Indian pharma sector needs price hikes, site and IP transfers to tackle US tariff uncertainty: Report
New Delhi [India]September 9: Indian pharmaceutical industry, according to a report by Systematixx Research, requires price increases, field and intellectual property (IP) transfers to deal with injustice in the industry in the midst of US tariffs.
The report stressed that the uncertainty of tariff continues to be valid with companies that do not want to add capacities in the USA.
“Price increase, site and IP transfers, the industry needs three tools to deal with tariffs.”
At the same time, raw material prices are sharply recovered in certain categories, especially in antibiotics, while customers are forced to take advantage of lower prices. In general, general API prices have been stabilized.
The report also said that companies are hopeful but cautious about new growth ways and product launch, which can help them balance erosion in high -valuable launch.
On the CDMO front, bid requests for special synthesis and CDMO services are strong. More than one company also monitors GLP-1 opportunities and developing markets in India and is preparing for a launch one day.
Meanwhile, companies continue to carefully evaluate inorganic growth opportunities. While the demand for anti-infectives in domestic markets remains weak in the quarter, it continues to be an important focus area when creating top of the counter (OTC) platforms.
On the earnings front, the report said that 1QFY26 is weak and that low -performances are more. Most players have recorded in Pharma (Organic) Middle-Entertainment Single-digit growth. However, when the US geography started price erosion, he witnessed margin pressures.
Among those who performed better, Sun Pharma (Sunp) has exceeded expectations due to low operational costs. India was strong, but US generics were weaker than expected. Pfizer (PFIZ) saw that growth at 7 percent, which helps to perform better performance with lower operational costs.
Similarly, Syngene (SLPA) led to more powerful margins by contributing to licensing income than expected.
On the weak side, Orchid Pharma (ORCP), probably due to customer inventory support in the expectation of price correction, was affected by a negative stroke on the industry -wide Sefalosporin API volumes.
Pyramal Pharma (PLM) faced heavy pressure on export business due to the evacuation of China. Dr. Reddy’s laboratories (DRRD) have seen weakness in the high -valuable US general business affecting borders. Divi’s laboratories (DIVI) reportedly reported, but with some weak margins.
The report concluded that the Indian pharmaceutical sector continues to face close -time uncertainty, although companies position themselves for long -term growth opportunities. (MOMENT)
