InvestorQ : Does the Indian pharma industry look to be a big growth story this year?
Rutuja Nigam made post

Does the Indian pharma industry look to be a big growth story this year?

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Ira Shah answered.
1 month ago

It surely does look attractive if you go by the recent ICRA report. In fact, ICRA has pointed out that Indian pharma could grow at 4-6% in the fiscal year 2021. This should come as a great relief after the industry contracted by nearly 10% in April and May on a YOY basis. The sector did give some hope growing by 2.5% in June as demand for generics picked up.

In the last few months, the demand for Indian formulations has picked as India’s role looks inevitable if the world has to procure billions of doses of Remdesivir and Favipravir or even the vaccine vials for COVID. That is where even the USFDA is going easy on the Indian pharma industry. That has also led to a virtual rerating of Indian pharma.

In its latest report, ICRA has projected that Indian pharma could grow at 8-11% for the FY20-FY23 period on a compounded basis. Interestingly, over the next 3-4 years, ICRA estimates that the incremental demand will come more from the domestic markets than from global markets. That should also help to de-risk the overall pharma model.

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Ashwini Kadam answered.
1 month ago

An earlier international report by PwC had used the iconic Dickensian line, “It was the best of the times, it was the worst of times”, to describe the global pharmaceutical landscape fraught with challenges and opportunities.