A strong performance in the July-September quarter of 2025-26 (FY26) and expectations of growth from launches and acquisition-led synergies led to a 6.65 per cent jump in the share price of Torrent Pharmaceuticals.
Buoyant domestic sales are expected to lift revenues for pharma companies by 8-11 per cent in Q3FY26, even as declining generic Revlimid (cancer drug) sales in the US remain a key drag. Most brokerages forecast a modest 2-4 per cent growth in profit after tax (PAT) for the quarter. Hospitals and diagnostics companies, meanwhile, are likely to post much stronger numbers, with revenues seen growing 20-22 per cent year-on-year (Y-o-Y).
India is home to more than 100 million diabetics, and the demand for anti-diabetic drugs is on the rise -- the Rs 20,611 crore anti-diabetic drug market in India is growing at 9 per cent or so.
Indian pharmaceutical companies are stepping up their efforts to combat the problem of counterfeit drugs, employing a variety of strategies, from packaging innovations to engaging private investigation agencies. The stakes are high, as counterfeit medicines not only harm consumers but also tarnish the reputation of leading brands.
Ahmedabad-based Torrent Group has completed the acquisition of a majority 67 percent stake in Indian Premier League (IPL) franchise Gujarat Titans.
Among the commonly used analgesic formulations (painkillers) found NSQ are combinations of paracetamol with ibuprofen, diclofenac and mefenamic acid. Medications using these combinations are commonly used to treat fever, mild migraine, period and muscle pain.
Analysts are expecting pharmaceutical companies to post sales growth of 10-11 per cent in the second quarter this financial year while the Ebitda (earnings before interest, tax, depreciation, and amortisation) margins are anticipated to improve by about 110 basis points. Ebitda improvement will be led by lower input costs because prices of active pharmaceutical ingredients (APIs) are 5-15 per cent lower year-on-year (Y-o-Y). Axis Capital said sales growth would be around 10 per cent, of which growth in the India market would be 11 per cent or so.
The tailwind of low price erosion in the US generics market, seen by domestic pharmaceutical companies in calendar year 2023 (CY23), may be reversing slowly, caution analysts. According to the latest data from US-based Centers for Medicare and Medicaid Services (CMMS), price erosion in calendar year 2024 (CY24) on a year-to-date (YTD) basis stood at a high of 15 per cent in the oral solid dosage (OSD) segment compared to a low of 1 per cent in CY23. This erosion, according to a report by Antique Stock Broking, was the highest in the last three years.
Rising penetration of trade generic medicines is eating into the value growth of the domestic pharmaceutical market, showed a recent analysis. According to a Kotak Institutional Equities analysis, 70-110 basis points (bps) annual dent is expected from trade generics and Jan Aushadhi on Indian Pharma Market (IPM) growth at least until FY27-28 (see chart). Trade generic medicines are those that are not pushed into the market through doctor promotions.
Torrent Pharmaceuticals Ltd has posted a net profit of Rs 142.60 million for the quarter ended December 31, 2002 as compared to net loss of Rs 276.60 million in the quarter ended December 31, 2001.
The BSE Healthcare Index is up 19 per cent as compared to BSE Sensex returns of 11 per cent during this period. Nitin Agarwal of DAM Capital highlighted this trend in a report last month. "After a sustained period of underperformance over FY21-23, the BSE Healthcare Index has once again captured the spotlight. "The recent uptick in performance has been driven by hospitals and emerging green shoots in pharmaceutical exports, particularly to the US, along with sustaining momentum in domestic branded formulations," he said.
According to Outlook, Adani Group and the RP-Sanjeev Goenka Groups are no more the favourites to bag the new teams.
Manchester United owners showing interest to be a part of the Indian Premier League could be one of the reasons why BCCI extended the date for purchasing the Invitation to Tender (ITT) for the two new IPL teams.
The BCCI on Wednesday extended the deadline for purchasing the tender document for the new Indian Premier League teams by another 10 days till October 20.
Hospitals to recover from sluggish Q3; diagnostics' growth rate at pre-Covid levels.
Kolkata-based business tycoon Sanjiv Goenka's RP-SG Group claimed the Lucknow franchise for a whopping Rs 7090 crore, while international equity investment firm CVC Capital won the bid for Ahmedabad with a Rs 5600 crore offer.
This move could cost $299 million a year for Indian pharma players.
Even smaller companies like Torrent Pharma and Alembic file five to 10 ANDAs every year.
In another development, leading Japanese drug maker Takeda Pharmaceutical sued Ahmedabad-based Torrent Pharma in the US for infringing seven patents covering its flagship diabetes drug, Actos. Oracea (doxycycline) is the only US Food and Drug Administration approved oral drug to treat rosacea -- a skin disorder in the face with inflammation, skin redness and spider veins.
Torrent to buy Ranbaxy's anti-bacterial generic
Torrent Pharma, the pharmaceuticals major, has entered into a pact with Dr Reddy's Laboratories for exclusive commercialisation of two of its brands in Russia.
Ahmedabad-based pharma company Torrent Pharmaceuticals is to acquire a Pfizer Group company, Heumann Pharma in Germany engaged in marketing of generic medicines.
Companies asked to give data for three batches instead of one; move may lead to significant rise in development cost of generics
Ajit Mishra, vice president, research, Religare Broking, answers your stockmarket queries.
Asian shares have begun the week on a plaintive note.
Days before US President Barack Obama's high-powered visit here, the US-India CEO Forum has been reconstituted with Cyrus Mistry replacing Ratan Tata as its co-chairman
An insider said that over the past decade or so Cipla has become immune to the exits of leaders. There have been no directional change in the long-term strategies.
Trade and economic issues, including visa, totalisation pact and impediments hampering investments, are likely to figure at Monday's US-India CEO Forum meeting, which will be jointly addressed by visiting US President Barack Obama and Prime Minister Narendra Modi.
India's cash-rich promoters are not the same as the wealthiest. For example, Mukesh Ambani is the richest Indian based on his stake in Reliance Industries, followed by Premji, the Adani family of the Adani group, and Radhakishan Damani of Avenue Supermarts.
Indian pharma firms under European drug regulator's scanner.
Consumer businesses come to the rescue of large conglomerates in the midst of a meltdown in commodities.
Analysts are divided on the deal valuations. Some say Torrent could have bargained harder, as Sanofi, among others, passed it over.
'We have seen a host of businesses across sectors generate economic value and wealth for investors.'
Issues related with intellectual property rights, including piracy of films and software, figured prominently during the India-US CEO Forum in New Delhi attended by Prime Minister Narendra Modi and US President Barack Obama.
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