Structural growth will drive consumption for next 20 years: Nilesh Shah
Nilesh Shah, MD & CEO, Envision Capital.
While we are talking about IT, let us also talk about another defensive, pharma. We have seen a lot of people going gung-ho over the entire CDMO space, that seems to be the next big trend to watch out for for 2025. If you have to play the pharma space, are you going to do it via healthcare? Is it going to be via purely pharma, diagnostics, hospitals? What is your bet on the entire pharma space?
Nilesh Shah: So, the pure pharma product space which essentially is where you are trying to sell in the US continues to be, I would probably say, a very unpredictable space. You really do not know in terms of the US FDA regulatory overhang.
The CDMO space looks interesting but is very capital intensive. You need to essentially be able to invest, set up facility and ensure that your facility remains compliant and there is always relative uncertainty. But nevertheless, let us see, maybe there seem to be some green shoots of growth out there. But what has really happened in the recent months essentially IPOs from companies which provide services to the healthcare sector in the US.
You have a bunch of companies which have IPOed themselves, which provide services to either the pharma companies themselves or to the hospital chains in the US and I think there are about three companies which have gone public in the last six months or so, that is a very-very interesting space to kind of be in. On the domestic side for now, it seems to be still the hospital guys who are benefiting.
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