Zydus Lifesciences Stock Gains On Jefferies Upgrade, Drug Approval

The stock price of Zydus Lifesciences continued its gaining streak for the second day after the brokerage firm Jefferies issued buy call for the frim with 30 per cent upside. Along with this the firm also received approval to market its drug Amantadine.

Zydus Lifesciences stock traded with nearly 2 per cent gain at Rs 1,134 in the morning session on the National Stock Exchange (NSE). 
 

Jefferies upgraded its ‘hold’ call on the firm to ‘buy’. The company believed there is a buying opportunity in the shares following its recent fall of around 8 per cent over the last week. 
 

For the second time this month, Jefferies increased its price objective for the stock to Rs 1,450, indicating a potential upside of more than 30 per cent. Earlier this month, Jefferies increased its Zydus Life price target to Rs 1,210. 
 

Brokerage firm said Zydus Life has a robust US pipeline with at least one significant launch valued at USD 80 to 100 million annually, which forms the basis of the broking firm's investment case. Zydus Life could see higher revenue and margins as a result of this robust US pipeline and better growth prospects in India.

However,  the company also pointed out that because of the target market's nature, the company's strong dependence on the US generics market presents a high-risk, high-reward opportunity.

Zydus Lifesciences also received the final approval from USFDA for Amantadine extended-release capsules 68.5 mg and tentative approval for 137 mg.

This approval makes Zydus eligible for 180 days of exclusivity for Amantadine extended- release capsules, 68.5 mg.

Amantadine extended-release capsules are indicated for the treatment of dyskinesia in patients with Parkinson's disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications. The drug will be manufactured at the group's formulation manufacturing facility in Ahmedabad special economic zone, India.
 

Despite the recent fall, the firm’s stock performance remained robust with 65 per cent returns in 2024 so far against the sectoral index, Nifty Pharma return of 35 per cent year-to-date (YTD).