Robust sales growth at Indian pharma companies expected in current FY on pandemic recovery, says Fitch
Drug categories impacted by travel restrictions expected to see higher sales levels in FY22
Indian pharmaceutical companies should experience robust sales growth in the current financial year ending March 2022 as sales of drugs that were negatively affected last year by the COVID-19 pandemic continue to recover, according to research by Fitch Ratings.
Fitch said most Indian pharma companies reported resilient operating performance in the financial year ending March 2021, benefitting from gradual stabilisation after 1QFY21, geographical diversification and sales of pandemic-related drugs.
The company said it expects sales of drugs used to treat acute medical conditions and elective procedures – some of which are still 10% below pre-pandemic levels -- to continue to recover in FY22.
“Sales in these categories fell in FY21 as travel restrictions reduced doctor visits and hospitals prioritised COVID-19 treatment over elective procedures,” Fitch said.
Fitch said it expected sales in the near term to be boosted by demand for COVID-19 related drugs, particularly in India, citing some companies’ intention to expand production capacities in active pharma ingredients (API) and injectable products to take advantage of government incentives and increased demand.
The company said healthy growth in domestic market and API sales helped Indian firms, Glenmark Pharmaceuticals and Sun Pharmaceutical Industries to offset declines in the US, and supported low single-digit growth in revenue in FY21.
“Similarly, growth in India and API helped Lupin Limited to limit the overall decline in sales to 1% in rupee terms for FY21, despite a 5% drop in North America, its largest market,” Fitch said.
Fitch said it expected costs to rise to normal levels in FY22 as Indian pharma companies step up marketing and R&D activities. “Nonetheless, higher sales will cushion the impact on margins,” it added.
Related News
-
News Women in Pharma: Moving beyond discussions and into best practice at CPHI Milan
In this second CPHI Milan special of our monthly series, we cover the key takeaways from the Diversity & Wellbeing track held on October 10, 2024. -
News AstraZeneca invests in AI collaboration for cancer drug trials
The British-Swedish pharmaceutical giant is partnering with biotechnology firm Immunai Inc to increase the efficiency of some cancer drug trials. -
News Ozempic and Wegovy prices questioned as Novo Nordisk faces US Senate hearing
The CEO of Novo Nordisk was grilled during a US Senate committee hearing on September 24, 2024, in which the exorbitant prices of the Danish company’s blockbuster drugs Ozempic and Wegovy were called into question. -
News The BIOSECURE Act: implications for the pharma supply chain
On September 9, 2024, the US House of Representatives voted to pass the bill titled the BIOSECURE Act (the Act), which lists several Chinese companies in the pharmaceutical supply chain. The Act will prohibit American companies from contracting or doin... -
News On Track at CPHI Milan: Thermo Fisher Scientific Track Sponsor interview
With CPHI Milan just around the corner, we sat down with some of the sponsors for this year’s conference tracks to discuss the most pressing topics in pharma. -
News CPHI Milan Speaker Spotlight: Pharma Manufacturing and Localisation in Africa
In the run-up to CPHI Milan, we sit down with some of the experts and thought-leaders speaking at this year’s conferences. -
News US BIOSECURE Act passed by US House of Representatives
The controversial act, which has already impacted several foreign companies operating in the US, was passed by the House of Representatives on September 9, 2024. It is now headed for the US Senate before it can be signed into law by President Joe Biden... -
News Eli Lilly licenses rheumatoid arthritis manufacturing in Africa
American pharmaceutical company Eli Lilly has signed a partnership with Egyptian organisation Eva Pharma to localise manufacturing of rheumatoid arthritis treatments in Africa.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance