IPCA, CIPLA, JB Chemicals, Sun Pharma, Torrent lead Indian Pharma market growth in November

Indian pharma Market (IPM) after seeing a double-digit growth during October 2023, however, saw growth moderate in November. The IPM growth slipped to 3.5% year-on-year in November 2023 compared to 15% in November’22 and 16.5% in October’2023, as per analysts which they attributed to multiple factors. While those at Kotak Institutional Equities said that moderation in growth was led by the start of festive season, a high base of 15% year-on-year and inventory destocking also were amongst key reasons as per them. 

Analysts at Motilal Oswal Financial Services attributed the growth moderation to weaker seasonal trends in addition to the festive month of November. Consequently, all therapy sectors experienced a mid-to-high single-digit growth and all the therapies, except Anti-neoplast, underperformed IPM during the month of November’2023.

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However, for the 12 months ending November’23, IPM growth at 10.5% year-on-year remains strong. Analysts also expect the growth rate moving forward being buoyant. 

The moderation of growth in November is also being led by weaker growth in the acute segment while Chronic therapies did better. The chronic therapies grew at 6% year-on-year during November, while the acute therapies grew only at 2% year-on-year in November 2023.

IPCA Laboratories , Cipla and JB Chemicals and Pharmaceuticals were the leaders for growth during November’23 outperforming the IPM.

IPCA growth of 10% year-on-year in November was led by double-digit growth in pain relief Cardiac, Dermatology and Anti-neoplastic, offset by a decline in gastro, said analysts t Motilal Oswal Finacial Services. Cipla growth at 8% in November outperforming the IPM growth was led by double-digit growth in respiratory, Cardiology and Urology offset by a decline in Anti-Diabetic and Gastro products, Cipla has strong presence in Respiratory care range of products and the segment contributed more than third to domestic formulation sales. JB Chemical outperformed IPM reporting 7.4% year-on-year growth, registering a double-digit growth in Gastro, Gynecology and Anti-infective therapies.

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Sun pharma and Torrent Phara with November growth of 6.7% yoy and 5.8% yoy respectively were amongst outliers in the listed space.