IBEF: July 08, 2019
As healthy demand from the domestic market, given increasing spend on healthcare along with improving access, the growth of Indian pharmaceutical industry is likely to grow at 11-13 per cent in FY20.
This along with moderation in pricing pressure for US market, new dispatches and market share gains for existing products and union advantages will drive growth in FY20
And, the growth would be compelled by administrative interventions, such as, value controls, mandatory genericisation and United States Food and Drug Administration (USFDA) oversight for assembling insufficiencies”.
According to an Icra report, covering a sample of 21 firms in the industry, the growth during FY2019 stood at around 12 per cent.
ICRA corporate ratings Vice President & Co-Head Gaurav Jain said, “the growth in FY2020 is relied upon to be upheld by 4.2 per cent WPI connected hike for National list of Essential Medicines (NLEM) portfolio.”
The credit metric of leading pharma companies is required to stay stable in perspective on future growth prospects in regulated markets and generally strong monetary records.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.