The leading 50 pharma companies from the state registered EBDITA margins
of 23.9 per cent during 2012-13 as against 22.1 per cent and net profit
margins of 13.9 per cent as compared to 10.9 per cent in the previous
year. These companies rewarded their investors with handsome dividends.
While on one hand the loss of patent and depreciation of rupee against US dollar may boost revenues in the current year, on the other hand, expanded scope of drug price control may have an adverse impact on both revenue and profitability. The global pharmaceutical environment remained volatile and challenging due to lower R&D successes, competition among generic players and gradual decline in realisations. Stringent approval process, quality problems and legal fights also led to increased complexity in the pharma business world.
Despite the above business environment, the state-based listed 50 pharma companies registered healthy performance during 2012-13. The aggregate net sales of Pharmabiz sample of 50 pharma companies improved by 17.9 per cent to Rs 60,775 crore during the year ended March 2013 from Rs 51,549 crore in the previous year. As compared with the sales of leading 100 Pharmabiz pharma companies, the state-based 50 companies contributed 42.6 per cent during 2012-13. Among the 50 companies, 12 companies registered net sales of over Rs 1,000 crore during 2012-13. Further, eight multinational companies have established strong presence in Maharashtra.
The MNCs have rewarded their shareholders with higher equity dividends during 2012-13. GSK enhanced its equity dividend to 500 per cent from 450 per cent and Pfizer declared higher dividend of 325 per cent as compared to Rs 125 per cent. Abbott, Sanofi and Novartis maintained equity dividend at 170 per cent, 330 per cent and 200 per cent respectively.
With better performance and investments in R&D, the share price of several companies are moving to near to their highest levels and offering better returns to shareholders. However, the burden of FCCBs, stringent regulatory norms, drug price control, competition, etc., may put pressure on working in the current year. Further, limited success in R&D activities may also impact growth plans.
While on one hand the loss of patent and depreciation of rupee against US dollar may boost revenues in the current year, on the other hand, expanded scope of drug price control may have an adverse impact on both revenue and profitability. The global pharmaceutical environment remained volatile and challenging due to lower R&D successes, competition among generic players and gradual decline in realisations. Stringent approval process, quality problems and legal fights also led to increased complexity in the pharma business world.
Despite the above business environment, the state-based listed 50 pharma companies registered healthy performance during 2012-13. The aggregate net sales of Pharmabiz sample of 50 pharma companies improved by 17.9 per cent to Rs 60,775 crore during the year ended March 2013 from Rs 51,549 crore in the previous year. As compared with the sales of leading 100 Pharmabiz pharma companies, the state-based 50 companies contributed 42.6 per cent during 2012-13. Among the 50 companies, 12 companies registered net sales of over Rs 1,000 crore during 2012-13. Further, eight multinational companies have established strong presence in Maharashtra.
The MNCs have rewarded their shareholders with higher equity dividends during 2012-13. GSK enhanced its equity dividend to 500 per cent from 450 per cent and Pfizer declared higher dividend of 325 per cent as compared to Rs 125 per cent. Abbott, Sanofi and Novartis maintained equity dividend at 170 per cent, 330 per cent and 200 per cent respectively.
With better performance and investments in R&D, the share price of several companies are moving to near to their highest levels and offering better returns to shareholders. However, the burden of FCCBs, stringent regulatory norms, drug price control, competition, etc., may put pressure on working in the current year. Further, limited success in R&D activities may also impact growth plans.
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