Indian pharma market contracts after 17 Months in Feb

India’s pharmaceutical market contracted after 17 months as volumes fell across therapies.

The industry’s revenue declined 0.2% over a year earlier in February, India Ratings & Research Pvt. said, citing the data released by All Indian Origin Chemists & Distributors. That compares with a 13.9% rise in January and 1.1% in February last year.

Volumes declined 7.3% year-on-year but were partially offset by 5.1% and 2% increase in price and new product launches, respectively, the ratings agency said.

“Growth in February was lower than expectations,” Krishnanath Munde, associate director at India Ratings, told BloombergQuint. “This was mainly due to a decline in Covid-related revenue and overall volume decline across all therapies, except pain management.” Besides, the month also suffers from “seasonal impact” and is characterised by lower volumes historically, he said.

India Ratings, citing AIOCD data, said growth in acute as well as chronic therapies remained flat. A fall in sales of anti-infectives and gastro weighed on the acute segment, Munde said.

• Chronic therapies for long-term ailments such as cardiac and diabetes have a 35% share in the Indian pharma market.
• The sub-chronic segment has a market share of 21%.
• The acute segment, including gastro and anti-infectives, has a share of 44%.

Bitter Pill
Indian pharma market’s monthly value growth year-on-year (%)

Key Highlights

• Sales of only respiratory, pain and neuro/central nervous system therapies rose in February. Respiratory grew 12.9%, while pain and analgesics was up 3.8% year-on-year. CNS grew 1.9%.
• Sales of anti-infectives and derma fell the most—3.9% and 6.6%, respectively, over the year earlier.

MAT Performance
The moving annual total, or 12-month rolling sales, of overall pharmaceutical products rose 15.7% in February, said India Ratings.

That, according to Munde, is “healthy”.

Leading Pharma Therapies
Growth in February 2022

Company Performance
India Ratings, citing AIOCD data, said among the listed pharmaceutical peers:

• AstraZeneca Pharma India Ltd. registered the highest year-on-year growth of around 24%, followed by Ipca Laboratories Ltd. and Torrent Pharmaceuticals Ltd.
• Sun Pharmaceutical Industries Ltd., Eris Lifesciences Ltd., Indoco Remedies Ltd. and Ajanta Pharma Ltd. have also outperformed the pharma market during the reported month.
• Sales of JB Chemicals & Pharmaceuticals Ltd. saw the worst decline of 17.4%, followed by Novartis India Ltd., Glenmark Pharmaceuticals Ltd. and Natco Pharma Ltd.
• All other listed drugmakers registered single-digit decline in sales.

Bloomberg Quint