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Informist, Tuesday, Aug. 11, 2026

 

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--Zydus Life: India branded formulations outgrew mkt growth over last 3 yrs 
--CONTEXT: Comments by Zydus Life mgmt at post-earnings analyst concall 
--Zydus Life: Investing in focus therapies which offer growth potential 
--Zydus Life:See branded biz sales shr exceed 2/3 of total sales medium term 
--Zydus Life: Remain confident in co's ability to outpace industry growth 
--Zydus Life: Sees further growth opportunities in India, US businesses 
--Zydus Life: Biosimilars business saw significant uptick in Q1 FY27 
--Zydus Life:Expand cardiology portfolio to tap demand for advanced therapies 
--Zydus Life: Expect to spend INR 15 bln-INR 16 bln as capex in FY27 
--Zydus Life: New facilities,capacity expansion to be key drivers FY27 capex 
--Zydus Life:Chronic therapies,innovation-led portfolio to spur India growth 
--Zydus Life: Semaglutide still in early stages, see strong growth potential 
--Zydus Life: UK market entry scaling up faster than expected 
--Zydus Life: See double-digit growth in consumer wellness business in FY27 
--Zydus Life: Plan 30-plus US launches in FY27, including speciality drugs 
--Zydus Life: Expect better US sales growth in FY28 vs FY27 

 

By Gunjan Rajput and Arya S. Biju

 

NEW DELHI/MUMBAI – Zydus Lifesciences Ltd. expects its US business to have a better growth profile in the next financial year as it scales up both its generic and branded portfolios while a growing product pipeline is expected to prevent a decline in US revenue over the next 3-4 years.

 

"We will see a better profile versus this year," a top official of the company said when asked whether the US business could return to double-digit growth from the financial year 2027-28 (Apr-Mar), citing continued scaling up of the generic and branded businesses.
 

The company plans to launch at least 30 products in the US in FY27, with the number potentially reaching 40 depending on multiple scenarios. The launches will include specialty products. The company said it does not expect US revenue to decline over the next 3-4 years despite the possibility of some key products maturing, citing a growing pipeline of ready-to-use and other product formats.

 

"We do not see that kind of a fall in the US revenue," the official said. The company's branded portfolio already contributes 10% of US revenue, and this share is expected to rise as specialty and innovation-led products are scaled up.

 

Saroglitazar, a drug to treat metabolic disorders and chronic liver disease, is planned for launch in FY28. The company said the first two years will largely be a build-out and investment phase with no significant revenue expected. "We won't see any significant revenue in the first year," the official said, adding that revenue should start building up from the second year. The official said the market opportunity for saroglitazar appears larger than previously expected, citing higher patient numbers and a larger addressable patient pool. "We are seeing a bigger market than expected," the official added.

 

Zydus Life expects its India branded formulations business to grow in the mid-teens in FY27, with management targeting growth that is at least 300 basis points above the market's growth. "We see mid-teens growth in the (country) for that business," the company official said. The company said growth is being supported by its chronic portfolio, innovation-led products, biologics, and vaccines. Semaglutide is contributing to the momentum but remains a relatively small contributor to the overall India business. "Sema (Semaglutide) is just the beginning, so it is a small contributor," the top offical said, adding that the broader differentiated pipeline and chronic business are supporting sustainable growth. The company said its India branded formulations business has consistently outperformed the market over the past three financial years.

 

Zydus Life maintained its FY27 earnings before interest, taxes, depreciation, and amortisation margin guidance of 24% and above despite higher spending related to saroglitazar. The company has already invested in several newer businesses, including biologics, vaccines, and medical technology, and expects these businesses to be scaled without requiring major incremental investment. Over the longer term, as branded products sales increase to more than two-thirds of its total revenue, the company aims to improve EBITDA margins to 28-30%. "But ideally, we would want to be improving our EBITDA margins till the 28-30% range as we move closer to the five-year period," the top offical said.
 

The company expects FY27 capital expenditure at INR 15 billion–INR 16 billion, with spending spread across capacity expansion, new facilities, research and development infrastructure, biologics, vaccines, and other projects.

 

The company said its biosimilars business saw a significant uptick in the June quarter, with the management highlighting strong traction in the portfolio. The management said the biosimilars business is already meaningfully scaled up and profitable while the US business is expected to see a meaningful scaling up in calendar year 2029. Zydus Life said it is strengthening its presence in cardiology, orthopaedics, and nephrology as part of its focus on advanced therapies.