Zydus Lifesciences Ltd. has received final approval from the United States Food and Drug Administration (USFDA) for its Enzalutamide Capsules, 40 mg, a critical medication used in the treatment of metastatic castration-resistant prostate cancer. This approval marks a significant milestone for Zydus, enhancing its oncology portfolio and market presence. The shares of Zydus Life experienced a gain of 1 percent following the announcement.
Impact of the Approval
The US FDA approval is particularly significant given the widespread use of Enzalutamide capsules in treating advanced prostate cancer. The drug will be manufactured at the company's facility in Moraiya, Ahmedabad, ensuring a steady supply to meet market demand. According to market data, Enzalutamide capsules generated annual sales of $869.4 million in the United States alone. Projections indicate that enzalutamide, along with other similar agents, will contribute to a combined total sales of $14.2 billion by 2029, underscoring its importance in the oncology market.
Financial Performance and Market Position
Zydus Life's stock performance has been robust, with a 76 percent increase over the past year, elevating the company’s market capitalization to over Rs 1.1 lakh crore. While the stock has recently experienced some decline due to profit booking and competitive pressures, the US FDA approval for Enzalutamide capsules is expected to positively influence its market trajectory.
Background on Enzalutamide
Enzalutamide is an androgen receptor inhibitor used to treat prostate cancer that has spread to other parts of the body and is no longer responding to hormone therapy. It works by blocking the effects of androgens (male hormones) to stop the growth and spread of cancer cells. The approval of Zydus' generic version provides a more accessible and cost-effective treatment option for patients.
Other Developments
Earlier in September, Zydus Life was involved in a patent dispute concerning Mirabegron. The US Court of Appeals for the Federal Circuit reviewed a previous ruling that invalidated the patent, adding complexity to Zydus' market strategy for its generic Mirabegron product. Zydus and Lupin are among the first companies to launch generic versions of Mirabegron, used to treat overactive bladder (OAB).
