Indian pharma industry set for robust growth

The sales for Indian pharmaceutical companies are expected to log a robust growth in FY22, said Fitch Ratings. The credit rating agency said pharma company sales will grow in FY22 as sales normalise in categories affected by the pandemic in the previous year.

"Most Indian pharma companies reported resilient operating performance in FY21, benefiting from gradual stabilisation after 1QFY21, geographical diversification and sales of pandemic-related drugs," Fitch Ratings said.

The rating agency expects sales of drugs used to treat acute medical conditions and elective procedures to continue to recover in FY22. Sales in these categories fell in FY21 as travel restrictions reduced doctor visits and hospitals prioritised Covid-19 treatment over elective procedures.

The risk of further waves of infection remains significant in markets with slow roll-outs of vaccination, including India, but healthcare systems are better prepared after the second wave, which should limit the impact.