Key Points
Sun Pharma leads US sales growth with 12% expansion
Domestic formulations expected to grow 12% YoY
Dr Reddy's tops domestic market with 21% growth
The growth will mainly be driven by the robust performance in the domestic formulations (DF) and moderate improvement in US sales.
It said "On aggregate basis, we expect the pharma companies under our coverage (SUNP, CIPLA, DRRD, TRP and JBCP) to post sales growth of 16 per cent YoY to Rs 332 bn".
The report covers key pharma players such as Sun Pharma (SUNP), Cipla (CIPLA), Dr Reddy's Laboratories (DRRD), Torrent Pharma (TRP), and JB Chemicals (JBCP).
The report states that domestic formulations are expected to grow by 12 per cent YoY, while US sales are estimated to rise by 5 per cent YoY. A weaker Indian rupee (INR) against the US dollar (USD) is also expected to support growth during the quarter.
Among the companies, Sun Pharma is likely to post the highest US sales growth of 12 per cent YoY, thanks to its strong specialty products portfolio. On the other hand, Cipla's US sales are expected to remain under pressure with a 3 per cent YoY decline.
In the domestic market, Dr Reddy's Laboratories is projected to lead with a 21 per cent YoY growth, mainly due to strong performance from in-licensed products.
The report also highlighted a significant improvement in profitability. The companies under coverage are expected to post an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 92 billion, up 30 per cent YoY.
In addition to pharma companies, diagnostic firms like Dr Lal PathLabs (DLPL), Metropolis Healthcare (METROHL), and Vijaya Diagnostic (VIJAYA) are also expected to see healthy growth.
The report also notes that US sales across the covered companies are expected to grow 5 per cent YoY to USD 1.2 billion, supported by niche product launches and reduced price erosion. Sun Pharma is again expected to lead in US sales growth, driven by its strong specialty product performance.
Comments:
Great news for Indian pharma! 🇮🇳 This growth shows how our domestic companies are becoming global players. Sun Pharma's specialty products seem to be making a real difference in the US market.
Interesting analysis, though I wonder how sustainable this growth is long-term with only 5% US sales growth. The domestic market can't carry the industry forever. Would like to see more innovation in international markets.
As someone who works in healthcare, I'm happy to see Dr Reddy's doing so well domestically. Their in-licensed products have been game-changers for patient access to affordable meds. Hope this growth translates to more R&D investment!
30% EBITDA growth is impressive! 💰 But I hope these companies remember to reinvest profits into making medicines more affordable. Healthcare shouldn't just be about shareholder returns.
Cipla's US performance is concerning. They've been a leader for so long - hope they can turn things around. Maybe need to focus more on specialty drugs like Sun Pharma?
The diagnostic sector growth is equally exciting! With more focus on preventive healthcare, these companies have huge potential. Metropolis has been expanding their reach in smaller cities too.
