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

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

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:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.