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MOSL: HEALTHCARE: Higher volumes continue supporting IPM growth

HEALTHCARE: Higher volumes continue supporting IPM growth

 

• Indian pharmaceutical market's (IPM) secondary sales continued growing at a healthy rate in March, led by strong volume growth. Price growth, however, has remained a drag for 8-9 months now (prices declined 1.1% YoY in 4QFY18, but showed a marginal improvement from 3QFY18). IPM grew by 9.5% YoY in March 2018 and 5.7% YoY in 4QFY18.
• Bottoming out in 2QFY18 (0.1% growth), volumes grew strongly by 7.3% in 4QFY18 (had grown by 5.9% YoY in 3QFY18). Growth in new products has remained stable over the last 7-8 quarters (+2.6% YoY in 4QFY18).
• Moving annual total (MAT) growth stood at 5.7% in March.

 Lupin, Alkem and Mankind witness highest growth for the quarter

• Lupin continued to lead among the top 10 companies in March 2018, with strong growth of 16.9%. For 4QFY18 too, Lupin reported the highest growth (+16.2%), followed by Alkem (+13.2%), Mankind (+12.9%) and Biocon (+12.2%). Growth of most companies has improved over the past 12-18 months, after taking a hit from weakness in the domestic market post demonetization and GST implementation.
• Natco Pharma’s (-14.6%) secondary sales declined in March. The company’s secondary sales have been declining over the past year (3QFY18 was an exception with 24.5% YoY growth).

 Respiratory and Hormones lead among therapies

• Respiratory (7.7% of IPM) maintained its strong growth trajectory for the month (+20.1% YoY). For the quarter too, Respiratory reported the highest growth (+20.3%), followed by Hormones (+15.7%; 1.8% of IPM) and Anti-Infectives (+10.6%; 13.8% of IPM).
• Although all the therapies reported growth in March-18, more than 55% of them underperformed the IPM.