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.