When the epidemic subsides, Alkem Laboratories predicts that inflationary pressures and shifting regulatory standards will be the primary concerns to keep an eye on, and that normal business operations would allow the Indian pharmaceutical industry to resume its 8–11% growth pace.
The future of the domestic pharmaceutical market, according to Alkem’s annual report for 2021–2022, continues to hold enormous potential, driven by favourable demographics, rising spending power, enhanced access to healthcare services, rising awareness of healthcare, and rising penetration of medical insurance.
Regarding the outlook for domestic business, it was stated that the Indian pharmaceutical sector is predicted to bounce back to a standardised growth rate of 8–11% with the relaxation of COVID-19 restrictions, the resumption of travel, the regularisation of supply chain and manufacturing activities, the reopening of schools and offices, and the reinstatement of deferred elective medical treatments.
The company said that worldwide COVID-19-related closures and quarantines resulted in postponing elective medical procedures and individuals being less involved in their healthcare, delaying diagnosis and treatment, particularly for illnesses that were asymptomatic.
The main concerns to be aware of, according to Alkem, are inflationary pressures such as rising prices for packaging and raw materials; increasing freight rates; and changing regulatory standards.
Alkem, which continues to have a favourable outlook on the Indian pharmaceutical industry, claimed that its dominance in the acute section with market-leading mega brands, a sizable field force, and a prevalent supply chain and distribution system puts it on a firm footing in the domestic market.
The business is expanding at a quick clip to become a key participant in the chronic market. Biosimilars should keep contributing to its growth and cover portfolio gaps with their regular product introductions. Alkem stated that the adoption of new medicines and sub-therapies would be another significant growth driver in the future.
Regarding the viewpoint for the US market, which is the largest pharmaceutical market in the world, Alkem stated that despite difficulties with pricing, fierce competition, and stricter regulatory compliance requirements, it is optimistic about its growth prospects there, prompted by new product introductions and USFDA-compliant manufacturing facilities. With a balanced mix of Para IV and first-to-file (FTF) possibilities, it has a strong pipeline of over 160 abbreviated new medication applications submitted to the USFDA, which offers it significant visibility of growth over the medium term.
Alkem stated that it intends to eventually use its subsidiary Enzene Biosciences to introduce biosimilars to the US market. In order to expand its expertise and product range and gain market share in the US pharmaceutical industry, it would also proactively consider in-licensing options, collaborations, and partnerships.