Zydus Life Science , through its wholly owned subsidiary Zydus Healthcare Limited, has received a tax demand order from the Assistant Commissioner of CGST, Cuttack-I Division, Odisha. The order, totaling Rs 2.17 million, pertains to disallowed Input Tax Credit (ITC) and short payment of tax under the Reverse Charge Mechanism (RCM) for the period from April 2018 to March 2023.

Key Details of the Tax Demand

Company's Response

Zydus Healthcare has stated its intention to challenge the order by filing an appeal. The company maintains that there is no material financial impact on either the subsidiary or the parent company, Zydus Life Science.

Disclosure Compliance

In compliance with regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related SEBI circulars, Zydus Life Science has promptly disclosed this information to the stock exchanges. The disclosure was made on October 17, 2023, demonstrating the company's commitment to transparency and regulatory compliance.

While the tax demand raises questions about the company's tax practices during the specified period, the relatively small amount and Zydus Healthcare's confident stance suggest that this issue may not significantly affect the company's overall financial health. However, investors and stakeholders will likely keep a close eye on the appeal process and any potential implications for the company's future tax liabilities.

Zydus Life Science , a prominent player in the pharmaceutical industry, has achieved significant milestones in its product portfolio expansion in North America. The company recently announced two important regulatory approvals.

USFDA Approval for Deflazacort Oral Suspension

Key Highlights

• Product Approval: Zydus has obtained final USFDA approval for Deflazacort oral suspension, 22.75 mg/mL.
• Production Facility: The approved product will be manufactured at the company's facility in Doppel, Italy.
• Therapeutic Use: Deflazacort oral suspension is indicated for treating Duchenne Muscular Dystrophy (DMD) in patients 5 years of age and older.
• Mechanism of Action: Deflazacort, a steroid medication, works by decreasing inflammation and modulating an overactive immune system.

Zydus's Growing Portfolio

The approval of Deflazacort oral suspension marks another addition to Zydus Lifesciences' impressive lineup of USFDA-approved products. With this latest approval, the company's statistics stand as follows:

This achievement underscores Zydus's commitment to expanding its presence in the U.S. pharmaceutical market and its focus on developing treatments for critical medical conditions.

About Deflazacort

Deflazacort oral suspension, which is the generic equivalent of Emflaza Oral Suspension, represents an important treatment option for patients with Duchenne Muscular Dystrophy. This rare genetic disorder characterized by progressive muscle degeneration and weakness primarily affects young boys.

The approval of this medication could potentially improve access to treatment for DMD patients, aligning with Zydus's mission to provide affordable healthcare solutions.

Health Canada Approval for Liothyronine Tablets

In addition to the USFDA approval, Zydus Lifesciences has also received approval from Health Canada for Liothyronine tablets in two dosage strengths: 5 mcg and 25 mcg. This regulatory approval allows the pharmaceutical company to market these thyroid hormone replacement medications in the Canadian market.

As Zydus Lifesciences continues to strengthen its product pipeline and secure regulatory approvals in North America, it reinforces its position as a key player in the global pharmaceutical landscape. The company's focus on complex formulations and niche therapeutic areas demonstrates its commitment to addressing unmet medical needs and driving growth in competitive markets.