The domestic pharmaceuticals market remained on a strong track with 16.5% year-on-year (y-o-y) growth (15.6% in December 2011), led by key segments of cardiac, diabetes and vitamins. We highlight that this consistent performance is in line with long-term growth trend of 15-16%.
Scientists work in a lab of Sun Pharmaceutical Industries Ltd. in Mumbai. Bloomberg
On a monthly basis, Sun Pharmaceutical Industries Ltd has overtaken GlaxoSmithKline Pharmaceuticals Ltd (GSK) to bag the third rank—the first-time ever. Ranbaxy Laboratories Ltd has degrown for the month and ranks sixth. Cipla Ltd has been showing consistent improvement month-on-month (m-o-m). Cadila Healthcare Ltd has had a positive turnaround and even Unichem Laboratories Ltd’s performance inched up during the month.
Key takeaways from trends during January:
• January shows a steady progress in domestic market with 16.5% y-o-y growth. M-o-m, however, de-grew 5% as December was peak winter season.
• The chronic segment continued to remain on a firm trajectory (21% growth). Volume growth has been healthy across segments (diabetes among the highest), indicating higher prevalence of diseases and increasing demand.
• Chronic focused companies, Sun Pharma, Lupin Ltd and Aventis Pharma Ltd maintained buoyant growth and are the best companies in the domestic market.
• Acute segment for the month grew 15% y-o-y. However, growth in anti-infective remains in early double digit.
• Segments such as derma/ ophthal/gynae and gastro have been showing strong traction since the past few months. Vitamins segment has also been catching up with highest new launches during the month.
Market leaders in key therapies were able to sustain growth momentum while others lost to competition, highlighting the strength of a vigorous franchise with key opinion leaders (KOLs). Top five companies are losing market share in favour of companies positioned between 6 and 25 that are growing faster than the industry.
• Cipla is improving consistently and gaining market share. Other notable highlights are positive turnaround of Cadila and some improvement in Unichem. We have witnessed some slowdown in case of Lupin in the past two-three months, though primary numbers are still robust. Ranbaxy, too, has witnessed slowdown in the past three-four months and losing out market share. Other companies who are gaining market share are Sun Pharma, Glenmark Pharmaceuticals Ltd and Pfizer Ltd.
Edited excerpts from a report by Edelweiss. Your comments are welcome at mintmoney@livemint.com.