Indian Pharma sector to grow at slower pace
The Indian pharmaceutical industry is expected to grow at a sluggish pace due to slower growth in the US market, rise in competition and saturated adoption of generics as per rating agency, ICRA.
December 09, 2016: The growth in the US market has fallen to 9 per cent in the first half of 2016-17 and is expected to be under further pressure in the future.
Greater regulatory checking, consolidation of the supply chain resulting in pricing pressure as well rise in R&D expenses are ,however, impacting the profitability of Indian pharmaceutical companies.
Despite the above challenges, Indian pharma companies have been focusing on increasing their budgets for R&D, working on specialty drugs, niche molecules and complex therapies. The industry has been gaining adequate scale and drug development capabilities through the past ten years which will enable them to encash new opportunities in the US market.
The long term prospects for the industry,however, remain healthy on the back of rising incidence of penetration, accessibility and sustained new launches.