Zydus Q2 revenues up by 20% YoY, highest among the peers

Ahmedabad, India, 12^th November 2024,  Zydus Lifesciences Ltd. announced its unaudited consolidated financial results for the quarter and half year ended September 30^th, 2024.

Q2 FY25 Highlights

• Revenue from operations at Rs. 52,370 mn, up 20% over last year.
• Research & Development (R&D) investments for the quarter stood at Rs. 4,800 mn (9.2% of revenues).
• EBITDA for the quarter was Rs. 14,614 mn, up 28% YoY. EBITDA margin for the quarter stood at 27.9% which is an improvement of 170 bps on a YoY basis.
• Net Profit for the quarter was Rs. 9,112 mn, up 14% YoY.
• Capex (organic) for the quarter was Rs. 3,017 mn.

 H1 FY25 Highlights

• Revenue from operations at Rs. 114,445 mn, up 20% over last year.
• Research & Development (R&D) investments stood at Rs. 8,725 mn (7.6% of revenues).
• EBITDA was Rs. 35,454 mn, up 34% YoY. EBITDA margin stood at 31%, which is an improvement of 310 bps over the previous year.
• Net Profit was Rs. 23,311 mn, up 24% YoY.

• Capex (organic) for the half year was Rs. 6,031 mn.
• Net Debt to Equity ratio as on 30^th September, 2024 was -0.12x while Net Debt to EBITDA stood at -0.41x at the end of September, 2024. Net Cash (negative Net Debt) as on September 30^th, 2024 was Rs. 25,906 mn.

India Geography

• Comprises of Formulations as well as Consumer Wellness businesses and accounted for 38% of consolidated revenues.
• Registered revenues of Rs. 19,444 mn, up 10% y-o-y.

Formulations business

• Registered revenues of Rs. 14,569 mn, up 9% y-o-y. The business accounted for 28% of consolidated revenues.
• Branded business grew faster than the market with 10% y-o-y growth. Outpaced the market growth both in chronic and acute segments.
• Portfolio of key pillar brands and innovation products registered strong volume growth, driving overall performance during the quarter.
• Launched 12 new products (incl. line extensions) with 4 first-in-India launches.
• Outpaced IPM in key therapies of Cardiology, Gastro-Intestinal, Respiratory, Anti-infectives and super specialty therapy of Oncology.
• On the super specialty front, retained leadership position in Nephrology and Oncology segments.
• Share of chronic portfolio has increased consistently over last several years and stood at 41.8%, which is an improvement of 400 bps over the last 3 years (Source: IQVIA MAT September 2024 data).

Consumer Wellness business

• Registered revenues of Rs. 4,875 mn, up 12 % y-o-y. The growth was primarily led by 8.4% volume growth. The business accounted for 10% of revenues.
• Both the personal care segment and food & nutrition segment performed well, driving the overall performance of the business.
• Recently, in the month of October, 2024, entered into a definitive agreement to acquire Naturell (India) Pvt. Ltd, a leading healthy snacking company. It is engaged in the business of manufacturing, R&D, marketing and selling of Nutrition bars, Protein cookies, Protein Chips and health food products under brands Ritebite Max Protein and Ritebite.

 US formulations business

• Registered revenues of Rs. 24,168 mn, up 30% y-o-y and down 22% q-o-q. The business accounted for 47% of consolidated revenues.
• In constant currency terms, the business registered revenues of US$ 288 mn.
• Launched 4 new products during the quarter.
• Filed 8 ANDAs and received approval for 9 ANDAs (incl. 3 tentative approvals) during the quarter.

 International Markets formulations business

• Registered revenues of Rs. 5,389 mn, up 20% YoY. The business accounted for 11% of consolidated revenues.
• The business continued to deliver healthy growth with all major markets contributing to the growth during the quarter.

 API business

• Registered revenues of Rs. 1,194 mn, down 15% y-o-y. The business accounted for 2% of consolidated revenues.

 Alliances & Others

• Registered revenues of Rs. 941 mn, up 178% y-o-y. The business accounted for 2% of consolidated revenues.

 Received Establishment Inspection Report (EIR) with Voluntary Action Indicated (VAI) status from the USFDA for the inspection of transdermal formulations facility located in Ahmedabad SEZ.

 NCE Research

• Completed Phase II(a) clinical trials of Usnoflast in India for Amyotrophic Lateral Sclerosis (ALS) indication. The molecule was well-tolerated in a 12-week Phase II(a) trial with target levels achieved in both plasma and Cerebrospinal Spinal Fluid (CSF) of ALS patients.
• Initiated Phase II proof-of-concept trial of Desidustat in partnership with Indian Council of Medical Research (ICMR) in patients with Sickle Cell Disease.

Biotech R&D

• Completed patient recruitment for Phase III clinical trials for one of the biosimilars and follow-up has been completed.
• Completed pre-clinical toxicity studies for one of the biosimilars and applied for clinical trials permission to Review Committee on Genetic Manipulation (RCGM).

Vaccines R&D

• Completed Phase II clinical trials for Hepatitis E vaccine.
• Recently, in the month of October, 2024, Typhoid Conjugate vaccine viz. ZyVac^® TCV received in principle acceptability from the WHO. With this acceptance, ZyVac^® TCV is now eligible for purchase by the UN agencies.
• Forayed into animal free fermentation-based protein business by forming a JV with Perfect Day Inc. through the acquisition of 50% stake in Sterling Biotech Ltd. The JV will establish a state-of-the-art manufacturing facility which will cater to the global markets.
• Post the formation of JV with Perfect Day Inc., entered into business transfer agreement with the JV to acquire its API business, which has a fermentation-based products portfolio and a capacity to produce 1600 KL of API.