Pharma exports to Russia-CIS to be watched on Russia, Ukraine conflict

News:  Russia is one of the key export market for Indian pharma companies and generated revenues of US$591 million in FY21 (~ 2.4% of pharma exports).

Views: The ongoing dispute between Russia and Ukraine is likely to pose 1) logistics challenges, 2) currency risk, 3) sanction related outcomes and 4) inventory risk for exports to this region. From our coverage space Dr Reddy's (12% of sales from Russia), Sun Pharma (32% exposure from EM/ROW markets which include Russia CIS exposure) and Glenmark (6% of sales from RoW market) have substantial exposure in Russia and CIS countries. However management of all the companies have indicated for vigilance in this regard and we are keeping tabs on the developments and its potential impact on pharma exports.

Impact: Neutral