India Ratings and Research (Ind-Ra) opines the 10.3% yoy growth of India’s pharmaceutical market (IPM) during March 2021 was led by volume growth of 1.6% yoy (February 2021: declined 5.8% yoy), price growth of 5.1% (4.8%) and products launches at 3.6% (2.1%), attributed to acute therapy products, primarily in anti-infective, gastro and vitamins segments. IPM FY21 growth was 2% yoy lower than Ind-Ra’s earlier estimates (3%-5%), due to a higher-than-estimated impact of lockdowns / local restrictions on acute therapy products. However, we estimate the market growth to rebound to 8-10% during FY22 as we have started witnessing higher sales of acute therapy products partially aided by lower base impact of FY21.

During 4QFY21, IPM grew 5.3% yoy, led by a volume decline of 2.4% yoy (3QFY21: declined 1.9% yoy), price growth of 5.0% (4.9%) and products launches at 2.7% (3.4%). On moving average total (MAT) for the past 12 months, the growth was 2.1% for March 2021.

 Figure 1


 Figure 2



Therapy-wise Performance: Acute therapies such as gastro and vitamins witnessed sales growth of 21.6% yoy and 22.2% yoy, respectively, while anti-infectives grew 8.5% yoy during March 2021. Growth underperformance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 6.3% yoy and 0.3% yoy, respectively. However, on a MAT March 2021 basis, a growth outperformance was observed across these therapies.

 Figure 3


 Figure 4


 

 Figure 5


Figure 6


Historical Growth Trends of Key Therapies 

Figure 7
Therapy-wise Performance Therapy

(Growth, %)

% IPM

FY21

FY20

FY19

FY18

FY17

Cardiac

14

11

12

13

6

11

Anti-infective

13

-5

10

6

1

4

Gastro intestinal

11

5

8

9

6

10

Anti-diabetic

10

6

11

15

12

19

Vitamins

9

8

9

9

4

10

Respiratory

7

-9

13

8

8

9

Analgesics

7

-3

10

8

4

10

CNS

6

5

9

10

6

10

Derma

7

3

7

11

10

12

Gynaecological

5

-1

6

9

4

11

IPM

2

10

10

6

10

Source: AIOCD, Ind-Ra

 

 Figure 8

Sun Pharma = Sun Pharmaceutical Industries Ltd; Torrent Pharma = Torrent Pharmaceuticals Ltd (IND AA/Stable) ; Lupin = Lupin Ltd; Alkem = Alkem Ltd (IND A1+); USV = USV Ltd; Cipla = Cipla Ltd (IND AAA/Stable); Mankind = Mankind Pharma Ltd; Abbott Labs = Abbott Laboratories Ltd; Dr. Reddy’s Labs = Dr. Reddy’s Laboratories (IND AA+; Stable); Sanofi India = Sanofi India Ltd; Macleods = Macleods Pharmaceuticals Limited; Aristo Pharma = Aristo Pharmaceuticals Pvt Ltd; Glenmark = Glenmark Pharmaceuticals Ltd (IND AA-/Stable).

 

Company-wise Performance: During MAT March 2021, Cipla, Glenmark and Aristo significantly outperformed the market, with yoy growth of 7.5%, 15.2% and 6.8%, respectively. This was led by higher sales of COVID-19 related products and the continued outperformance of chronic therapies.

 Figure 9


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Analyst Names

  • Nishith Sanghvi

    Associate Director
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th Floor, West Wing, Bandra Kurla Complex, Bandra East,Mumbai - 400051

    Krishnanath Munde

    Associate Director
    +91 44 43401768

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