Indian Pharma Sector Gets A Thumbs-Up From Moody’s
 Indian Pharma Sector Gets A Thumbs-Up From Moody’sIndian pharmaceutical research (INDRANIL MUKHERJEE/AFP/Getty Images)

The $37 billion (Rs 2.15 lakh crore) Indian pharmaceutical sector is more robust than many of its global peers, American rating agency Moody's said on Friday (25 November).

"The Indian pharmaceutical companies, despite their smaller size, exhibit strong business profiles when compared to some of their global peers, underpinned by their good product and geographic diversity," Moody's Investor Service said in a statement from Singapore.

"When compared with their global counterparts, the Indian pharmaceutical companies have stronger financial profiles with low leverage and high coverage metrics," Moody's Vice President Kaustubh Chaubal said in the statement.

Moody’s associate analyst Diana Beketova said:

Increasing competition, challenges in preserving their historical superior profitability and consolidation among large global generic companies will drive M&A (merger and acquisitions) activity for the Indian pharmaceutical sector.

The Moody's report, titled ‘Indian Pharmaceutical Companies - A Deep Dive’, has been co-authored by Chaubal and Beketova.

According to it, the Indian generics market is the second-largest in the world, behind only the United States in terms of volume, although it forms only 1 per cent of the global pharmaceutical market by value. Though the Indian companies' R&D investments are low in absolute terms, they are large relative to their size - at 5 per cent to 8 per cent, Moody's said.

"These investments are likely to ramp up as companies start targeting complex generics, biosimilars and niche specialty drugs," it added.

The rating agency noted that over the last several years, the Indian pharmaceutical companies have grown their global presence and now operate in diverse regulated and unregulated markets.

With inputs from IANS

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber