Sweet pill! Pharma sector expects 10% revenue growth in FY25, says CRISIL – Health News

According to a report by CRISIL, the pharma sector is expected to grow 10% in FY25 due to better exports in regulated markets, recovery in exports in semi-regulated markets and steady increase in domestic demand. Revenue in FY25 is also expected to grow 8% to 10% more than the previous fiscal.

The India The pharmaceutical sector is the 3rd largest sector in terms of production volume and plays an important role globally. Annual turnover has been growing at a healthy rate of approximately 10% for the last 5 years.

Profit Margins to Rise in Indian Pharmaceutical Industry

Overall operating margins are expected to improve by 70-80 basis points following a 100 basis point increase in margins in the last fiscal year. This translates to a margin of 22.5%, with a 0.7%-0.8% increase expected this fiscal year. This is due to less pressure on US generics Sunday lower the price.

Aditya Jhaver, Director, Crisis “With strong cash flows and healthy balance sheets, players are increasingly focusing on inorganic growth opportunities in the API6 and formulation space to diversify their product portfolios through acquisitions of brands/businesses and/or consolidate market share in targeted therapeutic areas,” Ratings said.

Growth factors in pharmaceutical companies

Domestic revenue of pharma companies will increase on volume growth due to new product launches and a growth of 7%-9% this fiscal mainly driven by pricing. Price growth will be driven mainly by non-NLEM (National List of Essential Medicines) portfolio as NLEM portfolio will remain unchanged as there is no change in Wholesale Price Index (WPI).

The report stated that the chronic part of long-term diseases, life style Diseases such as diabetes, hypertension and lipid lowering will play a key role in revenue. Cash flow will remain strong due to steady revenue growth, healthy operating margins and 50-day stable working capital.

Financial profile and income distribution of the pharmaceutical industry

According to a survey of 190 drugmakers, they account for nearly half of the Rs 4.1 lakh crore market in the last fiscal. Steady cash generation on an annual basis and not taking on too much debt helps pharma companies maintain a stable credit profile.Financial health The goal of pharmaceutical companies is to remain strong even as they move toward acquiring companies in different medical fields.

The revenue of the pharmaceutical sector is distributed equally between domestic sales and exports. The domestic portion mainly consists of revenue from chronic and acute therapeutic segments. 80% of pharmaceutical exports consist of formulations and 20% of drugs, with 58% of formulation exports being regulated and 42% being semi-regulated.

“Formulation exports are expected to grow by 12-14% in rupee terms this fiscal. Regulated markets of US and Europe will witness 13-15% growth due to ongoing drug shortages,” said Aniket Dani, Director, Market Intelligence & Analytics, CRISIL.