Torrent, Glenmark lead Indian pharma market growth. Sun, Cipla, Lupin are among other notable gainers

Stock Market Today: Torrent Pharmaceuticals and Glenmark Pharmaceuticals were key leaders amongst listed companies, that saw their domestic sales grow 16.7-17.7% during the month of April' 2024 . 

The two were closely followed by Alkem Laboratories whose sales in value terms also grew 14.8% y-o-y. However other prominent manufacturers included Sun Pharmaceutical, Lupin Ltd, Cipla Ltd whose domestic sales  grew slightly more than 12% in value terms, suggested data by Pharmatrack, a pharmaceuticals market research company. 

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Indian Pharma market recorded a growth of 8.9% year-on-year in the month of April '2024. While value growth stood at 9.2% year-on-year as per Pharmatrack, the volumes de-grew 0.3% year on year .

A strong domestic market growth is necessary to support and drive earnings of Indian Pharmaceutical majors. While the US sales of most Indian pharma companies have done exceedingly well , helped by large product lunches leading to Nifty Pharma index rising more than 50% in last one year, moving forward domestic sales will play imprtant role in helping support overall earnings growth

 Zydus Lifesciences , Mankind, Ipca laboratories and Dr Reddy's Laboratories stood amongst notable companies whose sales exceeded IPM growth during April

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Analysts at Elara Securities India Pt Ltd said that “We expect a slight uptick in growth for India’s pharma market (IPM) compared to the levels of Calendar Year 2023, yet it is likely to remain within a constrained range throughout CY24 and FY25”. Volume growth might accelerate albeit with moderate price increases, they added

Elara analysts reiterate that anticipated organic growth, estimated at 11-14% for pharma stocks, could fall short of expectations. This presents a potential risk, particularly for companies reliant on the domestic business for their overall profit, as per them.

The acute segment sales remain subdued, that is dampening overall pharma market growth even as Chronic segment of drugs  see growth momentum continue.

It was the cardiac segment sales growth at 13.5% YoY, dermatology at 11.3% YoY, and anti-diabetic segments at 10.7% YoY that pulled up performance of Indian Pharma market during April. Additionally, the central nervous system (CNS) also supported well. However, respiratory, vitamins, minerals, & nutrients (VMN), and pain management segments reported subdued growth. It is the pick up of growth in these segments that will propel overall growth of Indian Pharma market.

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