Domestic pharma industry revenues to grow by 6-8% FY2023: ICRA

Revenues of leading domestic pharma companies are likely to grow by 6-8 percent in the current fiscal, ratings firm ICRA said on Thursday. The revenues of homegrown drug firms are expected to moderate from a growth of 8-10 percent in 2021-22, it stated citing findings from the sample set of sample set of 21 companies.

Growth in FY2023 is expected to be supported by growth of 7-9 percent in the domestic market, 12-14 percent in the emerging markets and 7-9 percent in the European business, ICRA said. Besides, growth in the US business is expected to remain muted, owing to subdued pricing environment in the market in the near to mid-term, it added.

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Further, ICRA expects the research and development (R&D) expenses to stabilise at current levels of 6.5 percent-7.5 percent of revenues for its sample set as companies continue to focus on complex generics, first-to-file opportunities and specialty products, which entail higher R&D expenses. Stable investments in R&D to develop such products will support growth and margin improvement over the medium-term, it added.