The Indian pharmaceutical industry is expected to experience a mixed bag in the third quarter of the year, with domestic formulations likely to counterbalance the pressure from pricing in the US market. The sector’s growth is anticipated to be driven by a strong performance in the domestic market, which is expected to offset the decline in exports to the US.
In the US, the Indian pharma industry is facing significant pricing pressure due to increasing competition and consolidation among buyers. This has resulted in a decline in exports, which is likely to continue in the third quarter. However, the domestic market is expected to witness a strong growth, driven by increasing demand for pharmaceuticals and a favorable regulatory environment.
The domestic formulations market is expected to grow at a rate of 10-12% in the third quarter, driven by the increasing demand for chronic therapies such as diabetes, cardiovascular, and respiratory diseases. The government’s initiatives to increase healthcare spending and improve access to medicines are also expected to boost demand.
On the other hand, the US market is expected to remain challenging due to pricing pressure and increasing competition. The US FDA has also become more stringent in its approval process, which is affecting the launch of new products. However, some companies are expected to benefit from the launch of new products and the resolution of regulatory issues.
The Indian pharma industry is also expected to benefit from the trend of pharmaceutical companies outsourcing their manufacturing to India. This is due to the country’s cost-competitive manufacturing capabilities and skilled workforce. The government’s initiatives to promote pharmaceutical manufacturing, such as the “Pharma Vision 2020” plan, are also expected to attract investments in the sector.
Overall, the Indian pharma industry is expected to witness a mixed performance in the third quarter, with domestic formulations driving growth and the US market remaining challenging. However, the long-term outlook for the industry remains positive, driven by the increasing demand for pharmaceuticals and the government’s initiatives to promote the sector.
Key players such as Sun Pharmaceutical, Cipla, and Dr. Reddy’s Laboratories are expected to perform well in the domestic market, while companies such as Aurobindo Pharma and Lupin are expected to benefit from their US businesses. The industry’s performance will also depend on the outcome of the US elections and the resulting policies, which could impact the pharmaceutical sector.