Pharma Q4 – Higher Profitability With Easing Price Erosion, New Launches, Lower Cost Prices: Axis Securities

Axis Securities Report

In Q4 FY24, the pharma coverage universe posted robust revenue growth of 11.5%/2.0% YoY/QoQ due to volume gains, stable demand, new launches (especially gRevlimid, gSpiriva, gPrezista), and stabilizing pricing pressure in the US base business. Ebitda margin improved by a healthy 250 bps/120 bps YoY/QoQ amidst normalising cost inflation and stabilising prices.

U.S. price erosion remained benign (low to mid-single digit for most players), with benefits from drug shortages and supply issues. There is more focus on complex molecules, with Indian companies moving up the value chain.

India growth is better than expected, with field force expansion driving volume growth. Softening input costs and lower freight expenses have resulted in improved margins. Hospitals saw seasonally lower occupancies but a continuous increase in average revenue per occupied bed YoY.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.