Pharma industry set for a rebound

New Delhi: Alkem Laboratories expects the Indian pharmaceutical industry to rebound to 8-11 per cent growth rate with normalcy in activities as the pandemic eases out but feels inflationary pressures and evolving regulatory norms will be key risks to watch out for.

In its annual report for 2021-22, Alkem said the future of the domestic pharmaceutical market continues to hold immense potential led by favourable demographics, growing disposable incomes, increased access to healthcare facilities, growing consciousness towards healthcare, and increasing penetration of medical insurance.

On the outlook for the domestic business, it said, "With easing out of Covid-19 restrictions, resumption of travel, normalisation of supply chain and manufacturing activities, reopening of schools and offices, and a resumption of deferred elective medical treatments, the Indian pharmaceutical industry is expected to rebound to a normalised growth rate of 8-11 per cent." The company said that globally also, Covid-19 related quarantines and shutdowns led to deferment of elective medical procedures and patients remaining less engaged with healthcare, resulting in delayed diagnosis and treatment, especially for those conditions which were asymptomatic.

However, Alkem said,"inflationary pressures in terms of higher raw material and packaging material prices, increased freight rates, and evolving regulatory norms will be the key risks to watch out for."

Inflationary pressures in terms of higher raw material and packaging material prices, increased freight rates, and evolving regulatory norms will be the key risks to watch out for

- Alkem Laboratories