Indian Pharma Sector Posts 10% YoY Growth in Q2 FY25

The country's top pharmaceutical companies experienced a 10 per cent year-on-year (YoY) growth in the second quarter of FY25, mainly due to their strong performance in North America and the domestic market, as per Axis Securities report. 

The Indian Pharmaceutical Market (IPM) experienced an 8 percent year-on-year growth, with chronic therapies demonstrating a 9 percent rise. Nonetheless, there was a slight increase of 4 per cent in acute therapies as a result of a poor season for these categories.

It said "The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2 per cent YoY and 1.7 per cent QoQ, driven by robust growth in North America (10.8 per cent YoY) and the India business (9.8 per cent YoY)".

The report also indicated a favorable outlook for the pharmaceutical industry in the upcoming three years, with an optimistic forecast for biosimilars, GLP-1, and peptides. Biosimilars, GLP-1, and peptides play a role in treating diabetes and other diseases. Businesses that have a large portion of long-term investments are still performing better than the general 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."

In Q2FY25, the healthcare industry saw significant growth, with a 17.6 percent increase in year-on-year (YoY) revenue and a 10.4 percent increase in quarter-on-quarter (QoQ) revenue. Increased hospital occupancy rates, which saw a 340 basis points (bps) year-over-year and 470 bps quarter-over-quarter growth, played a vital role in driving growth.