India's Pharma Sector Sees Strong Q2 FY25 Growth, Led by North America Market: Report

By siliconindia  |  Monday, 25 November 2024, 03:52:40 PM IST

India's Pharma Sector Sees Strong Q2 FY25 Growth, Led by North America Market: Report
According to a report, major pharmaceutical companies in the country saw a 10 percent year-on-year (YoY) growth in the second quarter of FY25, driven primarily by strong performances in North America and the domestic market.
The report also highlighted that the Indian Pharmaceutical Market (IPM) grew by 8 percent YoY, with chronic therapies showing a 9 percent increase. However, acute therapies experienced a modest growth of 4 percent due to a weak season for these segments.
It said, "The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2 percent YoY and 1.7 percent QoQ, driven by robust growth in North America (10.8 percent YoY) and the India business (9.8 percent YoY)".
The report also highlighted a positive outlook for the pharmaceutical sector over the next three years, driven by a strong pipeline in biosimilars, GLP-1, and peptides, which are used in the treatment of diabetes and other conditions. Companies with a large share of chronic care portfolios continue to outperform the broader market.
It said, "We anticipate a healthy pipeline in segments such as biosimilars, GLP-1, and peptides for pharmaceutical companies over the next three years".
The healthcare sector also showed impressive growth in Q2FY25, with top-line revenue increasing by 17.6 percent YoY and 10.4 percent quarter-on-quarter (QoQ). Improved hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ, were a key growth driver.
As per the report, in the hospital segment, insurance payers contributed 33 percent to total revenues, marking a 23 percent YoY and 12 percent QoQ growth.
Despite this growth, insurance penetration remains low, offering potential for expansion as awareness of health insurance increases and purchasing power improves.
High-growth therapies, such as cancer and cardiac care, continued to drive double-digit growth in the hospital sector. With increasing occupancy rates and higher Average Revenue Per Occupied Bed (ARPOB), these factors are expected to sustain future growth in the healthcare industry.
This strong performance in pharmaceuticals and healthcare highlights the sector's resilience and its potential for ongoing growth.
 

ON THE DECK

Top Banner