Sumit Gupta, AVP-Research at Centrum Broking, discusses the growth prospects of the Indian pharma sector. He states that the government is providing a push towards manufacturing and R&D, with policies like bulk drug parks, PLI for pharma, and PLL for medtech. This will aid the long-term growth of the sector. Indian companies are expected to benefit, particularly those focused on research and development, such as building on blockbuster drugs. The CDMO (Contract Development and Manufacturing Organization) space is also attracting interest, with GLP-1 being a potential opportunity. Gupta notes that the Biosecure Act’s impact on pharma companies like Divi’s or Laurus will be moderate, as companies are de-risking their supply chains by moving away from China.
Regarding pricing in the US market, Gupta suggests that Indian pharma companies are already attractively priced and that the new government’s focus on making drugs more affordable may not necessarily be negative for the industry. In fact, patent expiries until 2030 could create opportunities for Indian pharma players. Overall, Gupta remains positive on the Indian pharma sector’s growth prospects, driven by government initiatives and the company’s research and development capabilities.