Domestic companies continued to dominate the market with a 79 per cent share
The Indian Pharmaceutical Market (IPM) was valued at Rs 10,426 crores in the month of August 2016 clocking a strong 18 per cent growth over same period last year (SPLY). This was the second consecutive month where the IPM crossed the Rs 10,000-crore mark. On a MAT August 2016 basis, the industry was valued at Rs 110,025 crores and reflected a 14 per cent growth with volumes contributing around 35 per cent of this 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 16 per cent of the overall sales and reflected a growth of 17 per cent on a MAT August 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 Health data which captures sales from trade stockists, more than 10 therapy areas in the IPM have already crossed a sale of Rs 500 crores in the hospital segment viz. anti infectives, cardiac, gastrointestinals, pain, neuro, VMN, gynaecology, anti – diabetics, vaccines and respiratory.
IPM continued to remain fragmented with top 10 companies occupying 42 per cent of the share and companies across value buckets reflecting strong double digit growth. Top 10 companies grew at 19 per cent while companies in the 11-20 and 21-30 slabs grew at 17 per cent each.
Among the top 10 companies, Cipla (20 per cent), Mankind (21 per cent), Alkem (28 per cent), Macleods (30 per cent), Lupin (24 per cent) and Aristo (38 per cent) grew faster than IPM for the month while in the 11-20 companies, Glenmark (26 per cent), Micro labs (20 per cent) and IPCA (27 per cent) outpaced the market.
Among top 25 companies, Aristo gained two ranks and moved to 10th rank for the month while Macleods, Lupin, Glenmark and Ipca gained one rank each and moved to sixth, seventh, 15th and 20th rank respectively vis-à-vis July 2016.
Domestic companies continued to dominate the market with a 79 per cent share in August 2016 with a growth of 20.1 per cent. MNCs continued to reflect an improvement in growth, clocking a 12.4 per cent growth vis-à-vis a 9.3 per cent in July 2016. Large MNCs like Abbott, GSK and Pfizer which contributed around 57 per cent of the total MNC share in the month reflected growths of 16 per cent, 13 per cent and 10 per cent respectively. GSK growth stabilised after a spurt last month while Sanofi reflected a 6 per cent growth reflecting a slowdown.
Acute therapies remained the strongest pillar of IPM with a 68 per cent contribution to the total market; acute therapy areas (19.6 per cent) continued to outpace chronic therapy areas (15.9 per cent) in terms of growth carrying forward the momentum from last month. Anti-infectives (30 per cent), cough preparations (59 per cent), pain and analgesics (17 per cent) spearheaded the growth in the acute space while anti-diabetics (20 per cent) and urologicals (17 per cent) were the fastest growing chronic therapy areas.
Anti-infectives was by far the largest therapy area for the month with a revenue of Rs 1600 crores reflecting a 30 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 therapy areas to be affected by the NLEM notification. Top 10 anti-infective molecules reflected an average growth of 38 per cent for the month with Cefpodoxime, Ceftriaxone injectables and Amoxyclav liquids reflecting growth of 54 per cent, 51 per cent and 53 per cent respectively.
Cardiac therapy area regained its number two position in IPM for the month of August 2016 clocking a revenue of Rs 1127 crores growing at 11 per cent. The therapy area was driven by Rosuvastatin (17 per cent growth), Amlodipine+ Telmisartan (20 per cent growth). Telmisartan which recently came under price control reflected a zero per cent growth which was an improvement over the -3 per cent growth it reflected last month.
Gastrointestinals was the third largest therapy area for the month garnering a revenue of Rs 1097 crores with a growth of 13 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 17 per cent, 16 per cent and 14 per cent respectively. Digestive enzymatic liquids reflected a 19 per cent growth driven primarily by the east zone.
Respiratory emerged to be the fourth largest therapy area for the month gaining three ranks over July 2016 and clocked a 38 per cent growth over SPLY. Cough preparations, Levosalbutamol combinations and cold preparations (liquids and solids) were among the fastest growing categories in the respiratory space reflecting growth of 59 per cent, 154 per cent, 52 per cent and 38 per cent respectively.
Among chronic therapy areas, anti-diabetic, urology and neurology were among the fast growing therapy areas, growing at 20 per cent and 17 per cent and 15 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 24 per cent in August 2016. Escitalopram plain and its combination with Clonazepam found place among the fastest growing CNS molecules for the month with a growth of 14 per cent and 16 per cent respectively.
Brand building efforts across top companies continued to be evident with eight out of top 10 companies driving robust double digit growth for their portfolio falling under top 300 brands with only Sanofi and Zydus reflecting single digit growth. Clavam, Pan and Taxim-O drove Alkem performance for the month while Augmentin and Calpol propelled GSK. Moxikind-CV and Manforce spearheaded growth for Mankind. Clexane, Cardace and Targocid performance led to sluggish growth for Sanofi while Atorva, Aten & Skinlite led to near stagnancy for Zydus.
The global pharma market is valued at $951 billion growing at three per cent. The US continued to dominate the market with 48 per cent market share with growth of eight per cent.
Amongst the top market, India is ranked 10th in the month of July and growing at 9 per cent.
Indian companies holds 2.8 per cent share in the global market and growing faster than the global market. Amongst the top five Indian companies, Sun, Lupin, Cipla and Alkem are growing on MAT as well as on month basis.
(IMS Health is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry).