Ipca, Glenmark, Sun, Zydus, Mankind, Ajanta, power Pharma market growth in June, that softened over April -May.

Stock Market Today: Indian Pharma market growth at 6.7% yoy in June softened over April and May. IPCA, Glenmark, Ajanta, Mankind, Sun pharma, Zydus Lifesciences , Procter & Gamble Health Ltd, JB Pharma, Eris Lifesciences were some prominent names that with 7.2-12% yoy growth beat the IPM growth.

Ujjval Jauhari
Published15 Jul 2024, 04:30 PM IST
Ipca, Glenmark, Sun, Zydus, Mankind, Ajanta, JB  power Pharma market growth in June
Ipca, Glenmark, Sun, Zydus, Mankind, Ajanta, JB power Pharma market growth in June(AFP)

Stock Market Today: After catching pace in the months of April and May, the Indian pharma market (IPM) growth slumped in June'2024, disappointing many.

IPM growth softens in June

The India pharma market grew 6.7% year-on-year during the month of June'2024 much slower than 9.8% in May'2024 and on a low base of June'2023, suggested reports. Growth was weak considering June'2023 too had seen tepid growth of 5.3% year on year.

The volume growth remains weak and most of the growth is being supported by new launches and price hikes, said analysts. Also while Chronic segment is growing well the acute segment growth also remains soft.

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Among top pharma companies, in June IPCA Laboratories with sales growth of 12% YoY), Glenmark Pharma, Ajanta Pharma, , Mankind Pharma, Sun pharma, Zydus Lifesciences , Procter & Gamble Health Ltd, JB Pharma, Eris Lifesciences were some key names that reported 7.2-12% year-on-year growth which also was notably higher growth rates than IPM, suggested Motilal Oswal Financial Services data.

Quarterly growth trend

Chronic therapy (39% of IPM MAT Jun’24) witnessed 10% YoY growth while Acute therapy (61% of IPM MAT Jun’24) witnessed a moderate 6% YoY growth, said analysts at Centrum Broking Ltd.

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Average growth for trailing 3 months till June 2024 was 8.4% (Mar 2024 quarter growth at 5.6%).

Notably year ago quarter growth stood at 9.2% yoy (in 1QFY24).

While chronic therapies grew 7% yoy, acute therapies grew 6% yoy in June 2024. Bulk of the IPM growth in 1QFY25 was driven by therapies such as anti-TB, oncology, vaccines, urology, cardiac and gastrointestinal as per Kotak Institutional Equities data.

In June 2024, revenues of domestic companies grew 6.7% yoy, similar to 6.5% yoy sales growth for MNC companies.

Listed companies, growth leaders in 1QFY25 were FDC Ltd , Glenmark pharmaceuticals , Ipca Laboratories, Sanofi India, J.B.Chemicals & Pharmaceuticals Ltd ( JB Pharma) , Eris Lifesciences, Ajanta Pharma, Mankind and Zydus Lifesciences, which posted 10-17% year-on-year sales growth as per Kotak data.

On the other hand, key underperformers in 1QFY25 included Pfizer,GSK, Micro Labs, Aristo and Alembic, which posted 0-5% yoy growth, while Indoco posted a 3% yoy sales decline

Analysts optimistic on forward growth prospects

Buoyed by improved field force productivity across most companies, price hikes in the non-NLEM portfolio, new launches and higher sales from other channels, analysts at Kotak Institutional Equities are currently baking in 10-13% yoy organic domestic sales growth in FY2025 for their coverage.

Those at centrum Broking say that they continue to see steady growth in IPM led by price growth and new launches. The sustained growth momentum in Chronic segment and recovery in key Acute therapies will likely drive this growth.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

 

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