Pharma Q4 Preview — Decent Quarter Expected For Most Coverage Companies: Nirmal Bang

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Nirmal Bang Report

Our pharma coverage universe's revenue is expected to grow by ~12% YoY, driven by strong growth in both U.S. as well as India markets, supported by key launches (mainly Revlimid), favorable currency movement, continuous strong growth in the chronic segment and price hike benefits.

Margins are also expected to improve YoY on the back of a better product mix, price hike benefits in the branded markets and normalising cost inflation. But, pricing pressure in the U.S. market continues to weigh on overall margins.

Revenue from the domestic formulations segment is expected to grow by 10% YoY, mainly driven by price hikes followed by new launches and volume gains. U.S. sales are expected to decline QoQ due to waning gTamiflu opportunity. Also, persistent pricing pressure and heightened competition continue to weigh on U.S. market performance.

Average Indian rupee depreciated against U.S. dollar by 9.4% YoY, but was flat QoQ. Indian rupee also depreciated against the euro, rubble and Brazilian real by around 4.6%/28%/10% YoY.

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