Indian pharma industry facing growth headwinds – Feedback

Indian pharmaceutical industry will grow at a slower pace due to sluggish growth in the US market, increased competition leading to price erosion in high single digits and generic adoption reaching saturation levels, rating agency ICRA said today.

Growth from the US has come down to less than 9 per cent in first half of 2016-17 despite consolidation and currency benefits and going forward, the growth momentum is likely to face further pressure, it said. Besides, increased regulatory scrutiny and consolidation of supply chain in the US market resulting in pricing pressure along with increased R&D expenses will have an impact on profitability of Indian pharmaceutical companies, it added. “In spite of these ongoing challenges, several Indian pharma companies are increasing their R&D spend, targeting pipeline of specialty drugs, niche molecules and complex therapies,” ICRA said.

http://www.businesstoday.in/sectors/pharma/indian-pharma-industry-facing-growth-headwinds-icra/story/241983.html

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