In the new financial year, the domestic pharmaceutical Sector is set for a sharp turnaround with a 20-22 per Cent growth in operating profit. After a bruising two years, the sector is set to jump. It is expected that this will be the fastest pace since 2014. The revenue of the sector may grow at 9-11 per cent as per a report.
Crisil stated that the projected good run is premised on a decline in regulatory alerts for larger companies as well as a bigger pipeline of high-value drugs compared to the past two years. In new financial year, the operating income and profit will see a course reversal with a 20-22 per cent growth. The revenue may clip at 9-11 per cent according to the rating agency.
The rating agency has also stated that this will be primarily on the back of strong growth in the overseas Market. The sector growth is expected especially in the regulated markets of the US and the EU. However, the domestic market will continue its healthy growth in the past years.
The US and the EU together closed to 50 per cent of formulation exports for the domestic companies. Both account for over 90 per cent of the regulated market exports.