Home / Markets / Mark To Market /  Pharma market growth declines sequentially in June, but nevertheless impresses

Growth in the Indian pharma market (IPM) slowed down in June amid a steady fall in covid cases, but a rise of 14.1% year-on-year is still impressive. IPM grew 11.7% year-on-year during the last twelve months on a trailing basis.

The month of May saw an extraordinary surge in sales as a sharp rise in covid cases led to a jump in demand for covid treatment and management drugs.

Sales in June was helped by prices and new product growth of 6.5% and 7.7% YoY, respectively. The growth continued to be led by anti-infectives. The sales of these drugs grew 37.7% year on year. However, vitamins and minerals (VMN), pain relief and respiratory care drugs saw a growth of 17-23.3% year-on-year.

Among companies, Wockhardt registered 48% year-on-year growth in June followed by Emcure Pharmaceuticals (up 27% YoY), Ajanta Pharma Ltd (up 24 % YoY), Abbott India Ltd (up 22% YoY), and Ipca Laboratories Ltd (up 22% YoY), said analysts at Motilal Oswal Financial Services Ltd.

Ajanta Pharma’s strong growth in sales was helped by a rebound in ophthalmology segment, said analysts. The company also impressed with 32.2% year-on-year growth during June.

Ipca’s sales grew on the back of a strong offtake in pain relief drugs. Pain management drugs contribute about a third to the company’s sales. These grew 24% YoY, led by the Zerodol product franchise, said analysts.

Glenmark Pharmaceuticals Ltd, GlaxoSmithKline Pharmaceuticals Ltd, Cipla Ltd, and Alembic Pharma Ltd reported lower than industry growth during the month of June. Nevertheless, they have seen strong quarterly sales growth. Glenmark tops the list in terms of sales growth clocked during the June quarter followed by Cipla Ltd, Alkem Laboratories Ltd, Ipca and Dr Reddy’s Laboratories Ltd, suggests analyst’s data.

On a moving annual total (MAT) basis, Merck India, JB Chemicals & Pharmaceuticals Ltd, Glaxo reported the highest price growth (up 6.7-8.2% YoY). Glenmark saw the highest growth in new launches (up 39% YoY).

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