Indian pharma sector expected to grow at 10-12 per cent during FY19-22, outlook stable: ICRA 

The FY2019-2022 compound annual growth rate (CAGR) is expected to be around 10-12 per cent for domestic pharmaceutical companies, it added.

Published: 18th December 2019 03:33 PM  |   Last Updated: 18th December 2019 03:33 PM   |  A+A-

Online pharmacies

For representational purposes


NEW DELHI: Ratings agency Icra on Wednesday said the Indian pharmaceutical industry is expected to grow around 10-12 per cent between FY2019 and FY2022 while maintaining a stable outlook on the sector.

Icra cited abating headwinds from pricing pressure in the US (which is the largest regulated market), stable growth for the Indian market driven by increasing healthcare spending and better accessibility as likely key growth drivers for the Indian pharma companies, coupled with comfortable balance sheet structure.

It, however, said increased cost related to regulatory compliances, especially for the US market, price controls across markets and mandatory genericisation for the Indian market remained key risks.

"The domestic pharmaceutical industry has gained adequate scale and generic drug development capabilities over a decade of growth which will keep them in good stead to capture bigger opportunities, especially in the specialty/niche segments in the regulated market," Icra said in a statement.

The FY2019-2022 compound annual growth rate (CAGR) is expected to be around 10-12 per cent for domestic pharmaceutical companies, it added.

Icra said growth from the US picked up in FY2019 to 12.1 per cent after seeing a decline of 13.1 per cent in FY2018. "The growth was supported by higher market share for Indian players as several generic MNC players optimized product portfolios along with new product launches," it added.

The pricing pressure led by the consolidation of the supply chain in the US market and faster abbreviated new drug application approvals is abating and is expected to remain in mid-single-digit in FY2020 compared to low teens in FY2018.

Icra, however, warned that while the US growth is expected to remain at high single-digit to low double-digit, it will face headwinds given the relatively moderate proportion of large size drugs going off-patent, generic adoption reaching saturation levels in the US market and increased regulatory scrutiny as reflected in increased issuance of warning letters/import alerts.

It further said productivity of research and development expenditure, operational risk related to an increased level of due diligence by regulatory agencies and price controls were key concerns.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp