Erez Israeli: I don’t see such a decline in the API like it was in previous years. Most of the growth is coming when new products and launches that likely to happen by the customer for API or PSAI business. So if you wish, we are now selling API that will serve them in the next period of time, the next quarters. The — what we see now is the impact of the new portfolio that we worked on it in the last couple of years, which is replacing the old portfolio from the decade before. And as time will go by, we will launch more and more of this product and you’ll see acceleration in growth because of that.
Kunal Dhamesha: And the gross margin for this business will it also improve because it has come down to now around 13%?
Erez Israeli: So as we grow the sales, we normally grow the gross margins because it’s a kind of — have relatively higher level of fixed cost. So as you grow, you’re also increasing your margin. That’s what is likely to happen.
Kunal Dhamesha: To clarify the gross margin for this business, we have reported as 18% during the quarter, not 13%.
Parag Agarwal: Okay. Sure. I’ll check. Yes. And then lastly, we have mentioned price erosion in U.S. as a growth drag at least on a quarter-on-quarter basis, perhaps. Now this price erosion in this quarter is limited to few large products such as vasopressin or it is more broad-based price solution that you are witnessing?
Erez Israeli: The price erosion always affects sales and products that went into either bid or RFP or competitive situation in that particular quarter, it’s never broad. But let’s say, relatively to other years, this year, it’s more moderate than we used to in other years.
Kunal Dhamesha: And lastly, on the same thing, the shortage situation and then some of the short-term contracts, et cetera, are those opportunities continuing into quarter 2 and probably in quarter 3. That is what the trend you are seeing?
Erez Israeli: Yes, absolutely. Absolutely, the focus in the U.S. on continuity, service and sustainability of supply. Absolutely.
Operator: The next question is from the line of Neha Manpuria from Bank of America.
Neha Manpuria: First on the main acquisition. When we announced this acquisition, it had a revenue rate of about $65 million, $70-odd million. Post clearly 5, 6 months of integration into the Reddy’s portfolio, have you seen traction in terms of our ability to gain more volume in the product because we don’t see that in products like NuvaRing, which is stuck in that 2%, 3% market share? Or how should we look at the acquired portfolio going forward?
Erez Israeli: Each one of this product has different timing in which customers are putting their RFP or open for those kind of discussions. I believe that this will grow and will pick up volumes as these time lines will be there. So — and most of those discussions likely to happen in the second half of the year. So far, I’m happy with this deal. It’s meeting our expectations and likely that you will see growth in the next two quarters.
Neha Manpuria: And on NuvaRing, sir, any reason why it’s stuck at about the 2%, 3% market share despite the launch in Feb?
Erez Israeli: Timing of the discussions with customers.
Neha Manpuria: Okay. Understood. My second question is on the India business. We have guided to wanting to grow higher than the market double digit in this business. But for several quarters now, that hasn’t been the case, at least if you look at the market data. When do we think we get to that growth trajectory and the collaborations and licensing that we talked about? When do you actually see that materialize and flow through numbers?
