Rating agency ICRA has said the country’s pharmaceutical industry is estimated to grow 9 to 11 percent in the current fiscal year and even in the quarters ahead, mainly due to emerging markets.
The agency studied a sample of 21 pharmaceutical companies, and after review, ICRA said revenue growth was moderate at 6.4 percent in the second quarter of the current fiscal year, up from 16 percent in the first quarter of 2021-22.
Baseline normalization and price pressures in the US market were the main reasons for slowing growth momentum in the second quarter of the current fiscal year, even as growth in domestic and emerging markets remained healthy, ICRA said in a statement.
“Sales growth for the ICRA sample set is estimated at 9-11 percent in 2021-22 and in 2022-23, supported by a gradual recovery from the impact of COVID-19,” said ICRA Assistant Vice President and Sector Head Mythri Macherla.
In 2021-2022, the sample set is estimated to have grown by 13-15 percent in the domestic market, 14-16 percent in emerging markets and 9-11 percent in European business, she added.
Ms Macherla said growth in the US business is expected to remain subdued given price pressures.
In the domestic market, ICRA said a combination of steady normalization in the number of hospital visits and surgeries in the field, given relatively lower restrictions from COVID-19, continued traction in acute therapies and better pricing, supported healthy business growth in business.
Going forward, the rating agency said continuing the trend in doctor visits and elective surgeries given the news surrounding the Omicron variant and the performance of new launches, in addition to the momentum of revenue growth in the acute segment, will remain important monitorables.
ICRA said emerging markets were the top performers with robust growth of 30.6 percent year-over-year in the second quarter of the current fiscal year.
The outlook for the pharmaceutical sector remains stable, led by healthy sales growth and margins, the agency added.