentiating between TTK products and core BSV, and reiterates the 12-24 month synergy timeline.

Asked by Kunal Dhamesha

We mentioned in the last call as well that in last couple of quarters, we have done a lot of reforms in Mankind. Once upon a time, Mankind was a kind of a company which was bottom-up. Everything was bottom-up. Nothing was top-down. So different divisions were working as per their best practices. There comes a time after few learnings, we brought a lot of new leadership at the head office level, so that the policy should be uniform, all 28 divisions should work in one direction, there should be a proper synergy because in the absence of synergy, a lot of wastage happens.

Explains the rationale behind the flat EBITDA margin guidance despite growth, attributing it to internal reforms and strategic shifts to improve synergy and reduce wastage, which will materialize over time.

Asked by Kunal Dhamesha

So we have not called out specifically. I think Sheetal ji gave the organic numbers, you can call out the same. What I can add is that mandate brands, which is our key focus area. So the domestic mandate brands for the year have grown at 10% plus and international specialty mandate brands have grown at 18% plus for the year. IVF as a category for the quarter has grown at 20% and for the year has grown at 26%.

Provides qualitative color on BSV's key mandate brands and IVF segment growth, but avoids specific numerical breakdown for BSV sales.

Asked by Tushar Manudhane

So international growth has been very strong, upwards of 20%. We are not giving specific numbers. Domestic has been a bit muted because of some of the corrective actions we had to take, especially in the TTK Rx business, which has seen a sharp drop, which is from April onwards, as Rajeev ji mentioned, the growth has started. So we are positive on that.

Clarifies the drivers of international growth (strong BSV) and explains the muted domestic growth due to corrective actions in TTK Rx business, with an expectation of recovery.

Asked by Neha Manpuria

Neha, there's always some kind of risk in everything you do actually. So we are not talking about increasing the medical reps and managers. What we have done in the last couple of quarters, we have replaced medical reps, managers, field force as a whole, a good quantity of that. Wherever we found that inefficiencies were there, right practices were not there. And whatever I'll say, right things were not there, we were really blunt and straightforward in making correction immediately as Mankind has always been very, very fast and executing things.

Addresses concerns about MR force effectiveness and R&D spend, emphasizing that the focus is on replacing and improving existing MRs rather than just increasing numbers, and that internal reforms are complete.

Asked by Neha Manpuria

So acute has been a little soft in quarter 4 for most of the acute giants or acute-heavy companies. We are also no exception to this. But yes, there are certain impacts of regulatory phenomenon, which was there in unwanted-72, which I have spoken already. But in the future, as I said, we have been focusing on gastro, gynae, which has been our major forte in acute and anti-infectives as well. And what we are expecting is we would be at par with acute if we talk about annual growth.

Explains the softness in the acute segment due to industry trends and regulatory impacts, outlining strategic focus areas (gastro, gynae, anti-infectives) and targeting market-par growth for acute.

Asked by Chintan Sheth

You see, this trade generic is there in the business for the last couple of years. It is not only in smaller cities or bigger cities, in metros, everywhere trade generic is there. The impact is already there. I mean these kind of challenges are always there. But please understand, whenever somebody buys a trade generic, the chemist gives him the medicine. Patient does not get that medicine at economical prices. It's like I mean earlier, people used to go to chemist without the prescription, doctor used to give our medicines. Now, no more. Just imagine hypothetically, if trade generic would not have been there, the growth of this pharma market would have been more than 16% - 17%. The impact of trade generic, whatever you see the growth, it is keeping trade generic in mind. Even in trade generic side, if you just look at the data, it has slowed down. The growth has come down. The kind of growth it was having in the past, it is no more now because ultimately, doctor's prescription really matters.

Management acknowledges the impact of trade generics but emphasizes that doctor's prescriptions remain key and that trade generic growth has slowed, implying a more stable competitive landscape.

Asked by Sidharth Negandhi

So this is what we can talk about at the moment, GPR. There could be a couple, but it would be very initial stages.

Confirms GPR119 (obesity drug) is in Phase II clinical trials and mentions other early-stage innovator products in AMR and anti-thymocyte space, but provides limited detail.

Asked by Sidharth Negandhi