As our innovation matures, our profitability will improve. Growth will be decent for next five years




is gearing up for its next phase of growth, placing new bets on specialty medicines, , innovative products, medical devices, and contract development and manufacturing, managing director Sharvil Patel told Rica Bhattacharyya in an exclusive interview in Ahmedabad.



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Edited excerpts:



You have been at the helm for nearly a decade. How's the road ahead for Zydus?




From the beginning, our thought has been how to work from being just a pharmaceutical company to becoming a more patient-driven organisation. We are building more of an ecosystem across not all diseases, but some diseases. We will also focus on creating access. We will work on things that are neglected and unsolved from the disease point of view.



What happens to the traditional US generics engine...




We'll have both. US generics is still our largest market and still offers room to grow. We have a portfolio that's already filed for 2032 and beyond. A large pipeline of products is to come. That engine will continue to drive meaningful cash for the organisation.



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Saroglitazar is the biggest test yet of Zydus' discovery capabilities. What would a successful US launch look like?




We spent a long time working on discovery. The next leg for us is to prove commercial capability. We have three rare disease drugs that we commercialise in the US. We are ready if everything goes well with Saroglitazar's approval. We are looking at 18-20% share of prescriptions in US.



What is the road ahead for Zydus' inorganic growth strategy?




Anything that is a new trend is where we will try to use capital to either partner, build or acquire. What we're keen on in India is to buy brands. In other markets, we want to either buy or look for things where we have wide gaps. Speciality is the focus for most markets, mostly driven by the US. We have CAR-T capability and can do more on CAR-T therapy.



What are the growth markers for Zydus over the next five years?




We are seeing good double-digit growth on revenue side. We are at 24% Ebitda and we hope to continue to improve in the next five years. As our innovation matures, our profitability will improve. Growth will be decent for next five years.



When do you expect discovery-led products to start contributing meaningfully to earnings?




From 2030 and beyond, we will see strong earnings from pure discovery-led business, which is our central business. Our oncology business and Saroglitazar...in the next four to five years we will see meaningful value being created from these. It will be a mix of that strategy where we will have our own pipeline of products and also more active licensing or acquisitions on the speciality.



Oncology is a major franchise for you. How do you see it evolving?




We are doing far more than just bringing access to these drugs. We have brought ADCs which are the first in the world to India. We have also brought precision diagnostics. We continue to see more opportunities to add around the oncology piece, which include genetic testing.



Do you see Zydus partnering with Chinese biotech companies?




We will also look to license for unmet needs in India for novel biologics from China.