Pharmaceuticals Industry Growth Concerns Amid Price Hikes and Volume Fluctuations

Tuesday, 10 September 2024, 23:35

Pharmaceuticals industry growth worries are evident as price hikes affect domestic business, with underwhelming expectations for pharma companies. Despite a minor uptick in volume growth, key segments like cardiac and anti-infectives show promise for FY25, according to Elara Capital's report. As the market adjusts, companies heavily reliant on domestic business face potential risks that need addressing.
Financialexpress
Pharmaceuticals Industry Growth Concerns Amid Price Hikes and Volume Fluctuations

Pharmaceuticals Industry Growth Index

Recent analysis reveals that the pharmaceuticals industry is experiencing significant challenges as companies grapple with price hikes and varying volume growth. According to a report by Elara Capital, the volume growth remains underwhelming as it decreased by 0.2% year-over-year (YoY). However, price increases have contributed to a modest increase in overall industry growth, now anticipated to be between 11-14% in organic growth.

Segment Performance

  • Cardiac Segment: 9.7% growth YoY
  • Gastro-Intestinal: 8.7% growth YoY
  • Anti-Infectives: 8.1% growth YoY
  • Anti-Diabetic: 7.8% growth YoY

Despite positive growth in key segments, performance in oncology and gynecology has lagged behind expectations, highlighting mixed results across therapeutic areas.

Volume Trends

  1. Overall volume saw a decline of 0.2% YoY
  2. Gastro-Intestinal segment performed well at 9.3% growth
  3. Oncology experienced robust volume growth at 22.5% YoY, offering a silver lining for the industry.

As pharma companies adjust to these market dynamics, the focus must shift to sustainable growth strategies, particularly for those dependent on domestic operations.


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.


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