Emcure Pharma IPO To Open Next Week, Rationale Behind The Fundraise & Utilization Plans | ET Now

Next, with the management of MQR Pharma, we have Satish Mehta, Managing Director and CEO and of MQR Pharmaceuticals joining us. Let's get to understand little bit more about the company. Thank you for joining us. Tell us a little bit more about the company's operations, what the company is into as well as the rationale behind this IPO and where will the funds be deployed. So as far as MQR is concerned, you know, let me tell you the next, you know, couple of minutes I know come from Puna city. I did my MSC in organic chemistry from Pune Vidyapeeta. After that you know I landed in IM Ahmedabad and 75 I finished my MBA and I was the only person from my batch, you know, who did not offer any placement because I want to do something on my own. And that's how in early 80s, you know, I started MQR small company to begin with. But as far as the real marketing is concerned, I started doing in the mid 90s, you know, I am 9596 and I started my own marketing stuff. And that's how, you know, this marketing portfolio has been built up in last 28 years. So that's what we have done and we have built up a company which is, you know, driven by research, R&D, technology and innovation. There are three things you know, which are very close to my heart. So research, technology innovation has played a very important role in building this company. And as I look back at my journey of last, you know, 40 years, my company has given maximum number of new products, you know, to the industry, whether you are talking about Chirality Iron or even for that matter products, you know, which are biotech, biotherapeutics. So that's what we have done. And as I am speaking to you as per the reported numbers, you know, we are ranked thirteen by AVAX. That's what we have achieved. And as far as the company is concerned today, you know 48% of the revenue comes, you know, from the domestic market and 52% you know, comes from international market. And when I talk about international market, there are three subsets. One is emerging market, 2nd is Canada and 3rd is Europe. So that's where we stand today. I'm talking to you, good afternoon Mr. Mehta as well as Amit Thapar, this shall also joining in the conversation. And after debt repayment, if you could tell us how much will be the debt on the book that will remain and also after repayment how much of the interest costs will you end up be saving with that. So basically you know as so the debt is concerned as per the published results of 31st of March 2024, we had a date of 1500 plus and out of this proceeds you know say 800 CR, you know that we are going to raise by the way of primary 600 crores you know will go for discharging the debt. So as well as debt is considered, you know post listing will be South of 1000 as we go forward. Alright, I'm looking at the breakdown of revenues into different segments as a percentage of your total revenue, there is a change in mix with generic contribution increasing from 31% in FI 22 to 40% in FI 24. So how do you see this number moving going ahead and the contribution from other segments changing as well? It's a good question. But how you define generic I don't know because if you are clubbing the entire business emerging and I mean Europe and what I am saying you know Canada in that case you know what numbers you are saying, I don't know, may be probably true. But at the same time talking about the domestic market, we are essentially in brand building and we are building brands, you know, As for the domestic market is concerned. So here the component of generic is not much. Essentially you know it is a brand driven company which is selling, you know differentiated brands. So the number that you are saying is probably you know, consisting of whatever we are selling in the global market that you are probably taking as generic. I believe. And in the domestic market, a USP always remains the science, the innovation, the technology and that by very fact the focus remains on making our big brands bigger. And so branded generics will always be something that we will double down on. Yes, that's about the brands and where you all are involved in. What about royalty as a percentage? Do you think that is coming down any trend that one can focus on or look at really what really happens? You know you lead a dynamic company and suppose you know a new proposal comes through that has some what I would say element of royalty that will come. But as of today, no, as of today you know the deals that we have, there is no royalty element involved. Royalty sometimes comes in the in licensing portfolio. But more and more as is evident from the Sanofi deal, we are shifting to a different distribution model that is definitely you know win, win for both parties. Alright. But also when I take a look at your financials, your margin seem to be declining over the years. Is there anything in particular that is ailing your margins? Could you help us understand why this has been happening? So basically you know there are three areas, you know which will help us to improve the margins and I think you know we are in investment mode. One thing you know that is required to be understood that we added 1000 medical representatives. So over a period of time you know the productivity should increase. So that will obviously help increase the margins. The second thing, you know that as soon as we are concerned we need to do better in three therapeutic segments, you know assay in diabetes, dermatology and CNS, we are in investment mode. So once row they mature, they margins row will improve in those three segments row where we are today in investment mode. And 3rd important factor you know which I would like to mention in last, you know 18 to 24 months row, we have created 4 new manufacturing facilities. As far as these four manufacturing facilities, we are in the process of ramping up the capacities or increasing the production in those areas. And once row we reach this optimum level that will also reduce the track you know that we have in the overall profitability. So we are having clear cut strategy and plan you know for improving the margins. It is all about execution of whatever we are doing. Most important question I believe would be doing in the past, but I believe based on whatever we have done in terms of quality of board that we have, the corporate governance that we have, the transition should be smoother. So obviously what really happens, you know, I think you know, access to the funds, access to better talent, visibility, these are some of the things you know, which will help us. But at the same time, you know, I believe the transition will be smoother than what expected because, you know, we have done quite a few good things in the past. But at the same time, in terms of attracting talent, in terms of, you know, having growth capital, in terms of visibility to the public and large, you know, these things, you know, should work out for us. And it's a very exciting phase. And we are absolutely looking forward, you know, to this new phase in our life. And I might add that our cultures always been one of just putting our head down and doing the best work that we can. So that doesn't change any way whether we are public or not. Alright, thank you so much, Mr. Satish Mehta as well as Namita to take the time out and speak to us today on ET Now. We let you go on that note. That was the management of M Cure on the way of its potential IPO. But if you like this video, then like, share and subscribe to ET Now.