Zydus Lifesciences reported a nearly one-third drop in first-quarter profit after sharply higher costs outweighed strong sales growth in India and its consumer wellness business. Consolidated net profit for the quarter ended June 30 fell to 9.40 billion rupees ($98.5 million) from 14.67 billion rupees a year earlier. Revenue climbed 22% to 80.17 billion rupees, but expenses rose faster, up 41.4%, led by an more than 32% increase in R&D (research and development) spending and a 47.5% rise in other operating expenses. India sales increased 19.5% to 18.16 billion rupees, while consumer wellness revenue, including brands such as Glucon D, surged 67.2% to 14.29 billion rupees. North America sales fell 2.6% to 30.98 billion rupees. The results reflect a broader challenge for Indian generic drugmakers, which rely heavily on the U.S. market and have been dealing with weak pricing amid intense competition. Larger rivals Dr Reddy's and Cipla also posted subdued U.S. sales during the quarter.