Nov 12 (Reuters) – Indian drugmaker Zydus Lifesciences (ZYDU.NS), opens new tab
on Tuesday reported a 14% rose in second-quarter profit, helped by strong demand for generic drugs in its key United States and Indian markets.
The company’s consolidated net profit rose to 9.11 billion rupees ($107.93 million), in line with analysts’ average estimate of 9.13 billion rupees, according to data compiled by LSEG.
Its total revenue rose 20% to 52.37 billion rupees, boosted by a nearly 30% rise in its U.S. market and a 10% inflation in its India business. These two markets contribute about 85% of Zydus Life’s total revenue.
For more on the earnings,.
Key context
Indian generic drugmakers, which earn a large portion of their revenue from the U.S., have benefited from strong demand for their copycat versions of cancer drugs, notably Revlimid – Bristol Myers Squibb’s (BMY.N)
, opens new tab
blockbuster cancer drug.
Strong sales of this drug have consistently boosted U.S. revenue for Zydus and its peers.
However, according to analysts, they are also grappling with a slowdown in the U.S. due to delayed approvals for new generic drug applications, low pricing amid stiff competition, and increased inspections of generic drug manufacturing facilities by the U.S. Food and Drug Administration.