Parag Agarwal: So overall, Neha, the increase in SG&A, if you see year-on-year, I think we’ve gone up by 13%. Apart from the normal inflation, it’s largely because of investments behind our brands. Also, we are investing in digitalization. I have spoken about it a few times, extensively both in the front end as well as in R&D and in our manufacturing facilities. Like last year, was named as Digital Lighthouse. We are now working on getting more facilities certified as Digital Lighthouse because we believe that in the medium term, this digitalization is going to make a big impact by improving quality, reducing quality incidents, improving productivity and costs and so on. So these are the areas where we are investing. If you look at overall quarter-on-quarter, we’ll see fluctuation.
But in aggregate, SG&A as a percentage of sales, last year we were around — it used to be few years back we were at 30%, 31%, and we have been gradually dropping to 29%, 28% kind of a range. So I wouldn’t like to comment on quarter-on-quarter, but for the full year, I would say that’s the range we’ll be around.
Operator: The next question is from the line of Kunal Dhamesha from Macquarie.
Kunal Dhamesha: So the first one on the in-licensing innovation deals that we are doing for India. Can you highlight what is the typical payback period for these kind of deals?
Erez Israeli: So normally, the payout is very good because we hardly put in down payments for that. And so most of the deals have very small down payments. And normally, we are getting healthy margins that enable us to buying a transfer plus investment. So normally, the payout will be within the first 3 years, taking into account the time that it takes to build brand. So most of the investments is actually not because of the payout to the partner but rather the investment in building brands in the country like India, which normally takes about 3 years.
Kunal Dhamesha: Sure. Sure. And let’s say, for markets like India, are these deals — some of these innovators would be doing it more on a profit share basis? Or are they more interested in, let’s say, upfront payment and then some royalties?
Erez Israeli: So most of the deals will be certain milestones and some royalties, and giving us the flexibility to market it in places we want and with the right mix of SG&A. So that normally will be the case, but we will also have cases in which it will be a profit sharing.
Kunal Dhamesha: Sure. And second question on the biosimilar business now that we are kind of close to launching our first biosimilar in the U.S., probably somewhere in FY ’25. What type of front-end investment would we be looking for, for sales force or the formulary access personnel? And how much drag it could be on our SG&A?
Erez Israeli: So the product that will be launched, rituximab that will be launched in the U.S. will not be launched by us. So this is a sales force that is with our partner. The products that we will launch will be from FY ’27 onwards. And for that, we will have to build the sales force.
Operator: The next question is from the line of Surya Patra from PhilipCapital.
Surya Patra: Sir, just one clarification I wanted to have. In terms of the margin profile, let’s say, for India business and the base U.S. business, let’s say, excluding REVLIMID. So what could be the differential in terms of the margin profile of these 2 businesses?
