(MENAFN- KNN India) New Delhi, Nov 25 (KNN) Major pharmaceutical companies in India reported a robust 10 per cent year-on-year (YoY) growth in the second quarter of FY25, driven by strong performances in North America and the domestic market, according to a report by Axis Securities.

This growth is largely attributed to the continued expansion of chronic therapies, which grew by 9 per cent, while the Indian Pharmaceutical Market (IPM) experienced an overall 8 per cent YoY increase.

The report highlights that the pharmaceutical sector under Axis Securities' coverage recorded a 10.2 per cent YoY growth and a 1.7 per cent quarter-on-quarter (QoQ) increase.

North America, a key export market, saw a solid 10.8 per cent YoY growth, while the domestic market grew by 9.8 per cent.

Despite challenges in acute therapies, which experienced only a modest 4 per cent growth due to weaker seasonal demand, the overall pharmaceutical outlook remains positive.

Axis Securities anticipates significant future potential, particularly in emerging segments such as biosimilars, GLP-1, and peptides, all of which are focused on treating conditions like diabetes.

These therapies are expected to bolster growth in the coming years, with companies focusing heavily on chronic treatment portfolios expected to outperform the broader market.

In the healthcare sector, Q2 FY25 also showed impressive growth, with top-line revenue increasing by 17.6 per cent YoY and 10.4 per cent QoQ.

Hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ, were a key driver of this performance.

The hospital segment saw insurance payers contribute 33 per cent of total revenue, marking a significant 23 per cent YoY and 12 per cent QoQ growth.

However, the report notes that insurance penetration remains low in India, offering opportunities for expansion as awareness and purchasing power increase.

High-growth therapies, such as cancer and cardiac care, continued to drive double-digit growth in the hospital sector.

With rising occupancy rates and improved revenue per bed, the outlook for sustained growth in both the pharmaceutical and healthcare sectors remains optimistic.

(KNN Bureau)

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