New Delhi [India], November 25 : Major pharmaceutical companies of the country reported a 10 per cent year-on-year (YoY) growth in the second quarter of FY25, largely driven by strong performance in North America and the domestic market, according to a report by Axis Securities.
The report also highlighted that Indian Pharmaceutical Market (IPM) grew by 8 per cent YoY, with chronic therapies showing a 9 per cent increase. However, acute therapies experienced modest growth of 4 per cent due to a weak season for these segments.
It said "The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2 per cent YoY and 1.7 per cent QoQ, driven by robust growth in North America (10.8 per cent YoY) and the India business (9.8 per cent YoY)".
The report also outlined a positive outlook for the pharmaceutical sector over the next three years, with a healthy pipeline expected in biosimilars, GLP-1, and peptides. Biosimilars, GLP-1, and peptides are related to the treatment of diabetes and other conditions. Companies with a significant share of chronic portfolios continue to outperform the overall market.
It said "we anticipate a healthy pipeline in segments such as biosimilars, GLP-1, and peptides for pharmaceutical companies over the next three years."
The healthcare sector also showed impressive growth in Q2FY25, with top-line revenue increasing by 17.6 per cent YoY and 10.4 per cent quarter-on-quarter (QoQ). Improved hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ, were a key growth driver.
As per report, in the hospital segment, insurance payers contributed 33 per cent to total revenues, marking a 23 per cent YoY and 12 per cent QoQ growth.
Despite this growth, insurance penetration remains low, offering potential for expansion as awareness of health insurance increases and purchasing power improves.
High-growth therapies, including cancer and cardiac care, continued to drive double-digit growth in the hospital sector. These therapies, along with rising occupancy rates and Average Revenue Per Occupied Bed (ARPOB), are expected to support future growth in the healthcare industry.
This promising performance across pharmaceuticals and healthcare reflects the sector's resilience and potential for sustained growth.
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