India Ratings and Research (Ind-Ra) highlights that the Indian pharmaceutical market (IPM) delivered slower growth of 5.0% in October 2021 than 12.4% in September 2021. The acute therapy segment (up 8.1% yoy) performed relatively better than chronic segment (up 2.3% yoy). The acute therapy segment demonstrated robust performance since March 2021 (average growth at 30% yoy) owing to lower base last year. Post normalisation of the high growth months of April 2021 (up 51.5% yoy) and May 2021 (up 47.8%) led by the Covid-19-led lockdown related lower base last year and higher volume growth, the average IPM growth from June to October 2021 has been healthy (up 12.6% yoy). The price growth, new product launches growth and volume growth stood at 5.5% yoy, 3.5% yoy and 5.6% yoy, respectively, which led to the overall IPM size of INR1,657 billion in October 2021 (September 2021: INR1,444 billion).

Figure 1


Acute Therapy Segment Continues to Report Healthy Growth than Chronic Therapy Segment: The acute therapy segment reported sales growth of 8.1% yoy  in October 2021(September 2021: 17.7% yoy; August 2021: 16.9% yoy), while chronic and sub-chronic therapy segments reported growth of 1.9% yoy (7.4% yoy; 10.8% yoy) and 2.9% yoy (8.9%; 15.3%), respectively. During FY21, the acute therapy segment reported a decline on account of COVID-19 while the chronic therapy segment reported an average growth of 7.0%.


Figure 2


Contribution from the top five therapies stood at 58% of IPM in October 2021. These therapies are cardiac (chronic; 13.0% of IPM), anti-infectives (acute; 14.4%), gastro-intestinal (acute; 11.6%), anti-diabetic (chronic; 9.4%) and vitamins (acute; 9.0%).

Figure 3
Performance of Top Five Companies in Top Five Therapies in IPM

Company/Therapy (INR million)

MAT Oct-21

Growth yoy

% total

Oct 21

Oct 20

Oct 19

Oct 18

Cardiac

Sun*

22,760

6.7

10.5

2,013

1,815

1,622

1,620

Torrent

15,346

6.1

7.1

1,296

1,229

1,084

1,086

Lupin

15,299

11.3

7.1

1,197

1,270

1,058

974

Usv

10,483

7.1

4.9

912

880

757

720

Emcure*

10,294

32.4

4.8

709

790

572

517

Anti-Infecives

Aristo

22,967

37.4

9.6

2,406

1,788

1,734

1,492

Alkem*

21,622

18.4

9.1

1,950

1,839

1,800

1,842

Cipla

20,804

35.1

8.7

1,652

1,858

1,295

1,313

Macleods

15,933

43.4

6.7

1,678

1,188

1,113

1,123

Mankind

14,674

14.6

6.2

1,421

1,218

1,288

1,210

Gastro Intestinal

Abbott*

20,741

27.8

10.8

1,854

1,584

1,338

1,206

Sun*

16,600

18.6

8.7

1,498

1,322

1,181

1,127

Alkem*

10,613

16.0

5.5

910

883

722

717

Aristo

9,492

30.2

5.0

824

726

554

480

Dr. Reddys

9,163

19.2

4.8

732

718

620

575

Anti Diabetic

Abbott*

19,330

9.3

12.4

1,601

1,585

1,506

1,433

Usv

14,802

2.3

9.5

1,204

1,263

1,172

1,162

Lupin

13,873

3.0

8.9

1,045

1,218

1,064

927

Sun*

11,457

1.2

7.3

1,006

989

919

864

Sanofi India

10,588

7.0

6.8

866

816

741

774

Vitamins/Minerals/Nutrients

Abbott*

11,791

15.0

7.9

877

1,047

727

723

Mankind

9,361

13.7

6.3

812

817

690

682

Alkem*

8,458

21.3

5.7

677

783

524

535

Torrent

6,657

16.3

4.5

577

531

455

455

Apex

6,411

68.0

4.3

371

548

226

237

Source: AIOCD-AWACS, Ind-Ra

 

Note: Sun = Sun Pharmaceutical Industries Ltd; Torrent Pharma = Torrent Pharmaceuticals Ltd (IND AA’/Stable); Lupin = Lupin Ltd; Alkem = Alkem Laboratories Ltd (debt rated at 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 Ltd; Aristo = Aristo Pharmaceuticals Private Limited; Emcure = Emcure Pharmaceuticals Limited; Apex = Apex Laboratories Private Limited.

Figure 4
Performance of Top Five Group Class in Top Five Therapies in IPM

Therapy/group names (INR million)

