The anti-infectives was the largest therapy area for the month with a revenue of Rs 1164 crores
The Indian Pharmaceutical Market (IPM) was valued at Rs 9,282 crores in the month of November 2016. Base effect of November 2015 which affected on account of the festival of Diwali helped clock an eight per cent over same period last year (SPLY). Government of India’s well intentioned move to demonetise currency notes of Rs 500 and Rs 1000 disrupted the market to a certain extent rendering the growth in November lesser than that witnessed in October 2016. QuintilesIMS sales leads for November 2016 reflected a shrinkage by five per cent over previous month.
On a MAT basis, the industry was valued at Rs 112,314 crores and reflected a 12 per cent growth with volumes contributing around 34 per cent of this growth and new introductions playing an important role with almost 41 per cent contribution to the overall growth.
IPM continued to remain fragmented with top 10 companies occupying 43 per cent share. Top 20 companies reflected 12 per cent growth for the month. Sun Pharma (14 per cent growth), Abbott (15 per cent growth), Lupin (16 per cent growth), Intas (10 per cent growth), Torrent (16 per cent growth), Glenmark (14 per cent growth) and USV (13 per cent growth) were the only companies among top 20 to reflect a double digit growth for the month.
The M&A story in IPM added a new dimension with Ahmedabad – based Eris Lifesciences acquiring Kinedex Healthcare a company specialising in pain, analgesics and orthopaedic segments.
Domestic companies continued to dominate the market with a 78 per cent share in November 2016 with a growth of 8.6 per cent. MNCs on the other hand reflected a growth of 7.8 per cent for the month on a SPLY basis. Both Indian and MNCs reflected a growth of -5 per cent and -3 per cent respectively over October 2016 on account of demonetisation.
The demonetisation drive had limited impact on chronic therapy areas with the category reflecting 2 per cent growth over October 2016. Anti-diabetics grew by 4 per cent and cardiac therapy area by 2 per cent in November over October 2016. Acute therapy areas on the other hand, grew by -8 per cent over October 2016 with anti-infectives reflecting -16 per cent, gastrointestinals (-7 per cent), vitamins-minerals-nutrients (-6 per cent), pain (-9 per cent) and respiratory (-1 per cent).
Top 150 Company Snapshot
- Top 10 companies constitute about 43% share of IPM on MAT and Month basis.
- The top 150 companies continue to account for 97% of IPM on MAT and month basis.
- For the month, Top 20 companies (contributing to 64%) have reflected growth of 12%
- For the month, Top 10 companies have reflected stronger performance over the next category of companies
Anti-infectives was the largest therapy area for the month with a revenue of Rs 1164 crores reflecting a growth of -4 per cent over SPLY. Six out of the top 10 molecules reflected de-growth with large molecules like Amoxyclav solids (-2 per cent), Ceftriaxone injectable (-9 per cent), Cefixime OS (-7 per cent), Azithromycin OS (-5 per cent), Pip + Tazo (-6 per cent) and Amikacin (-5 per cent) reflecting negative trends.
Cardiac therapy area maintained its number two position in IPM missing the number one slot by a whisker with a value of Rs 1120 crores growing at 13 per cent over SPLY. Rosuvastatin (22 per cent), Telmisartan + HCT (21 per cent), Amlodipine + Telmisartan (27 per cent), Olmesartan (19 per cent) were some large molecules driving overall growth for the therapy area.
Acute / Chronic Therapies
- Acute therapies continue to dominate the market constituting 65% of the IPM
- The top TC4 in the IPM is DPP4 Inhibitor & Comb with the a value growth of 32%
Gastrointestinals continued to be the third largest therapy area for the month garnering a revenue of Rs 923 crores with a growth of nine per cent over SPLY. Proton Pump Inhibitors (PPIs) and their combination with Domperidone contributed around 18 per cent of the overall therapy area value, while most molecules reflected robust growth over SPLY on account of base effect, average growth of the top 10 molecules in gastrointestinals over previous month was to the tune of -3 per cent.
Anti-diabetics maintained its fourth position in IPM and emerged as the therapy area to reflect highest growth both on SPLY and previous month clocking a growth of 23 per cent and 4 per cent respectively. DPP4 inhibitors was the largest drug category in the anti-diabetic space with Teneligliptin contributing 19 per cent of the category by value. On a MAT basis, 50 per cent of growth in the anti-diabetics space was contributed by new introductions primarily in Teneligliptin.
Indian / MNC trends
- Indian companies registered growth of 8.6% during the month and continue to dominate IPM in value terms
- Indian companies constitutes ~78% of IPM during the month and MAT basis
Dermatology, one of the fastest growing therapy areas in IPM registered a growth of 16 per cent SPLY with a value of Rs 675 crores, however, this therapy area also witnessed pressure of demonetisation with top molecules like Itraconazole and Clobetasole combinations growing at -10per cent and -6 per cent respectively over previous month.
Neurology reflected a 12 per cent growth for the month over SPLY, however, witnessed a -1 per cent growth over October 2016. Levetiracetam continued to be the largest molecule in the space clocking a value of Rs 42 crore with a 21 per cent growth for the month. Sodium Valproate solids reflected a 14 per cent growth and emerged to be the second largest molecule in the central nervous system space.
Global (October 2016)
The global pharma market is valued at $1043 billion growing at 3.3 per cent. The US continues to dominate the market with 43 per cent market share with growth of 6.3 per cent. Amongst the top market, India has moved two positions and is ranked seventh in the month of October 2016. Only market which has shown value growth more than 10 per cent in the month of October globally is Venezuela.
- Anti-Infectives and Cardiac therapy continue to constitute the largest market share in IPM occupying 13% & 12% resp.
- Anti Diabetics & Derma registered growth around 23% and 16% respectively for the same period last year.
- All therapies De grew compared to Prev.month except for Cardiac and Anti-Diabetic which showed positive GR.
Indian companies hold 3 per cent share in the global market and growing faster than the global market as per October 2016 data. For the month of October 2016, the IPM showed de-growth and none of the Top 10 companies showed positive growth.
(QuintilesIMS is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry)