Zydus Lifesciences Q1 Profit Beats Estimates on New US Drug Launches

Indian drugmaker Zydus Lifesciences reported a 3.3% rise in Q1 net profit to 14.67 billion rupees ($167.4 million), beating estimates, driven by new drug launches in the US, its biggest market. Overall revenue climbed 6%, led by a 3% sales growth in the US and a 6% jump in India. The company has been grappling with weak pricing due to intense competition, but new products have driven growth in the US since the beginning of 2025.

Indian drugmaker Zydus Lifesciences reported a 3.3% rise in Q1 net profit to 14.67 billion rupees ($167.4 million), surpassing analysts' expectations. The company's overall revenue climbed 6%, driven by a 3% sales growth in the US and a 6% increase in India. This growth is attributed to the successful launch of new drugs in the US, the company's largest market [1].

Zydus Lifesciences has been grappling with weak pricing due to intense competition in the market. However, the company's new products have driven growth in the US since the beginning of 2025. Notably, the company received a Notice of Compliance (NOC) from Health Canada for ZDS-Varenicline tablets, a smoking cessation aid, which is expected to boost sales in the Canadian market [1].

The company's share price has been volatile, touching a 52-week high of Rs 1,323.90 and a 52-week low of Rs 797.05. Currently, the stock is trading 28.59% below its 52-week high and 18.61% above its 52-week low [1].

Zydus Lifesciences has also made significant strides in acquiring other pharmaceutical companies. In July 2025, the company completed the acquisition of Amplitude Surgical, holding 85.6% of the share capital and voting rights of Amplitude Surgical. Additionally, the company received final approval from the United States Food and Drug Administration (USFDA) for Celecoxib Capsules in various strengths [1].

The company's peers in the pharmaceutical industry have also reported subdued sales in the US. Divi's Laboratories, another major Indian drugmaker, reported a first-quarter profit below estimates due to weak pricing pressures in the US market [2].

In contrast, Orion Energy Systems Inc. reported a dip in Q1 revenue but beat analyst expectations on adjusted EBITDA. The company's gross profit margin rose to 30.1%, driven by pricing and cost improvements. Orion Energy Systems Inc. anticipates revenue growth of 5% for the fiscal year 2026 [3].

References:
[1] https://www.tradingview.com/news/moneycontrol:89c3ae754094b:0-zydus-lifesciences-shares-in-focus-on-health-canada-noc/
[2] https://www.marketscreener.com/news/indian-drugmaker-divi-s-misses-june-quarter-profit-view-on-weak-us-pricing-ce7c5ed9db80f32c
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX86D944:0-orion-energy-s-q1-revenue-dips-2-misses-estimates/