Zydus Lifesciences stock recovers after China accepts new drug application of Desidustat tablets
Upstox
2 min read • Updated: April 23, 2024, 4:48 PM
Summary
Zydus Lifesciences said that China Phase III trial of the product has demonstrated positive results. CMS International Development and Management, a wholly-owned subsidiary of China Medical System Holdings (CMS) had obtained an exclusive license for the product from Zydus in 2020.
Shares of Zydus Lifesciences recovered from the day’s low of ₹945.70 after the company announced that China has accepted the new drug application of its drug Desidustat tablets by China Medical System Holdings. The stock was last trading at ₹961.50.
The company said that the China Phase III trial of the product has demonstrated positive results. CMS International Development and Management, a wholly-owned subsidiary of China Medical System Holdings (CMS), had obtained an exclusive license for the product from Zydus in 2020.
Desidustat is being marketed by the group in India under the brand name Oxemia. Zydus explained that the drug is used for treating anaemia in chronic kidney disease (CKD) patients. It is estimated that more than 12 crore people are living with CKD in China and anaemia is one of the frequent complications of CKD.
On Monday, the company announced that it has launched Mirabegron extended-release tablets, 25 mg in the US market. The drug, which is indicated for the treatment of overactive bladder (OAB) with symptoms of urge urinary incontinence, urgency and urinary frequency, will be manufactured at the group’s formulation manufacturing facility in Ahmedabad, India.
During the third quarter of fiscal year 2024 (FY24), the company had reported a 6% increase in its operating revenue at ₹4,505.2 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 15% year-over-year (y-o-y) to ₹1,102.4 crore. EBITDA margin for the quarter improved 200 basis points y-o-y to 24.5%.
Net profit rose 27% y-o-y to ₹789.6 crore during the quarter. Zydus had stated that capex for the quarter stood at ₹213.7 crore.
The company’s formulation business registered a 16% growth in its revenues at ₹1,427.3 crore. The business had accounted for 33% of its consolidated revenues, Zydus had said.
Shares of Zydus Lifesciences have gained over 37% since the beginning of the year. The stock has gained nearly 86% in the last one year.