Lupin To Dr. Reddy's: Indian Pharma Sees Growth In US Market Amid Easing Pricing Pressure

Indian pharmaceutical companies experienced robust growth in the fourth quarter of fiscal 2024, with increased sales. Additionally, there was a noticeable easing of pricing pressure on US generics, raising hopes for improvement in the market plagued by shortages.Several pharma companies had withdrawn from the US market due to its dwindling economic viability caused by falling drug prices. This concern was shared by the US government, the United States Food and Drug Administration, and the Federal Trade Commission, all alarmed by the shortages in the market.Despite most drug-makers witnessing revenue growth in the US market during the fourth quarter, the question arises: will the price erosion stabilise?Here's what pharma companies have to say:Lupin Ltd. reported a single-digit price erosion in its US generics portfolio during the fourth quarter, expressing optimism about the future. Vinita Gupta, the CEO of Lupin, stated during a post-earnings call that the company expects the ongoing drug shortage issue in the US to help maintain price erosion at a reasonable level in the next 12 months.Lupin's US sales saw a year-on-year increase of 22.6% to Rs 1,900 crore in the January-March quarter, contributing 39% to its revenue. The company aims to sustain its US business at the $200 million-plus level and achieve $1 billion in revenue from US generics by March 2026..Sun Pharmaceutical Industries Ltd. acknowledged the competitiveness of generic pricing pressure, emphasising that pricing varies according to products. The company is focusing on expanding its global specialty portfolio, which currently constitutes around 18% of its sales, primarily in the US market. Sun Pharma filed 11 abbreviated new drug applications during the quarter and anticipates high single-digit revenue growth in the current financial year.Dr. Reddy's Laboratories Ltd. faced competition and price erosion in some major products but compensated with growth in other segments. Its US sales surged by 28.8% year-on-year to Rs 3,260 crore in the quarter-ended March 31, contributing 46% to its overall sales. .Lupin Launches Generic Drug For Prevention Of Bacterial Infections In US.Pricing is a function that is product specific and generic pricing pressure continues to remain competitive, according to Sun Pharmaceutical Industries Ltd. US formulations contribute 31% to revenue of the company.The company is consciously ramping up its global specialty portfolio, which now accounts for ~18% of sales (spread across geographies, but mainly US).Sun Pharma filed 11 Abbreviated New Drug Applications and received two approvals during the quarter. It expects revenue to rise in high single digits during the current financial year..The company plans to launch over 20 products in the US generics segment in the current financial year.Alembic Pharmaceuticals Ltd. expressed optimism about US generics, reporting a 20% year-on-year increase in sales in the segment during the fourth quarter. US generics sales accounted for 28% of its overall sales, amounting to Rs 420 crore in the January-March period.The company expects to launch approximately 25 more products in the current fiscal year.Pranav Amin, the managing director of Alembic Pharma, acknowledged price erosion in the market but remained optimistic, highlighting the increased buying activity driving prices. He expressed confidence in the opportunities available for businesses that operate effectively..Sun Pharma's Dilip Shanghvi Aims To Raise R&D Spend To $1 Billion — NDTV Profit Exclusive

Lupin To Dr. Reddy's: Indian Pharma Sees Growth In US Market Amid Easing Pricing Pressure

Several pharma players had pulled out of the US market, which had virtually become economically unviable as drug prices fell.

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Lupin To Dr. Reddy's: Indian Pharma Sees Growth In US Market Amid Easing Pricing Pressure

Several pharma players had pulled out of the US market, which had virtually become economically unviable as drug prices fell.

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