Sumit Gupta's Insights on the Pharma Sector and Diagnostic Growth
Pharma Sector Trends and Insights
Sumit Gupta, from Centrum Broking, discusses the current state of the pharmaceutical and healthcare industries. He notes that while pricing pressure has stabilized at around 6% to 7%, there are significant long-term opportunities, particularly related to the US Biosecure Act impacting Indian companies.
Long-Term Views on the Pharma Sector
Gupta believes that any shifts in the supply chain will take time, suggesting a cautious but optimistic outlook for capital expenditures in healthcare. He highlights Sun Pharma as a strong player thanks to its diverse portfolio.
Diagnostic Sector Predictions
When evaluating the diagnostic sector, Gupta sees potential growth driven by established companies like Dr. Lal, who are benefiting from increased volume and profitability, despite initial challenges post-COVID. He anticipates sustained growth with a focus on routine and specialized tests.
Pricing Pressures in Diagnostics
- Pricing has stabilized: The average increase in diagnostic pricing is between 3% and 6%.
- Established players adapting: Dr. Lal and Metropolis are expected to lead profitability and market share through improved volume growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.