Zydus Lifesciences Ltd. share price target

We have revised our FY26E/FY27E EPS estimates by +2.6%/-7.4% as we bake in slower revenue growth as Revlimid and Mirabegron sales is expected to taper-off and factor in a marginal increase in EBITDA margins in FY26, while we factor in weaker margins on the back of changing product mix towards competitive generics over FY27.

Zydus Lifesciences (Zydus)’s Q1FY26 print beat our expectations, though its revenue grew a mere 5.9% while EBITDA/PAT shrunk 3.3%/0.7% YoY. US biz sales were flat YoY.

Zydus Lifesciences (ZYDUSLIF) Q1 EBITDA beat our estimates by 5%. We believe gRevlimid + gMirabegron contributes +45% to total FY25/Q1FY26 EPS which will see erosion from H2FY26. Though, company is working on a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars and vaccines, they are expected to materialize over the next 23 years. We expect US sales to decline in FY27 given sales erosion in some of...

Zydus Lifesciences Ltd has received tentative approval from the United States Food and Drug Administration (USFDA) for its Ibrutinib tablets in 140 mg, 280 mg, and 420 mg strengths.

Zydus Lifesciences (ZYDUSLIF) Q4 EBITDA including other operating income beat our estimates by 8%. We believe gRevlimid + gMirabegron contributes +45% to total FY25E EPS which will see erosion from FY27. Though, company is working on a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars and vaccines, they are expected to materialize over the next 23 years. We expect US sales to decline in FY27...

Zydus Lifesciences’ (Zydus) Q4FY25 revenue gained with healthy traction in US (+20%), domestic branded formulation (+10.7%) and its consumer business (+17.1%).

Zydus Lifesciences’ (Zydus) Q3FY25 revenue was in line with our expectations, but lower sales of gRevlimid and gAsacol led to a miss in earnings.

Revenue amounted to Rs. 5,237 crore, reflecting a 20% y-o-y increase but a 16% q-o-q decline,
primarily driven by reduced performance in the Indian consumer wellness segment, US
formulations and API business.

Zydus LifeSciences (ZYDUSLIF) delivered better-than-expected operational
performance for the quarter. While its revenue grew at a lower rate of 19% YoY (vs. est. of 25%).

Zydus Lifesciences Ltd has partnered with the Central Drug Research Institute (CDRI) to develop an oral
treatment for osteoporosis related to chronic kidney disease (CKD) and postmenopausal conditions, focusing on small-molecule inhibitors of the protein sclerostin.

Zydus’s Q1FY24 performance was boosted by solid traction in the US (up 8.4% QoQ). US benefitted from the ongoing shortages and better sales of gRevlimid while it has started facing competition in gTrokendi XR. India branded biz grew 10% ahead of the market growth of 9%.