Zydus Noveltech Inc dissolved after 'not generating meaningful revenue'

Zydus Noveltech Inc, a wholly owned subsidiary of the Zydus Lifesciences, has been dissolved with effect from December 15. The certificate of dissolution is dated December 17, 2023, Zydus Lifesciences said in a BSE filing.

"Zydus Noveltech Inc was not a material subsidiary of the company and did not have any business activity at the time of dissolution. Dissolution of  Zydus Noveltech Inc will not affect the business operations of the company," it said.

The company further stated that Zydus Noveltech Inc has voluntarily closed its business operations in view of the fact that it had only one product commercialised in the US market through its associate, which was not generating any meaningful revenue and margins due to its limited scale.

In addition, the company has been incurring losses as it could not launch any other products in the US market and utilise the services of Zydus Noveltech Inc, which could have made operations commercially viable. "In view of the same, the company did not see any future prospects of Zydus Noveltech Inc," the company added.

In another development, Zydus Lifesciences received approval from the US health regulator to market a generic antiviral medication used in the treatment of HIV-1 infection on Friday.

The company received final approval from the US Food and Drug Administration (USFDA) for Darunavir Tablets, the company said in a statement.

Darunavir is a protease inhibitor antiviral medication that prevents Human Immunodeficiency Virus (HIV-1) from multiplying in the body. It is indicated for the treatment of HIV-1 infection in adults. It is also indicated for the treatment of HIV-1 infection in children aged three and up. However, it must be co-administered with Ritonavir and with other antiretroviral agents, said the company.

Zydus added that the product will be manufactured at the group's formulation manufacturing facility in SEZ, Ahmedabad, Gujarat.

Shares of the company were trading 3.95 per cent higher at Rs 671.70 apiece on the BSE as of 1:20 pm.