Zydus Lifesciences Limited has informed the Exchange about Investor Presentation
Code: 532321
Code: ZYDUSLIFE
February 5, 2025
Listing Department BSE LIMITED P J Towers, Dalal Street, Mumbai-400001
Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai-400051
Re:
Investor Presentation
Dear Sir,
Please find attached the Investor Presentation on the unaudited financial results for the quarter / nine months ended on December 31, 2024.
Please find the same in order.
Thanking you,
Yours faithfully, For, ZYDUS LIFESCIENCES LIMITED
DHAVAL N. SONI COMPANY SECRETARY AND COMPLIANCE OFFICER MEMBERSHIP NO. FCS7063
Encl.: As above
Zydus Lifesciences Limited Earnings Presentation: Q3 & 9M FY25
5th February, 2025
zyd us
Dedicated To Life
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Disclaimer and Safe Harbor Statement
zyd~
Dedicated To Life
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•
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THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company’s actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment income (vi) cash flow projections etc.
The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. This document is just a Presentation and is not intended to be a “prospectus” or “offer document” or a “private placement offer letter” (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever.
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Q3 FY25: At a Glance
Revenue from Operations
₹ 52,691 mn 17% YoY
R&D
Highlights of Q3 FY25
❑ Total revenues grew 17% YoY.
₹ 5,031 mn 9.5% of revenues
❑ India formulations business grew faster than the market led by strong
chronic outperformance (secondary sales gr of 8% as per IQVIA).
❑ Consumer Wellness business grew in double-digit aided by robust
volume growth of 4.8% amidst muted demand scenario in the industry.
EBITDA & Margin %
Net Profit
₹ 13,876 mn 26.3% of revenues 26%YoY
₹ 10,235 mn 30% YoY
❑ US formulations business continued its upward trajectory with a
formidable YoY growth driven by volume expansion and new launches over last 12 months.
Business-wise Sales Break-up (₹ mn) and YoY Growth
healthy demand across markets.
❑ International markets business grew in double-digit on the back of
API 3% ▲19%
Alliances 1% ▼33%
IM Formulations 11% ▲16%
Total 51,235 ▲18%
US 47% ▲31%
India Form 29% ▲5%
Consumer Wellness 9% ▲13%
❑ EBITDA margin stood at 26.3%, up 180 bps YoY.
❑ Capex (organic) for the quarter: ₹ 2,907 mn.
❑ Net cash: ₹ 30,916 mn (at 31-Dec’24) vs 8,561 mn (at 31-Mar’24)
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Key Financial Metrics (1/2)
Total Revenues (₹ mn)
Gross Profit (₹ mn) and Gross Margin %
62,075
55,338
52,370
52,691
45,052
67.4 %
70.9 %
74.4 %
46,214
71.9 %
69.9%
39,223
37,656
36,858
30,367
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Total R&D (₹ mn) and % to Revenues
EBITDA (₹ mn) and EBITDA Margin %
7.0 %
6.4 %
6.3 %
9.2 %
3,146
3,516
4,800
3,925
9.5%
5,031
24.5 %
29.5 %
33.6 %
20,840
27.9 %
26.3%
16,305
11,024
14,614
13,876
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
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Key Financial Metrics (2/2)
PAT ex. Exceptional (₹ mn)
Organic Capex (₹ mn)
14,199
11,823
7,896
9,112
10,235
2,137
2,126
3,014
3,017
2,907
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Net Cash (₹ mn)
Net Working Capital* (₹ mn)
30,916
56,431
65,354
71,427
62,596
60,585
25,906
18,922
15,160
8,561
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
*Net working capital includes Inventory, Trade receivables and Trade payables.
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India Formulations business
Strong chronic performance driving the overall outperformance
Highlights for the quarter
India Formulations Sales (₹ mn)
14,273
13,806
13,758
14,569
14,982
Q3 FY25 Revenue Contribution
29%
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY25 Gr.
YoY
QoQ
5.0%
2.8%
Brand building - a key growth driver
Therapy-wise Break-up*
Brand Value (₹ Mn)*
1000+
500 to 1000
250 to 500
# of Brands
10
20
37
Others 14%
Cardio- Diabeto 16%
Anti- infectives 13%
Pain 7%
Derma 6%
GI 9%
Respi 13%
Gynae 7%
Onco 9%
Hepato 2%
Nephro 4%
▪
▪
▪
▪
▪
Grew faster than the market with a secondary sales growth of 8% YoY.
Chronic segment outpaced the market growth driving the overall performance.
On a YTD basis, the business grew 9%, outpacing the market growth.
Gained market share in key therapies of Cardiology, Respiratory, Anti-infectives and Oncology.
