The Indian pharma market (IPM) growth for the month of February'2024 came at close to 8% year-on-year, thanks to the large base of last year. Notably it was the second month of high single growth. The trailing twelve month growth however remains stronger at around 9% as per analysts
The pharma market growth continues to be led by Chronic product segment of drugs. The acute segment growth nevertheless remains in the slow lane. The soft growth in the sales of anti infective remains a key reason for softness in acute segment sales even though gastro range of products and also the vitamins and minerals (VMN) reported a 8% growth, suggested Antique Stock Broking data.
The analysts at Antique Stock Broking referring to to IQVIA IMS data said that, the Indian Pharmaceutical Market (IPM) growth of 8% YoY for Feb'24 was driven by a price increase of 4%, and supported by volume growth (including new introductions).
Amidst IPM, the chronic category maintained its rapid growth rate of 12% (YoY), driven by more substantial therapies including cardiac, anti-diabetics, and neurology and CNS, which experienced growth rates of 13%, 9%, and 10% YoY respectively.
Growth leaders in February 2024, included Sanofi India, Ipca Laboratories, Eris Lifesciences, JB Pharma, Mankind, Pharma, Dr Reddy's Laboratories and Cipla, with 9–16% year-over-year growth, suggested Kotak Institutional Equities data. Among the listed firms, Alembic and Indoco remedies were the biggest underperformers, with yoy declines of 0-1%. In February 2024, Cadila Pharma, Pfizer, GlaxoSmithKline, Aristo, and Zydus reported moderate growth of 0-5% yoy.
Analysts at Kotak Institutional Equities highlighted that in February 2024, IPM reported a five-year CAGR of 10.3%. Cipla, Sun Pharmaceuticals, Lupin, Zydus Lifesciences, Sanofi, Dr Reddy's, and Pfizer are among the top 25 firms that have increased their market share the most in the last six months. However, throughout the last six months, Alkem, Ipca, and few others have all lost the most market share, as per Kotak.
Motilal Oswal Financial services highlighted that as of February’24, Indian pharma companies hold a major share of 83% in IPM, while the remaining is held by multinational pharma companies.
The strong growth in Domestic Pharma market remains crucial for most manufacturers and cushions overall growth of most pharma companies in case of any turbulence in export markets.
Analyst at Antique Stock Broking said that as they look ahead to FY25, they expect the cardiac, neurology/CNS, and anti-diabetic therapy segments to continue improving, given the impact of both new product launches and the loss of exclusivity for large blockbusters. Based on the stable comparative base in FY24, they anticipate improved acute therapy growth in FY25. In general, they anticipate that IPM will increase at a solid rate in FY25.
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