Published on October 13, 2014

In the second quarter of this fiscal year, most of the traders expect the pharmaceutical industries to post vigorous top-line growth and recover profitability, which is driven by a sturdy growth in the country. Moreover, steady growth in India was noted due to rise in prices for certain products and for the July to September, 2014 period, the traders expect robust growth of 22% in EBITDA and 18% in revenues and their coverage universe that is driven by ramp-up in the US.

According to the industry experts, since past few quarters the gross margin has been mounting and at the same time the US is gaining scale with more industrious launches. In addition to it, the business of India is bouncing back and favorable currency. Moreover on robust top-line growth and improving profitability the earnings momentum of pharma companies is likely to prolong. As per the researched reports, firm margins will impart belief to the thesis that in the US, Indian pharma has moved up the value chain.

Furthermore, reports of strong earnings are expected by the major pharma industries such as Ranbaxy, Sun Pharma and Torrent as in the month of June, 2014 subsidiary of the top drug maker of India Sun Pharmaceutical Industries – Taro has raised the prices of warfarin, clotrimazole, carbamazepine and clobetasol, which is ought to drive the second quarter earnings. However in the month of July, 2014 another major drug maker of India Ranbaxy will also profit from the Diovan FTF launch, whereas earnings of Torrent will drag with the Cymbalta exclusivity ending.