Pharma Q3 Earnings Preview – Normalised Quarter With Impending Margin Pressure: ICICI Direct

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

For Q3 FY22, the earnings narrative for pharma companies is likely to pan out on similar lines as seen in Q2 FY22 but with some more cost pressure due to volatility in input prices and persisting logistical challenges.

Our healthcare universe (12 coverage companies) is expected to post YoY growth of ~5.8% to ~Rs 44,583 crore. Domestic formulations (select pack) are expected to grow ~10.6% YoY to Rs 11,621 crore on the back of almost complete normalisation of medical representatives activities even as Covid-19 related revenues are likely to shrink significantly in Q3 FY22.

Continuous traction from the acute segment (momentum began from Q1) besides normalised trend in chronic segment are expected to continue in Q3 FY22.

The weakness in the U.S. generics space is expected to persist due to price erosion in base business offsetting any market share gain in new launches.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

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

Exit mobile version