EUR 120.00 For Business Accounts Only

MOSL: HEALTHCARE: CRAMS/API – Consistency breeding stability

HEALTHCARE: CRAMS/API – Consistency breeding stability

 

• Indian Pharma companies are looking at a sustainable growth opportunity in the coming decade as the lack of differentiation in Generics has chipped away at margins due to increased competition.
• While companies with a large US Generics exposure are looking at niche opportunities like Complex Generics/Specialty drugs, Contract Research and Manufacturing Services (CRAMS) for API/Formulation has emerged as a successful opportunity for companies with a sound technical, manufacturing, and regulatory expertise.
• The branded Domestic Formulation space remains a high return ratio segment, with a moderation in growth, excluding COVID-19, due to the reduced burden of Acute diseases.
• We believe DIVI, GLAND, SUNP, and LAURUS are suitably positioned in this framework for a superior business trajectory. DIVI/GLAND is expected to continue to outperform among Contract Development and Manufacturing Organization (CDMO) players. We expect SUNP to turn the tide in US sales with its Specialty business, albeit with a longer gestation period. We expect LAURUS to outperform the industry in APIs and Formulations in the near term, with Biologics/Fermentation CDMOs acting as a key trigger over the next 3-5 years.