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Business News/ News / India/  Indian Pharma market growth moderates in February albeit on a high base
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Indian Pharma market growth moderates in February albeit on a high base

Though the growth in certain chronic therapies in gastroenterology, dermatology, cardiology, and anti-diabetics remained strong, anti-infectives saw tepid growth

The soft growth during February, however, is also being attributed to the high base of the last year. The inventory stocking prior to the pandemic had pushed up sales in February 2020. (AP)Premium
The soft growth during February, however, is also being attributed to the high base of the last year. The inventory stocking prior to the pandemic had pushed up sales in February 2020. (AP)

Indian pharmaceuticals market's growth moderated further to 1.1% year-on-year in February 2021 compared with 12.1% in February 2020. Also, growth was 4.5% year-on-year in January 2021. Though the growth in certain chronic therapies in gastroenterology, dermatology, cardiology, and anti-diabetics remained strong, anti-infectives saw tepid growth. There was some softness in respiratory care, pain relief and gynaecology segments, too.

Respiratory care, pain relief and gynaecology segment sales declined 5.4%, 3.5%, and 3.2% y-o-y, respectively, impacting overall growth, said analysts at Motilal Oswal Financial Services Ltd.

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The soft growth during February, however, is also being attributed to the high base of the last year. The inventory stocking prior to the pandemic had pushed up sales in February 2020.

“Industry growth slowed in February on expected lines primarily due to high base effect. We believe growth could bump up only from summer months, where lower base could come into play and clinical services normalize post-covid," said analysts at Jefferies India Limited.

Patients' footfall at clinics and hospitals, which remained impacted during the pandemic, is increasing gradually. This is likely to drive acute segment sales such as pain relief. For anti-infectives, the sales pick-up happens mostly post end of the summer season.

Among companies, Merck India Ltd, Wockhardt Ltd, Ajanta Pharma Ltd, JB Chemicals and Pharmaceuticals Ltd , Biocon Ltd , and Ipca Laboratories Ltd stole the show during February 2021, delivering robust performances. The growth, according to analysts, stood at 22.7%, 20%, 15.7%, 11.7%, 10%, and 9.7% respectively.

Sun Pharma, with 3.6% year-on-year (y-o-y) growth, and Cipla, with 1.7% y-o-y growth, too, outperformed the pharma market growth; however, Dr Reddy's Laboratories Ltd and Lupin Ltd lagged behind the industry.

For Sun Pharma, Revital H delivered strong growth according to analysts. However, diabetes treatment (Istamet), and hormone therapy (Susten) underperformed, leading to a moderate decline in overall performance compared with 5.2% growth in January 2021 said analysts.

Among others, Cadila Healthcare Ltd’s secondary sales growth of 2.9% y-o-y in February 2021 also was strong. This was led by Atorva, which exhibited strong growth. However, the underperformance by Pantodac and Dexona dragged down overall y-o-y growth for February 2021.

“Ipca remains the only company in our coverage to have positive volume growth. Torrent was the next best player, which was up 5.7% y-o-y. Alembic Pharma again registered steepest sales decline in our coverage at 8% y-o-y," said analysts at Jefferies India Ltd.

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 10 Mar 2021, 01:01 PM IST
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