Zydus Lifesciences forecasts five years of decent growth

Zydus Lifesciences is preparing for a new growth phase, targeting specialty medicines, complex biologics, and medical devices. Managing director Sharvil Patel outlined the strategy in an interview, stating the company aims to evolve from a pharmaceutical firm to a patient-driven organization.

Sharvil Patel said the company is building ecosystems around specific diseases and focusing on creating access to treatments for neglected conditions. The traditional US generics business will remain a core engine, providing significant cash flow. Patel noted the company already has a product portfolio filed for approval through 2032 and beyond.

Growth strategy and financial targets

The company anticipates good double-digit revenue growth in the coming years. It currently operates at a 24% Ebitda margin and hopes to improve this profitability over the next five years. Patel stated, "Growth will be decent for next five years." As the company's innovation projects mature, they are expected to contribute more substantially to earnings.

From 2030 onward, Zydus expects strong earnings from its pure discovery-led business. Its oncology franchise and the drug Saroglitazar are projected to create meaningful value within the next four to five years.

Focus on specialty and innovation

A major test of the company's discovery capabilities is the potential US launch of Saroglitazar. Patel said Zydus is ready for commercialization if the drug gains approval, targeting an 18-20% share of prescriptions in the US market. The company already commercializes three rare disease drugs in the United States.

Oncology remains a major focus. Zydus has introduced antibody-drug conjugates (ADCs) and precision diagnostics to India. Patel said the company sees further opportunities to expand its oncology offerings, including genetic testing.

Inorganic expansion plans

The company's inorganic growth strategy will target new trends. Patel explained Zydus will use capital to partner, build, or acquire in emerging areas. In India, the focus is on buying brands. In other markets, the company seeks acquisitions to fill portfolio gaps, with a particular emphasis on specialty areas driven by the US market.

Zydus also possesses CAR-T therapy capability and plans to do more in this field. Additionally, the company is open to licensing novel biologics from Chinese biotech companies to address unmet medical needs in India.

The strategy combines developing an internal pipeline of products with active licensing and acquisition activities in the specialty sector.