Motilal Oswal - MOSL: HEALTHCARE-IPM growth picks up led by prices, volume growth stable

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Motilal Oswal

Tushar Manudhane

EUR 120.00 For Business Accounts Only

MOSL: HEALTHCARE-IPM growth picks up led by prices, volume growth stable

HEALTHCARE: IPM growth picks up led by prices, volume growth stable

Indian pharmaceutical market's (IPM) secondary sales growth picked up to 9.8% YoY in Dec'18 from 6.3% in Nov'18, led by prices (+4.7% YoY) and new launches (+2.6% YoY). IPM growth stood at 9.5% YoY for the quarter ended Dec'18 and 9.4% for the 12 months ended Dec'18.
Volumes rose 2.5% YoY in Dec'18. Notably, after exhibiting downtrend for almost six months, volume growth stabilized to 2.1% YoY in the Dec'18 quarter (but still lower than average growth of ~7.2% YoY from Dec'17 to Jun'18).

Major support coming from price rise in non-DPCO products

In value terms, secondary sales grew 9.9% YoY for non-DPCO products (86% of IPM) and 6.9% YoY for DPCO-listed products (10% of IPM) in Dec'18. Volumes declined by 1.2% YoY for non-DPCO-listed products, implying a considerable price rise in this category.

IPCA, Biocon, Torrent witness highest growth for Dec-quarter

IPCA has been reporting highest growth of >20% for three quarters now (+31% YoY for Dec'18 quarter, with 25-60% growth in top 10 products), followed by Biocon (+21.1% YoY, led by >75% growth in Anti-Neoplastic and Anti-infective), Torrent Pharma (16.4% YoY, led by double-digit growth in top 10 products).
Merck (+5% YoY), Dr. Reddy's and GSK Pharma (+6.5% each) underperformed the IPM.
Alembic reported highest price growth (+4.6%), Elder Pharma reported highest volume growth (+18.6%) and Natco recorded highest new product launches (+14.9%) on an MAT basis.

16/01/2019 22 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Tushar Manudhane

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MOSL: HEALTHCARE-IPM growth picks up led by prices, volume growth stable

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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