On the Super Specialty front, continued to strengthen leadership position in Nephrology and Oncology therapies.
Contribution of chronic portfolio has increased consistently over the years and stood at 42.4%*, an improvement of 370 bps over the last 3 years.
*Source: IQVIA MAT December 24
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Consumer Wellness
Robust volume uptake amidst muted demand scenario in industry
Highlights for the quarter
Consumer Wellness Sales (₹ mn)
7,755
8,366
Q3 FY25 Revenue Contribution
3,974
4,875
4,488
9%
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY25 Gr.
YoY
QoQ
12.9%
-7.9%
Key brands continued to hold dominant market share
▪
▪
▪
▪
Volume growth remained robust at 4.8% amidst muted demand scenario.
Personal care segment witnessed strong demand and achieved robust double-digit growth.
EverYuth brand continued to gain market share in scrub, peel-off and overall facial cleansing category.
Completed acquisition of Naturell (India) private limited, a leading healthy snacking company.
The acquired entity has a portfolio of nutrition bars, protein cookies, protein chips and health food products, marking an entry into the consumer snacking space.
Brand Name
Market Share#
58.9%
33.9%
95.4%
7.2%
47.3%
77.8%
4.1%
Facial Cleansing *
Scrub
Peel Off
#Source: Nielsen and IQVIA MAT December 2024 report * Facial cleansing segment includes Face wash, Scrub and Peel-off.
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US Formulations business
Base business volume expansion and new launches led to strong growth
Highlights for the quarter
US Formulations Sales (₹ mn)
30,929
25,235
24,168
24,096
Q3 FY25 Revenue Contribution
18,427
$ 221 mn
$ 304 mn
$ 371 mn
$ 288 mn
$ 285 mn
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY25 Gr.
YoY
QoQ
30.8%
-0.3%
Continued investment to build the generics pipeline
ANDA filings and approvals - Q3 FY25
ANDA filings and approvals - Apr - Dec 24
ANDA filings and approvals - Cumulative
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24
483
415
^
^
17
^
3
▪
▪
▪
Filed 10 ANDAs and received approval for 3 new products.
Launched 5 new products.
New launches include all 3 brands of Sitagliptin 505(b)(2) franchise viz. ZituvioTM, ZituvimetTM and ZituvimetTM XR tablets.
Entered into an agreement with CVS Caremark to add ZituvioTM, ZituvimetTM and ZituvimetTM XR tablets to its formulary.
The products were added to the formulary from 1st January, 2025.
Filings
Approvals
Filings
Approvals
Filings
Approvals
^ includes 5 tentative approvals during Apr – Dec 24 and 26 on a cumulative basis.
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47% International Markets Formulations business
Strong growth on the back of resilient demand across markets
Highlights for the quarter
IM Formulations Sales (₹ mn)
Q3 FY25 Revenue Contribution
4,937
4,960
5,309
5,389
5,702
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
Q3 FY25 Gr.
YoY
QoQ
15.5%
5.8%
▪
▪
▪
The business is emerging as a strong third growth engine.
Registered robust growth across key markets;
Focused on expanding the presence in select therapies across key markets by leveraging the global R&D portfolio of generics and specialty products.
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11% Updates on Innovation (1/2)
NCE: Saroglitazar Magnesium
• Data monitoring and follow-up is going on post the completion of patient recruitment for Phase II(b)/ III clinical trials for PBC
indication and Phase II(b) clinical trials for MASH indication for the US market.
• Phase II(b)/ III trials data readout for PBC indication is expected towards the end of calendar year 2025.
NCE: Usnoflast
• Received the USFDA approval to conduct Phase II(b) clinical trials in patients with ALS. The study will evaluate the efficacy,
safety, pharmacokinetics, and pharmacodynamics of the molecule in adult subjects with ALS.
• Received an ODD from the USFDA for ALS indication. ODD provides eligibility for certain development incentives, including
tax credits for qualified clinical testing, prescription drug user fee exemptions and a potential seven-year marketing exclusivity upon the USFDA approval.
PBC – Primary Biliary Cholangitis, MASH - Metabolic Dysfunction-Associated Steatohepatitis, ALS – Amyotrophic Lateral Sclerosis, ODD – Orphan Drug Designation
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Updates on Innovation (2/2)
Biotech R&D
• Completed Phase III clinical trials for one of the biosimilars.
• Submitted an application to the DCGI seeking permission to initiate Phase III clinical trials for one of the biosimilar ADCs.
• On the novel biologics front, received permission from RCGM to initiate pre-clinical studies for one of the ADCs. Vaccines R&D
• Completed Phase I clinical trials for Bivalent Typhoid Conjugate Vaccine.
