India’s pharma industry to grow at 8-11% but inflationary pressures, regulation pose risks: Alkem

Mumbai, July 12 (KNN) India’s pharmaceutical industry is expected to growth at a rate of 8-11 per cent owing to normalcy in economic activities, said Alkem Laboratories.

However factors such as inflationary pressures and evolving regulatory rules will be key risks to watch out for.

Based on the annual report for 2021-22 of the leading pharmaceutical company headquartered in Mumbai the future of the domestic pharmaceutical market continues to hold immense potential.

“It is led by favourable demographics, growing disposable incomes, increased access to healthcare facilities, growing consciousness towards healthcare, and increasing penetration of medical insurance,” it said.

On the outlook for the domestic business, it said, "With easing out of COVID-19 restrictions, resumption of travel, normalisation of supply chain and manufacturing activities, reopening of schools and offices, and a resumption of deferred elective medical treatments, the Indian pharmaceutical industry is expected to rebound to a normalised growth rate of 8-11 per cent."

In view of the global market, the company said COVID-19 related quarantines and shutdowns led to deferment of elective medical procedures and patients remaining less engaged with healthcare, resulting in delayed diagnosis and treatment, especially for those conditions which were asymptomatic.

The pharma MNC has said evolving regulatory norms will be the key risks to watch out for along with inflationary pressures in terms of higher raw material and packaging material prices and increased freight rates. (KNN Bureau)