Zydus Lifesciences Q4 Results Review - Strong Revenue Growth Across Business Segments: Systematix

India branded formulation growth continues to surprise.

<div class="paragraphs"><p>Zydus Lifesciences Ltd. (Source: Company website)</p></div>
Zydus Lifesciences Ltd. (Source: Company website)

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Zydus Lifesciences Ltd. reported better than expected performance as adjusted profit after tax at Rs 8,979 million (up 71% YoY) was 4.8%/29.3% above our/consensus estimate. The strong performance was led by core businesses – India and U.S. formulations. The U.S. business benefited from one-time new business opportunities and ramp-up in new launches – gRevlimid and gTrokendi XR.

Elevated research and development spend on account of ongoing clinical trials for new chemical entity assets diluted the favorable impact of strong revenue performance during the quarter.

Management has guided for a strong Q1 FY24 with gRevlimid sales remaining elevated. We have revised our estimates as we build a higher contribution from gRevlimid and also incorporate recent approval of gVascepa and expected launch of two REMS products in our forecasts.

Zydus Lifesciences has also filed its Typhoid Conjugate vaccine for World Health Organisation prequalification. Successful approval should open up a large market opportunity for the company.

According to WHO, the demand for TCV can be in the range of 43 million doses pa to 163 million doses which indicates a potential market opportunity of $60 million to $240 million annually. Currently, there are two players who have received WHO prequalification for TCV.

Zydus Lifesciences is looking to file its Measles Rubella vaccine in FY24.

Click on the attachment to read the full report:

Systematix Zydus Lifesciences - Q4FY23.pdf
Zydus Lifesciences Q4 Results: Profit Falls On One-Offs; Margin Beats Estimates


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