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Strong Balance Sheet to Aid Large Pharma Cos Climb-up Value Chain in FY22: Report


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While maintaining a stable outlook for the domestic pharmaceutical sector for FY22, India Ratings and Research (Ind-Ra) expect the Indian pharmaceuticals market (IPM) to grow 8%-10% in FY22, while the US generic market is expected to revert to mid-single-digit price deflation as the benefits of forward buying and the higher sales of COVID-19-related products taper off.
 
During the first nine months (9M) of FY2021, the Indian active pharmaceuticals ingredient (API) suppliers witnessed strong revenue growth of 19%, due to channel stocking by formulation players, higher pricing and clients diversifying away from China-based suppliers.  
 
While the ratings agency expects some benefits to continue, it sees significantly lower revenue growth in FY22 due to higher base impact and the normalisation of supply chain leading to lower yoy sales.  ....

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