UltraGreen.ai Could Face Pricing Pressure on Higher Competition

Dow Jones
Sep 15

0208 GMT - UltraGreen.ai could face pricing pressure after a competitor, Zydus Lifesciences, launches its product in the U.S., say DBS Group Research analysts in a note. Zydus has begun marketing its diagnostic imaging dye in the U.S., according to the Food and Drug Administration, the analysts say. This increases competition for UltraGreen, as the Americas accounts for 70% of its revenue, they say. Zydus likely can afford to compete aggressively on price to establish market share in this business, while UltraGreen remains disproportionately exposed to any erosion in average selling prices and volumes, they add. DBS cuts its 2027 revenue and earnings estimates for UltraGreen by 31% and 45%, respectively. The bank trims its target price to 65 U.S. cents from US$0.80 and maintains a hold rating. Shares decline 5.1% to US$0.555.

 

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