According to IMS Health, on a MAT June basis, the industry was valued at Rs 107,019 crores and reflected a growth of 13 per cent
The global pharmaceutical market in May 2016 was valued at $943 billion growing at two per cent. The US continues to dominate the market with 47 per cent market share at 10 per cent growth.
Amongst the top 15 market, India was ranked 11th and had grown at six per cent in the year ending in May 2016.
Indian companies hold 2.5 per cent share in the global market and growing faster than the global market. Amongst the top five Indian companies, Lupin and Aurobindo grew at 13 per cent and four per cent respectively for the year ending May 2016.
IPM in June 2016
Moving to our domestic market, the Indian Pharmaceutical Market (IPM) was valued at Rs 9162 crores in the month of June 2016 clocking a 9.6 per cent growth over the same period last year (SPLY). This was seen revival on track after a dip in growth was observed in earlier months of 2016 post the ban imposed on 344 FDCs by the Government of India which affected the buying patterns in the market. On a MAT June basis, the industry was valued at Rs 107,019 crores and reflected a 13 per cent growth.
The retail channel is the largest channel in IPM contributing 84 per cent of the overall sales and reflects a nine 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 June basis. It is expected that the hospital channel will continue to report robust growth rates due to rapid capacity expansion in this space.
IPM has witnessed some big ticket M&As over the past few years. Despite this consolidation, the industry remains fragmented with top 10 players contributing 43 per cent of overall sales and reflecting a robust 11 per cent growth for the month of June 2016. Companies ranked 11-20 contributed 21 per cent of total revenues for the month reflecting a growth of 10 per cent aided by strong growth posted by Wockhardt (23 per cent), Glenmark (19per cent), USV (18 per cent), Aristo (17 per cent) and Intas (16 per cent).
Among top 10 companies, Cipla, Mankind, Alkem, Macleods, Lupin and Intas have registered a growth higher than IPM while among 11-20 companies, DRL, Aristo, Emcure, USV, Glenmark reflect a growth lower than IPM for the month.
Among top 25 companies, Lupin, Sanofi and Unichem have gained one rank each and moved to seventh, 15th and 24th rank respectively in comparison to previous month.
Domestic companies continued to dominate the market with a 78 per cent share in June 2016 with a growth of 10.6 per cent. MNCs reflected a modest growth of 5.3 per cent as large MNCs like Abbott, GSK and Pfizer who contribute to 56 per cent of the total MNC share in the month reflected low growth of eight per cent, three per cent and minus four per cent respectively.
Acute therapies remained the pillar of IPM with a 66 per cent contribution to the total market for the month. Chronic therapy areas have outpaced acute therapies consistently in terms of growth at 10.7 per cent for the month vis-à-vis a nine per cent growth for acute therapy areas.
Anti-infective was the largest Therapy Area (TA) for the month with a revenue of Rs 1142 crores reflecting a nine per cent growth vis-à-vis a four per cent growth reflected in the month of May on the back of a good monsoon seen by the country. 15 per cent of the AI portfolio was impacted by the FDC ban while it was also one of the largest TAs to be affected by the NLEM notification. Amoxyclav solids and liquids reflected a strong growth of 22 per cent and 25 per cent respectively while Meropenem remained one of the fastest growing molecules with a 21 per cent growth for the month.
Cardiac was the second largest TA for the month of June 2016 clocking a revenue of Rs 1084 crores growing at seven per cent driven by Rosuvastatin (13 per cent growth), Amlodipine+ Telmisartan (11 per cent growth), Telmisartan being affected by NLEM reflected a modest growth of six per cent for the month while largest statin Atorvastatin reflected a growth of minus one per cent.
Gastrointestinal was the third largest TA in IPM garnering a revenue of Rs 1057 crores and a growth of nine per cent for the month. Ranitidine solids had a strong growth of 19 per cent driven by its 300 mg SKU for top companies, Domperidone combinations with PPIs like Omeprazole, Pantoprazole and Rabeprazole reflected consistent growth trends with 12 per cent, 10 per cent and eight per cent growth respectively.
Dermatology continued to reflect robust growth momentum with high NI activity in the Itraconazole space reflecting in a 180 per cent growth for the molecule in the month. Evergreen market of emollients and protectives grew at 16 per cent for the month while Clotrimazole reflected a strong growth of 20 per cent owing to a good monsoon season creating an environment for fungal infections.
Among chronic TAs, anti-diabetic and neurology were the fastest growing TAs, growing at 16 per cent and 11 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 was the largest and fastest growing molecule for the month clocking a value of Rs 40 crores with a growth of 25 per cent in June 2016. Escitalopram plain and its combination with Clonazepam found place among the fastest growing Central Nervous System (CNS) molecules for the month with a growth of 14 per cent and 13 per cent respectively.
With regulatory environment and new launch approvals getting more stringent over time, companies have focused on brand building. Top companies have driven higher growth with large brands with only Zydus, Sanofi, and Pfizer reflecting single digit growth/ de-growth for their portfolio which falls under the top 300 brands in the month of June 2016.
(Since the global data gets released at the end of the following month while India data is released three weeks prior to that, the report for global data is for the month of May and for India is June. IMS Health is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry).