Indian Pharmaceutical Firms Poised for Enhanced Growth in the US Market by 2025: HSBC
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New Delhi, Dec 11 (NationPress) Indian pharmaceutical companies, which have reaped benefits from sector tailwinds like steady generic pricing and shortage-driven opportunities alongside stable raw material costs over the past 18-24 months, are expected to achieve further advancements in differentiated and complex generics in the US market by 2025, as highlighted in a report on Wednesday.
As per a note from HSBC Global Research, these favorable conditions are anticipated to persist in 2025, given that “we don’t expect significant alterations in the demand-supply dynamics.”
“By 2025, we predict Indian firms will continue to progress in differentiated/complex generics (such as peptides and inhalers) within the US, including potential launches of gAbraxane, gAdvair inhaler, and peptides, among others,” the note indicated.
Advancements in complex generics and biosimilars are expected to remain a focal point, as they will be essential for managing the decline of gRevlimid and sustaining growth.
With the support of stable generic pricing, “we believe that the success of critical launches (like gAbraxane for Cipla) will shape the trajectory of US sales in 2025.”
HSBC anticipates that Indian companies will embark on their journey in GLP-1 drugs with the introduction of generic liraglutide (although generics for newer GLP-1 drugs remain a distant prospect in the US).
“We expect the Indian pharma market (IPM) to continue its growth at a high-single digit rate, driven by price increases and new product launches,” it further stated.
In other regions, including India and emerging markets, firms are consistently targeting differentiated opportunities such as OTC products, biosimilars, and patented products.
For India's formulations sector, the global research entity estimated that the broader Indian pharma market (IPM) would grow at a high single digit range.
“Growth contributions from price hikes (4-6%) and new launches (2-3%) are expected to remain stable. We believe that contributions from volume growth will likely stay in the low single digit range,” stated HSBC.
Earlier this month, the Union government sanctioned a financial package of Rs 15,000 crore for the Production Linked Incentive (PLI) scheme for pharmaceuticals, aimed at enhancing domestic manufacturing.
