For the past eighteen months, Gujarat's pharmaceutical companies have been grappling with concerns over price erosion in the US market. However, recent developments indicate a welcome resurgence in their US market revenues. Over the last three quarters, from April to December 2023, prominent players in the industry have witnessed significant growth in their US market business, which is a positive turn in their fortunes.
Insiders from the industry reveal that the US market has been a primary driver of revenue growth for these major companies, along with the Indian market.
During this period, Zydus Lifesciences Limited achieved robust double-digit growth of 18.7% in its US formulations business compared to the same timeframe in 2022. Similarly, Sun Pharmaceuticals Limited saw a 13.9% increase in US market revenues.
In comparison, Alembic Pharmaceuticals reported a 7.5% growth in its US business revenues for the first three quarters of the fiscal year.
Industry experts attribute the growth in their US revenues to easing price erosion concerns in the market. Price erosion is the continued fall in the price of a product over time due to pressure from customers and competitors. According to a top industry source, price erosion has slowed to a "low single-digit" level in the US market.
In light of these developments, Pranav Amin, MD of Alembic Pharmaceuticals Limited, stated, "Supply shortages in the US market have boosted demand and opportunities for Gujarat's pharma manufacturers.
During the current fiscal year, we have already launched some 20 new products across segments, including oral solid dosages, injectables, and oncology. During the upcoming year, 20 new product launches are already on the cards in ophthalmology and pharmaceutical segments, among others."
, CDSCO.jpg)
.jpg)