Indian Pharma Industry Fares Well Amid Inflation and Pricing Concerns

An ICRA analysis of 16 leading Indian pharma companies finds the industry doing well in spite of concerns regarding inflation and drug pricing. The selected companies reported an average revenue growth of 4.9%, driven in part by market growth in the US and abroad. However, the report also noted a reduction in the European market.

According to Express Pharma, “While no material demand contraction has been witnessed thus far, the industry remains cautious, given the inflationary pressures and an uncertain macro-economic environment in the European market. The ongoing inflationary pressures in Europe are expected to impact the cost of imports of Key Starting Materials (KSMs)/Active Pharmaceutical Ingredients (APIs), including excipients, especially for acute therapies. Further, the rising energy cost is likely to have an adverse impact on Indian pharma companies with manufacturing operations in Europe. Going forward, market conditions in Europe are expected to remain challenging even as the same are expected to be mitigated selectively to a certain extent by expansion in product offerings, market share gains in the existing products, and entry into new geographies in Europe.”

To read more, click here.

(Source: Express Pharma, November 2^nd, 2022)