ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Bitbns
  • Marksmen 2022
  • More ...
    • VIDEOS
    • PHOTOS
    • MARKSMEN 2022
BREAKING NEWS
  • Common man hit by rising inflation as everyday products become expensive; check what all is getting dearer
  • Brightcom Group bonus share: Company receives Final Trading Approvals for bonus issue from BSE, NSE
  • Dalal Street Corner: After 3 back-to-back weak sessions, indices end higher by 0.5-1% this week; what should investors do?
  • Exclusive: Sebi conducts raids at 30 locations in Maharashtra, Gujarat in Axis Mutual Fund front running case
  • Apple iPhone 14 Pro launch: Multiple color options to ‘i-shaped’ notch - All you need to know
Read in App
Business News » Companies News

U.S. business rescues pharma cos in quarter one

Following the FDC ban, this market fell by  3.9% to Rs 234 crore in the given quarter. Whereas drugs under NLEM grew by 1.6% to Rs 1061 crore, while non-NLEM drugs posted growth of 11.2% to Rs 7677 crore. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
U.S. business rescues pharma cos in quarter one
Listed pharma companies records robust Q1FY17 shrugging off uncertainties. Pic: Reuters

American operations boosted top- and bottom-lines of pharma companies in India in the first quarter ended June 30, 2016.

An analysis of the results of these companies show that even as their revenues grew by 9.4%, at Rs 35,662 crore, it was boosted by an over 15% growth in the American market. Revenues, from India, grew 7.6% to Rs 7,863 crore.

Domestic growth was impacted by the National list of Essential Medicines (NLEM) and Fixed Dose Combination dispute (FDC). 

Going ahead, EBITDA (earnings before interest tax depreciation and amortization (EBITDA) of pharma companies grew by 7.2% yoy to Rs 8579 crore. 

In terms of revenue, Natco Pharma and Lupin outperformed the market with 46% and 41% rise, respectively.  

Among the other noticeable gainers were, Alembic Pharma, Divi’s Lab, Sun Pharma, Biocon and Ajanta Pharma recording more than 20% growth. 

Although, Natco’s revenues were largely driven by robust growth in Hepatitis C medicines, Lupin benefited from exclusivity sales in the U.S.

Siddhant Khandekar and Mitesh Shah, analysts at ICICI Direct, in a report, said, "Despite pricing pressure and client consolidation, which were thought to be significant headwinds post Q4FY16 numbers, most players (barring a few) managed to expand volumes thereby neutralising these headwinds."

Dr Reddy’s, Torrent Pharma and Cipla reported fall in growth mainly due to high base and price erosion in the U.S. 

The Indian pharmaceutical market (IPM) grew by 9.5% to Rs 9125 crore in July 20 16 led by price hikes (3.3%), new product launches (3.1%) and volumes increase (3.2%).

Following the FDC ban, this market fell by  3.9% to Rs 234 crore in the given quarter. Whereas drugs under NLEM grew by 1.6% to Rs 1061 crore, while non-NLEM drugs posted growth of 11.2% to Rs 7677 crore. 

On volume front, NLEM and non-NLEM saw growth of 11% and 4.2% respectively.  

The analysts explained, "Regarding USFDA issues, Indian players have moved on and seem better prepared than 12-18 months ago as reflected in growing number of EIRs by the USFDA for Indian facilities. Indian formulations also did reasonably well despite NLEM, FDC issues." 

Going forward

ICICI Direct expects pharma earning momentum to continue on the back of incremental product launches in the U.S. and likely positive outcome from USFDA re-inspections besides normalising of Indian formulations growth. 

"We healthcare universe revenue, EBITDA and PAT to grow at a CAGR of 12%, 13% and 17%, respectively, in FY16-18E. Growth will be steered by US (~13% CAGR over FY16-18E) and Indian formulations (~14% CAGR over FY16-18E), “added ICICI Direct. 

A total of 431 new brands have been launched in July 2016. 

On a moving annual total (MAT) basis, IPM growth was at 10.3% YoY to Rs 1, 00,896 crore. Domestic companies have grown 10.9% while MNC companies have grown 5.0% in July 2016.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
PharmaQ1CiplaDr ReddysTorrentAlembicNational list of Essential MedicinesNLEMFixed Dose Combination disputeFDC
Written By: Pooja Jaiswar
Updated: Wed, Aug 31, 2016
09:27 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Exclusive: In chat with Anil Singhvi, IOL Chemicals' Joint MD Sandeep Garg discusses Q3 results, business outlook Exclusive: In chat with Anil Singhvi, IOL Chemicals' Joint MD Sandeep Garg discusses Q3 results, business outlook
Aarti Drugs has a CapEx Plan of Rs 600 crore for Greenfield Projects: Adhish Patil, CFO Aarti Drugs has a CapEx Plan of Rs 600 crore for Greenfield Projects: Adhish Patil, CFO
Glenmark Pharma gets USFDA nod for cholesterol lowering drug Glenmark Pharma gets USFDA nod for cholesterol lowering drug
Cipla Q4 net profit jumps over 2-fold to Rs 357.68 cr; to raise up to Rs 6,000 cr Cipla Q4 net profit jumps over 2-fold to Rs 357.68 cr; to raise up to Rs 6,000 cr
Big relief for cancer patients: 30% margin on medicines to reduce prices, benefit poor Big relief for cancer patients: 30% margin on medicines to reduce prices, benefit poor

LATEST NEWS

Common man hit by rising inflation as everyday products become expensive; check what all is getting dearer

Stocks to buy: List of 20 stocks for intraday, short-term, positional and long-term investments

Brightcom Group bonus share: Company receives Final Trading Approvals for bonus issue from BSE, NSE

Dalal Street Corner: After 3 back-to-back weak sessions, indices end higher by 0.5-1% this week; what should investors do?

Buy, Sell or Hold — What should investors do with Torrent Pharma, Sequent Scientific and AIA Engineering?

Anil Singhvi's strategy May 27: Support zone on Nifty is 16075-16125 and Bank Nifty is 34600-34800

Instagram down: Check why Instagram was not working; here's what company said

Sony PlayStation VR2: PSVR 2 may come with 20 games at launch

Apple iPhone 14 Pro launch: Multiple color options to ‘i-shaped’ notch - All you need to know

Bharat Drone Mahotsav 2022: PM Narendra Modi to inaugurate India's biggest Drone Festival shortly | Direct link to watch live event on YouTube

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV