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Ratings agency ICRA in its latest report has said that the Indian pharma industry is estimated to grow at 9-11 per cent in 2021-22 and in the next few quarters, supported by gradual recovery post the impact of COVID-19. In a sample of 21 Indian pharmaceutical companies, it said revenue growth was moderate at 6.4 per cent in the second quarter of FY22, down from 16 per cent in the first quarter of 2021-22.

According to the report, the normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy. In FY22, the sample set is estimated to have witnessed growth of 13-15 per cent in the domestic market, 14-16 per cent in the emerging markets and 9-11 per cent in the European business. In the domestic market, it said a combination of steady normalisation in hospital footfalls and field force operations, given the relatively lower restrictions on account of COVID-19, continued traction in acute therapies and better pricing supported healthy revenue growth across companies.

Going forward, the ratings agency said sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables. It said the outlook for the pharma sector remains stable led by healthy revenue growth and margins. It expects the sample set's capital structure and coverage indicators to remain comfortable despite higher capex and R&D (research and development) expenses given the robust cash levels.