By: Rahul Koul
Last updated : January 27, 2022 5:45 pm
With cost optimization leading to cumulative savings of US $80 million over last 8 years, the company now aims to tap bigger opportunities in generics business
Pharmaceutical major, Zydus Cadila is working big time on the global biosimilars market that is predicted to be approximately US $35.7 billion by 2025. The company has 21 biosimilars, either in its portfolio or pipeline including IFNα-2b, PEG-IFN, PTH , G-CSF, PEGG-CSF, EPO, Adalimumab, Trastuzumab, Bevacizumab, Rituximab, Peg-Asparagase and r-FSH.
As a key milestone, Zydus India’s formulation business crossed US $500 million to contribute around 27% of overall revenues. The company has raked in US $2 billion revenue during FY 2020 and features among the top three in respiratory, pain, gynecology, nephrology and oncology.
The approved product range of the company holds the value of US $2.3 billion and filed products awaiting approval are worth US $6 billion. At the same time, its under development products form the market potential of US $2.5 billion. A total of 15 filed products awaiting approval constitutes a US $6 billion market, out of which seven are complex and eight are regular. The 37 products in the under-development category, out of which 14 are complex and 23 are regular which have a market worth US $19 billion.
Aiming to achieve excellence in manufacturing and quality operations through the use of digital and data analytics tools for effective decision making, Zydus has reached cumulative savings of over US $80 million.
The company is also aiming to reduce in-sourcing from China. It is looking at reducing China sourcing dependency from 46% to 35% in API manufacturing during the next two years. Within the formulation business, the company aims to reduce China sourcing dependency from 22% to 17% in the next one year.
Having spent 70 years in business excellence, Zydus Cadila has a combined turnover of US $6.92 billion and a market cap of around US$155 million. The company has spent US $155 million on R&D during FY 2020. It has the largest integrated biologics and vaccines portfolio across India.
Tapping mega global opportunities
The near to mid-term strategy of Zydus includes the creation of two distinct sets of portfolios catering to Indian and European markets. The company is also developing a portfolio of complex generic injectable products, including drug-device combination products for the United States market. It already has 108 products in the US injectable portfolio.
The company’s well-balanced portfolio of high-value products across the various stages of development indicates the prospective business growth opportunity that lies ahead of it. The portfolio targets 15 products worth around US $14 billion and 4 products marketed in India's global vaccines market worth around US $60 billion size by 2026.
As per the company, it will continue to extend the coverage of around 63% of global business with multiple vendors and work closely with vendors for long-term visibility and strategic partnership.
Zydus has 337 approved or commercialized products worth US $66 billion and 254 products Filed/Under development worth US $119 billion addressable market size. The company’s global business has a strong presence in the regulated markets of the US, Europe (France and Spain) and in the high profile markets of Latin America and South Africa. It is also present in a big way in 25 other emerging markets worldwide. It aims to have a select play in regulated markets with an objective to create a strong franchise in the oncology segment where it already has 29 products worth US $27 billion.
Among the key milestones achieved by the company so far are over 99% supply chain efficiency (product availability) in the last 3 years besides addressing supply chain vulnerability by extending safety coverage of key components with a higher risk of supply. It has secured 38% of global business with multiple vendors and with key vendors on strategic partnership and giving long term visibility.