Indian Pharma Market Growth Slows In October
The moving annual total—or 12-month rolling sales—of overall pharma products rose 6.4% in October.
India’s pharmaceutical market registered a slowdown in growth in October for the first time in four months.
India Ratings and Research Pvt., which used data from All Indian Origin Chemists and Distributors, said that industry sales went up 7.2% in October compared to the same month last year. That compares with a 5.5% year-on-year increase in October 2021 and 13% growth in September 2022.
“After reporting strong growth between June and September 2022 (average growth of 13.9% in these four months), the Indian pharmaceuticals market delivered slower performance in October 2022 on account of muted performance in the top five therapies," Krishnanath Munde, associate director at India Ratings, told BQ Prime.
"The second largest therapy, i.e., anti-infectives, reported negative growth of 1.2% year-on-year during the month," he said.
In its industry note, Axis Capital said, "In our view, growth in October 2022 was affected by a high base as festival season (Diwali) fell in November last year vs. October this year—which would translate into likely high growth in November 2022."
Munde said price-led growth has driven the overall market performance in October 2022.
Key October 2022 Highlights
Volumes fell 0.9% year-on-year.
New product launches registered 1.8% growth.
Prices increased by 6.3%.
India Ratings, citing AIOCD data, said:
Overall, the acute-therapy segment grew 5.3% year-on-year, compared to 8.1% growth in October 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 8.8% and 8.7%, respectively. That compares to 1.9% and 2.9% growth in October 2021. Their market share were around 32% and 21%, respectively.
"We see steady growth in India on continued growth momentum in the chronic segment, recovery in key acute therapies, NLEM-led price growth, and new launches," Axis Capital said in its note.
India Ratings, citing AIOCD data, said that sales of gynecological products rose the most by 16.4%, followed by an 11.8% growth in the dermatological segment and a 10.6% growth in the respiratory segment.
Cardiac segments grew by 9.8%, followed by pain, neurological/CNS segments, and vitamins in the range of 7%–8%.
Gastroenterology and anti-diabetic segments grew 5.6% and 5%, respectively, over the year-ago period.
While sales of anti-infectives declined 1.2%.
According to India Ratings, the moving annual total—or 12-month rolling sales—of overall pharma products rose 6.4% in October.
India Ratings, citing AIOCD data, said the following for the listed pharmaceutical companies:
Natco Pharma Ltd. reported the highest year-on-year growth of 26.6% in October, followed by Biocon Ltd.'s 25% year-on-year growth.
Over the previous year, Eris Lifesciences Ltd., Glenmark Pharmaceuticals Ltd., JB Chemicals & Pharmaceuticals Ltd., AstraZeneca Pharma India Ltd., and Wockhardt Ltd. registered growth in the range 14–17%.
GSK Pharmaceuticals Ltd. and Abbott India Ltd. grew 12.9% and 11.7%, respectively.
Alembic Pharmaceuticals Ltd., Alkem Laboratories Ltd., Torrent Pharmaceuticals Ltd., Zydus Lifesciences Ltd., and Ipca Laboratories Ltd. grew in single digits, outperforming the market.
On the other hand, Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Sun Pharmaceutical Industries Ltd., Indoco Remedies Ltd., Ajanta Pharma Ltd., and Lupin Ltd. grew in the range of 3-7% year-on-year, registering 'lower-than-market' growth.
Similarly, FDC Ltd., Sanofi India Ltd., Novartis India Ltd., and Pfizer Ltd. saw a decline year-on-year in October.
Anand Rathi said in its industry report, "We maintain our positive view on chronic therapy-focused companies such as Ajanta Pharma, JB Chemicals, Eris Lifesciences, and Torrent Pharma."