Rating agency ICRA said the country’s pharmaceutical industry is expected to grow at a rate of 9-11% in the current fiscal year and even in the next few quarters, mainly due to emerging markets.
The agency studied a sample of 21 pharmaceutical companies and after assessment, CIFAR said revenue growth was moderate to 6.4% in the second quarter of the current fiscal year, down from 16% in the first quarter of 2021- 2022.
Base normalization and pricing pressures in the US market were the main reasons for slowing growth momentum in the second quarter of the current fiscal year, although growth in domestic and emerging markets remained healthy CIFAR said in a statement.
“CIFAR sample revenue growth is estimated at 9-11% in 2021-2022 and 2022-2023, supported by a gradual recovery from the impact of COVID-19,” the vice-president said. CIFAR Deputy Chairman and Sector Head Mythri Macherla.
In 2021-2022, the sample is estimated to have grown by 13-15% in the domestic market, 14-16% in emerging markets and 9-11% in the European market, she said. added.
Ms Macherla said growth in the United States is expected to remain subdued given the pressure on prices.
In the domestic market, ICRA said that a combination of continued normalization of hospital attendance and field force operations, given the relatively weaker restrictions due to COVID-19, the continued traction of acute therapies and better prices have supported healthy revenue growth in all businesses.
Going forward, the rating agency said that continuing the trend of doctor visits and elective surgeries given the news regarding the Omicron variant and the performance of new launches, in addition to the growth momentum of revenue in the acute segment, will remain key controlling elements.
The ICRA said emerging markets were the star with solid 30.6% year-over-year growth in the second quarter of the current fiscal year.
The outlook for the pharmaceutical sector remains stable thanks to healthy growth in revenues and margins, the agency added.