Zydus Lifesciences: Cancer Pipeline Widens

Zydus Lifesciences (NSE : ZYDUSLIFE) makes formulations, APIs, consumer wellness products and biologics. It has oncology biosimilars and a biologics manufacturing arm through Zylidac Bio LLC. It does not disclose oncology revenue separately. What happened: In January 2026, Zydus launched Tishtha, its nivolumab biosimilar, in India at Rs 13,950 (40 mg) and Rs 28,950 (100 mg). Nivolumab is a PD-1 inhibitor used across several cancer types. Zydus also completed its acquisition of two Agenus biologics manufacturing facilities for US$75 million upfront, plus up to US$50 million contingent on milestones. The facilities will manufacture Agenus investigational candidates botensilimab and balstilimab. Why it matters: In December 2025, Zydus signed an agreement with Formycon for FYB206, a pembrolizumab biosimilar candidate, covering US and Canada commercialisation. Nuvama upgraded Zydus to Buy in August 2026 with a target of Rs 1,400, citing formulations, US specialty and biologics manufacturing. The stock has returned 22.79% year to date and trades at a P/E of 25.3 times. What I am watching: The Agenus contract covers investigational candidates with their own clinical and regulatory timelines. FYB206’s value depends on Formycon’s development progress. Zydus does not disclose what oncology contributes to group revenue. The Nuvama Buy reflects the broader business, not an oncology call. My stance: Partnerships are widening the pipeline. But cancer biosimilars are not yet a meaningful earnings contributor. The business earns from formulations and US speciality medicines. At 25 times earnings, the valuation is not stretched, but the oncology thesis remains ahead. I do not hold a position in Zydus Lifesciences at the time of writing. This is not investment advice.