Indian Economy News

ICRA predicts 9-11% growth in FY24 fuelled by new launches, US rebound

  • IBEF
  • January 5, 2024

Indian pharmaceutical companies are expected to witness a revenue expansion of 9-11% in FY2024, according to a recent report by credit rating agency ICRA. The anticipated growth is attributed to a recovery in the US market, strategic acquisitions, and new product launches. The US market, a crucial sector for Indian pharmaceuticals, is predicted to contribute 11-13% to the overall growth in FY2024. Despite temporary setbacks from price controls and weather uncertainties, the domestic market is projected to grow by 7-9% in FY2024, driven by price hikes and new product introductions.

ICRA's forecast extends to a sample set of 25 companies, representing around 60% of the total revenues of the Indian pharmaceutical industry. Emerging markets are anticipated to witness a growth of 13-15%, while the European market is expected to rise by 11-13%, contributing to the overall positive outlook.

Assistant Vice President and Sector Head at ICRA, Mr. Deepak Jotwani, noted that certain key drugs going off-patent and product shortages in specific therapeutic segments have contributed to the growth in the US market. However, Mr. Jotwani highlighted regulatory risks in the US market, citing increased warning letters and import alerts issued to Indian pharmaceutical firms.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.