Ahmedabad: Even though overall pharmaceutical exports showed robust growth in 2020-21, revenues of major Gujarat pharmaceutical companies in the US market declined in the fourth quarter ended March 31. Sales in the US market were largely affected due to price erosion of old products due to increased competition. The decline in sales in the United States was, however, offset by the growth in sales in the domestic market, industry players said.
Sales of Torrent Pharmaceuticals Ltd in the United States fell 30% to Rs 269 crore in the January to March quarter in the same period last year, while revenues of Alembic Pharmaceuticals Limited, including headquartered in Vadodara, fell 18% to Rs 475 crore. Revenue from Cadila Healthcare’s formulation business decreased 6% to Rs 1,509 crore in the fourth quarter compared to the previous third quarter of 2020-2021.
Sun Pharmaceutical Industries Limited sales fell 1.3% in the fourth quarter. Other pharmaceutical companies like Lupine and Dr Reddy’s Laboratories have also reported declining revenues from the North American market.
Torrent attributed the drop in revenue to the lack of new product approvals pending re-inspection of its manufacturing facilities by the USFDA. In addition, the core business was also affected due to strong single-digit price erosion and the shutdown of the Sartan drug group.
“We continue to file double-digit ANDAs (abbreviated new drug applications), which will help have double-digit launches once we see the USFDA clean up our facilities,” the company said.
Cadila Healthcare sales in the United States were down on a QoQ basis due to the low flu season, the homebound population, and price erosion of older products, according to an analyst.
“The American market is still going through cycles. There are cycles where we see hyper competition and price erosion. You will see these ups and downs in the US market. Six months or a year is too short to say. Rather, a 2-3 year period should be considered, ”said Dr Sharvil Patel, Managing Director of Cadila Healthcare Limited, the flagship company of the Zydus Cadila group.
Pharmaceutical players further said that dispensing in the United States has also slowed due to Covid-19, which has also affected drug retailing.
However, the growth in domestic sales of these pharmaceutical companies helped them offset the decline in revenues in the US market. National sales of Torrent Pharma grew 10%, while those of Cadila Healthcare jumped 18%. Alembic Pharma sales in India increased 5%, according to the companies’ fourth quarter financial results.