In today’s briefing:
- Zydus Lifesciences (ZYDUSLIF IN): Strong Q4 Result Driven by US Business; Forward Growth to Moderate
- [Akeso Inc. (9926 HK) Target Price Change]: Sell off in High-Beta Names Creates Buying Opportunity
Zydus Lifesciences (ZYDUSLIF IN): Strong Q4 Result Driven by US Business; Forward Growth to Moderate
- Zydus Lifesciences Ltd (ZYDUSLIF IN) recorded 32% growth in revenue to INR50B in Q4FY23, driven by 58% YoY growth in US formulation business. India business revenue grew 11% YoY.
- US business growth was driven by volume expansion in existing products and new launches. The company has launched eight new products in the US during the quarter.
- Going ahead, growth is expected to moderate, due to high base effect. The company expects single-digit growth in the US business in FY24, slower than 28% growth recorded in FY23.
[Akeso Inc. (9926 HK) Target Price Change]: Sell off in High-Beta Names Creates Buying Opportunity
- Amid general disappointment over China’s post-COVID recovery, high beta names like Akeso have sold off in recent days;
- Management called for an update which specified on (1) why Ivonescimab (AK112) was absent in ASCO 2023, (2) sales update of Cadonilimab (AK104), (3) NDA and data readout timelines.
- We came away positive; We view management’s confirmation on progress a positive development that enhances certainty. We raise TP by HK$1 to HK$60.
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