Zydus Lifesciences Shares Slide on Analyst Concerns
Concerns Over US Sales Post-FY25
Shares of Zydus Lifesciences plunged by 5.3% to Rs 1,232.40 on Monday, following analysts' concerns over the company's US sales post-FY25. Several analysts have expressed caution regarding Zydus' future growth prospects in the United States, particularly after FY25.
Revised Estimates and Ratings
WEB has lowered its FY25-26 earnings per share (EPS) estimates for Zydus by 5-13%, citing concerns over the company's US sales trajectory. Despite maintaining a "buy" call on Zydus, the brokerage has revised its price target upwards.
FDA Inspection Findings
The US Food and Drug Administration (FDA) recently concluded an inspection of Zydus Lifesciences' transdermal manufacturing site, resulting in two observations. The company has not disclosed the nature of these observations, but they could potentially impact future US sales.
Strong First-Quarter Performance
Despite the concerns raised by analysts, Zydus Lifesciences reported a strong first-quarter performance. The company's profit more than doubled year-over-year, driven by robust sales in its US and emerging markets businesses.
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