India's Healthcare Sector Envisions Robust Growth Amid Drug Innovations

Systematix Research anticipates stronger growth in India's healthcare sector, driven by new drug launches, amid flat earnings in the US generics segment. The domestic market benefits from GLP-1 drugs, with biosimilars providing opportunities despite pressure on active pharmaceuticals. Companies with a branded focus and strategic investments are well-positioned.

India's healthcare sector is poised for robust growth over the next three years, fueled by new drug innovations, despite a stagnant outlook for the US generics market. According to a report by Systematix Research, the domestic market's expansion is anticipated to be supported by GLP-1 drug launches, projecting high single-digit growth.

The report highlights that Indian pharmaceutical companies with a solid domestic footing stand to gain significantly. However, the US generics sector presents a cautious outlook, with most companies expecting flat earnings due to persistent competitive challenges. Still, biosimilar drug launches offer a potential avenue for growth in the US.

Firms with significant investment in branded and innovative drugs are positioned for success. Furthermore, companies investing strategically in biosimilars with less crowded pipelines and maintaining strong financial health are likely to demonstrate resilience. Notably, the Indian healthcare sector saw better-than-expected performance in the third quarter of FY 2025-26, with positive surprises in US sales and steady domestic growth.