Page 145 - CW E-Magazine (2-4-2024)

Pharmaceuticals Pharmaceuticals

FY25 PHARMACEUTICALS OUTLOOK GROWTH PLANS
‘Companies will benefi t from growth in domestic & P&G Health to strengthen its vitamins and supplements

export markets’ portfolio

India Ratings and Research (Ind-Ra) pected at around 9% year-on-year, on account of an increase in drug prices Procter & Gamble Health Ltd., a products in the market as upgrades of research fi rm, 37% of the Indian popula-
has maintained a neutral outlook for while maintaining healthy EBITDA (4-5%), incremental sales from added subsidiary of the multinational con- the currently available formulations tion consumes VMS, with 58% of them
the Indian pharmaceuticals sector for margin performance (around 22%) in fi eld force last year, higher growth in sumer goods fi rm Procter & Gamble, and others as additional offerings. being females. According to Statista,
FY25. According to the ratings com- FY25. There has recently been a wave chronic therapies and anticipation of is preparing to augment its portfolio These expansion plans come as part of a global data and business intelligence
pany, sector companies will continue of M&A activity in the domestic for- favourable seasonality. It expects the of vitamins, minerals, and supplements our fi ve-year vision that we have for platform, vitamins & minerals market
to benefi t from growth in the domestic mulations space, which is likely to cash fl ow-sticky chronic segment to (VMS), especially neurotrophic vita- our portfolio,” he added. in India is projected to reach $15.36-mn
as well as export markets, while main- continue. continue to grow at a higher rate than mins, under its fi ve-year plan, accord- in 2024, and is expected to grow at
taining healthy EBITDA margins led the acute segment. ing to the company’s Managing Direc- The company said it currently holds a compounded annual growth rate
by a moderation in the price erosion Stable rating outlook tor, Mr. Milind Thatte. a strong position in various subcategories (CAGR 2024-2029) of 9.07%, leading
in the US generics business, softening Ind-Ra has maintained a Stable rat- Ind-Ra does not expect the sector’s of VMS. It says it has a market share of to a market size of $23.71-mn by 2029.
of input costs, and high-value product ing outlook of its rated pharma compa- liquidity to face a major risk, despite The company has a portfolio that around 80% in vitamin E supplements,
launches in the US generic market. nies for FY25, driven by a low leverage similar debt maturities levels in FY25 comprises 90% of VMS products, and in marketing neurotrophic vita- The company is seeking to grow its
ratio and adequate liquidity, expecting and FY26. Large pharma companies with nasal decongestant Nasivion mins. The company’s portfolio includes volumes of injectables to earlier levels
Ind-Ra expects the Indian pharma- limited rating movements in the sector. generally have large cash balances, accounting for the remainder. “We well-established brands like Livogen, through contract development and
ceuticals market (IPM) to grow 8-9% Like in FY24, the agency expects the which typically account for 14-15% of are constantly upgrading our portfolio Evion, Neurobion Polybion, and Seven manufacturing organisations (CDMOs).
year-on-year in FY25 (FY24: 6-7%; rating actions in FY25 to be driven by their revenues. Furthermore, most com- offerings and have launched four Seas. The company had earlier announced
FY23: 9.3%) and US-focused pharma company-specifi c factors such as USFDA panies have suffi cient headroom under different products in the last three to that it would stop manufacture of
issuers to remain stable or report mid- inspections and actions (which is debt covenants and diversifi ed funding four years,” said Mr. Thatte. “We will According to a 2021 report by Mintel injectables at its Goa plant and do it
to single-digit revenue growth in FY25 expected to see a signifi cant increase), sources. continue to launch more and more Analysis, a London-based market through CDMOs.
(FY23: 7.2%; 9MFY24: 18.5%) on ac- operating profi tability and business
count of lack of revenue from one-off visibility. “Ind-Ra’s rated large pharma corpo- Zydus receives tentative USFDA approval for
products. Hence, the overall proportion rates continue to deliver healthy sales
of sales from the US is likely to remain Stable US sales growth while maintaining strong ope- Letermovir tablets
stable. The agency expects sales to the US rating margin. We expect a pick-up in
to be stable or there will be mid-sin- USFDA inspections during FY24 and Zydus Lifesciences Ltd. has re- cytomegalovirus (CMV) in people stock exchange fi ling. Letermovir
The ratings agency expects the ac- gle-digit revenue growth in FY25 on FY25; however, the impact on some ceived tentative approval from the who have received a bone marrow or tablets, 240-mg and 480-mg, had
tive pharmaceuticals ingredients (API) account of lack of revenue from one- facilities and entities will be less dis- United States Food and Drug Adminis- kidney transplant. annual sales of $289.5-mn in the US.
business of selected companies to re- off products. Hence, the overall pro- ruptive for the sector compared to tration (USFDA) to market Letermovir
port high single-digit growth in FY25 portion of sales from the US is likely the situation during 2015-2016,” said tablets, 240-mg and 480-mg. The drug will be manufac- The group now has 393 approvals and
due to a demand uptick. The overall to remain stable. Ind-Ra expects IPM to Mr. Vivek Jain, Director, Corporate tured at the group’s formulation has so far fi led over 460 ANDAs since the
revenue growth for them is also ex- grow 8-9% year-on-year during FY25, Ratings, Ind-Ra. Letermovir tablets are used to pre- manufacturing facility at Ahmed- commencement of the fi ling process
vent disease caused by a virus called abad SEZ, the company said in a in FY 2003-04, the company added.
GREENFIELD FACILITY
Indoco Remedies’ subsidiary begins intermediates Emcure to distribute Sanofi India’s cardiovascular
production at Aurangabad brands

Indoco Remedies’s wholly-owned Ms. Aditi Panandikar, Managing mercial production of oral care products Sanofi India has entered into an cluding Cardace, Clexane, Targocid, in India and internationally, Emcure
subsidiary, Warren Remedies Pvt. Director, Indoco Remedies said, “The at the Aurangabad site. The company’s exclusive distribution and promotion Lasix and Lasilactone, with immedi- will leverage its network to engage
Ltd., has commenced commercial manufacturing facility will provide us board also recently approved the pur- agreement with Emcure Pharma- ate effect, a note from the companies healthcare professionals and expand
production of pharmaceutical inter- the requisite capabilities and edge in chase of land admeasuring 2,860.75-m ceuticals, involving the former’s cardio- said. the reach of these therapeutic solu-
2
mediates and active pharmaceutical meeting the demand of APIs.” at Mahal Industrial Estate, Village vascular products in India. tions for patients, the note said. Also,
ingredients (APIs) at its greenfi eld Mulgaon, Taluka Andheri, Mumbai, While Sanofi India will continue it added, “Sanofi India’s concerned
manufacturing facility at Aurangabad, Earlier on March 1, Warren Remedies from Saldanha Realty and Infrastructure Emcure Pharmaceuticals will to own, import, and manufacture employees will have the opportunity
Maharashtra. had announced commencement of com- LLP for the expansion plans. distribute Sanofi India’s brands in- these brands across Sanofi ’s plants to work at Emcure.”

144 Chemical Weekly April 2, 2024 Chemical Weekly April 2, 2024 145

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