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MOSL: HEALTHCARE-Price decline impedes IPM growth

HEALTHCARE: Price decline impedes IPM growth

 

• Indian pharmaceutical market's (IPM) secondary sales grew at a healthy rate in February (marginally lower than January growth of 9.5%), led by strong volume growth. However, pricing growth has been under pressure for almost nine quarters now. IPM grew by 7.1% YoY in February 2018 and 8.1% YoY over December-February 2018.
• Volumes have been on an uptrend since last two quarters (up 6.5% in February, after declining in June-August 2017 quarter). Also, growth in new products has been stable for the last 3-4 quarters (+2.8% YoY in February). Prices, however, declined for the second quarter (-1.4% YoY in February).
• Moving annual total (MAT) growth stood at 5.7% in February, as against 5.6% YoY in January.

 Lupin, Dr. Reddy and Abbott witness highest growth

• Companies outperforming the IPM in February in terms of secondary sales were Lupin (+15%), Dr. Reddy’s (+14.4%), Abbott India (+12.5%), Alkem (+12.2%), Mankind (+11.8%), Sanofi India (+11.6%), Ajanta Pharma (+10.3%) and Glenmark (+7.9%).
• Natco Pharma reported a 9.7% YoY decline in secondary sales in February 2018. Cadila (+1.9%), Torrent Pharma (+2.5%), Pfizer (+3.1), GSK Pharma (+1.8%), IPCA (+2.2%) and Merck (+3.4%) largely underperformed the IPM in February.

 Respiratory and Hormones lead among therapies

• Respiratory (7.6% of IPM) posted significant growth of 21% YoY in February on low base, followed by Vaccines (+14.3%; 1.8% of IPM). Barring Anti-Neoplastics (2% of IPM), which continued to decline for the second straight month, all therapies reported growth in February.
• Most therapies – albeit showing an uptrend – underperformed IPM growth.