The proposed capital injection is expected to support Zydus’ continued R&D investments, expansion into international markets and upcoming launches in the specialty segment.”The key objective is to deleverage our balance sheet by reducing our existing debt. There are also strategic steps that will enhance our financial capability and flexibility to strengthen our capital structure position for future growth,” Managing Director Sharvil Patel said during an investor call.
“More importantly, we also have the opportunity to look at our US specialty business and scale it beyond saroglitazar,” he said. “Also, opportunities in the international market, particularly Europe, and also some more innovative assets that we’re looking at. So this will give us the opportunity to execute on some of these.”
On the potential size of the deal, he said there are no actionable deals at the moment, but the focus is on specialist activities and the US market, as well as specific brands for India if there are opportunities or adjacent areas. Strong growth in profit and revenue On Thursday, the company reported a 38% year-on-year increase in net profit to Rs 1,258.60 crore for the second quarter as revenue from operations rose 17% to Rs 6,123.20 crore. Ebitda grew 38% to Rs 2,015.80 crore, while margin improved 5 percentage points to 32.9%.
Patel attributed the performance to “the outperformance of our formulation businesses in the US and India, continued high growth in international markets and to strategic acquisitions in wellness and medical technology.”
Zydus also reported positive Phase 3 results for saroglitazar magnesium in the treatment of primary biliary cholangitis for the US market.
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