US business to fuel growth for Indian pharma companies
pharma industry sees an abatement in price erosion, which is in single digits, say industry analysts. This has also started to show in sales from India to the US, India’s biggest market rising 6.2% to $7.5 billion last fiscal year, shows government data. ICICI Securities Ltd, in its Q1FY24 pharma sector preview report, highlighted that growth in Q1FY24 will be driven by volumes in the US market: “Aggregate US sales of coverage universe (companies covered by the firm) is likely to grow...
Lesser price erosion in base business and improved supplies on account of few companies vacating the market may drive sequential growth across all the universe companies." Subsequently, Indian pharma companies gained share in the US generics market, with companies such as Sun Pharma, Cipla, Lupin, Zydus Lifesciences, and Dr. Reddy’s Laboratories seeing 12% to 79% growth in Q1. “Some of the companies like Sun Pharma have moved up the value chain and it is doing very well; Lupin is also doing very well.
So, we will see the product range upgrading to get moving forward as far as the US market is concerned. We also have to get it to the European market, Chinese market, and Japanese market. So, there is an opportunity and Indian companies should capitalize on it and get moving forward as the US market will aid to the growth," said Sudarshan Jain, secretary general, Indian Pharmaceutical Association.
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