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Zydus Cadila Gets First Patch Approval Amid Push Into US

Executive Summary

A generic rival to Novartis’ Exelon extended-release treatment for dementia marks Zydus Cadila’s first transdermal patch approval in the US, furthering the Indian firm’s strategy of targeting more complex delivery forms.

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Zydus says its Moraiya plant should be ready for re-inspection at the end of June 2020, following a recent FDA warning letter. Meanwhile, as returns from levorphanol fall on the back of increased competition, the firm has written down investment by $37.5m causing Q2 profits to slump 74%. Post successful Phase II trials in the US for NASH and NAFLD indications, its hopes are now pinned on saroglitazar magnesium.

Levorphanol Write-Down Dents Zydus in Q2 But Saroglitazar Expectations Build

As returns from levorphanol fall on the back of increased competition, Zydus Cadila writes down investment by $37.5m causing Q2 profits to slump 74%. Post successful Phase II trials in the US for NASH and NAFLD indications, its hopes are now pinned on saroglitazar magnesium.

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Analysts said more challenges lie ahead for Zydus Cadila that will hobble earnings growth over the next couple of years, after the Indian firm reported a more than 20% slide in quarterly profit.

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