Pharma Exports In February Indicate Improved Traction: Nuvama
Nuvama sees sustained growth momentum in key oral players.
Nuvama Group's analysis of the exports data of 21 pharma companies in February indicates improved traction, which is evident in the 32% year-on-year and 37% month-on-month cumulative growth.
This is a sharp contrast to the 8% YoY decline in January. The cumulative growth for the first two months of the fourth quarter and 11 months of the current financial year is 12% and 4% respectively. Excluding Divi's Laboratories Ltd. and Laurus Labs Ltd., the growth is 19% and 11% respectively, it said in a note.
Key Highlights
Nuvama sees sustained growth momentum in key oral players, such as Ajanta Pharma Ltd., which saw export growth of over 45%. Alembic Pharmaceuticals Ltd. had a growth of over 39%, followed by Alkem Laboratories Ltd. with an export growth of 65% and Granules India Ltd. with an over 30% growth.
After a sharp dip in January, Divi's exports recovered to $78 million, a 51% YoY and 118% month-on-month growth. Top five products accounted for 40% of exports, which includes sacubitril/valsartan, naproxen, dextromethorphan, Iopamidol and valsartan.
For Lupin Ltd., exports surged 51% YoY, but slid 20% quarter-on quarter. Nuvama sees no offtake of gSpiriva in February, saying it had been on a consistent decline since October.
Ajanta Pharma Ltd.'s exports shot up 45% YoY and 22% month on month, led by both US and Asia. The January–February data indicate 24% and 54% growth in Asia and the US respectively.
Syngene International Ltd. saw a steep fall due to lower shipments to Zoetis. Revenue from Zoetis was $1.9 million versus $19 million in January. On a year-to-date basis, Syngene’s exports are up 164% to $122 million, out of which Zoetis contributed $81.5 million — 67% of the total exports during this period.
GRevlimid is expected to aid Sun Pharmaceutical Industries Ltd., Zydus Lifesciences Ltd. and Aurobindo Pharma Ltd. Largest offtake was seen in Sun Pharma ($142 million) followed by Zydus ($83 million) and Aurobindo ($33 million). GRevlimid is missing from the shipments of the other gRevlimid makers.
Excluding revlimid, Zydus was still strong and showed its exports are tracking at 11% quarter on quarter based on January–February. Sun Pharma and Dr Reddy's Laboratories Ltd. witnessed a QoQ decline of 13% and 23% respectively.
