Damayanti Kerai: Okay. But right now, you do not have any particular need to expand your sales force, as you said, you’re focusing more on innovative products as in when you launch, you will decide accordingly?
Erez Israeli: I don’t see a need to increase, and it’s more about the productivity of the team and the coverage of this team. And — but it’s not so much about the numbers of the people. But if we need more, we will have more.
Damayanti Kerai: Okay. I think this question was already discussed. So India, despite many efforts from your end, we have been seeing sales largely remain range bound somewhere say $12 billion a quarter or so. So when we can see a significant step-up coming up. So any time line, if you can indicate because, I guess, for the last 6 to 8 quarters, sales were broadly in this range.
Erez Israeli: I think you are going to see an improvement already this year. Indeed, we — the focus — we took 2 decisions about India, just to remind, and this is the effect that it comes with it. One, we decided to focus, and we actually made quite a few deals on divesting brands. So we kind of trimmed down the base portfolio because we do not believe that, of course, the changes that will happen with all the challenges of generics and branded drugs we have in India, this plan is likely to be successful, and we felt that it was a good bet for us. And second, we also acquire a brand, for example, Cidmus which we knew at the time that we will face price erosion, it matched the business case that we had on it. I believe that already the brands that we are focusing on are growing double digit, plus we are going to launch more and more innovation and have more and more collaborations.
So you will start to see this year. And as we will add products to the portfolio, it will continue to grow. It’s a focus market for us. It’s a strategic market for us and we will grow it.
Damayanti Kerai: Sure. My second question is, if you can talk a bit about your progress for the China market. How many approvals you have got? And what kind of filings have been done so far?
Erez Israeli: We are actually with the progress over there, especially since April, where the number of approvals start to pick up. And I think that we had the 4 approvals. And this month, I think we got additional 2 approvals so 6 together. And we are also filing more than 15 products a year now. I think we can get even to 18 if we — everything will go well. And most of our products are along the first wave and normally among the first three. So it’s a very interesting area for us in China. We — at the time, we thought that the ramp-up will be earlier than what I communicated in the past, but COVID and also our own execution may be late, but now it’s absolutely bearing fruits.
Damayanti Kerai: So with this portfolio buildup, should we assume China portfolio could start contributing meaningfully from next fiscal? Or it will be a bit long term in nature?
Erez Israeli: No, no, for next fiscal absolutely.
Damayanti Kerai: Okay. Okay. That’s helpful. And my last question is, how should we look at your R&D spend going ahead as you focus more on differentiated products for your global segments?
Erez Israeli: Likely that it will grow because we are investing more and more in biosimilars. So — and we will continue, of course, to invest in the new molecules. So you’re going to see a more directed growth. But also the sales will grow. So let’s say, the — in terms of percentage, it should be, give or take, in the range that we are today. Maybe a bit higher.
Operator: The next question is from the line of Gagan Thareja from ASK Investment Managers.
