Zydus Life Net Profit soars 31percent in Q1FY25, posts highest ever EBIDTA

9th August 2024, Ahmedabad, India Zydus Lifesciences Limited announced its unaudited consolidated financial results for the first quarter ended June 30th, 2024.

Q1 FY25 Key Financial Highlights

• Revenue from operations at Rs. 62,075 mn, up 21% YoY.
• Research & Development (R&D) investments for the quarter stood at Rs. 3,925 mn (6.3% of revenues).
• EBITDA for the quarter was Rs. 20,840 mn, up 38% YoY. EBITDA margin for the quarter stood at 33.6% which is an improvement of 430 bps on a YoY basis.
• Net Profit for the quarter was Rs. 14,199 mn, up 31% YoY.
• Capex (organic) for the quarter was Rs. 3,014 mn.

Q1 FY25 Business Updates

India Geography

•  Comprises Formulation and Consumer Wellness businesses and accounted for 37% of consolidated revenues.
•  Registered revenues of Rs. 22,124 mn, up 15% YoY.

Formulations business

•  Registered revenues of Rs. 13,758 mn, up 12% y-o-y. The business accounted for 23% of consolidated revenues.
•  Branded formulations business grew faster than the market with 13% y-o-y growth. Outpaced the market growth both in chronic and acute segments.
•  The portfolio of pillar brands and innovation products registered strong volume growth, driving overall growth during the quarter.
•  Launched 10 new products (incl. line extensions) with 3 first-in-India launches.
•  Retained leadership position in the Nephrology segment while in the Oncology space, we remained the fastest-growing Indian company.
•  Outpaced IPM in key therapies of Cardiology, Gynecology, Derma, Respiratory, Anti-infectives, and super specialty therapies of Oncology and Nephrology.
•  Share of chronic portfolio has increased consistently over the years and stood at 41.3%, which is an improvement of 430 bps over the last 3 years (Source: IQVIA MAT June 2024 data).

Consumer Wellness business

•  Registered revenues of Rs. 8,366 mn, up 21% YoY. The business accounted for 14% of consolidated revenues.
•  The growth was broad-based and largely driven by 17% volume growth.
•  The personal care segment, which comprises Nycil® and EverYuthTM brands, continued to deliver robust performance with yet another quarter of strong double-digit growth.
•  The food and nutrition segment witnessed recovery during the quarter and posted double-digit growth.

US formulations business

•  Registered revenues of Rs. 30,929 mn, up 26% YoY and 23% QoQ. The business accounted for 51% of consolidated revenues.
•  In constant currency terms, the business registered revenues of US$ 371 mn.
•  Growth during the quarter was driven by new product launches and volume expansion in the base portfolio.
•  Launched 7 new products during the quarter. New launches for the quarter include the launch of the second 505(b)(2) product viz. ZituvimetTM in the area of metabolic disorder management and Mirabegron ER tablets.
•  Filed 5 ANDAs and received approval for 6 new products (including 2 tentative approvals) during the quarter.

International Markets formulations business

•  Registered revenues of Rs. 5,309 mn, up 9% YoY. The business accounted for 9% of consolidated revenues.
•  The demand scenario remained strong across key markets during the quarter.

API business

•  Registered revenues of Rs. 1,415 mn, up 2% YoY. The business accounted for 2% of consolidated revenues.

Alliances and Others

 Registered revenues of Rs. 688 mn, up 38% YoY. The business accounted for 1% of consolidated revenues.

Updates on the Innovation Pipeline

NCE: Saroglitazar Magnesium

 Completed patient recruitment for Phase II(b)/ III clinical trials for PBC indication and Phase II(b) clinical trials for Metabolic Dysfunction-Associated Steatohepatitis (MASH) indication for the US market.

NCE: Usnoflast

•  Completed patient recruitment for Phase II clinical trials for Amyotrophic Lateral Sclerosis (ALS) indication.

Biotech Research

•  Submitted marketing authorization application for one of the monoclonal antibodies (mAbs) to the Indian regulator.
•  On the novel biologics front, initiated Phase I clinical trials in India for an anti-properdin molecule.
•  Recently, in July 2024, received marketing approvals from the Mexican regulatory authority for two products viz. Bhava™ (a biosimilar of Bevacizumab) and Mamitra™ (a biosimilar of Trastuzumab).

505(b)(2) and Specialty initiatives

•  Recently, in July 2024, received final approval for the third NDA viz. ZituvimetTM XR i.e. Sitagliptin and Metformin Hydrochloride ER tablets in the area of metabolic disorder management.
•  With this approval, all three NDAs of Sitagliptin (base) and combination franchise are now approved through the 505(b)(2) route.
•  All the three NDAs have received first-cycle approval.