The next decade won't just reward scale – it will reward speed, resilience, and reinvention

Akash Kedia, MD - Healthcare and Lifesciences, Alvarez & Marsal India and Amit Misra, MD - Healthcare and Lifesciences, Alvarez & Marsal India, delve into the pivotal trends shaping Indian pharma. They share insights on CDMO valuations, navigating regulatory headwinds, global trade realignments, sector’s pivot towards innovation, frontier market strategies, next levers of value creation and more, in an exclusive interview with Lakshmipriya Nair

- Lakshmipriya Nair

What are the biggest strategic challenges pharma companies in India are grappling with today? How is Alvarez & Marsal helping in tackling them?

India’s pharma sector is navigating a perfect storm: intensified USFDA scrutiny (over 40 inspections and multiple warning letters in FY24 alone), continued pricing pressure in US generics, and incomplete backward integration in APIs. Talent shortages in digital, compliance, and regulatory roles are adding to the challenge. Further, as the healthcare ecosystem converges, pharma companies need to focus on building capabilities in broader areas within the human health spectrum like diagnostics and medical technology. At Alvarez & Marsal, we are on the ground helping clients plot growth strategies in core and adjacent businesses, strengthen GTM, modernise operations and diversify globally, all while ensuring speed and execution. For instance, we assisted a large Indian player in integrating its speciality buy out in US and developed growth strategy for its portfolio. We are also assisting mid-sized pharma companies to grow through diversification into newer geographies and product areas.

Which sub-sectors within pharma are currently attracting the most investor interest and why?

Three clear pockets are seeing strong traction:

CDMOs like Aragen and Sai Life, for their tech-driven platforms and export-led growth.

Complex generics and injectables, where players like Gland Pharma offer more attractive margins.

Consumer health & wellness, where D2C brands like ZANDU and HealthKart are benefitting from secular demand.

What investors are chasing is platform quality, differentiated offerings, compliance robustness, and global scalability.

What macro or policy shifts could most influence pharma business strategy over the next three to five years?