Specialty and 505(b)(2) initiatives
• The USFDA has accepted for filing and granted priority review to an NDA for CUTX101, a copper histidinate product candidate
for treatment of Menkes disease.
• The NDA was supported by positive topline clinical efficacy results, demonstrating statistically significant improvement in
overall survival for Menkes disease subjects who received early treatment with CUTX-101.
ADC – Antibody Drug Conjugate, R.CGM – Review Committee on Genetic Manipulation, NDA – New Drug Application
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Zydus at a Glance
~$2.35 bn
Global Revenues1
5th
Largest generic Co. in US in terms of prescription3
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R&D Centers For NCE, APIs, Generics, Vaccines Biosimilars and Wellness products
>35% Revenues from India Geography (Formulations and wellness) in FY24
Among Top 3
In >55% of product families marketed in US4
1st
Approved product for NASH in India - (Bilypsa® - Saroglitazar)
$11.2 1st bn
Market Capitalization2
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Brands among Top 300 in India5
1st 1st
OSD formulation for anemia associated with CKD – OxemiaTM (Desidustat)
38 Mfg. sites having
capabilities across dosage forms
Biosimilars (pipeline & launched) & 7 novel products (pipeline)
>27 K
Biosimilars (pipeline & Zydans globally incl. launched) & 7 novel >1400 scientists (R&D) products (pipeline)
25 Biosimilars in portfolio
Biosimilars (pipeline & (incl. 3 ADCs), launched launched) & 7 novel 14 products in India products (pipeline)
1. 2. 3.
In FY24, assuming exchange rate of ₹ 82.8 per USD As on 4th February,2025, exchange rate of ₹ 87.12 per USD IQVIA MAT December 2024 TRx
4. IQVIA MAT December 2024 TRx 5. As per IQVIA MAT December 2024
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Consolidated Financial Performance (reported)
* Excludes Research related expenses
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₹ mnQ3 FY25Q3 FY24YoYgr. %Q2 FY25QoQgr. %9MFY259MFY24YoYgr. %Total Income from Ops.52,691 45,052 17.0%52,370 0.6%1,67,136 1,40,136 19.3%Gross Contribution (GC)36,857 30,367 21.4%37,656 -2.1%1,20,727 93,969 28.5%Gross Margin %69.9%67.4%71.9%72.2%67.1%Employee benefits expenses *8,516 7,354 15.8%7,865 8.3%24,201 20,645 17.2%R&D expenses5,031 3,146 59.9%4,800 4.8%13,756 9,580 43.6%Other operating expenses11,260 9,049 24.4%10,831 4.0%35,468 26,963 31.5%Net [gain]/loss on foreign currency transactions-1,826 -206 -786.4%-454 -302.2%-2,028 -757 -167.9%EBITDA13,876 11,024 25.9%14,614 -5.0%49,330 37,538 31.4%EBITDA Margin %26.3%24.5%27.9%29.5%26.8%Other Income575 377 52.5%682 -15.7%1,889 1,277 47.9%Finance cost320 198 61.6%251 27.5%893 466 91.6%Depreciation and amortization2,290 1,948 17.6%2,336 -2.0%6,779 5,588 21.3%Profit before Tax11,841 9,255 27.9%12,709 -6.8%43,547 32,619 33.5%Tax expenses1,795 2,138 -16.0%3,731 -51.9%9,887 6,563 50.6%Share of profit from JVs219 564 -61.2%221 -0.9%629 1,013 -37.9%Profit/(loss) from discontinued ops.-3 218 -101.4%3 -200.0%- 198 -100.0%Minority Interest27 3 800.0%90 -70.0%743 495 50.1%Reported Net Profit10,235 7,896 29.6%9,112 12.3%33,546 26,772 25.3% Details of Exchange Rate Fluctuations
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₹ mnQ3 FY25Q3 FY24YoYgr. %9MFY259MFY24YoYgr. %A. On operating transactions (above EBITDA line)-1,810 -228 -694.3%-2,000 -807 -148.0%a. Included in COGS17 -22 176%28 -50 156.4%b. Part of other operating expenses (shown separately)-1,826 -206 -786%-2,028 -757 -167.9%C. On foreign currency borrowings (part of finance cost)- - - 4 -100.0%Total Exchange Rate Fluctuations ('+' = loss, '-' = gain)-1,810 -228 -694.3%-2,000 -803 -149.2% Thank you
For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-22-62711905
For more information, please visit: www.zyduslife.com
www.linkedin.com/company/zyduslife
Registered Office:
Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, Sarkhej-Gandhinagar Highway, Ahmedabad – 382 481 Gujarat, India