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Zydus Life Shares Dip 2 Percent But Bernstein Projects Nearly 30 Percent Upside
- •Shares of Zydus Lifesciences dropped 2 percent following two recent announcements regarding USFDA regulatory updates.
- •The USFDA issued five observations for the manufacturing facility in Moraiya, Ahmedabad, which the company plans to address immediately.
- •The USFDA accepted to review the Biologics License Application for a proposed biosimilar to Keytruda developed jointly with Formycon AG.
- •Global investment banking firm Bernstein maintained a buy rating on Zydus Life with a target price of 1457 rupees, seeing nearly 30 percent upside.
- •Bernstein highlights this development as a key milestone in Zydus building its biologics and NCE franchise for the US market.
Key Questions Answered
Shares of Zydus Lifesciences declined 2% on Wednesday, October 14, 2026, following two announcements regarding the US Food and Drug Administration (USFDA). The USFDA issued five observations for the company's manufacturing plant in Moraiya, Ahmedabad, after inspecting the facility from October 5 to October 13, 2026.
Global investment banking firm Bernstein maintained a buy rating on Zydus Life with a target price of ₹1,457 per share, indicating a potential upside of nearly 29% from its previous close. Bernstein is highly positive about the USFDA's acceptance of the BLA review for the Keytruda biosimilar, which reinforces the company's strategy of building out a biologics franchise.
The USFDA accepted the Biologics License Application review for a proposed biosimilar to Keytruda, submitted jointly by Zydus Life and Formycon AG in the third quarter of 2026. Based on Biosimilar User Fee Amendments timelines, a final decision could be expected in the third quarter of 2027.
