Aug 11 (Reuters) – Indian drugmaker Zydus Lifesciences’ first-quarter profit dropped by nearly a third, the company reported on Tuesday, as soaring costs offset strong sales in its key markets.
The company’s consolidated net profit fell to 9.40 billion rupees ($98.5 million) for the quarter ended June 30, compared with 14.67 billion rupees a year ago.
Here are some more details:
• Most Indian generic drugmakers, including Zydus Life, derive a significant portion of their revenue from the U.S. market but have been grappling with weak pricing due to intense competition.
• Overall revenue jumped 22% to 80.17 billion rupees, but expenses rose at a faster pace of 41.4%, dragged by an over 32% jump in R&D costs and a 47.5% jump in other operating expenses.
• However, the company’s sales stayed strong with those in India jumping 19.5% to 18.16 billion rupees and those in its consumer wellness business, which owns brands such as Glucon D, surging 67.2% to 14.29 billion rupees.
• North America sales, however, dropped 2.6% to 30.98 billion rupees.
• Larger rivals Dr Reddy’s and Cipla posted subdued U.S. sales during the quarter.
($1 = 95.4300 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich and Harikrishnan Nair)
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