Domestic companies continued to dominate the market with a 79 per cent share
The Indian Pharmaceutical Market (IPM) was valued at Rs 10,278 crores in the month of September 2016 clocking a strong 10 per cent growth over the same period last year (SPLY). On a MAT September basis, the industry was valued at Rs 111,022 crores and reflected a 13 per cent growth with volumes contributing around 40 per cent of this growth and new introductions playing an important role with around 38 per cent contribution to the overall growth.
The retail channel remained the largest channel in IPM contributing 84 per cent of the overall sales and reflected a 13 per cent growth. The hospital and doctor channel contributed to 10 per cent and six per cent of the overall sales and reflected a 17 per cent and 15 per cent growth respectively on a MAT September basis. It is expected that the hospital channel will continue to report robust growth rates due to rapid capacity expansion in this space. As per IMS data, which captures sales from trade stockists, more than 10 therapy areas (TAs) in the IPM have already crossed a sale of Rs 500 crores in the hospital segment viz. anti infectives, cardiac, gastrointestinals, pain, neuro, VMN, gynae, anti-diabetics, vaccines and respiratory.
IPM continued to remain fragmented with top 10 companies occupying 43 per cent of the share and top 20 companies reflecting strong double digit growth for the month. Companies 31-40 collectively reflected a single digit growth on account of Himalaya (nine per cent), Unique Pharma (nine per cent) and Astra Zeneca (three per cent) which reflected a low growth.
Seven out of the top 10 companies reflected a double digit growth with Sun Pharma (11 per cent), Cipla (11 per cent), Alkem (16 per cent), Macleods (18 per cent), Lupin (15 per cent) outpacing the market for the month while among the 11-20 companies, Aristo (17 per cent), Glenmark (16 per cent), USV (11 per cent), Micro (15 per cent) and IPCA (13 per cent) grew faster than the market.
Among top 25 companies, Sun Pharma maintained its top position in the IPM with a market share of 7.84 per cent and 11.4 per cent growth, Intas gained two ranks and moved to 10th rank for the month while, Zydus and Novartis gained one rank each and moved to eighth and 15th rank respectively vis-à-vis August 2016.
Domestic companies continued to dominate the market with a 79 per cent share in September 2016 with a growth of 11 per cent. MNCs on the other hand reflected a growth of 6.5 per cent for the month, after reaching a six month high growth of 12.5 per cent in August. Large MNCs like Abbott, GSK and Pfizer which contributed almost 57 per cent of the total MNC share in the month reflected growths of 10 per cent, three per cent and one per cent respectively.
Acute therapies remained the strongest pillar of IPM with a 66 per cent contribution to the total market. After reaching a 12 month high of 20 per cent growth in August 2016, acute TAs reflected a slowdown with a 9.5 per cent growth for the month of September 2016. Chronic TAs on the other hand outpaced acute TAs reflecting a growth of 11 per cent for the month.
Anti-infectives (AI) was by far the largest TA for the month with a revenue of Rs 1542 crores reflecting a 10 per cent growth on the back of a good monsoon witnessed across the country. This was an impressive performance considering 14 per cent of the portfolio impacted by the FDC ban consisted of anti infectives while it was also one of the largest TAs to be affected by the NLEM notification. Top 10 anti-infective molecules reflected an average growth of 16 per cent for the month with Amoxyclav liquids, Cefpodoxime, Meropenem & Cefixime + Oflox combination reflecting superlative growth of 25 per cent, 20 per cent, 19 per cent and 17 per cent respectively.
Cardiac TA maintained its number two position in IPM by a whisker beating GI with a value of Rs 1103 crores for the month of September 16 growing at six per cent. The TA was driven by Rosuvastatin (11 per cent growth), Amlodipine+ Telmisartan (13 per cent gwth) and olmesartan (10 per cent gwth). Telmisartan which recently came under price control reflected a -2 per cent growth for the month.
Gastrointestinals continued to be the third largest TA for the month garnering a revenue of Rs 1064 crores with a growth of eight per cent. PPIs and their combination with Domperidone reflected strong double digit growth. Rabeprazole + Domperidone, Pantoprazole + Domperidone and ranitidine were among the fastest growing molecules with a growth of 11 per cent, 10 per cent and 17 per cent respectively. Lactulose reflected a healthy 31 per cent growth for the month clocking a value of Rs 29 crores.
Respiratory was the fourth largest TA for the month maintaining its rank gain and clocked an 18 per cent growth over SPLY. Cough preparations, Levosalbutamol combinations, Budesonide and Levocetirizine were among the fastest growing categories in the respiratory space reflecting growth of 16 per cent, 95 per cent, 26 per cent and 23 per cent respectively.
Dermatology was one of the fastest growing TAs for the month registering a growth of 15 per cent SPLY with a value of Rs 691 crores. Anti- fungals reflected a good pick up during the monsoon season with top molecules like Itraconazole, Terbinafine & Clortimazole growing at 126 per cent, 26 per cent and 17 per cent respectively. Emollients continued to be the largest category within dermatology reflecting a 14 per cent growth for the month.
Among chronic TAs, anti-diabetic, urology and neurology were among the fast growing TAs, growing at 17, 11 and 10 per cent for the month respectively. DPP4 inhibitors driven by teneligliptin and the unprecedented number of players it has got into the market and glim+ met formulations spearheaded growth for the AD market. In the neurology space, Levetiracetam continued to be the fastest growing molecule in neuro psychiatry for the month clocking a value of Rs 43 crores with a growth of 20 per cent in September 2016. Betahistine & Escitalopram + Clonazepam found place among the fastest growing CNS molecules for the month with a growth of 14 per cent and 13 per cent respectively.
In terms of new introductions (NI 24 months) which played a crucial role in growth of the IPM, Glenmark had the highest number of NIs (four) among the top 25 NIs in the industry, followed by Macleods (three), J&J, MSD & Hamdard with two NIs each featuring among the top 25.
Global (August 2016)
The global pharma market is valued at $957 billion growing at one per cent, the US being the market leader with 47 per cent share and growth of five per cent.
Amongst the top 15 market, India is ranked 10th and growing at 15 per cent for the month of August and seven per cent in the MAT year ending August 2016.
Indian companies holds 4.3 per cent share in the global market and growing faster than the global market. The share of Indian companies has grown due to higher demand generation in India on account of rainy season. Amongst the top five Indian companies, Lupin is growing at 37 per cent while Cipla at 23 per cent and Sun Pharma at 15 per cent respectively in the month of August.
(IMS Health is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry)