Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Pharma: Prospects for FY05? - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jun 28, 2004

    Indian Pharma: Prospects for FY05?

    FY05 was good year for the Indian pharma industry as a whole. The year was good for the top and the medium rung players who saw surge in their export revenue driven by bulk drugs exports. The consolidated data for the FY04 is not available but looking at the top and middle rung companies, FY04 has been an eventful year. Now the first quarter of the current year is coming to a close. Consider what lies ahead for FY05.

    In the domestic market, it seems that the life style segments such as cardiovascular, anti-diabetes, anti-ulcer and anti-depressants will continue to remain key growth drivers in FY05 as well. Anti-infectives and anti-inflammatory, we believe, will continue to lag. Companies such as Nicholas Piramal and Cipla, which have high exposure in the fast growing segments, will benefit the most. The growth will also depend on the ability of companies to launch new drugs and the pricing ability in an extremely competitive market. Not much is expected from the MNC companies this year too on new launches front. MNC pharma companies also seem to do well in the high growth market, but lack of new product introductions might hamper growth. Although Aventis is aggressively launching new products, other MNC companies are waiting for the patent regime.

    Although the domestic markets will grow at a steady rate of 10% to 11%, the growth in topline of Indian companies is likely to faster than MNC majors, owing to their international expansion plan. The commencement of contract manufacturing agreements that were signed recently will propel growth this year. Also, on the bulk drugs front, companies will continue to show robust performance in light of the cost competitiveness of Indian bulk drugs manufacturers.

    Companies like Ranbaxy, Dr Reddy's, Sun and Wockhardt will continue to explore markets in Europe and US for the generics drugs. Ranbaxy is likely to close this year in the US market with revenues of US$ 475 m (43% of FY05 sales). Although the revenue growth may not translate into increased profitability, it is likely to be lucrative over the long-term.

    Financial year 2005 holds promise for the pharma industry, both on the domestic and international fronts. The last quarter of the year could see the Indian pharma moving into the product patent regime. Although, it will not result in any perceptible change in the short run, it holds relevance for the industry structure in the long run.



    Equitymaster requests your view! Post a comment on "Indian Pharma: Prospects for FY05?". Click here!


    More Views on News

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    The Power of 5 Minutes (The 5 Minute Wrapup)

    Jun 16, 2017

    Here's what you can expect from The 5 Minute Wrapup in the coming months and years.

    Biocon: Lower Licensing Income Leads to Muted Growth for the Quarter (Quarterly Results Update - Detailed)

    Jun 23, 2017

    Net Profit lower due to exceptional items in the previous year.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 23, 2017 (Close)