Pharma Q3 preview: Street expects 4-6% revenue growth
Q3FY22 is expected to be a largely normalised quarter for pharmaceutical companies as COVID-19 cases have started to subside. Street is expecting around 4 to 6 percent revenue growth.
Q3FY22 is expected to be a largely normalised quarter for pharmaceutical companies as COVID cases start to subside. Street is expecting around 4 to 6 percent revenue growth. So, overall a modest quarter.
Domestic formulations are expected to see high single-digit to double-digit growth led by a recovery in the acute segment, which is the cough and cold segment etc.
US markets are likely to be subdued led by a lack of high-value launches as well as price pressure in the past couple of quarters.
Factors to watch out for will be margin, because of the impact of US price pressure as well as higher input costs.
Commentary for pharmaceutical companies continues to be key - for example, COVID-19 drug and vaccine opportunities for the likes of Cadila's ZyCoV-D, DRL's Sputnik, Biocon’s tie-up with Serum, Divis Labs, and Molnupiravir.
US FDA inspections or any progress in terms of outstanding issues for companies will be watched, for example, Lupin, Biocon, Cipla, Cadila, Sun Pharma, and Aurobindo Pharma.
New approval launches in the US will also be watched in terms of commentary.
Coming to stock-specific developments, US speciality business will aid Sun Pharma’s overall business. Dr Reddy's US growth momentum will also be watched; Cipla gains in key drugs such as inhaler Albuterol in the US will be key, Lupin’s Spiriva generic launch in the US, which is also an inhaler as well as their diagnostic business ramp-up and Aurobindo's injectable business de-merger, commentary on these will be top of mind.
(Edited by : Dipikka Ghosh)
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