Pharma revenue poised for 17 per cent jump in June quarter

“Overall revenue for the pharma sector is likely to grow 17 per cent YoY (year-on-year) and PAT 50 per cent YoY,” Edelweiss Securities said in its report. “Domestic sales are likely to spike 26 per cent on the back of a low base due to GST-related disruption,” it added. 

The US sales in constant currency is expected to grow 6 per cent in annual terms, but fall 2 per cent in quarterly terms, on lack of any meaningful launch during the June quarter, according to the report. 

Currency tailwinds, namely the rupee’s 4 per cent depreciation against the US dollar and 11 and 5 per cent fall against the euro and yen, respectively, are likely to drive EBITDA margin expansion of 350 bps in annual terms and 100 bps in quarterly terms in the June quarter, it said. Edelweiss Securities said that the optimism is on favourable regulatory environment. 

The US Food and Drug Administration (USFDA) approval rate rebounded to 198 nods after a temporary hiatus in the March quarter, with 109 approvals due to extra documentation requirements for elemental impurities, it revealed. 

Following the recent USFDA clearance of Sun Pharma’s Halol plant, the report said piled-up filings are expected to keep the approval rate buoyant for domestic pharma firms. The domestic pharma sector accounts for 3.13.6 pc of the global pie in value terms and 10 pc in volume terms.