Zydus Lifesciences (Erstwhile: Cadila healthcare)

Here are my notes from today’s concall:

  • Faced pricing challenges in US, flu season was non-existent
  • Launched pegfilgrastim in Russia (only player to do this)
  • Q4 domestic growth is from base business and not covid products. 60:40 split in mass:specialty. Specialty business has done significantly better than market
  • US focus will be on orphan drugs, target segments are CNS, pain and gastrointestinal
  • 2 biosimilar products for developed markets but this is post FY25
  • Transdermal + hormonal products are filed out of Moraiya. See 4 critical launches after resolution of Moraiya
  • Vaccine: Have secured device supply chain, will be assembled in India. Expect to start with 1cr./month and scale it to 2.5-3 cr./month. Also looking for 1-2 contract manufacturers for additional capacity. Being tested in ~1000 children, they were approved because its needle free
  • COVID product portfolio is at lower gross margins compared to base business (conscious company strategy to make covid drugs more affordable)
  • Can maintain R&D at 8% of sales over the next few years
  • Want base EBITDA margins to be ~22%

Disclosure: Invested (position size here)

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