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MOSL: HEALTHCARE-Volumes remain the key, while prices continue to drag growth

HEALTHCARE: Volumes remain the key, while prices continue to drag growth

 

• Indian pharmaceutical market's (IPM) secondary sales grew 7.8% YoY in April 2018 and 8.2% YoY during the period February-April 2018. Since July 2017, the momentum in growth has been largely due to volumes, followed by new launches. While volume growth was 6.8% YoY, new launches aided 2.5% YoY growth during the quarter ended April 2018.
• Pricing continued to be under pressure, with 1.1% YoY decline in the quarter ended April 2018. Prices have been in contraction mode for 12 months now.
• On moving annual total (MAT) basis, YoY growth was stable at 5.8% during the 12 months ended April as against 5.7% in the 12 months ended March 2018. 

 Lupin, Abbott and Alkem witness highest YoY growth for the quarter

• Partly on low base of past year, Lupin reported the highest growth in April 2018 (15.7% YoY), followed by Abbott India (+13.8%), Alkem (+13.2%) and Dr Reddy’s (+10%). Glenmark (+13%), Ajanta Pharma (+11%), and Torrent Pharma (+9.5%) outperformed IPM in April.
• Despite YoY fall of 23.1% during the three months ended April 2017, Natco Pharma’s secondary sales declined 15% YoY during the three months ended April 2018. 60% of the reported companies underperformed IPM growth in April on 12M basis.

 Respiratory, Hormones and Anti-diabetic lead among therapies

• Amongst therapies, which form 70% of IPM, Respiratory (7.7% of IPM) maintained its strong growth trajectory for the month (+16.1% YoY), followed by Anti-diabetic (+10.3%; 9.2% of IPM) and Cardiac (+9.7%; 12.2% of IPM).
• Ophthal (1.9% of IPM) and Vaccines (1.8% of IPM) were the only therapies that reported decline of 0.7% and 3.6%, respectively in April 2018.