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Yashika Narang

@yashika_narang
2 years ago ~830 views
๐–๐ก๐š๐ญ'๐ฌ ๐ ๐จ๐ข๐ง๐  ๐จ๐ง ๐ข๐ง ๐ญ๐ก๐ž ๐๐ก๐š๐ซ๐ฆ๐š๐œ๐ž๐ฎ๐ญ๐ข๐œ๐š๐ฅ ๐ฌ๐ž๐œ๐ญ๐จ๐ซ?๐Ÿ‘‡ A Thread๐Ÿงต

โ–ถ FY08-15 was the best time for Indian companies operating in US generics but after FY15, these companies have been struggling big time

โ–ถ This is very evident in the revenue growth of companies- Lower single-digit growth in the US business of the respective pharma companies

Check out 4 images below๐Ÿ‘‡
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Yashika Narang

@yashika_narang
2 years ago ~190 views
US generic revenue has subdued over a period of time, but why exactly?

โ–ถ Warning letters on Indian manufacturing units increased from 8 in CY14 to 22 in CY20

โ–ถ Not just revenue, EBITDA margin & ROCE's have also got impactedโ•

Check out 4 images below๐Ÿ‘‡

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Yashika Narang

@yashika_narang
2 years ago ~320 views
โ–ถ Whereas if we look at pure-play Indian generic companies, Return on capital employed has grown

โ–ถ Earning higher returns in US generic business is very difficult because of the regulations & longer working capital cycle.

โ–ถ Margins for US business might be low but R&D spending for US generic companies has been increasing constantly

Check out 4 images below๐Ÿ‘‡

3/n



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Yashika Narang

@yashika_narang
2 years ago ~50 views
What is the outlook for both the Indian & US market?

โ–ถIndian Pharmaceutical market is expected to grow at ~11% CAGR for next 5 years

โ–ถWhereas for US generic market, the outlook remains unpredictable & volatile

โ–ถAlthough, there is a good opportunity for companies as number of small drugs losing exclusivity over CY20-26 is high but whether the dynamics will support or not is something everyone is confused about

Check out 4 images below๐Ÿ‘‡





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