India's pharma sector registers strong Q2 FY25 growth, driven by North America market: Report

According to an Axis Securities report, major pharmaceutical companies in India reported a 10% YoY growth in Q2 of FY25, driven by impressive performance in North America and the domestic market. The Indian Pharmaceutical Market (IPM) grew by 8% YoY, with chronic therapies seeing a 9% increase. However, acute therapies experienced a modest growth of 4% due to a weaker season. The report highlighted that the pharmaceutical sector under coverage recorded a 10.2% YoY and 1.7% QoQ growth, led by a 10.8% YoY increase in North America and a 9.8% YoY rise in the India business.  

The outlook for the pharmaceutical sector remains positive over the next three years, with a promising pipeline in biosimilars, GLP-1 (glucagon-like peptide-1), and peptides, all of which are important in treating diabetes and other conditions. Companies with a significant share of chronic therapy portfolios continue to outperform the broader market. The healthcare sector also grew strongly in Q2 of FY25, with top-line revenue increasing by 17.6% YoY and 10.4% QoQ. A key driver was improved hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ. Insurance payers contributed 33% of total revenues in the hospital segment, marking a 23% YoY and 12% QoQ growth. Despite this, insurance penetration remains low, offering room for expansion as awareness and purchasing power increase. High-growth therapies, including cancer and cardiac care, continued to drive double-digit growth, which, alongside rising occupancy rates and Average Revenue Per Occupied Bed (ARPOB), is expected to sustain future growth in the healthcare sector. 

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