Covid propels India pharma sales in May; Glenmark, Cipla, Alkem outperform
- Like the previous month, growth was led by acute segment, which was up 70% year-on-year. Sub-chronic segment grew 38%, while the chronic segment rose 28%
The strong growth momentum for the Indian Pharmaceutical Market (IPM) seen in April continued in May as well. IPM growth was at 47.8% year-on-year in May, while it was 51.5% year-on-year in the previous month as covid-led demand for drugs continued. Sales of anti-infectives, respiratory, and vitamins and minerals grew 142%, 87% and 60% year-on-year respectively, suggest analysts reports.
India Ratings and Research said the growth in India’s pharmaceutical market during May was led by a low base effect. IPM growth had declined 8.5% year-on-year in May 2020.
However, adjusting for low base and covid drug sales, analysts at Jefferies India believe growth was at 20% year-on-year. Absolute sales value remained at the levels of April. Like the previous month, growth in May was led by acute segment, which was up 70% year-on-year. Sub-chronic segment grew 38%, while the chronic segment rose 28%, added analysts at Jefferies.
During May, volumes grew 31.5% year-on-year. In April, it had grown 34.5%. Prices grew 7% and products launches rose 9.3%, which India Ratings attributed to acute therapy products. The rating agency estimates the market to grow 8-10% year-on-year in size during FY22.
Among listed drug companies Glenmark Pharmaceuticals Ltd, Cipla Ltd and Alkem Laboratories Ltd stole the show during May. While Glenmark reported 144% year-on-year growth led by a strong rise in covid treatment portfolio sales, Cipla reported 73.3% growth and Alkem 67.6% growth during the month.
Meanwhile, Aristo Pharmaceuticals's sales grew 90.3% year-on-year in May, Emcure Pharmaceuticals' sales rose 85%, suggested Motilal Oswal Financial Services Ltd data.
Glenmark's growth was driven by strong anti-infective sales, which contributed to 32% of overall sales. Covid treatment drug FabiFlu contributed well to the company's growth.
Cipla's sales were driven by anti-infectives segment, which grew 1.75 times year-on-year. Covid drugs such as remdesivir and tocilizumab continued to contribute well to overall sales and growth. Remdesivir sales stood at ₹53.8 crore, as per Jefferies India.
Ajanta Pharma, Torrent Pharmaceuticals, Sun Pharmaceutical Industries and GlaxoSmithKline Pharmaceuticals also showed healthy year-on-year growth in May, said analysts at MOFSL.
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