Pharma Sector Achieves 8% Growth in FY24: Report

The pharmaceutical sector in India experienced an 8% growth in revenue during FY24, according to a recent IQVIA report. Sudarshan Jain from the Indian Pharmaceutical Alliance (IPA) predicts the chronic market will continue to grow in double digits over the next 3-5 years. However, the report indicates a 54% decline in new product launches in Q4 FY24 compared to the same period the previous year. The chronic segment outpaced the acute segment in the March quarter, growing by 10% versus 3%, respectively.

Despite an 8% overall growth, the sector saw a slight revenue drop of 3.6% in the last quarter of FY24 compared to the previous quarter. Experts attribute the decline in new product launches to pharma companies being more selective, focusing on fewer product categories. Within the chronic segment, cardiac treatments grew the most (11%), followed by neuro/central nervous system (8%), anti-diabetic (7%), and chronic respiratory (6%). Double-digit growth was also noted in the anti-neoplastic, pain, and urology segments. In contrast, acute segments like gastrointestinal, acute pain, and derma showed slower growth, with respiratory and anti-infectives segments experiencing a decline compared to Q4 FY23.

An April note from Yes Securities observed that the January-to-March quarter typically sees weaker performance in the domestic acute market due to seasonality. Chronic-focused companies are expected to grow 9-11% year-over-year, while those focusing on acute treatments might see mid-single-digit growth. Larger companies like Lupin and Dr. Reddy’s are predicted to benefit from specific products such as Spiriva and Revlimid. Despite the acute segment’s slower growth, overall sector growth is expected to remain stable, driven by the robust performance of the chronic segment.