Indian Pharma Continues To Grow In Double Digits In September
Revenue of India's pharma industry rose 13% year-on-year in September, India Ratings says citing AIOCD data.
India's pharmaceutical sales continued its double-digit growth for the fourth straight month in September, led by growth across therapies.
The pharma industry's revenue rose 13% over a year earlier in September 2022, India Ratings and Research Pvt. said, citing data released by the All Indian Origin Chemists and Distributors. That compares with 12.6% year-on-year rise in September 2021 and a 12.1% rise in August 2022.
"The Indian pharmaceuticals market continued to deliver robust performance on account of strong double-digit growth across therapies except anti-infectives and respiratory," Krishnanath Munde, associate director at India Ratings, told BQ Prime. "This is the normal seasonal trends for the therapies since Covid-19 influence was not there in August 2021."
Motilal Oswal in its note said "The growth was dragged lower by anti-infectives (flat year-on-year) and vaccines (down 7.3% year-on-year)."
Key Highlights for September 2022
Volumes increased 4.5% year-on-year.
New product launches registered 1.9% growth.
Prices increased by 6.6%.
Therapy-Wise Growth
Overall, the acute-therapy segment grew 9.2% year-on-year against 17.2% growth in September 2021. Its market share for the month stood at 47%.
Chronic therapy, which comprises medicines for long-term ailments such as cardiac ailments and diabetes, and the sub-chronic segment saw growth of around 16.1% and 17.3%, respectively. That compares to 8% and 9.2% growth in September 2021. Their market share was around 32% and 21%, respectively.
India Ratings, citing AIOCD data, said that sales of gynecological products rose the most by 24.7% followed by 18.2% growth in the cardiac segment and 17.8% rise in both dermatological and neurological/CNS segments.
Gastro, vitamins, anti-diabetic, and pain segments reported growth ranging from 12% to 15% over the year-ago period.
Respiratory reported a single-digit 7.1% year-on-year growth.
While sales of anti-infectives declined 0.4%.
MAT Performance
The moving annual total—or 12-month rolling sales—of overall pharmaceutical products rose 6.3% in September, according to India Ratings.
Company Performance
India Ratings, citing AIOCD data, said that among the listed pharmaceutical peers:
Natco Pharma Ltd. registered the highest year-on-year growth of around 31.2% in September followed by Biocon Ltd. at 28.2% and Glenmark Pharmaceuticals Ltd. and Eris Lifesciences Ltd. at 23.2% and 21.2%, respectively.
Further, Torrent Pharmaceuticals Ltd., AstraZeneca Pharma India Ltd., Ajanta Pharma Ltd., Zydus Lifesciences Ltd., Sun Pharmaceutical Industries Ltd., Abbott India Ltd., Wockhardt Ltd., JB Chemicals & Pharmaceuticals Ltd., and Ipca Laboratories Ltd. reported a 'higher-than-market' growth in the range of 16% to 19%.
While, FDC Ltd., Alkem Laboratories Ltd., Cipla Ltd., and GlaxoSmithKline Pharmaceuticals Ltd., reported a double-digit growth in the range of 10% to 12%, they underperformed compared to the overall pharma market growth.
Lupin Ltd., Dr. Reddy’s Laboratories Ltd., Alembic Pharmaceuticals Ltd. reported a single-digit growth in the 8-9% range.
Novartis India Ltd., Indoco Remedies Ltd., Pfizer Ltd., and Sanofi Ltd. reported a year-on-year growth of 3% or lower with Sanofi's growth being the lowest at 0.8%.
For Quarter-Ended September
On the quarterly performance, India Ratings said that the market delivered strong year-on-year growth of 13% in Q2FY23 against 2% in Q1FY23 and 14.9% in Q2FY21.
Motilal Oswal, in the industry note, said that the prices grew 6.4% aided by a 4.9% year-on-year growth in volumes for the quarter.
"Low base and increased demand have led to a strong 25% year-on-year growth in gynecology therapy for the quarter-ending Sept. 30, 2022," Munde said. "While high base and reduced demand has led to a modest 2% year-on-year growth in anti-infective therapy for the quarter-ending September."
Munde attributed the year-on-year decline to the relatively subdued performance in anti-infectives and respiratory therapies. He said that this was on account of weak performance in the anti-viral and, cough and cold preparations sub-segments, respectively.