Medilytix Bureau:

Growth of Indian pharma industry in 2021-22 (FY22) is estimated at 9-11 per cent, driven by a push from domestic and emerging markets in the next few quarters, credit rating agency ICRA said on Tuesday.

The revenue growth for ICRA’s sample of 21 Indian pharmaceutical companies was moderate at 6.4 per cent in Q2 FY22, down from 16 per cent in Q1 FY22. Normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy, the credit rating agency said in a statement.

The sample set reported a 15.3 per cent year-on-year (Y-o-Y) growth in domestic revenues, against a ~14.6 per cent Y-o-Y growth for the Indian pharmaceutical markets (IPM).  A combination of steady normalization in hospital footfalls and field force operations (given the relatively lower restrictions on account of Covid-19), continued traction in acute therapies and better pricing supported healthy revenue growth across companies.

Going forward, sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables, ICRA said.

As for the US market, the revenue growth for the sample set remained muted at 1.9 per cent during the second quarter owing to high single digit to low teens price erosion and past inventory liquidation given the Covid-related uncertainties. Companies are focusing on specialty products, injectables, complex generics including first-to-file opportunities to improve margins for the US business, which has been impacted by the pricing pressure.

“Going forward, improved product mix is expected to contribute to price stabilisation.  Overall, ICRA expects mid to high single digit price erosion in FY2022,” the agency said in the statement.

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