Pharma industry likely to report moderate revenue growth of 7-9% in FY23: CRISIL
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Rating agency CRISIL in its latest report has said that the domestic pharma industry is likely to report moderate revenue growth of 7-9 percent in the current fiscal (FY23), due to headwinds in export sales in the regulated markets and a high-base effect in the domestic formulations business.
According to the report, operating profitability will shrink another 200-250 basis points (bps) after the 130 bps decline last fiscal due to continued pricing pressure in the US generics market, and high input and freight costs which offset moderate revenue growth. It stated that the domestic formulations market is expected to grow 7-9 percent this fiscal, on a 15 percent growth last fiscal, led by a 6-8 percent average price increase allowed by the National Pharmaceutical Pricing Authority in March 2022 and on the back of new product launches.
The report further said while the demand for Covid-19-induced drugs and vitamins is fading, a pickup in lifestyle-related chronic portfolio drugs and a few acute portfolio drugs, such as in the dermatology and ophthalmology segments, is likely to drive demand this fiscal.
