Weak pharma growth in Q2 sparks concerns

Weakness in domestic growth is driven by slow growth in the acute segment

- Ujval Jauhari

Despite a robust performance by homegrown pharma companies in the June quarter, driven by improved growth in the US markets, analysts and investors are closely monitoring the sector’s growth prospects. Since 1 April, the Nifty Pharma index has risen nearly 30%.

Indian pharma market (IPM)’s growth was in mid-single digits in August. It grew 5.8% from a year earlier, as against 6.4% in July, according to analysts’ data.

One contributing factor to this moderation is the high base of August 2022, when IPM growth was at 10.1%. Besides, analysts said this slowdown is also due to sluggish sales in the acute segment.

According to Kotak Institutional Equities analysts, owing to a relatively slower acute season, the Indian pharma market growth remained subdued in mid-single digits for the third consecutive month.