Business

India's Zydus Lifesciences more than doubles profit on US sales growth

• By Reuters
• Bengaluru
• Aug 11, 2023

Business

Indian generic drugmaker Zydus Lifesciences Ltd said on Friday its profit more than doubled in the first quarter, driven by strong sales in its U.S market.

The pharmaceutical company's consolidated net profit rose to 10.87 billion rupees ($131.3 million) in the quarter ended June 30, compared with 5.18 billion rupees a year earlier.

Its U.S formulations business saw a revenue growth of 57.4 per cent to 24.54 billion rupees, while India formulations grew by 9.1 per cent to 12.27 billion rupees. India and U.S. sales make up 38 per cent and 48 per cent of Zydus' total revenue, respectively.

Zydus has seen a steady growth in its U.S. business, led by new product launches including cancer treatment drug gRevlimid and anticonvulsant medicine gTrokendi.

Last week, Zydus Wellness, a unit focused on making consumer wellness products such as energy drink Glucon D, posted a nearly 19 per cent dip in its first-quarter net profit.

Last month, Dr Reddy's Laboratories and Cipla reported first-quarter profits above estimates on the back of strong sales in domestic and overseas markets.

Shares of Zydus Lifesciences rose as much as 1.3 per cent after the results before paring the gains. The stock has climbed nearly 55 per cent so far this year, outperforming a nearly 22 per cent rise in the broader Nifty pharma index.