The Indian pharmaceutical sector reported single-digit growth in August for the fourth consecutive month due to a high base and challenges in volume growth.
Industry sales were up 5.1% in comparison with 12.1% over the same period last year, according to data from All Indian Origin Chemists and Distributors Ltd. Sales had risen 5.3% in July, 6% in June, and 5.6% in May.
The mid-single-digit performance is partly due to robust growth in August 2022 and challenges in volume growth, which has been "negative since the past five months", said Krishnanath Munde, associate director at India Ratings and Research Pvt.
Growth in new product launches has shown consistent improvement in recent months, with price growth being stable at around 5–6%, Munde told BQ Prime. "India Ratings maintains its Indian pharma market growth estimates for FY24 at 10–11% year-on-year."
Key Highlights
Volume declined 3.3% versus a 4% rise last year.
Prices increased 5.1% year-on-year as compared with 6.6% last year.
New product launches registered a growth of 3.3% against a rise of 1.5% over the previous year.
On a January–August basis, growth in the average price and new products was 5.5% and 3.2%, respectively, while volume growth contracted 1.6%.
Overall, the average Indian pharma market growth remained healthy at 7.1% year-on-year, according to Munde.
Therapywise Growth
The top 10 therapies contributed 86% of the Indian pharma market.
According to data from the AIOCD:
Sales of dermatological products and pain segments rose the most at 6.4% and 6.3%, respectively.
Gastroenterology grew 5.7%, while cardiac and neurological segments rose 5.1% and 5%, respectively.
Vitamins rose 4.8%, while anti-diabetic and gynaecological products grew 4.5% and 4%, respectively.
The anti-infectives segment rose 1%, while respiratory grew 0.2%.
MAT Performance
The moving annual total, or 12-month rolling sales of overall pharma products, rose 8.5% in August, according to the AIOCD. That compares with 6.3% in August 2022 and 14.7% in August 2021.
Company Performance
Higher-Than-Market Growth
Mankind Pharma Ltd. reported the highest growth in August at 10%, followed by Sun Pharmaceutical Industries Ltd., which grew 9.5%.
Torrent Pharmaceuticals Ltd., Abbott India Ltd., and Zydus Lifesciences Ltd. grew 8.5%, 7%, and 6.9%, respectively.
JB Chemicals and Pharmaceuticals Ltd., Glenmark Pharmaceuticals Ltd., and Ajanta Pharma Ltd. reported higher-than-market growth of 6.1%, 6%, and 5.7%, respectively.
In Line With Market Growth
Indoco Remedies Ltd. reported a growth of 5.3%, while Dr Reddy's Laboratories Ltd. reported a growth of 4.7%.
Lower-Than-Market Growth
Lupin Ltd. and Alkem Laboratories Ltd. rose around 4.4%, while Cipla Ltd. gained 4.2%.
Alembic Pharma Ltd. rose 3.1%, while Ipca Laboratories Ltd. increased 2.5%.
GSK Pharmaceuticals Ltd., Eris Lifesciences Ltd., and FDC Ltd. rose in the range of 1-2%.
Sanofi India Ltd. reported a 0.3% rise in sales, while Pfizer Ltd. reported the highest year-on-year decline at 13.1%.
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