MOSL: HEALTHCARE-IPM secondary sales growth up marginally

​HEALTHCARE: IPM secondary sales growth up marginally

Indian pharmaceutical market (IPM) secondary sales bounced back in August 2017 after declining in July. IPM grew 2.4% YoY in August, and 1.7% for the three-month period, June-August 2017.

After a 0.4% decline in volume in the May-July 2017 quarter, the industry witnessed a further 0.7% decline in the June-August quarter. Price growth, which has been muted for 6-9 months, declined 0.5% for the first time. Growth in new products too declined to 2.9% from a high of 3.8% in May-July 2016. We expect industry growth to remain muted in the coming months due to GST-related issues.

Moving annual total (MAT) growth for August declined to 7.3% as against 8.6% in July.

Zydus and Mankind see highest growth

Zydus (+15.7%) posted robust growth for the month of August, followed by Mankind (+11.1%). In August, ~50% of the companies posted single-digit growth.

IPCA Labs saw significant decline (-19.8%) in secondary sales in August, followed by Natco Pharma (-15.5%) and Indoco (-10.7%).

Derma and Anti-diabetic lead among therapies

Derma products (6.2% of IPM) continued to grow in double digits (up 12.7%), while anti-diabetic (9.1% of IPM) grew 10.6% in August. ~50% of the therapies posted mid-to-low single-digit growth. CNS therapy (6.1% of IPM) grew 5.6% as compared to muted growth of 1.5% in July. Anti-infectives (14% of IPM) continued to decline (-8%), though improved from the previous month (-15.8% in July). Respiratory (7.3% of IPM) declined 6.1%.