Pharma growth slows down to 7.9%

Growth in the Indian pharma market slowed to 7.9% during Q1, 2019-20, the slowest in the past seven quarters and one of the lowest in past five years,according to Jefferies India Pvt. Ltd, which cited data from AIOCD Pharmasofttech AWACS Pvt. Ltd. Delay in the arrival of the monsoon and low rates of infections took a toll on the demand for acute therapy products. Low inventory stocking following the implementation of the goods and services tax (GST) also contributed to this trend, which intensified in May’19 when the market slowed down to a growth of 7% from an average of 10% in the earlier five months. In June’19, the market grew at a meager pace of 6.6%. While these factors may be transient, if the slowdown is prolonged, it could enhance cost pressures on pharmaceutical firms in the Indian market.