MOSL: HEALTHCARE- IPM – growth picks up on higher volumes

HEALTHCARE: IPM – growth picks up on higher volumes

• Indian pharmaceutical market's (IPM) secondary sales continued to grow at a healthy rate in December, led by strong volume growth, while price growth continued its downtrend during the month. IPM grew by 7.8% YoY in December 2017 and 7.2% YoY in 3QFY18. After declining trend in YoY quarterly growth till 2QFY18, industry volumes grew by 5.9% in 3QFY18. Growth in new products was 2.8% in 3QFY18, as compared to 2.7% in 2QFY18. After declining 2.1% in 2QFY18, prices further reduced YoY in 3QFY18 as well (-1.5%).
• Moving annual total (MAT) growth for December was 5.5% as against 5.6% YoY in November.

Natco, Mankind and Alkem witness highest YoY growth for the quarter

• Natco's secondary sales (+24.5%) posted robust growth for 3QFY18 YoY, followed by Mankind (+14.1%) and Alkem (+13.1%). More than 65% of the companies posted improvement in YoY growth in 3QFY18 compared to previous three quarters.
• Exceptionally, IPCA' secondary sales continued to decline (-7.1%) in 3QFY18 YoY, followed by Pfizer, which declined 3.4% during the quarter.

Ophthal & Vaccine, Respiratory and Derma lead among therapies

• Ophthal & Vaccines (1.9% each of IPM) posted robust growth of 13.2% YoY in 3QFY18, followed by Respiratory (+12.3%; 7.5% of IPM) and Derma (+11.5%; 6.4% of IPM). Although all therapies reported growth in December, ~40% of them underperformed the IPMs.