Indian Pharmaceutical Sector: Mixed Growth with Key Players Like Dr Reddy’s and Sun Pharma Leading
The Indian pharmaceutical industry is experiencing a mixed quarter, with slow growth anticipated in branded formulations. Analysts from Systematix Institutional Equities predict a median year-on-year (YoY) revenue growth of 12% and a quarter-on-quarter (QoQ) growth of 5% for the sector.
Key Players and Their Performance
Companies such as Dr Reddy’s Laboratories, Zydus Lifesciences, Lupin, and Mankind Pharma are expected to outperform on a YoY basis. However, the Indian Pharmaceutical Market (IPM) is projected to grow by only 8% YoY due to minimal drug price inflation linked to the Wholesale Price Index (WPI), which is near 0% compared to 12% last year.
Sun Pharma
Sun Pharma’s domestic business is expected to see mid-single-digit growth, while its U.S. segment benefits from an expanded market share of generic Revlimid. The company’s revenue, EBITDA, and PAT are projected to grow by 7%, 15%, and 16% QoQ, and 12%, 31%, and 38% YoY, respectively.
Cipla
Cipla’s India business is projected to grow at a high single-digit rate, supported by the generic Lanreotide. The U.S. business is expected to remain stable, with YoY revenue, EBITDA, and PAT growth projected at 5%, 5%, and 11%, respectively.
Dr Reddy’s Laboratories
Dr Reddy’s is anticipated to show double-digit growth in its India business due to a distribution agreement with Sanofi Healthcare. However, its U.S. business is expected to see flat QoQ growth. Revenue is projected to grow by 2% QoQ and 13% YoY, with EBITDA and PAT increasing by 6% and 9% QoQ.
Zydus Lifesciences
Zydus is expected to achieve mid-single-digit domestic branded formulations growth, though its U.S. sales may contract sequentially. Despite this, YoY figures for revenue, EBITDA, and PAT are expected to grow by 20%, 79%, and 107%.
Lupin
Lupin’s domestic business should see mid- to high-single-digit growth, supported by generic Spiriva and new launches like gProlensa and gOracea in the U.S. YoY, revenue is expected to grow by 12%, EBITDA by 38%, and PAT by 64%.
Mankind Pharma
Mankind’s domestic branded formulation sales are anticipated to grow in the low double digits, with the consumer business showing recovery signs. Exports are expected to ramp up, with YoY revenue, EBITDA, and PAT growing by 14%, 17%, and 21%.
Doubts Revealed
Pharmaceutical Sector -: The pharmaceutical sector is the part of the economy that deals with the development, production, and marketing of medicines. It includes companies that make drugs to help people get better when they are sick.
Mixed Growth -: Mixed growth means that some parts of the sector are growing well, while others might not be doing as well. It’s like when some students in a class get better grades than others.
Dr Reddy’s -: Dr Reddy’s is a big company in India that makes medicines. They are known for producing affordable generic drugs that help people all over the world.
Sun Pharma -: Sun Pharma is another large Indian company that makes medicines. They sell their products in India and other countries, including the United States.
Zydus Lifesciences -: Zydus Lifesciences is an Indian company that makes medicines and healthcare products. They focus on creating new drugs and improving existing ones.
Lupin -: Lupin is a well-known Indian pharmaceutical company. They make a variety of medicines and are known for their research and development efforts.
Mankind Pharma -: Mankind Pharma is an Indian company that produces medicines and healthcare products. They focus on making affordable medicines for people in India and other countries.
Year-on-Year (YoY) Growth -: Year-on-Year growth is a way to measure how much something has grown compared to the same time last year. It’s like comparing your height this year to your height last year to see how much you’ve grown.
Quarter-on-Quarter Growth -: Quarter-on-Quarter growth measures how much something has grown compared to the previous three months. It’s like checking how much taller you are every three months.
