Pharma Q4 Results Preview - U.S. Pricing Pressure Eases; Margins Improve: Nirmal Bang

Nirmal Bang Report

Our pharma coverage universe’s revenue is expected to grow by ~12% YoY, driven by pick-up in U.S. sales, boosted by gRevlimid and gSpiriva and favourable currency movements.

Domestic growth is expected to be supported by the Acute segment and price hike in Chronic therapies. We expect the Chronic therapies to grow by more than 10%.

Margins are expected to improve YoY on the back of a better product mix, price hike benefits in branded markets and normalising cost inflation. Also, diminishing U.S. pricing pressure will support margins.

Growth in domestic formulations is expected to moderate to ~10% YoY (Excluding Mankind) even as new launches and price hikes provide support.

U.S. is expected to grow by ~10% YoY in constant currency terms mainly on the back of gRevlimid and gSpiriva and new launches, but it is expected to remain almost flat QoQ. Also, the softer raw material prices are supporting U.S. growth.

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