Indian drugmakers to see FY25 revenue boost in key US market, says India Ratings and Research
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2024
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Source: reuters
- Indian Drugmakers Revenue Improvement: Indian drugmakers with a focus on the U.S. market are expected to sustain revenue growth in fiscal 2025 due to drug shortages in the United States.
- Drug Shortages in the U.S. Market: The U.S. is facing decade-high drug shortages, with an active shortage of 233 drugs across 22 therapeutic categories as of April.
- Financial Performance of Indian Generic Players: US-catering Indian generic players like Dr. Reddy's and Cipla have seen strong financial performance in FY24 due to lower raw material costs and pricing stability.
- Impact of Regulatory Costs: Increasing regulatory costs have led many US-based generic pharma manufacturers to halt production of certain drugs, contributing to shortages.
- Future Outlook: Indian companies are expected to fill the gap by expanding supply chains, increasing participation across therapeutic categories, and preparing for new launches in the U.S. market. Price erosion in the U.S. market is also expected to decrease, improving returns for drugmakers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
