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Ipca, Ajanta, Sun, Torrent report strong sales growth during December: IPM data

Indian Pharma Market (IPM) growth softened a bit in December 2021, as per reports. (Bloomberg)Premium
Indian Pharma Market (IPM) growth softened a bit in December 2021, as per reports. (Bloomberg)

  • The companies that derived large contributions from covid treatment drug sales during 2020 – Cadila Healthcare Ltd, Cipla Ltd , Glenmark Pharmaceuticals Ltd – saw a soft sales growth on a high base of last year

The growth in Indian Pharma Market (IPM) softened a bit to 5.3% year on year in December 2021, as compared to 6.6% recorded in November last year, according to reports.

However, this was on expected lines with December being seasonally softer and looking at a high base of last year. Analysts attribute the decline to flattish volume growth. 

Price and new products growth on the other hand came at 5.4% and 1.2% year-on-year, respectively, as per Motilal Oswal Financial Services Ltd (MOFSL).

The encouragement, however, is provided by the growth in the acute segment sales. Also, the industry grew 14.9% YoY on a MAT basis (moving annual total). Amongst the segments the anti-infectives, pain relief and gastro segments growing 25.5%, 22.6%, 20.9% YoY, respectively pulled up the MAT growth. The respiratory  segment too posted strong year-on-year growth during May-December’21 and outperformed IPM on MAT basis as per analysts at MOFSL

During December, respiratory product sales grew at a fast pace of 21% year-on-year. This was well supported by Ophthalmology and Pain relief product segments that marked a strong growth of 13.7% and 13.5% YoY, respectively.

However, therapies such as Anti-Infective, VMNs (Vitamins & minerals) and diabetes treatment drugs saw a softer growth. Anti-infectives reported a 2.8% year-on-year decline in sales while VMNs and ant-diabetics grew at a softer pace of 1% year-on-year and 1.3% year-on-year, suggests the MOFSL report. This pulled down the overall growth of the IPM.

Amongst the listed companies, IPCA Laboratories Ltd, Ajanta Pharma Ltd, Sun Pharmaceutical Industries Ltd, Torrent Pharmaceuticals Ltd, marked the strongest growth. While secondary sales of IPCA have grown 22.1% year-on-year during December. Ajanta, Sun, Torrent posted a very healthy growth of 12-17% year on year. 

Indoco Remedies Ltd, Eris Lifesciences Ltd, GlaxoSmithKline Pharmaceuticals Limited, Dr Reddy’s Laboratories Ltd also saw their secondary sales growth ahead of IPM. 

Meanwhile, the companies that derived large contributions from covid treatment drug sales during 2020 – Cadila Healthcare Ltd, Cipla Ltd , Glenmark Pharmaceuticals Ltd – saw a soft sales growth on a high base of last year.

ABOUT THE AUTHOR

Ujjval Jauhari

Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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