Monday, August 20, 2012

Two Growth Bottlenecks for Indian Pharma Companies

1) The Pharma product basket is limited to molecules approved prior to 2005 and we are seeing increased competition chasing the same product basket.  Even Multinational pharma innovator companies have also set up their generic divisions and are launching branded generic version, adding to the competition. Cipla and Sun Pharma have pretty large exposure to Indian pharma.

2) Growth in US generic business will slow down for the next couple of years, as value of brands losing exclusivity will decline over the next few year.  Among the Indian Pharma companies, Sun Pharma is the one which has most exposure to the US markets for sales and profits.

Value of Brand Sales Losing Exclusivity is declining

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