Export boost to help pharma overcome Covid crisis fall-out

Mumbai: Higher exports will help the Indian pharmaceutical sector come out 'unscathed' from the coronavirus pandemic and deliver a marginally lower 9 per cent revenue growth, ratings agency Crisil said on Thursday.

Exports and domestic formulations account for an almost equal share in the Rs 2.8-lakh crore domestic pharma sector, Crisil said. It added, "In 2020-21, growth in exports at 11-12 per cent, as against 10 per cent last fiscal, will outpace growth in domestic formulations expected at 5-6 per cent from 10 per cent in 2019-20." This will lead to a 8-9 per cent overall growth, which is down just 1.50 percentage points from the year-ago period, it added.

Operating profitability for the 350 pharmaceutical companies it rates, which represent 70 per cent of the sector's revenue, would soften by 1.50 percentage points but remain healthy at 19 per cent despite the higher input prices, it said. Currently, the export pie is divided into regulated markets such as the US and Europe (45 per cent), rest of world (ROW) markets (35 per cent), and bulk drugs (20 per cent).