US pricing pressure cloud over Indian pharma growth, say analysts

Complex pipeline, execution, and regulatory compliance hold key

Price erosion and cost pressure in the US generics business continue to drag Q3 numbers for most domestic pharma firms. Analysts say that companies, which have a limited number of launches lined up in the US, or those with regulatory overhangs will continue to face headwinds.

According to Motilal Oswal analysis, price erosion continues to affect the US generics business. However, some firms like Sun Pharma and Cipla delivered mid-single digit growth year-on-year (YoY) as well as quarter-on-quarter (QoQ) in the US generics business. This was on the back of a robust pace of launches.

The analysts add that companies with a