Categories Concall Highlights, Earnings, Health Care

Zydus Lifesciences Ltd Q1 FY23 Earnings Conference Call Insights

Key highlights from Zydus Lifesciences Ltd (ZYDUSLIFE) Q1 FY23 Earnings Concall

Q&A Highlights:

  • Neha enquired about the drivers of strong growth in the US business QonQ and if it’s sustainable. Sharvil Patel MD replied that there are no one-offs in the overall numbers. The sequential growth was due to volume share gain on the base portfolio and new launches. In future, Zydus is at a sustainable base which it expects to grow forward.
  • Neha also enquired about the reasons for costs increase QonQ, especially employee costs. Nitin Parekh CFO replied that employee cost QonQ will not make sense as in April Zydus gives increments and incentives. So 8% impact is on account of increments and performance bonuses only, about 2.5% impact from actuarial gain and 1.5% due to new recruitments.
  • Prakash Agarwal enquired about the US business, if the improvement is due to volume improvement of good launches. Nitin Parekh CFO replied that the growth in the US is due to both volume growth and the new product growth also.
  • Prakash Agarwal also asked how does the company see the US business for the rest of year. Sharvil Patel MD replied that the company’s base business is currently on track and believes the company can grow from that.  The company also has some important launches that are also phased in one or two quarters.
  • Prakash Agarwal asked about the outlook on margins. Sharvil Patel MD replied that the company believes it will be 20% plus margins and the company expects to sustain this margin for FY23.
  • Vishal Manchanda enquired about Adalimumab biosimilar approval in Russia, the market size and competition. Sharvil Patel MD replied that the company will be the first or second generic. In terms of size, the data is not available.
  • Sriman asked about an agreement with a Korean company and if it’s getting any revenue from the tech being transferred to them. Sharvil Patel MD replied that the company is not yet getting any revenue and is in the phase of tech transfer that will be followed by a regulatory inspection in their facility.
  • Sameer Baisiwala of Morgan Stanley asked about the US product pipeline for FY24. Sharvil Patel MD said it continues to expect 30-35 plus ANDAs in the US. ZYDUSLIFE believes it has a pipeline to do that and is buoyant about the next couple of years for US launches.

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