India Ratings and Research (Ind-Ra) opines the 13.7% yoy revenue growth in India’s pharmaceutical market (IPM) during July 2021 was led by continued demand normalisation post the high growth months of April 2021 (51.5% growth) and May 2021 (47.8%), while the growth in June 2021 was lower at 14.1%. The higher growth in April and May 2021 was because of the lower base effect and covid-induced demand during the second wave. The lower-though-healthy growth in July 2021 was witnessed in therapies which have not benefitted from covid-led demand in the past. Therapies which have benefitted from covid-led demand include anti-infectives, gastro and vitamins. Ind-Ra expects the demand normalisation to continue, if the pace of vaccination remains strong. Ind-Ra expects IPM revenue growth of over 12% yoy for FY22.

During 1QFY22, IPM reported growth of 37.2%, aided by the lower base effect during 1QFY21 which was impacted due to the nationwide lockdown. 

During July 2021, volumes grew 4.5% yoy (June 2021: 4.0% yoy), price growth was 5.7% (5.7%) and new products launches were at 3.5% (4.4%), attributed to acute therapy products.


Therapy-wise Performance: Acute therapies such as anti-infectives, analgesic and respiratory witnessed sales growth of 30.2% yoy, 24.1% yoy and 22.8% yoy respectively, while gastro grew 19.6% yoy during July 2021. Growth underperformance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 4.1% yoy and 3.3% yoy, respectively.




Historical Growth Trends of Key Therapies

 

Figure 5
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

Sun Pharma = Sun Pharmaceutical Industries Ltd; Torrent Pharma = Torrent Pharmaceuticals Ltd (IND AA/Positive); 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 moving annual total (MAT) July 2021, Cipla, Glenmark and Emcure significantly outperformed the market, with yoy growth of 19.4%, 33.9% and 26.1%, respectively. This was led by higher sales of COVID-19 related products and the continued outperformance of chronic therapies.




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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

    Vivek Jain

    Director
    +91 124 6687249

    Media Relation

    Ankur Dahiya

    Manager – Corporate Communication
    +91 22 40356121