Express Pharma

Good growth prospects despite headwinds


20150430ep02As we settle into FY2016, it is worth taking a quick look at some of the earning previews of the last quarter. An Edelweiss Q4FY15 result preview report on the pharmaceutical sector blames currency headwinds in emerging markets and more importantly, a lack of meaningful ANDA approvals for the continued subdued earnings. Even so, over the long term, Edelweiss continues to remain bullish on the sector given the growth prospects and Indian pharma’s ability to execute, which is reflected in AIOCD’s monthly sales data reports. Considering that FY2015 started with a growth of 7. 3 per cent in April 2014, March 2015’s growth at 20.9 per cent offers some cause for cheer, especially since this makes it the fifth continuous month of double digit growth by the Indian pharma market (IPM). The Edelweiss report also points to the impact of consolidation within the industry and this too is mirrored in the AIOCD rankings.

But besides the big bang Sun Pharma-Ranbaxy deal, the first fortnight of FY2016 had some smaller but interesting deals, as companies chose different ways to counter the headwinds. Dr Reddy Laboratories’ decision to acquire UCB’s existing brand equity within India in three high growth areas — dermatology, respi