Growth momentum of the domestic pharmaceutical sector is likely to sustain in the near-to-medium term owing to steady demand witnessed across therapy segments, regular new launches and price hikes taken by companies, a report by rating agency ICRA said.
With steady demand being witnessed across therapy segments, regular new launches and price hikes taken by companies in line with Drug Price Control Order (DPCO) guidelines, ICRA expects growth momentum to sustain in the near-to-medium term.
The regulatory risk of additional therapy segments being brought under control remain a concern with NPPA proposing to bring at least 100 more drugs under control by making corrections to DPCO 2013, ICRA said.
After experiencing moderation in the growth momentum in FY 2014 on back of price cuts and trade related disruptions, the growth in the domestic pharma industry bounced back with the industry registering a growth of 12.9 per cent on MAT basis as on March 2015 and 14.3 per as on June 2015.
Much of this recovery has been led by price hikes implemented by companies in their National List of Essential Medicines (NLEM) portfolio, stabilisation of supply related issues, and increased market penetration.
The lifestyle-oriented therapy segments have continued to grow steadily, which along with increased focus by companies towards introducing new products and enhancing field force productivity has also contributed to the growth momentum.
EP News Bureau – Mumbai