Rupee has depreciated 9 per cent over the past one year, turning brighter the growth prospects of Indian pharmaceutical industry. There are fundamental factors, besides rupee, influencing the industry's growth in the short to medium-term. Drug companies' performance stands impacted by these factors in the coming quarters:
1. Pace of Drug Approvals in the US has picked up, clearing the way for companies to launch more products in the US. Companies like Lupin, Aurobindo and Glenmark BSE - 2.01% have received a series of approvals in the recent months.
2. Punitive Regulatory Action by the US FDA (Food and Drug Administration) remains a potential risk, dimming the exports prospects of the company facing the clamps. Sun Pharma 0.44% and Ipca Labs continue to work towards attaining full regulatory compliance.
1. Pace of Drug Approvals in the US has picked up, clearing the way for companies to launch more products in the US. Companies like Lupin, Aurobindo and Glenmark BSE - 2.01% have received a series of approvals in the recent months.
2. Punitive Regulatory Action by the US FDA (Food and Drug Administration) remains a potential risk, dimming the exports prospects of the company facing the clamps. Sun Pharma 0.44% and Ipca Labs continue to work towards attaining full regulatory compliance.
3. Customer Consolidation in the US is changing the existing equation for Indian drug sellers. A handful of retailers control most of the purchasing of generic drugs. Companies like Dr Reddy's and Lupin -1.25% have faced price erosion in the US on this account.
4. Volumes Growth in Domestic Market has been on a recovery, auguring well for companies with leading presence in the local market. Companies like Astrazeneca Pharma, Glenmark and Torrent have outperformed the rest in recent months.
5. Price Control in the domestic market remains a sore point, especially if prices of more drugs are brought under the control regime.
6. MNCs in India have become aggressive in launching products in the domestic market.
7. The growth of MNCs have outpaced that of the Indian companies in the last two months.
Emerging Markets: While performance of Indian companies is steadily improving in most emerging markets, the currency depreciation remains a concern eclipsing the overall performance.
8. M&As continue to be a game changer as firms acquire targets and brands in India and outside.
4. Volumes Growth in Domestic Market has been on a recovery, auguring well for companies with leading presence in the local market. Companies like Astrazeneca Pharma, Glenmark and Torrent have outperformed the rest in recent months.
5. Price Control in the domestic market remains a sore point, especially if prices of more drugs are brought under the control regime.
6. MNCs in India have become aggressive in launching products in the domestic market.
7. The growth of MNCs have outpaced that of the Indian companies in the last two months.
Emerging Markets: While performance of Indian companies is steadily improving in most emerging markets, the currency depreciation remains a concern eclipsing the overall performance.
8. M&As continue to be a game changer as firms acquire targets and brands in India and outside.
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