India Healthcare - Weathered Storms To Emerge Stronger: ICICI Securities Re-Initiates Coverage

ICICI Securities Report

The generic pharma business model in the U.S. is undergoing a gradual shift and companies with specialised research and development skillsets will likely be able to tide over the transformation better.

Windfall from gRevlimid and slowdown in intensity of pricing pressures have helped U.S. sales of India companies to grow 6% in nine months-FY23, while rationalisation of R&D spend (savings of 100 basis points in past three years) has aided margins.

gRevlimid and exit of competition from a few products could potentially boost the sales run-rate in FY24. We are cautious about U.S. prospects beyond FY24 owing to limited FTF opportunities.

Hence, we prefer companies that are diversifying their offerings in the U.S. and have pipeline visibility. We expect the overall U.S. generics business to post a modest 7% revenue compound annual growth rate over FY23- FY25E.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.