If you are looking to invest in listed pharma companies, it may be time to pay greater attention to companies with a strong presence in the domestic markets. With just a third of the Indian population currently having access to drugs, there is significant untapped potential in the domestic market.

Geographical expansion through penetration into the markets beyond metros and tier-I cities presents a big growth opportunity for Indian pharma companies.

Thanks to lifestyle changes, the prevalence of chronic diseases such as diabetes, hypertension and other cardiac disorders has increased considerably in the last few years.

India is all set to become the world’s diabetes capital, being the home to the highest number of diabetic patients.

Rising disease awareness has led to a significant surge in the number of patients being diagnosed.

A large number of these patients come into the treatment ambit every year, aiding the industry’s volume growth.

Foray into newer therapy areas, in addition to strengthening presence in existing therapies through new product launches, has also been critical to sustaining growth momentum.

The growth potential for companies present in the chronic ailment space (anti-diabetes, cardio-vascular and neuro-psychiatry) such as Sun Pharma, Lupin and Torrent Pharma remains healthy.

Also, companies such as Zydus Cadila which have tied up with innovators for in-licensing patented molecules may continue to outgrow the market.

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