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Business News/ Companies / News/  Pharma sales growth back in double digits in February
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Pharma sales growth back in double digits in February

A primary reason for the sales growth was an increase in prices
  • Sales of respiratory and anti-infective drugs top sales growth among various therapeutic areas during the month
  • In December and January, sales of pharmaceutical companies came in at 8.8% and 7.7%, respectively.Premium
    In December and January, sales of pharmaceutical companies came in at 8.8% and 7.7%, respectively.

    After two months of tepid growth, sales in the Indian pharmaceutical market increased year-on-year by 12.1% to 12,072.9 crore in February, led by double-digital growth in eight out of 10 segments, data from market research company AIOCD-AWACS showed.

    In December and January, sales of pharmaceutical companies came in at 8.8% and 7.7%, respectively.

    A primary reason for the sales growth was an increase in prices, which contributed 5.4 percentage points to the growth, while rise in volumes and introduction of new products added of 3.8 and 2.9 percentage points, respectively, AIOCD-AWACS said.

    Sales of respiratory and anti-infective drugs topped sales growth among various therapeutic areas during the month. Respiratory medicine sales grew by a stellar 17.9% from the year-ago to 1,053.2 crore, while anti-infective sales rose 14.1% to 1,640.6 crore in February, pushing growth in the overall Indian pharmaceutical markets back into double digits.

    Strong growth in Indian pharmaceutical sales in February was also on account of double-digit rise in other segments such as cardiac care, gastrointestinal, anti-diabetic and analgesics, among others.

    During the 12 months ended February, pharmaceutical companies in India have clocked sales of 1.4 trillion, growing 9.7% year-on-year.

    The trend showed that sale of medicines which are not under price control are growing at a faster pace of 9.8%, than the 9.1% under the National List of Essential Medicines (NLEM).

    It also showed that over the last one year, the growth in sales for medicines not under NLEM was primarily due to price increases, as volume growth was less than 1%.

    Among the top 10 corporates, sales growth in the year ended February was led by Intas Pharmaceuticals, Mankind Pharma, Alkem Laboratories, Torrent Pharmaceuticals and Zydus Cadila, with revenue increasing 12%-13.5%.

    Indian drug makers, in general, grew at a faster rate of 10% against their multinational counterparts’ average rate of 8.3%.

    The country’s largest drug maker Sun Pharmaceutical Industries recorded sales growth of 9.3% during the year ended February, while the biggest multinational, Abbott group, posted 8.6% increase in sales.

    Sales of GlaxoSmithKline (GSK) Pharmaceuticals were up 7.9% for February, higher than the 4.7% it recorded in December-February, which could indicate that the company’s struggle with the suspension of rantidine sales, one of its best selling drugs, is behind it.

    GSK Pharma had earlier suspended sales of the drug, sold under the brand Zinetac, in September after the US Food and Drug Administration raised alarm over high levels of the known-environmental carcinogen N-Nitrosodimethylamine (NDMA) in ranitidine.

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    Published: 09 Mar 2020, 10:46 AM IST
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