Revenue from operations stood at 4025 crores displaying an upward momentum of 11% YOY from 3640 crores & 5% QOQ driven by strong growth in India with partial offset by US
EBITDA stood at 965 crores with an upward juncture of 15% from 838 crores YOY & a growth of 18% Sequentially
EBITDA margin displayed a minor growth of 1% YOY & 3% QOQ. Better inventory management & lower employee cost YOY being offset by higher raw material cost
PAT showed a phenomenal growth of 24% YOY from 473 crores & stood at 587 crores, displaying a degrowth of 14% QOQ. Q4 had a one-off benefit event of deferred tax leading to higher results
PAT margin also stood at 15% with a growth of 3% YOY & a similar degrowth sequentially. Finance cost & depreciation displayed downward momentum YOY leading to better margins.
Research & Development (R&D) spend at INR 295 Crores (7.3% of revenue)
Capex for Q1’22 stood at INR 265 Crores
Net debt position as at July 31st 2021 stands below INR 1,000 Crores after closure of transaction of sale and disposal of Animal Healthcare Established Markets undertaking of Zydus Animal Health and Investments Ltd
Business Highlights
Indian Markets
Domestic business driven by base business, Covid portfolio and lower base effect of previous year
Excluding Remdesivir, growth is +35% in Q1FY22
Entered into a supply and commercialization agreement with TLC(specialty pharma company in Taiwan)m, to market Liposomal Amphotericin B, a critical drug to treat Black Fungus or Mucormycosis in India
Company is looking to launch 30-35 products annually
Consumer wellness
Five out of seven brands seen double digit growth.
Nutralite brand delivered a strong growth both in institutional and retail segments in Q1’22 despite lockdown in key markets.
Sugar Free continued the momentum in Q1’22 and delivered a decent YoY growth.
Two seasonal brands viz. Nycil and Glucon-D got impacted due to Covid-19 second wave
Demand revival seen across channels with receding impact of second wave and gradual opening up of markets
US business
Pricing pressure in some products and settling of supply issues in US market resulted in limited one time buy opportunities, which led to sequential de-growth
Despite increased competition US generics business volumes continue to grow
Four new products launched in Q1FY22
In July 2021, received final approval for Fulvestrant Injection; first approval of a complex product from Biologics site. Product approved in first review cycle
Next three to four quarters expect low single digit growth
Next two to three years transdermals, complex oral solid and injectables to drive growth
Guided 50+ approvals and 30+ launches annually
Moraiya facility –CAPA plan already executed and now waiting for inspection. Oral contraceptive transdermal filed from this facility
Company targets to achieve US$2-3 billion business in the next three to four years
The company’s injectable business is ~US$ 3.5 crores annually as per management estimates
Three more mesalamine products expected to launch in FY22
Post patent expiry expects one or two competitors
Expects high single erosion in the US for at least next couple of quarters
Vaccine Updates
Submitted the dossier to DCGI for an EUA of ZyCov-D vaccine with an interim Phase III CTs efficacy data for 2 mg
Phase III CTs data for 2 mg dose study of ZyCov-D vaccine also confirmed the safety for children in the age group of 12 to 18 years
Phase III CTs were carried out over 28000 subjects in more than 50 clinical sites spread across the country and during the peak of 2 wave of Covid-19 reaffirming the vaccine’s efficacy against the new mutant strains especially the delta variant
Old facility started for stock piling and new facility production will start from this week
Has two vaccine plant drug substance plant and drug product plant. Can produce other vaccines in drug product plant. Substance plant can use for recombinant biologics in future
Already applied for intradermal for ZyCov-D
New Chemical Entity
In July, 2021, European Medical Agency granted Orphan Drug Designation (ODD) to Saroglitazar Magnesium for PBC indication; ODD status provides an exclusivity for 10 years upon approval
Company Received an approval from CDSCO to initiate phase I CTs in India for a novel, multi dose anti-malarial molecule ZY19489
505(b)(2) and specialty initiatives: Response received from the USFDA against pre-NDA meeting for a product in pain management and pre-IND request for a product in neurology space
Completed six in-licensing deals in Q1’22; value accretive from FY23. Cumulative in-licensing deals stood at 24, two products have 180 days’ exclusivity. Largely manufactured by the companies from which it has taken license
Biosimilar
Most revenues come from India. In India, the company generated 350 crores annually and expects to reach 500 crores in near term
In FY22 expects three to four launches in multiple EMs on licensing basis
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