India Ratings and Research (Ind-Ra) opines the 5.3% yoy revenue growth in India’s pharmaceutical market (IPM) during December 2021 was led by a continued improvement in growth in chronic therapies namely cardiac and central nervous system (CNS), while anti-infectives witnessed a decline. Acute therapies namely gastro-intestinal, respiratory and pain/analgesics continued to witness strong growth, aided by the low base impact. During December 2021, volumes declined 1.5% yoy (November 2021: flat yoy), while price growth was 5.4% yoy (5.4% yoy) and new products launches were up 1.4% yoy (1.2% yoy), driven by acute therapy products.

Ind-Ra expects the demand for analgesics, multivitamins, and cough and cold segments to improve over the next three months, owing to seasonality and the third wave of Covid-19 infections. Ind-Ra expects IPM revenue growth of over 12% yoy for FY22. The IPM reported growth of 14.9% yoy in 2021.

Figure 1


 

Figure 2
Base Effect Continues to Impact Therapy Growth Trends

Therapies/Month

December 2021

November 2021

October 2021

September 2021

December 2020

November 2020

October 2020

September 2020

Respiratory

22

16

26

46

-8

-7

-6

-10

Pain/analgesics

14

17

17

28

6

-5

3

-4

Gastro

9

13

10

16

16

3

14

6

Vitamins

1

1

-4

2

14

7

23

16

Ophthalmology

14

15

6

14

-2

-11

0

-5

IPM

5

7

5

13

9

1

10

5

Source: AIOCD, Ind-Ra

 

Therapy-wise Performance: Acute therapies such as gastro, respiratory and pain/analgesics witnessed sales growth of 9.2% yoy, 21.7% yoy and 13.5% yoy, respectively. Growth momentum declined in chronic therapies during the month, with cardiac growing 4.1% yoy (November 2021: 6.3%) and anti-diabetic reporting 1.3% yoy growth.

Figure 3



Figure 4


Figure 5



Historical Growth Trends of Key Therapies

Figure 6
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 7

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-'/Positive).

Company-wise Performance: During moving annual total (MAT) November 2021, Macleods, Aristo and Emcure significantly outperformed the market, with yoy growth of 23.8%, 28.3% and 25.6%, respectively. This was led by higher sales of COVID-19 related products and the improving performance of acute therapies.

  Figure 8


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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
    022 4000 1712

    Poornima H

    Analyst
    +91 44 43401723

    Vivek Jain

    Director
    +91 124 6687249

    Media Relation

    Ankur Dahiya

    Manager – Corporate Communication
    +91 22 40356121