Zydus Lifesciences Q3 Review — One Offs Impact Margins; Systematix Recommends 'Hold', Revises Target Price

The pivotal clinical data on Saroglitazar in primary biliary cholangitis will be an important event to monitor (Q3 FY26) and should shape sentiments around medium to long term growth opportunity for Zydus in the US..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Zydus Lifesciences Ltd. Q3 FY25 revenues were largely line with consensus. Owing to certain one-off expenses (Rs 950 million), reported Ebitda margins were lower than expectation, but adjusted for the same they were inline ( 28%). Revenue was up 18% YoY and flat QoQ. U.S. formulations was flat sequentially, but higher 30% YoY (led by generic Mirabegron). India Branded formulation growth was weak (5% YoY). North America revenue now stands at 47.0% of the total revenue for Zydus and the dependence should increase further in subsequent quarters led by incremental contribution from sitagliptin franchise and gRevlimid. gAsacol HD which is one of the large products for Zydus in the US market, has started to decline owing to competition (Teva). The impact of competition will be more noticeable in upcoming quarters. In CY26, gRevlimid should continue to sustain, while the mirabegron opportunity remains uncertain as it is contingent on litigation timelines. The U.S. business should continue to see new launches (Zituvio, partnered 505(b)(2) products, new approval from LiqMed portfolio and CUTX-101). The pivotal clinical data on Saroglitazar in primary biliary cholangitis will be an important event to monitor (Q3 FY26) and should shape sentiments around medium to long term growth opportunity for Zydus in the US. We revise our estimates as we build a higher contribution from Zituvio, longer exclusivity around Mirabegron and also incorporate CUTX-101 which recently received a priority review from the U.S. FDA. Our revised target price stands at Rs 1,011, based on 25 times FY27 EPS and we recommend Hold on the stock..Click on the attachment to read the full report:.Swiggy Q3 Results Review: Motilal Oswal Reiterates 'Neutral' Stance On The Stock — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zydus Lifesciences Q3 Review — One Offs Impact Margins; Systematix Recommends 'Hold', Revises Target Price

gAsacol HD which is one of the large products for Zydus in the US market, has started to decline owing to competition (Teva), the impact will be more noticeable in upcoming quarters, says Systematix

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP