Zydus Lifesciences' North American market sales see strong growth, profit surges unexpectedly

Special Topic: Focus on US Stock Market Q4 2025 Financial Reports

On Monday, Indian pharmaceutical company Zydus Lifesciences Ltd released its financial report, showing that third-quarter profits exceeded market expectations, driven by the launch of new drugs in its largest market, North America.

For the quarter ended December 31, the company reported consolidated profits of 10.42 billion Indian rupees (approximately $115.1 million), up from 10.24 billion Indian rupees in the same period last year.

According to data compiled by London Stock Exchange Group, analysts had previously expected the company’s quarterly profit to decline to 9.32 billion Indian rupees.

The company’s overall revenue increased by 30.3% year-on-year, mainly owing to a 16.4% rise in North American sales and a nearly 13% growth in sales in the domestic Indian market.

Core Background

For most Indian generic drug companies, including Zydus Lifesciences, a majority of their revenue comes from the US market. However, these companies are facing pricing pressures due to intense market competition.

Since early 2025, the launch of new drugs—especially those in Zydus’s specialty drug pipeline—has driven the company’s growth in the US market. During this financial reporting period, the company added four new products to the market.

Meanwhile, Zydus’s peers Cipla and Dr. Reddy’s Laboratories both reported sluggish US sales during the same quarter.

Peer Comparison (Next 12-Month Forecast)

Table

* Average Analyst Rating: Standardized average based on the rankings “Strong Buy, Buy, Hold, Sell, Strong Sell”

** Price-to-Target Ratio: The ratio of the latest closing price to the average analyst target price. A value above 1 indicates the current stock price is above the target price.

Stock Performance from October to December

Note: All data comes from London Stock Exchange Group

Exchange rate conversion: 1 USD = 90.5590 Indian rupees

Editor: Guo Mingyu