Zydus group Company Invests in Illexcor for Sickle Cell Treatment; Stock Gave 139.65 per cent in last 3 Years
Over the past three years, the stock has delivered a substantial return of 139.65 per cent, classifying it as a multibagger stock.
Zydus Lifesciences Limited, through its venture capital arm Zynext Ventures USA LLC, has announced an investment in Illexcor Therapeutics, a biopharmaceutical company focused on developing next-generation oral therapies for sickle cell disease (SCD). This strategic investment highlights Zynext Ventures' dedication to supporting innovative healthcare solutions addressing significant unmet medical needs. Illexcor is currently developing a first-in-class oral drug aimed at directly targeting the root cause of SCD. The lead asset, still in preclinical development, is designed to bind to Hemoglobin S and prevent polymerization and sickling, potentially offering disease-modifying benefits.
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Dr. Sharvil Patel, MD of Zydus Lifesciences, emphasized the company's commitment to patients with rare diseases, while Jay Kothari, Director of Zynext Ventures, noted the strategic importance of this investment in fostering transformative healthcare innovations. Andrew Fleischman, CEO of Illexcor, expressed excitement about the partnership, which aims to advance their lead drug ILX002 into clinical trials later this year. Sickle cell disease affects up to 10 million people worldwide, and effective oral therapies are urgently needed to manage the condition globally.
Zydus Lifesciences Limited is a prominent player in the global lifesciences sector, known for its innovative healthcare solutions. The company’s current stock price is Rs 889, with a market capitalization of Rs 9,055 crore. Over the past three years, the stock has delivered a substantial return of 139.65 per cent, classifying it as a multibagger stock. The 52-week high and low are Rs 1,323.9 and Rs 859.15, respectively. With a price-to-earnings ratio of 19.72, Zydus continues to make strides in the healthcare industry, supported by its robust R&D initiatives and a workforce of 27,000 employees worldwide.
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In the Quarterly Results of December 2024, the company reported revenue of Rs 5,269.10 crore, compared to Rs 5,237.00 crore in September 2024 and Rs 4,505.20 crore in December 2023, showing a growth of 16.96 per cent YoY and 0.61 per cent QoQ. The net profit stood at Rs 1,023.50 crore, up from Rs 911.20 crore in September 2024 and Rs 789.60 crore in December 2023, reflecting a growth of 29.62 per cent YoY and 12.32 per cent QoQ. The net profit margin for the quarter was 19.42 per cent, compared to 17.40 per cent in the previous quarter and 17.53 per cent in the same quarter last year.
For the full financial year FY24, the company reported revenue of Rs 19,547.40 crore, up from Rs 17,237.40 crore in FY23, marking a growth of 13.40 per cent. The net profit for FY24 was Rs 4,536.90 crore, compared to Rs 3,561.50 crore in FY23, reflecting a growth of 47.20 per cent. The net profit margin for FY24 stood at 18.22 per cent, compared to 14.04 per cent in FY23.
As of December 2024, the shareholding pattern stands as follows: Promoters hold 74.98 per cent, Foreign Institutional Investors (FIIs) hold 7.53 per cent, Domestic Institutional Investors (DIIs) hold 10.61 per cent, Government holds 0.05 per cent, and the Public holds 6.85 per cent.
With a PE ratio of 19.8x, the company trades at a discount compared to the industry PE of 28.4x. The company has ROCE of 22.3 per cent and ROE of 20.7 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.