Pharma Q3 Preview — Nirmal Bang Projects U.S. Pricing Pressure To Ease; Lists Stocks To Buy, Sell, Hold

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Nirmal Bang Report

Our pharma coverage universe’s revenue is expected to grow by ~11% YoY in Q3 FY25, driven by a pick-up in US sales, gRevlimid & gSpiriva and favourable currency movements. Domestic market’s weak volume growth was partially covered by price hikes in Chronic therapies. We expect the Chronic therapies to grow by >12% YoY.

Margins are expected to improve YoY on the back of a better product mix, price hike benefits in branded markets and normalizing cost inflation. Also, normalising US pricing pressure will support margins.

Growth in Domestic Formulations business is expected to moderate to ~10% YoY (Ex-Mankind) despite support from new launches and price hikes.

The US business is expected to grow by ~8% YoY in CC terms mainly on the back of gRevlimid and gSpiriva and new launches, but it is expected to remain almost flat QoQ. Also, softer raw material prices are supporting US growth.

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