India's healthcare sector growth to strengthen over 3 years on new drug launches

The domestic healthcare sector is expected to see stronger growth over the next three years supported by new drug launches while earnings from the US generics business are likely to remain flat for most companies according to a report by Systematix ResearchThe report stated that growth in Indias domestic medicines market is expected to strengthen on the back of GLP1 drug launches with growth projected in the high singledigit range over the next three yearsThis is expected to support the overall expansion of Indian pharmaceutical companies especially those with a strong presence in the domestic marketIt stated Over the next 3 years we expect India branded formulation growth to strengthen on back of GLP1 launches high single digitHowever the outlook for the US generics segment remains cautious The report noted that earnings contribution from the US generics space will at best remain flat for most companies reflecting continued competitive pressures in the marketAt the same time biosimilar drug launches are expected to create additional growth opportunities for Indian companies in the US However the report highlighted that whether these opportunities translate into meaningful profitability remains uncertain due to competitive challengesThe report stated that companies with larger exposure to branded and innovative drug portfolios are better positioned for future growth It added that companies making targeted investments in biosimilars with less crowded pipelines and maintaining strong balance sheets are likely to remain more resilientThe report further noted that the Indian healthcare sector delivered betterthanexpected performance in the third quarter of the financial year 202526 though the overall trend remained in line with expectationsDuring the quarter US sales positively surprised as the pace of erosion in highvalue products was lower than anticipated Domestic growth in India was also slightly better compared to the previous quarters indicating steady demand in the local marketIn addition emerging markets growth was supported by strong currencyled tailwinds which helped improve overall performance during the quarterHowever prices of active pharmaceutical ingredients API which are key raw materials used in drug manufacturing continued to remain under pressureOverall the report highlighted that while challenges remain in the US generics segment new drug launches steady domestic growth and emerging opportunities in biosimilars are expected to support the longterm outlook of Indias healthcare sectorThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever