Pharma industry to grow from 9% to 11% in 2021-22: ICRA

The Indian pharma industry expects positive growth in the current financial year

New Delhi: Rating agency Icra has said that the country’s pharmaceutical industry is expected to grow at a rate of 9 per cent to 11 per cent in the current financial year and in the subsequent few quarters, mainly due to emerging markets.

The agency studied a sample of 21 pharmaceutical companies and after evaluation, ICRA said revenue growth in the second quarter of the current fiscal was moderate at 6.4 per cent, down from 16 per cent in the first quarter of 2021-22.

ICRA said in a statement that normalization of base and pricing pressure in the US market were the main reasons for slowing growth in the second quarter of the current fiscal, even though growth in domestic and emerging markets remained healthy.

“The revenue growth for the ICRA sample set is projected at 9-11 per cent in 2021-22 and in 2022-23, supported by a gradual recovery post the recovery,” said Mathri Macherla, Assistant Vice President and Sector Head, ICRA.

He said that in 2021-22, the sample set expects domestic market to grow by 13-15 per cent, emerging markets at 14-16 per cent and European business at 9-11 per cent.

Ms Macherla said growth under the US business is expected to remain muted, given pricing pressure.

In the domestic market, ICRA said given the relatively few restrictions due to COVID-19, a combination of steady normalization in hospital footfalls and field force operations, continued traction in acute treatments and better pricing have led to healthy revenue growth in the companies. supported.

Going forward, the rating agency said that the continuation of the trend in doctor visits and elective surgeries and the pace of revenue growth in the Acute segment, given the news around the Omicron variant, will continue to be a key monitorable for the performance of new launches.

ICRA said that emerging markets have registered a strong year-on-year growth of 30.6 per cent in the second quarter of the current financial year.

The agency said the outlook for the pharma sector remains stable on the back of healthy revenue growth and margins.

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