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MOSL: HEALTHCARE-Prices trending up; volume growth recovers

HEALTHCARE: Prices trending up; volume growth recovers

 

• Indian pharmaceutical market's (IPM) secondary sales grew 12.2% YoY in Oct'18, partly due to a low base. Growth was largely led by volumes (up 4.3% YoY) and price (up 5% YoY). New product growth came in at 2.9% YoY for the month.
• Volume growth for the quarter ended Oct-18 was subdued at 1.8% YoY (in line with 2% YoY growth for 2QFY19). Pricing environment, too, has improved significantly over the past year (from a 2% YoY decline to 5% YoY growth). Moreover, new launches (up 2.7% YoY) continued supporting growth.
• Growth was 9.4% YoY for 12M ended Oct'18 v/s 8.9% YoY for 12M ended Sep'18.

 Price rise in non-DPCO products drives growth

• In value terms, secondary sales grew 12.7% YoY for non-DPCO products (86% of IPM) and 7.4% YoY for DPCO-listed products (10% of IPM) during the month. Volumes grew 2.8% YoY for non-DPCO-listed products, implying a considerable price rise in this category.

 IPCA, Biocon and Mankind witness highest YoY growth for the quarter

• IPCA continued reporting highest growth of 37.2% (>30% growth in top 10 products), followed by Biocon (+25.5%, led by strong growth in Anti-Neoplastic) and Mankind (+17.9%, led by healthy growth in two of top three products).
• Sun Pharma (+9%), Merck (+7%), Natco (+5.5%) and GSK Pharma (+0.6%) exhibited growth, but largely underperformed the IPM during the month.
• Alembic reported highest price growth (+3.5%) during the quarter. Elder Pharma reported highest volume growth (+33.3%), while Natco witnessed highest new product launches (+14.4%) during the quarter.