Indian Pharma Market Growth Slows In September As Volume Falls
Industry sales were up 2.1%, as against 13.2% over the same period last year.
The Indian pharmaceutical sector reported low single-digit growth in September for the fifth consecutive month due to a high base and challenges in volume growth.
Industry sales were up 2.1% as against 13.2% over the same period last year, according to data from All Indian Origin Chemists and Distributors Ltd. That compares with mid-single-digit growth performance, in the range of 5-6% year-on-year between May and September this year.
The muted performance is partly due to robust growth in September 2022 and challenges in volume growth, which has been "negative since the past six months", said Krishnanath Munde, associate director at India Ratings and Research Pvt.
The overall growth was driven by price and new launches during the month. There was stable growth at around 5-6% year-to-date in CY23, Munde said.
India Ratings maintains its market growth estimates for the sector at 10–11% year-on-year in FY24.
Key Highlights
Volume declined 5.6% versus a 4.5% rise last year.
Prices increased 4.8% year-on-year, as compared with 6.6% last year.
New product launches registered a growth of 2.9%, as against a rise of 1.9% over the previous year.
On a January–September basis, growth in average new products was 3.2%, while volume growth contracted 2%.
Overall, the average Indian pharma market growth remained healthy at 6.5% year-on-year, according to Munde.
Sales Highlights
The top 10 therapies contributed 86% of the Indian pharma market.
According to data from the AIOCD:
Sales of the anti-infectives segment rose the most, at 5.4%.
This was followed by respiratory and pain, which grew by 4.2% and 4.1%, respectively.
Gastroenterology rose 2.7%, while cardiac and neurological segments gained 0.4%.
Vitamins reported a decline of 0.9%, followed by anti-diabetic, gynaecological and dermatological products, which fell 1%, 1.1% and 1.3%, respectively.
MAT Performance
The moving annual total, or 12-month rolling sales of overall pharma products, rose 7.5% in September, according to the AIOCD. That compares with 6.3% in September 2022 and 15.4% in September 2021.
Company Performance
Higher-Than-Market Growth
FDC Ltd. reported the highest growth in September at 9.5%, followed by Alkem Laboratories Ltd., which grew 7.3%.
Cipla Ltd. and Sun Pharmaceutical Industries Ltd. reported growth of 5.4% and 5.1%, respectively.
Mankind Pharma Ltd., Ipca Laboratories Ltd., and Torrent Pharmaceuticals Ltd. reported growth of 4.7%, 4.6%, and 4.4%, respectively.
Abbott India Ltd. and Glenmark Pharmaceuticals Ltd. grew by 4.3%.
Zydus Lifesciences Ltd. and Lupin Ltd., too, outperformed the market, reporting growth of 3.9% and 3.5%, respectively.
Lower-Than-Market Growth
Indoco Remedies Ltd. reported a growth of 1.8%, while GSK Pharmaceuticals Ltd. reported 1.4% growth, underperforming the Indian pharma market.
Dr Reddy's Laboratories Ltd. reported a growth of 0.3%.
JB Chemicals and Pharmaceuticals Ltd. reported a decline of 0.4%, while Alembic Pharma Ltd. reported a sales decline of 1.1%.
Ajanta Pharma Ltd. and Sanofi India Ltd.'s sales fell 4.5% and 4.6%, respectively.
Eris Lifesciences Ltd. reported a fall of 11.5%, while Pfizer Ltd. reported the highest year-on-year decline at 17.7%.
