Dermatology was the fastest growing therapy area registering a growth of 16 per cent
The Indian Pharmaceutical Market (IPM) was valued at Rs 9,744 crores in the month of October 2016 falling below the Rs 10,000 crore mark for the first time in last four months. Festivities and closure of trade channel due to festivities had an impact on sell out of drugs resulting in a steep dip of growth for the month to six per cent. On a MAT October basis, the industry was valued at Rs 1,11,576 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 around 41 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 12 per cent growth on MAT Basis. The hospital and doctor channel contributed to 10 per cent and 6 per cent of the overall sales and reflected a 15 per cent and 13 per cent growth respectively. It is expected that the hospital channel will continue to report robust growth rates due to rapid capacity expansion in this space. As per QuintilesIMS 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, namely, 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 share. Top 30 companies reflected subdued single digit growth for the month. Lupin (15 per cent), Macleods (11 per cent), Alkem (10 per cent), Aristo (11 per cent), Glenmark (12 per cent) and MSD (24 per cent) were the only companies among top 30 to reflect a double digit growth for the month.
Among top 25 companies, Sun Pharma has maintained its top position in the IPM with a market share of 7.95 per cent, Glenmark and Torrent have gained two ranks each and occupied 13th and 14th position respectively. Lupin, GSK, Pfizer, Sanofi, Alembic and Novartis have gained a rank each and moved to 6th, 8th, 11th, 16th, 20th and 24th respectively.
Domestic companies continued to dominate the market with a 79 per cent share in October 2016 with a growth of 13 per cent. MNCs on the other hand reflected a growth of 9 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 around 57 per cent of the total MNC share in the month reflected growths of 9 per cent, -1.7 per cent and zero per cent respectively.
Acute therapies remained the strongest pillar of IPM with a 67 per cent contribution to the total market. After reaching a 12 month high of 20 per cent growth in August 2016, acute therapy areas reflected a slowdown with a 4.4 per cent growth for the month of October 2016. Chronic therapy area on the other hand outpaced acute therapy area reflecting a growth of 9 per cent.
Anti – infectives was by far the largest therapy area for the month with a revenue of Rs 1377 crores reflecting stagnancy on account of festivities across the country. Four out of the top 10 molecules reflected de-growth with Ceftriaxone injectables reflecting stagnancy. Meropenem and Amoxyclav liquids were the only molecules reflecting robust growth of 23 per cent and 16 per cent respectively among the top 10 molecules. On a MAT basis, volumes have driven about 60 per cent of the overall growth of the therapy area.
Cardiac therapy area maintained it’s number two position in IPM with a value of Rs 1096 crores for the month of October 2016 growing at 5 per cent. The therapy area continued to be driven by Rosuvastatin (12 per cent growth), Amlodipine + Telmisartan (15 per cent growth) and Olmesartan (11 per cent growth). Telmisartan which recently came under price control reflected a -6 per cent growth for the month.
Gastrointestinals continued to be the third largest therapy area for the month garnering a revenue of Rs 988 crores with a growth of 5 per cent. Proton Pump Inhibitors (PPIs) and their combination with Domperidone contributed about 20 per cent of the overall therapy area value, growth however was subdued for most molecule classes. Digestive enzymes, Pantoprazole and Lactulose were the only molecules among the top 10 which reflected a double digit growth of 10 per cent, 11 per cent and 22 per cent respectively. Gastrointestinals as a therapy area has leveraged all three levers of growth with volumes, new introductions and price contributing to about 30 per cent of growth for the therapy area.
Anti – diabetics replaced respiratory to be the fourth largest therapy area in IPM for the month of October 2016 clocking a growth of 15 per cent for the month. Dipeptidyl peptidase-4 (DPP4) inhibitors was the largest molecule category and registered a growth of 26 per cent driven by Januvia, Janumet, Istamet and a plethora of brands in the Teneligliptin space. Top five molecules which contribute 70 per cent of the total therapy area reflected an average growth upward of 23 per cent. On a MAT basis, 54 per cent of growth in the anti-diabetics space was contributed by new introductions primarily in Teneligliptin.
Dermatology was the fastest growing therapy area registering a growth of 16 per cent Same Period Last Year (SPLY) with a value of Rs 699 crores. With resistance emerging as a major concern, anti-fungals continued to reflect a good pick up driven by top molecules like Itraconazole, Terbinafine and Clortimazole growing at 132 per cent, 32 per cent and 14 per cent respectively. Emollients continued to be the largest category within dermatology reflecting a 21 per cent growth for the month.
Neurology reflected a slowdown for the month with a 7 per cent growth. Levetiracetam continued to be the largest molecule in the space clocking a value of Rs 41 crores with a 10 per cent growth for the month vis-à-vis 20 per cent in the previous month. Escitalopram which reflected consistent growth through the year reflected de-growth to the tune of -0.7 per cent. Escitalopram combination with Clonazepam, however, continued to reflect high growth of 11 per cent consistent with the trend throughout the year.
In terms of New Introductions, Glenmark had the highest number of new introductions with four new introductions, among the top 25 new introductions in the industry, followed by Macleods and Handard with three each, Abbott, JandJ and IPCA with two new introductions.
Global (September 2016)
The global pharma market is valued at $ 1040 billion growing at 3.1 per cent. The US continues to dominate the market with 42 per cent market share with growth of 7.1 per cent.
Amongst the top market, India is ranked 9th in the month of September 2016 and growing at 9.2 per cent. Indian companies hold 3.9 per cent share in the global market and growing faster than the global market. Amongst the top five Indian companies, Lupin and Cipla are in double digit growth rate while Sun Pharma is growing in single digit; DRL and Zydus with negative growth rate.
(QuintilesIMS is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry)