Zydus Lifesciences India More than Doubles Profit Due to Increased Sales in the US

Zydus Lifesciences Ltd, an Indian generic drugmaker, announced later this week that its profit more than doubled in the first quarter, owing to strong sales in its US market. The pharmaceutical company's consolidated net profit increased to 10.87 billion rupees ($131.3 million) in the fiscal quarter ended June 30, up from 5.18 billion rupees the previous year.

Its US formulations business increased revenue by 57.3 percent to 24.54 billion rupees, while India formulations increased revenue by 9.1 percent to 12.27 billion rupees. India and the United States account for 38% and 48% of Zydus' total revenue, respectively. Zydus' U.S. business has grown steadily, thanks to new product launches such as cancer treatment drug gRevlimid and anti-convulsant medicine gTrokendi.

The Ahmedabad-based pharmaceutical company reported a 57% increase in total revenue from operations. Its margin for earnings before interest, taxes, depreciation, and amortisation increased to 29.3 percent from 20.5 percent the previous year. Zydus Wellness, a unit focused on consumer wellness products such as the energy drink Glucon D, reported a nearly 19% drop in first-quarter net profit last week. 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.