Pharma firms face tough Q1 as sales see sharp drop on Q4 channel stocking

Analysts estimate sequential decline of 18-26% during the quarter

It is unlikely to be a healthy quarter for pharma companies as their financials have been dented by the lockdown in the June quarter. Domestic sales in April and May indicates that the pharma market declined by 11 per cent and 9 per cent, respectively, before registering a marginal recovery in June. The impact on outpatient departments and deferral of elective surgeries translated into muted prescription flow and sales.

Companies such as Cadila Healthcare, Cipla and Alkem, which have higher domestic contributions in their portfolios, will face challenges.  Surya Patra at Phillip Capital expects domestic pharma revenues of companies to be