Despite Muted US Exports, Pharma co.s to Grow 10 PC

Chennai: Despite a silent growth in exports to the United States, 10 percent growth in exports of pharmaceutical companies to the rest of the world, domestic formulations and CRAMS dual -digit growth rates.

The US market is likely to report quiet performance for the rest of 26 due to lower generic revimid sales. RevimID, used for certain cancers and multiple myeloma, received a harsh competition due to multiple entries of generic drugs in the US market. Natco Pharma, Dr. Reddy’s. Cipla and lupine are some of the companies supplying Revlimid generic.

However, pharmaceutical companies will continue their growth and profitability in 26 fiscal years due to powerful domestic formulations, appropriate currency conditions, new launch and a solid contract development and manufacturing organization (CDMO).

Pharmaceutical companies in India are expected to monitor a 9-10 percent income increase in 26 financial years. The domestic formulation business of companies rated by Ind-RA continued to report 9.5 percent strong growth in the first quarter of 26, while the US business reported a marginal decrease of 0.9 percent. Farma exports to the rest of the world (sequence) has grown by 14 percent and Europe has grown by 18.2 percent and contract research and production services (CRAMS) increased by 21 percent in the first quarter.

EBITDA margins remain high due to an appropriate sales mix, valuable product contributions, cost optimization and softening of raw material prices. FAVOK margin of nominal companies, 25.4 percent in the first quarter of 26 remained intact.

While the Indian Pharma benefits from the exemption of the US Tariff exemption, any imposition may challenge cost passage, especially for companies with higher US exposure. Smaller companies may face more pressure due to capital expenditure demands. Tariffs over 25 percent may damage competitiveness and cause market outlets. In order to resist these problems, companies expand in non -US markets, target high Roce branded markets, focus on complex products and provide US production. Although the US drug tariffs are a key concern for FY26, ICRA sees the sector’s appearance as neutral, and larger players are ready to grow inorganic because of powerful balance sheets.