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MOSL: HEALTHCARE- Volumes healthy, but price pressure evident

HEALTHCARE: Volumes healthy, but price pressure evident

 

• Indian pharmaceutical market’s (IPM) secondary sales grew in double-digits at 10.8% YoY in May-18, and 9.5% YoY in the quarter ended May-18 (7.8% driven by volumes and 2.7% by new launches). Sustained growth in the IPM since July-2017 can largely be attributed to a pick-up in volumes and also partly to new launches.
• However, prices (-1% YoY for the quarter ended May-18) have declined for 12 consecutive months now.
• On a moving annual total (MAT) basis, YoY growth was 6.2% in 12M ended May, as against 5.8% YoY in 12M ended April 2018.

 Glenmark, Lupin and Abbott witness highest YoY growth

• Glenmark reported highest growth (+20% YoY) amongst the top 20 companies (partly due to a low base of past year) in May-18, followed by Lupin (+17.5%), Abbott India (+15.9%) and Torrent Pharma (+14.2%), Dr. Reddy’s (~+13%), Biocon (~+12%) and GSK Pharma (+11.2%) – all these companies outperformed the IPM in May.
• Natco (+0.7%), Merck (+3.2%), Sanofi India (+5.8%), Pfizer (+6%), IPCA Labs (+8%) and Zydus Cadila (+8.3%) underperformed the IPM.

 Anti-Neoplastic, Respiratory and Derma lead among therapies

• Among therapies, Anti-Neoplastic (2.1% of IPM) reported highest growth (+18.8% YoY), followed by Respiratory (+15.4%; 7.7% of IPM) and Derma (+14.4%; 6.5% of IPM).
• More than 55% of the therapies outperformed the IPM in May-18. However, Vaccines (-0.9%; 1.8% of IPM), Opthal (+4.9%; 1.9% of IPM) and Anti-infective (+6%; 13.7% of IPM) underperformed the IPM.