Zydus Lifesciences - Growth Can Surprise On The Upside: Systematix Initiates Coverage

Systematix Research Report

Our optimism is underpinned by improving growth trajectory in Zydus Lifesciences Ltd.'s India branded formulations business and easing concerns around erosion pressures in gAsacol HD, given the visibility on launch pipeline, which could more than offset the pressures.

A well-established wellness business, a proven biosimilar portfolio, amongst the best research and development productivity in the industry, and investments in long-term initiatives (new chemical entity pipeline and vaccine business in place) should drive medium to long-term growth.

We estimate sales, Ebitda and adjusted profit after tax of 6.8%, 8.9% and 8.3% compound annual growth rate, respectively, over FY22-FY25E.

Earnings drag from an extended higher-than-expected price erosion in the U.S. market is a key downside risk. Key upside risks stem from improvement in pricing situation in the U.S., successful execution of biosimilar portfolio in emerging markets and approvals for complex generics.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.