Categories Concall Highlights, Earnings, Health Care

Zydus Lifesciences Ltd Q3 FY24 Earnings Conference Call Insights

Key highlights from Zydus Lifesciences Ltd (ZYDUSLIFE) Q3 FY24 Earnings Concall

  • India Formulations
    • Double-digit growth led by volume expansion and new launches.
    • Volume growth and new product launches drove growth.
    • Gained market share in key therapies; chronic portfolio grew faster than market.
    • Margin expansion from better product mix and operating leverage.
    • Chronic portfolio grew faster than the market at 12% vs 11% for IPM.
    • Adding 700 medical representatives to expand coverage and reach
  • US Formulations
    • Improved profitability from higher volumes and new product launches.
    • Received approval for specialty and differentiated products.
    • Well positioned to sustain growth momentum.
    • Received final approval for 2 key ANDAs – Zituvio and Zituvimet.
  • International Formulations
    • International business revenues grew 31% year-on-year.
    • Broad based double-digit growth across regions.
    • Strong demand environment in Europe and EM markets.
    • Mexico business continued to grow in double digits.
  • Growth Plans
    • Continue expanding geographical reach, distribution channels, partnerships in India.
    • Launch new products and leverage innovation portfolio.
    • Conduct patient support programs and increase awareness of healthcare needs in India.
    • In US, volume expansion in base portfolio and new launches to continue.
  • Innovation Pipeline Progress
    • Completed patient recruitment for Saroglitazar Phase 2b/3 trials for PBC in US.
    • Completed Phase 2 trial of ZY19489 potential antimalarial drug.
    • 2 monoclonal antibodies awaiting approval in India.
    • Completed asset transfer for CUTX-101 for Menkes disease.
  • PBC Trial Update
    • Completed patient enrollment for Saroglitazar Phase 2b/3 PBC trial.
    • Expecting primary endpoint data and regulatory submission by Q4 FY2025.
    • 52-week patient follow-up, no interim event-driven data planned.
  • India Specialty Business
    • Significant growth seen for all specialty products.
    • Lipaglyn expected to become largest brand for company soon.
    • Large future growth opportunities seen.
  • LiqMeds Business Outlook
    • Will start contributing profits immediately as existing business is profitable.
    • Future growth from Zydus’ expansion into UK, other markets with liquid orals portfolio.
  • Gross Margin Sustainability
    • Higher gross margins driven by product mix, new product launches in US and international markets.
    • Scaling up of businesses also contributing to margin growth.
    • With Revlimid relaunch gross margins expected to increase further.
    • Believe current elevated margins are sustainable going forward.
  • Zituvio and Zituvimet Rollout
    • Early days, will be slow build-up of market share.
    • Developing positioning with payers and customers.
    • One of the important value drivers for FY25.
    • Negotiations with payers ongoing, prescription ramp-up required.
  • Consumer Wellness/Injectables Outlook
    • Skincare portfolio growing strongly, food portfolio facing challenges.
    • Rural demand yet to pick up, impacting nutrition brands.
    • Aiming to grow in double digits in FY24.
    • Gross margins improving, new launches and distribution expansion planned.
    • Gained/maintained market share for key brands despite slow market.
    • Ramp up better than previously planned targets in injectables.
    • Seeing good growth opportunities from shortages, complexity.

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