ZyCoV-D vaccine is unlikely to yield supernormal profits for Zydus Cadila, said Surajit Pal, pharma analyst at Prabhudas Lilladher.
Drug firm Zydus Cadila, on Saturday, said it is looking to supply its COVID-19 vaccine ZyCoV-D by middle or end of September, adding that the pricing of the dose will be announced in the next one or two weeks. ZyCoV-D was granted emergency use authorisation by the Drugs Controller General of India (DCGI) on Friday, making it the first vaccine to be available for adolescents in the age group of 12-18 years in the country. It is a first of its kind needle-free 3-dose COVID-19 vaccine which gets administered in two months.
Pal said, “Any kind of launch of any vaccine by any company, may not see the kind of success which we have been seeing since January, for Covishield or Covaxin. So as a result, I think most of the companies which will be launching from India might be looking for an export route for gaining benefits, because you also have to remember that 75 percent has to be given to the government and that too at a rate of Rs 250. So roughly, cost for manufacturing one vaccine could be around Rs 9,200.”
He added, “So, basically 25 to 30 percent kind of normalised margins they could get. But supernormal profits may not be possible, particularly for Cadila because they are giving 3-doses of the vaccine.”
On Aurobindo Pharma, Pal said, “I think, the company definitely has a lot of good prospects in terms of biosimilars, complex products and injectables business and they might go for separating their business in this very fiscal. But what will get impacted, is that re-rating of the company may be delayed.”
He added, “So overall, I believe, the sentiment is negative. Fundamentally, there is not much of an improvement because hospital segments in the US are going through a bad phase and that is impacting all their peers, including themselves.”
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