India's pharmaceuticals industry recorded healthy revenue growth last fiscal as domestic sales revived after the Covid-19 pandemic subsided. However, exports, which has historically been a growth driver, continue to face the twin headwinds of pricing pressure and supply constraints.
On the brighter side, the US Food and Drug Administration (US FDA) has recommenced inspection of manufacturing facilities, which would support new product launches and growth over the medium term.
The Indian government's focus on reducing import dependence through setting up of bulk drug parks and the Production-Linked Incentive (PLI) scheme for key active pharmaceutical ingredients and formulations also augurs well for domestic revenue streams of pharmaceutical companies.
While revenue growth would sustain at similar levels this fiscal, elevated pricing pressure in the US as well as high input and logistic costs will continue to weigh on the profitability of drug makers this fiscal.
However, low-leveraged balance sheets and healthy cash generation should keep credit profiles stable.
In the milieu, CRISIL is hosting a webinar on August 30, 2022, at 3:00 pm, where our experts will present views on:
Demand drivers and outlook across markets
Growth opportunities linked to the PLI scheme
Profitability of pharmaceutical players rated by CRISIL Ratings
Outlook on the credit quality of CRISIL Ratings rated pharmaceutical companies
The presentation will be followed by a panel discussion with sector experts and a Q&A session
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
