Five things to watch out for in pharma and healthcare in 2020

It has been a mixed bag for pharmaceutical and healthcare sectors in 2019. Most companies tightened costs and focused on reducing debt. There has also not been any major disruptive policy action with the exception of trade margin caps on 42 cancer medications. Pharma and healthcare sectors are to some extent insulated from the general economic slowdown but a recessionary economy makes people go slow on elective surgeries. The domestic formulation business has now become a key driver of growth for Indian companies. In 2019 the Indian pharmaceutical market grew at 10 percent. Domestic formulation business is highly competitive, with large chunk of drugs under price controls, but large India drug makers are committing investments on expanding portfolios and building brands focused on chronic and lifestyle diseases.