ICRA pegs domestic pharma revenue growth at 6-8% in FY2023

New Delhi: Revenues of leading domestic pharma companies are likely to grow by 6-8 per cent in the current fiscal, ratings firm Icra said on Thursday.

The revenues of homegrown drug firms are expected to moderate from a growth of 8-10 per cent in 2021-22, it stated citing findings from the sample set of sample set of 21 companies.

Growth in FY2023 is expected to be supported by growth of 7-9 per cent in the domestic market, 12-14 per cent in the emerging markets and 7-9 per cent in the European business, Icra said. Besides, growth in the US business is expected to remain muted, owing to subdued pricing environment in the market in the near to mid-term, it added.

Further, ICRA expects the research and development (R&D) expenses to stabilise at current levels of 6.5 per cent-7.5 per cent of revenues for its sample set as companies continue to focus on complex generics, first-to-file opportunities and specialty products, which entail higher R&D expenses. Stable investments in R&D to develop such products will support growth and margin improvement over the medium-term, it added.