India’s Pharma Sector grew 10% year-on-year (YoY) in Q2 FY25, driven by strong performance in North America and the domestic market, according to a report by Axis Securities. The Indian Pharmaceutical Market (IPM) recorded an 8% YoY increase, with chronic therapies rising 9%. Acute therapies showed modest 4% growth due to a weak season.
The report highlighted that the pharmaceutical companies under its coverage posted a 10.2% YoY and 1.7% quarter-on-quarter (QoQ) growth. Growth was fueled by a 10.8% rise in North America sales and a 9.8% increase in the India business.
Pharma Companies focused on Chronic Therapies Shines
Companies with a focus on chronic therapies outperformed the overall market. The report noted a strong pipeline in biosimilars, GLP-1, and peptides over the next three years. These therapies target conditions such as diabetes and are expected to drive future growth.
The healthcare sector also saw robust performance, with revenue rising 17.6% YoY and 10.4% QoQ in Q2 FY25. Improved hospital occupancy rates, which increased by 340 basis points YoY and 470 basis points QoQ, played a key role.
Healthcare Growth and Insurance Potential
In the hospital segment, insurance payers contributed 33% to total revenues, marking 23% YoY and 12% QoQ growth. However, low insurance penetration offers significant room for expansion as awareness and purchasing power increase.
High-growth therapies, including cancer and cardiac care, continued to boost hospital sector revenues. Rising occupancy rates and Average Revenue Per Occupied Bed (ARPOB) are expected to support long-term growth in the healthcare industry.
The promising growth in pharmaceuticals and healthcare underscores the sector’s resilience and potential for sustained expansion.
Also Read: India’s Domestic Air Traffic Rises 5.3% To 1.36 Crore In October
To read more such news, download Bharat Express news apps
