Amid heightened drug shortages in the US market, credit rating agency India Ratings and Research (Ind-Ra) in its latest report has said that US-focused pharma companies are likely to sustain their revenue improvement trend in FY25. As per the agency, this will not only provide potential for volume growth, but also limit price erosion to single digits over the next 12-18 months, leading to improved returns.
Ind-Ra further noted that given the limited original abbreviated new drug application (ANDA) filings and delays in approvals provided by the USFDA, the drug shortage in the US provides an opportunity for Indian players with necessary approvals to gain market share in a competitive-but-attractive market.
Earlier, the rating agency had published the May 2024 edition of its Credit Market Tracker. The report commented on the systemic and market liquidity with insights on interest rates transmission, short-term yields and aggregate mutual fund sectoral debt exposure. The tracker also highlighted the monthly changes in liquidity of the banking system and trends in the debt and money markets.
