Anti-infective was the largest therapy area for the month with a revenue of Rs 1469 crores
The Indian Pharmaceutical Market (IPM) was valued at Rs 10,025 crores in the month of July 2016 clocking a 14.7 per cent growth over same period last year (SPLY). This was the first time ever the market crossed the Rs 10,000-crore mark in a single month. The robust performance was aided by a strong monsoon witnessed across the country. On a MAT July basis, the industry was valued at Rs 108,362 crores and reflected a 13 per cent growth with volumes contributing to 37 per cent of the 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 July 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 has witnessed consolidation over the last few years, the industry however remains fragmented with top 10 players contributing 43 per cent of overall sales and reflecting a robust 17 per cent growth for the month. Among top 10 companies, Mankind, Alkem, GSK, Macleods & Lupin registered a growth higher than IPM.
Companies ranked 11-20 contributed 21 per cent of total revenues for the month reflecting a growth of 15 per cent aided by strong growth posted by Aristo (34 per cent), Glenmark (22 per cent), Alembic (17 per cent) and Micro (16 per cent).
Amongst top 25 companies, GSK reflected a robust performance for the month climbing back to sixth rank. Aristo, Emcure and Glenmark gained two ranks each and moved to 12th, 14th and 16th respectively while Pfizer, Alembic, Ipca gained one rank each and moved to 10th, 20th & 21st rank respectively in comparison to previous month.
Domestic companies continued to dominate the market with a 78 per cent share in July 2016 with a growth of 16.3 per cent. MNCs reflected an improvement in growth, clocking a 9.3 per cent growth vis-à-vis a 5.3 per cent in June 2016. Large MNCs like Abbott, GSK and Pfizer who contribute to ~56 per cent of the total MNC share in the month reflected a growth of 10 per cent, 18 per cent and 7 per cent respectively which was a marked improvement over previous months.
Acute therapies continued to dominate the IPM with a 68 per cent contribution to the total market. After a gap of five months, acute therapy areas (16.2 per cent) have outpaced chronic therapy areas (11.9 per cent) in terms of growth with anti-infectives and cough preparations spearheading growth for acute therapies.
Anti-infective was the largest therapy area for the month with a revenue of Rs 1469 crores reflecting a 29 per cent growth on the back of a good monsoon witnessed by the country. This was an impressive performance considering 14 per cent of the portfolio impacted by the FDC ban comprised anti-infectives while it was also one of the largest therapy to be affected by the NLEM notification. Amoxyclav solids and liquids reflected a strong growth of 32 per cent and 47 per cent respectively while Cefpodoxime solids and Ceftriaxone injectables were among the fastest growing anti – infectives registering a 58 per cent and 43 per cent growth for the month respectively.
Gastrointestinals surpassed cardiac therapy to be the second largest therapy area for the month garnering a revenue of Rs 1117 crores with a growth of 11 per cent. PPIs and their combination with Domperidone reflected strong double digit growth. Omeprazole + Domperidone and ranitidine were the fastest growing molecules among top 10 with a growth of 23 per cent and 19 per cent respectively. Digestive enzymatic liquids reflected a 17 per cent growth driven primarily by the east zone.
Cardiac was the third largest therapy area for the month of July 2016 clocking a revenue of Rs 1115 crores growing at eight per cent driven by Rosuvastatin (14 per cent growth), Amlodipine + Telmisartan (18 per cent growth), Telmisartan being affected by NLEM reflected a growth of -3 per cent for the month while largest statin Atorvastatin reflected a growth of -5 per cent.
Respiratory, though the seventh largest therapy area for the month, was the fastest growing clocking a growth of 35 per cent. Cough preparations, Levosalbutamol combinations and cold preparations (liquids and solids) were among the fastest growing categories in the respiratory space reflecting growth of 70 per cent, 152 per cent, 46 per cent and 47 per cent respectively.
Among chronic therapy areas, anti-diabetic and neurology were the fastest growing therapy areas, growing at 16 per cent and 10 per cent for the month respectively. DPP4 inhibitors and Glim + Met formulations spearheaded growth for the anti-diabetic market owing to rising prevalence, diagnostic and treatment rates of diabetes. In the neurology space, Levetiracetam continued to be the fastest growing molecule in neuro psychiatry for the month clocking a value of Rs 42 crores with a growth of 25 per cent in July 2016. Escitalopram plain and its combination with Clonazepam found place among the fastest growing CNS molecules for the month with a growth of 13 per cent and 15 per cent respectively.
Brand building efforts across top companies continued to be evident with seven out of top 10 companies driving robust double digit growth for their portfolio falling under top 300 brands with only Sanofi, Zydus and Pfizer reflecting single digit growth. Calpol propelled GSK performance for the month while Aristo was driven by Monocef.
(IMS Health is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry).