Summary

The Indian pharmaceuticals sector has been astir ever since the Covid-19 pandemic took root. In fiscal 2021, steady export demand proved to be a palliative, even as domestic revenue succumbed.

This fiscal, the growth drivers have reversed. Domestic demand has recovered strongly with Covid-19 infections subsiding. However, the export markets, specifically the US, have had to contend with price erosion and delays in new product launches. This has moderated the sector's growth prospects.

That said, Covid-19 vaccine manufacturing has also opened up huge opportunities for players in the domestic as well as export markets. Besides, the Indian government's focus on reducing import dependency through setting up of bulk drug parks and the Production-Linked Incentive (PLI) scheme for key active pharmaceutical ingredients and formulations augur well for revenue streams of pharma players over the medium term.

Even as the sector is set to clock slightly lower overall revenue growth this fiscal, profitability of players too is being impacted by rising input and logistic costs, resumption of travel related costs, and continuing price erosion in select regulated markets.

So will these factors impact credit profiles of pharma companies?

To get a better gauge of the sector's prospects, please join us for a webinar on November 16, 2021, at 3:00 pm. At the event, CRISIL's experts will present:

• Demand drivers and outlook for pharmaceuticals across markets
• Emerging growth opportunities in vaccines and bulk drug parks, including the PLI scheme
• Profitability trends of pharmaceutical players rated by CRISIL Ratings
• Outlook on credit quality of the rated pharmaceutical players
  

The presentation will be followed by a panel discussion with sector experts and a Q&A session.

Eminent panellists: