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Pharma Giants Pivot to Chronic Care for Growth
12 Jul
Summary
- Pharma companies are shifting to chronic medicines for recurring revenue.
- Diabetes and cardiac segments grew over 16% in early 2026.
- Four companies showcase diverse strategies in chronic care expansion.
Indian pharmaceutical companies are increasingly focusing on chronic therapies, a strategic move driven by the promise of recurring revenue and greater earnings visibility. Medicines for long-term conditions like diabetes and cardiovascular diseases have shown robust growth, significantly outpacing the general pharmaceutical market in early 2026.
This evolving landscape sees companies like Mankind Pharma employing acquisitions to accelerate their transition into chronic care, while Alkem Laboratories focuses on organic expansion and specialty therapies. Torrent Pharmaceuticals is doubling down on its existing strong chronic franchise through strategic acquisitions.
Zydus Lifesciences pursues a broader strategy, investing in biosimilars and MedTech alongside chronic care expansion. Despite strong earnings, Zydus faces scrutiny regarding its cash flow conversion and capital allocation, mirroring broader market concerns that reward execution certainty.
Torrent Pharma commands a premium valuation, reflecting confidence in its dominant chronic position. Mankind Pharma's valuation is tempered by debt from recent acquisitions, while Alkem and Zydus trade at lower valuations, awaiting stronger chronic contributions and improved cash flow metrics, respectively.
