pharma stocks: Can PLI, China Plus One keep India’s pharma sector in pink of health?

The US economy also witnessed substantial issues in its pharma market. In addition to these, manufacturing & exporting countries around the world saw heightened raw material price inflation followed by supply chain disruption. All these affected the margins of the companies deeply.

Synopsis

Indian pharmaceutical market flattened after the pandemic led to a massive upsurge in demand for drugs. The industry saw a rise in sales during the Covid spike but that settled down as the number of coronavirus cases came down, except for Q1FY2022, where the second Covid wave was dominant. This resulted in a dip in the top line of pharma companies in the successive quarters.

The Covid lockdown and supply chain disruptions have led to extreme volatility in the prices of active pharmaceutical ingredients (APIs). This is bad news for Indian pharma companies as most of them import APIs from China. The sector is poised to grow now, backed by government initiatives to reduce import reliance on APIs. How will these impact business and valuation of the pharma companies?The Indian pharmaceutical market flattened after the

BY

Gaurav Jain & Parimal Ade

ET CONTRIBUTORS

12 mins read, Last Updated:

Jul 11, 2022, 05:03 PM IST

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