Pharma Q2 Preview: Lack of new US approvals to overshadow domestic revival

Analysts expect a 12% growth in revenues for the sector

Amid rising regulatory risk in the sector, pharmaceutical companies are likely to post 7-8 per cent earnings growth on a 12 per cent year-on-year (YoY) revenue growth. Aggregate revenue growth would be the lowest in the last four quarters, point out analysts, who say that a decline in approvals and a lack of meaningful launches would drag the US market growth.

Emkay Global pointed out in its report that weak US growth would overshadow the revival in the domestic business. It expects the revenues to grow by 12 per cent, while earnings before interest, tax, depreciation and amortization (Ebitda) growth