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Amid new launches, ongoing drug shortages and growth opportunities in the domestic formulation business, credit rating agency India Ratings and Research (Ind-Ra) in its latest report has stated that its rated pharma companies are likely to maintain the momentum on growth and profitability in regulated markets (US).

As per the report, normalisation of drug prices in the US and a softening in raw material prices will help companies to keep revenue growth of 10% and EBITDA margin of about 21% during FY24. It further noted that the Q1FY24 results provide an early indication of the easing.

The agency further said this trend is expected to sustain for the remainder of the financial year, although sustainability beyond FY24 would be contingent on the performance of US generic business of the companies. It also expects an increase in USFDA inspections in FY24; however, these are unlikely cause significant disruptions.