Among the key triggers for the company in the US market was the launch of generic versions of the contraceptive NuvaRing, Copaxone (multiple sclerosis), and Suboxone (opioid addiction). While it was expected that all of them will be launched at the start of 2018-19 (FY19), only the generics of Suboxone were launched in the March quarter of FY19.
In addition to these limited-competition opportunities, higher competition and price erosion will translate into muted single-digit growth for the company’s portfolio over the next few years.
Price erosion is down to about 5 per cent, from the earlier double digits. The company is launching 10-15 products a year; it has already acquired 42 new drugs recently in the US.
The trigger is the focus on the domestic market where the company is outperforming the overall pharma market. Investors, however, should await resolution of regulatory issues at its plants as well as sustained growth in India before considering the stock.