One positive is that anti-infective sales are back, rising about 5.2% y-o-y, compared to sluggish sales in November. Besides, some critical segments such as cardiac and gastro posted good year-on-year increases in December
Indian pharma companies’ sales are rebounding after clinic and doctor visits started to normalise. Although, it is still early, the Indian Pharma Market's year-on-year growth acceleration is encouraging, coming in at 8.5% in December against a mere 1% growth in November. The Nifty Pharma index is up 1.6% year-to-date despite it being the top gainer last year.
One positive is that anti-infective sales are back, rising about 5.2% y-o-y, compared to sluggish sales in November. Besides, some critical segments such as cardiac and gastro posted good year-on-year increases in December.
Ajanta Pharmaceuticals Ltd topped sales charts in December with 18%, while Glenmark Pharmaceuticals Ltd and Cipla Ltd have shown sales growth of about 17% respectively. Besides, JB Chemicals Ltd, Eris Lifesciences Ltd and Cadila Healthcare Ltd are showing growth in the range of 15-16%, which is quite impressive.
Analysts reckon that some of the seasonal factors are influencing sales, apart from continued demand for covid-19 products. With coroavirus cases reducing, patient footfall at clinics is rising, which is driving a growth in the anti-infective segments.
For the quarter ended December, volume growth has been gaining traction. Against September quarter’s decline of 6.5%, volume growth declined by about 1.9% in the December quarter.
“Year-on-year price growth of 4.9% and new products growth of 3.4% was offset to some extent, by year on year volume decline of 1.9%," said analysts at Motilal Oswal Financial Services in a client note.