Global Playbook: Divi’s Labs Leads India’s Pharma Shift Beyond the US

India’s pharmaceutical sector is undergoing a notable transformation, moving beyond its heavy reliance on the United States market..

According to data from ACE Equity, Divi’s Laboratories leads this transformation, with an impressive 74% of its revenue coming from ROW markets. This diversification not only cushions the company against US-specific policy risks and pricing pressures but also positions it favorably for long-term growth.

Why Diversification Matters for Indian Pharma
 

1. Reduced Dependence on the US Market

Historically, Indian pharma companies relied heavily on the US generics market for growth. However, pricing pressures, regulatory hurdles, and policy uncertainties have increasingly impacted profitability.
Firms with high ROW exposure are less vulnerable to such fluctuations and benefit from diversified demand.

2. Expanding Global Presence

The ROW markets now include Europe, Africa, the Middle East, Russia, China, and Australia, which together represent a structural growth opportunity. These regions offer stronger pricing stability, expanding healthcare access, and less regulatory volatility compared to the US.

3. Valuation Advantage Through Visibility

Diversified revenue streams enhance earnings visibility, helping companies command a valuation premium in the market. Investors tend to favor firms with balanced geographic exposure, as they are better equipped to withstand localized shocks.

Top Indian Pharma Companies by ROW Revenue Share

Source: ACE Equity

Investment Insight

The takeaway for investors is clear geographic diversification equals resilience.
Companies with higher ROW revenue exposure are likely to sustain better through US market cycles and global regulatory shifts.

As India’s pharma story expands globally, Divi’s Labs, Biocon, and Gland Pharma are leading the charge toward building a more stable, balanced, and globally competitive pharmaceutical ecosystem.

Key Takeaways

• Diversified global exposure reduces risk from US market volatility.
  
  
• ROW markets are offering sustainable long-term growth.
  
  
• Investors may assign higher valuation multiples to firms with strong non-US presence.