India's Zydus Life reports higher quarterly profit on new drug launches in US

Alembic Pharmaceuticals

20/05/2025 09:32

May 20 (Reuters) - Indian drugmaker Zydus Lifesciences ZYDU.NS reported a higher adjusted fourth-quarter profit on Tuesday, driven by new drug launches in the U.S., its biggest market.

The company reported a 22% rise in its consolidated profit before exceptional items and tax to 18.92 billion rupees ($221.3 million) for the quarter ended March 31.

However, Zydus Life recorded an exceptional item worth 2.20 billion rupees due to an impairment charge tied to its Brazil business and the closure of operations at one of the facilities of its unit Zydus Wellness ZYDS.NS.

Including the charge, its consolidated net profit fell 1% year-on-year.

Overall revenue climbed 18%, led by a 24% growth in U.S. sales and 13% jump in India sales.

KEY CONTEXT

Zydus Life, like most Indian generic drugmakers, derives a large chunk of its revenue from the U.S.

New drug launches, especially in the specialty portfolio, led to strong growth in U.S., Zydus Life said. It launched five new products during the quarter across therapy areas such as diabetes and anti-infectives.

Peer Alembic Pharma ALEM.NS reported a higher quarterly profit, while larger rival Cipla CIPL.NS and Dr Reddy's REDY.NS beat profit estimates as they all benefited from strong domestic demand for their drugs.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Zydus Lifesciences Ltd
ZYDU.NS
19.60
13.33
6.10
-1.22
Hold
27
0.87
0.33
Alembic Pharmaceuticals Ltd
ALEM.NS
24.00
15.14
10.80
25.41
Buy
9
0.91
1.20
Cipla Ltd
CIPL.NS
23.43
15.27
6.95
-3.45
Buy
33
0.91
0.87
Dr Reddy's Laboratories Ltd
REDY.NS
17.24
11.36
6.97
0.92
Hold
35
0.96
0.65

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.4960 Indian Rupees

JANUARY TO MARCH STOCK PERFORMANCE https://tmsnrt.rs/3EZy6C1

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)

 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))