Globally amongst the top market, India has moved a position up and is ranked ninth
The Indian Pharmaceutical Market (IPM) was valued at
Rs. 9893 crores in the month of April 2017. First time in last three years, IPM has recorded a very slow growth of six per cent in April 2017. Even MAT April 2017 has seen the slowest single digit growth of 9.04 per cent as compared to strong double digit growths over last couple of years.
While the industry witnesses a recent challenge of generic prescription regulation in India at prescriber level, GST has been making rounds at the distributor level. With the current level of clarity on GST implementation, there has been an overall slowdown in stockists purchases for the month of April 2017 which is assumed to be one of the reasons for an overall slow IPM growth for the month.
Top 10 companies continue to hold 43 per cent share indicating the fragmented nature of IPM. Whilst the Top 10 companies reflected a collective growth of seven per cent for the month, the next level of companies in the 11-20 and 21-30 bracket grew slower at four per cent and three per cent respectively. Seven of the top 10 companies grew faster than the market. Lupin with 15 per cent growth was the fastest growing company in the top 10 for the month.
Six of the top 11-20 companies reflected better growth than the market with Torrent and Glenmark growing at double digit while Pfizer (-12 per cent), Novartis (-6 per cent) and Cadila (-6 per cent) showed negative growth.
Though there is an overall slowdown in growths for the month, Top 10 brands of IPM valued at Rs. 326 crores have shown a strong 16 per cent growth over last year. Mixtard and Glycomet-GP continues to maintain at number one and two positions respectively. While Novomix and Augmentin have lost their rank from fifth and seventh position to sixth and tenth respectively, we see a good rank jump for Spasmo-Proxyvon to number three position owing to consistent 40 per cent+ growths since couple of months. Janumet is the fastest growing brand amongst top 10 brands of IPM for the month. We do see a subdued growths for the next rung of brands (Rank 11-20) at 0.2 per cent which has contributed to overall slowdown for the month. Amongst the next league, Glimestar-M, Duphaston, Lantus, Pan D, Betnovate, Ultracet and Gluconorm-G have shown phenomenal growths in April 2017.
Domestic players account for 78 per cent of the market in April 2017 and grew slightly better than the market with a growth of 6.9 per cent while MNCs reflected a very slow growth of 3.3 per cent for the month. However, the largest MNC, Abbott grew slightly better than the market for the month with a seven per cent growth while GSK reflected a double digit growth of 10 per cent. However, other top five companies like Pfizer and Novartis have recorded a high negative growths of (-12 per cent) and (6 per cent) respectively which is pulling down the overall growth for MNC companies.
While acute therapies continue to hold a massive share of IPM with a 64 per cent contribution to the total market, the chronic TAs grew at a comparatively higher pace than IPM at 8.7 per cent. However, in comparison to last year, growth rates for both the TAs have been slower with more impact seen for Chronic TA which grew at healthy 11.3 per cent in April 2016. The Top 5 therapy areas have contributed massive growths of 15.2 per cent with three therapeutic classes from anti-diabetic therapies crossing Rs. 500 crore mark and growing at a very healthy growth rate of 20.3 per cent in April 2017.
Cardiac therapy and GI constitute the largest market share in IPM occupying 12 per cent share each. Anti-diabetics and derma registered a growth of around 17 per cent and 14 per cent respectively for the same period last year. Respiratory and oncology market have de-grown by eight per cent and three per cent respectively, while rest of the therapies grew over previous month.
Cardiac therapy area, the number one therapy for the month, clocking a revenue of Rs. 1143 crores with a growth rate of 5.3 per cent was almost half as compared to previous year growth of 9.8 per cent. The top molecules of this segment, Atorvastatin and Telmisartan have reflected de-growth of -16 per cent and -4 per cent respectively due to impact of regulatory price reduction. However, Telmisartan recorded robust volume growth of 12.1 per cent for the month. Rosuvastatin continued to reflect strong value at 8.1 per cent but recorded a lesser volume growth of 3.4 per cent. The growth in cardiac therapy area was mainly pulled down by plain molecules which showed a combined growth of one per cent in comparison to combinations which grew at 12 per cent, especially Telmisartan and combination recording a growth of 17 per cent in April 2017.
Owing to subdued growths in last couple of months anti-infective therapy has slipped to number three slot for the month with a value of Rs. 1118.1 crores and -0.6 per cent growth rate, the only therapy area in top 10 to reflect a negative growth for the month. This de-growth is largely because of Ceftriaxine injectables (-15 per cent) and Cefixime oral solids (-9 per cent), Piperacillin + Tazobactam (-5 per cent) and Azithromycin oral solids (-6 per cent) amongst the Top 10.
Gastrointestinals moves to be the second largest therapy area for the month garnering a revenue of Rs. 1139 crores with a growth rate at par with IPM at 6.9 per cent. With 60 per cent contribution from combination molecules driving a higher growth of 8.2 per cent Pantoprazole + Domperidone has shown a very healthy 14 per cent growth for the month. Dicycloverine Hydrochloride + Paracetamol + Tramadol Hydrochloride also has shown a very impressive growth of 34.6 per cent amongst the top molecules.
Anti-diabetics continued to be the number four ranked therapy area in IPM for the month of April 2017 growing at 17.4 per cent over SPLY. DPP4 inhibitors remains at the top category in the anti-diabetic therapy area with Sitagliptin and combination contributing 33 per cent of the category by value. Vildagliptin and combination reflected de-growth in value (-2 per cent) as well as a negative volume growth (-10.3 per cent) for the month. Teneligliptin and combination has reflected a robust growth (113 per cent) as well as have a share of 21 per cent in the segment.
Dermatology, the second fastest growing therapy area in IPM clocked a growth of 14.4 per cent SPLY with a value of
Rs. 724.5 crores. Emollients continues to be the largest sub category with a 14.5 per cent growth while itraconazole remains to be the fastest growing molecule at 92 per cent growth for the month with major contribution from new introductions in this segment. Luliconazole amongst the newer entrants has made an entry amongst the Top 15 molecules in dermatology with 15 crore value for the month.
Neurology with a value of Rs. 606 crores reflected a six per cent growth for the month over SPLY, Levetiracetam continued to be the largest molecule in the space clocking a value of Rs. 44 crores with a 12 per cent growth for the month. Except Escitalopram and Clonazepam which reflects a negative growth for the month, all other molecules in Top 10 are collectively showing a healthy 11 per cent growth over last year. The highest growth of 27 per cent is witnessed for Pregabalin + Mecobalamin and other combination.
Global (March 2017)
The global pharma market is valued at $1007 billion de-growing at -3.6 per cent. The US continues to dominate the market with 42 per cent market share with growth of 27.3 per cent.
Amongst the top market, India has moved a position up and is ranked ninth. The only markets de-growing in the top markets are Spain and Russia; wherein Venezuela and China has shown more than 50 per cent growth.
(QuintilesIMS is a leading global information and technology
services company providing end-to-end solutions to the life sciences and healthcare industry)