MOSL: HEALTHCARE-IPM growth restricted by price decline

​HEALTHCARE: IPM growth restricted by price decline

• Indian pharmaceutical market’s (IPM) secondary sales growth came in muted in September, primarily due to lower prices and flat volume growth. IPM growth stood at 2.8% YoY in September and 1% in July-September.
  
• After declining by 0.5% in June-August 2017, prices in the industry witnessed further 1.8% erosion in July-September. Growth in new products too came down to 2.8% from a high of 3.9% in 1Q and 2QFY17, while volumes growth was flat. We expect industry growth to remain muted in the coming months due to GST-related issues.
  
• Moving annual total (MAT) growth for September came down to 6.2%, as against 7.3% in August.
  

Natco, Mankind and Biocon witnessed highest growth in September-2017

• ​Natco (+20.5%) posted robust growth for September, followed by Mankind (+11.8%), Sanofi (+11.2%) and Biocon (+11.1%). In the month, ~50% of the companies posted single-digit growth.
  
• IPCA’s (-17.5%) secondary sales continued to decline in September, followed by Alembic (-6.8%).
  

Vaccines, Derma and Anti-diabetic lead among therapies

• ​Vaccines (1.9% of IPM) saw significant growth of 15.5% in September, followed by derma (6.3% of IPM; +12%) and anti-diabetic (9.2% of IPM; +10.7%). 50% of the therapies posted mid- to low-single-digit growth. Respiratory therapy (7.4% of IPM) grew 2.3% during the month v/s a decline of 6.1% in August. Anti-infectives (13.9% of IPM) continued to decline (-2.4%), but showed improvement from the previous month (-8% in August). Anti-neoplastics (2.1% of IPM) declined 1.6%.