India’s Zydus Lifesciences Q1 profit beats estimates on strong US demand, ET HealthWorld

Bengaluru: Indian drugmaker Zydus Lifesciences reported a bigger-than-expected first-quarter profit on Friday, driven by strong demand for its generic respiratory drugs in its key market of North America.

The company’s consolidated net profit jumped nearly 31 per cent year-on-year to 14.2 billion rupees ($169.2 million) in the quarter ended June 30, beat analysts’ average estimate of 12.34 billion rupees, per LSEG data.

KEY CONTEXT

Indian generic drugmakers earn a major chunk of their revenue from the U.S., the world’s largest pharmaceutical market. Zydus Life’s larger rivals Cipla and Dr Reddy’s beat profit estimates on strong demand in the country.

Alembic Pharma’s profit for the quarter also rose, led by strong U.S. sales.

However, these drugmakers have been grappling with price erosion in the market amid stiff competition.

(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)