MAT Oct-21

Growth yoy

% total

Oct 21

Oct 20

Oct 19

Oct 18

Cardiac

2,15,871

10.0

100.0

17,605

17,807

14,890

13,899

Statins

21,109

5.4

9.8

1,798

1,734

1,548

1,439

Angiotensin Ii Antagonists + Diuretics

15,956

-1.4

7.4

1,269

1,380

1,233

1,200

Beta-Blocking Agents, Plain

15,933

8.2

7.4

1,362

1,307

1,159

1,106

Platelet Aggregation Inhibitors

15,855

10.9

7.3

1,400

1,283

1,097

1,051

Angiotensin-Ii Antagonists, Plain

15,210

-1.9

7.0

1,181

1,339

1,199

1,124

Anti-Infectives

2,38,223

26.6

100.0

20,619

19,575

18,283

17,768

Cephalosporins

76,750

23.3

32.2

7,909

6,072

6,868

6,649

Broad Spectrum Penicillins

30,048

10.9

12.6

3,011

2,336

2,731

2,600

Antivirals, Excluding Hiv Products

24,717

59.5

10.4

909

2,415

864

1,112

Macrolides and Similar Types

21,154

20.5

8.9

1,859

1,786

1,638

1,525

Systemic Agents for Fungal Infections

18,361

16.9

7.7

1,478

1,549

1,629

1,491

Gastro Intestinal

1,91,757

20.7

100.0

16,571

15,098

13,218

12,726

Gastroprokinetics

41,993

17.8

21.9

3,658

3,475

2,954

2,838

Anti-Ulcerants Acid Pump Inhibitors

23,472

16.5

12.2

2,073

1,888

1,740

1,607

Antidiarrhoeal Micro-Organisms

12,869

32.7

6.7

1,081

846

862

767

Intestinal Anti-Infective Antidiarrhoeals

11,722

16.4

6.1

875

844

835

793

Hepatic Protectors, Lipotropics

10,189

20.1

5.3

869

879

697

656

Anti Diabetic

1,56,204

6.5

100.0

13,027

12,874

11,731

10,971

Oral Antidiabetics

1,21,290

6.0

77.6

10,225

10,050

9,094

8,476

Human Insulin Premix

10,572

3.4

6.8

845

887

883

838

Insulin Analogues Basal

8,895

10.9

5.7

711

685

604

613

Insulin Analogues Premix

4,298

2.3

2.8

332

367

361

354

Insulin Analogues Rapid

3,479

17.1

2.2

289

268

232

217

Vitamins/Minerals/Nutrients

1,49,514

17.5

100.0

12,268

12,737

10,368

10,111

Traditional Antioxidants (Multivit/Multimineral)

26,006

32.3

17.4

2,022

2,264

1,521

1,520

Calcium Products

24,742

8.1

16.5

2,175

2,095

1,957

1,938

Other Vitamins

22,724

24.1

15.2

1,767

1,985

1,403

1,356

B Complex

15,089

11.0

10.1

1,195

1,309

1,119

1,062

Protein Supplements

10,261

22.4

6.9

828

839

642

623

Source: AIOCD-AWACS, Ind-Ra

 

Figure 5
Therapies-wise IPM Growth Performance Since November 2020 (%)

Therapy wise growth (%)

Nov 20

Dec 20

Jan 21

Feb 21

Mar 21

Apr 21

May 21

Jun 21

Jul 21

Aug 21

Sep 21

Oct 21

Anti-Infectives

0.2

5.2

-2.7

-11.3

8.5

134.4

14.6

17.9

30.2

29.2

15.0

5.3

Cardiac

8.7

14.9

8.8

7.3

6.3

26.9

14.9

14.3

4.1

6.3

2.7

-1.1

Gastro Intestinal

3.1

16.2

14.3

9.9

21.6

56.8

14.7

16.0

19.6

21.9

15.5

9.8

Anti Diabetic

1.9

9.9

5.3

4.3

0.3

13.1

7.5

7.1

3.3

8.6

6.8

1.2

Vitamins

6.6

14.0

12.2

8.6

22.2

75.8

20.2

21.1

10.5

10.6

2.4

-3.7

Derma

1.4

10.8

9.1

9.6

26.0

40.6

9.6

9.7

9.7

38.2

15.6

0.6

Respiratory

-6.9

-8.7

-14.1

-20.3

-15.1

49.7

0.4

1.6

22.8

32.4

45.8

26.3

Pain/Analgesics

-5.2

6.0

5.0

2.3

14.6

64.2

7.8

9.3

24.1

15.6

28.1

16.6

Neuro/Cns

0.3

9.2

6.7

5.1

9.6

21.3

7.8

7.4

8.2

14.0

10.8

5.4

Gynaecological

-4.3

6.6

6.9

6.9

22.5

47.0

7.9

9.0

15.4

21.3

17.3

6.7

Anti-Neoplastics

0.1

8.1

-2.6

-3.3

10.9

38.7

5.3

6.8

0.3

0.6

-10.2

-1.1

Blood Related

-9.0

6.6

3.3

5.2

-1.4

2.3

5.2

5.4

7.3

8.1

10.1

11.9

Hormones

-3.4

6.0

0.8

-0.4

1.4

6.0

-0.4

14.3

13.2

16.1

13.0

3.1

Ophthal

-11.4

-2.3

-1.0

-2.8

-8.0

-3.2

-2.8

8.4

13.9

21.3

13.6

6.4

Vaccines

8.2

4.3

-7.7

-16.1

-2.7

-0.0

-16.1

-4.4

-10.4

-8.3

-24.8

35.4

Urology

9.7

16.0

13.7

9.8

8.7

13.2

9.8

9.3

11.0

12.1

9.5

6.2

Source: AIOCD-AWACS, Ind-Ra

 

NLEM: Drug price control has been a source of considerable agony to IPM. National List of Essential Medicines (NLEM) in India, which determines the basis of drug price regulation, consists 14.0%-14.5% of the total IPM for the last four years.

 Figure 6


SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in.

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

DISCLAIMER

ALL CREDIT RATINGS ASSIGNED BY INDIA RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.INDIARATINGS.CO.IN/RATING-DEFINITIONS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.INDIARATINGS.CO.IN. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. INDIA RATINGS’ CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE.

Analyst Names

  • Monil Furia

    Analyst
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th Floor, West Wing, Bandra Kurla Complex, Bandra East,Mumbai - 400051
    +91 22 40001794

    Krishnanath Munde

    Associate Director
    +91 22 40001768

    Nishith Sanghvi

    Associate Director
    022 4000 1712

    Media Relation

    Ankur Dahiya

    Manager – Corporate Communication
    +91 22 40356121