Pharma market posts 14 per cent growth in November 2013: IMS

The pharmaceutical market was reported at Rs 6763 crores for the month of November 2013, with a growth of 13.8 per cent.

MAT market growth for the industry continued to be below the 10 per cent mark, for the third successive month, in November. However, the higher growth in November has pushed up the figure marginally.

IMS Health view point

November 2013
Company Rank
RS Crore
% Growth (SPLY)
%Contribution
Incremental Value Added Rs. Crore
IPM
6,763
14
100
820
TOP 10
2,761
12
41
287
11-30
2,319
14
34
276
31-100
1,343
23
20
247
>100
341
3
5
11
Source: IMS Health TSA, November 2013.

The pharma market has remained almost static for the past five months, moving within a narrow range of Rs 6700-6900 crores. After the dip in growth during the months of August-September following the DPCO 2013 notification and implementation, the market has seen a steady improvement in growth, as it grappled with this new policy and gradually stabilised. While some challenges remain (particularly trade margin issues), IMS Health sees an improving trend in this segment.

NLEM SEGMENT GROWTH April – November 2013

The non-NLEM segment which contributes to ~80 per cent of the market has grown at a healthy rate of 15 per cent for the month of November.

 
Apr 13
May 13
June 13
July 13
Aug 13
Sep 13
Oct 13
Nov 13
  • NLEM SEGMENT GROWTH%
8.0
-1.6
0.1
1.4
-8.7
-9.0
-10.7
-4.0

Seasonal factor has also contributed to the strong growth in November. Therapies which are closely linked to winter related ailments, have posted strong double digit growths (respiratory +18.6 per cent, anti-infectives +10.9 per cent, and pain/analgesics+14.1 per cent).

Source: IMS Health TSA, November 2013

After clocking a CAGR of 15 per cent during the period 2008-12, the market has slowed progressively, and it is expected to register a single digit growth ranging between eight per cent to nine per cent in 2013. Price control measures (DPCO 2013 notification in mid 2013) and the uncertainty surrounding its implementation both in the trade as well as at the company level, combined with the overall slump in economy have contributed to a large extent to this slowdown.

2013 Market growth trend

For the period MAT November 2013, the pharma market was reported at Rs 77,834 crores, with a growth of 9.2 per cent, over the same period last year.

Nove’ 13 ranking
Corporations
Month
Moving annual total
Mat
Mon
 
Val Crs.
MS %
Val Gr%
Val Crs.
MS%
Val Gr%
    TOTAL MARKET
6,763
100.0
13.8
77,834
100.0
9.2
1
1
ABBOTT
445
6.6
5.3
5,238
6.7
3.4
2
2
CIPLA
343
5.1
14.5
3,785
4.9
6.6
3
3
SUN
317
4.7
1.8
3,590
4.6
18.1
4
4
RANBAXY
271
4.0
8.6
3,069
3.9
2.5
5
5
ZYDUS CADILA
267
3.9
11.3
3,038
3.9
6.1
7
6
ALKEM
248
3.7
29.5
2,670
3.4
12.7
6
7
GLAXOSMITHKLINE
237
3.5
-5.8
2,919
3.8
-2.8
8
8
MANKIND
229
3.4
18.8
2,557
3.3
5.0
10
9
MACLEODS PHARMA
208
3.1
26.4
2,226
2.9
14.3
9
10
PFIZER
195
2.9
-0.9
2,435
3.1
5.5
Source: IMS Health TSA, November 2013.

For the month of November 2013, Alkem was the fastest growing corporations among the Top 10, followed by Macleods Pharma, Sun Pharma and Mankind. Glaxosmithkline registered the highest growth decline among the Top 10 corporations, impacted primarily by the price reduction in its portfolio, falling under the NLEM notified list; Pfizer was the only other corporation among the Top 10, with a decline in growth for the month.

NOV’13
Therapy supergroup
Month
Moving annual total
Mat
Mon
Val Crs.
MS%
Val. G%
Val Crs.
MS%
Val gr%
    IPM
6763
100.00%
13.8%
77834
100.0%
9.2
1
1
Anti-infectives
1068
15.8%
10.9%
11866
15.2%
0.2
2
2
Cardiac Drugs
766
11.3%
8.9%
9198
11.8%
11.4
3
3
Gastro Intestinals
652
9.6%
13.8%
8159
10.5%
9.8
4
5
Respiratory Drugs
650
9.6%
18.6%
6156
7.9%
9.0
5
4
Pain / Analgesics
553
8.2%
14.1%
6338
8.1%
8.7
6
7
Anti Diabetics
503
7.4%
19.5%
5666
7.3%
18.9
7
6
Vitamins / Minerals / Nutrients
494
7.3%
13.4%
6005
7.7%
8.8
9
9
Dermatologicals
422
6.2%
23.6%
4549
5.8%
16.4
8
8
Neuro / CNS Drugs
384
5.7%
8.0%
4611
5.9%
9.5
10
10
Gynaecologicals
346
5.1%
12.7%
4307
5.5%
7.1
Source: IMS Health TSA, November 2013.

Among the Top 10, Glaxosmithkline climbed up three ranks and Ranbaxy climbed one rank, in the month of November 2013, as compared to previous month; ranking of Zydus, Mankind, Macleods and Pfizer slipped by one rank for the month. Rankings of other corporations remained unchanged. A look at company growths segmented by rankings reveals that the mid-sized organisations as a whole (ranked 31-100) have registered the highest growth of 23 per cent; companies ranked between 11-100 and contributing ~54 per cent of the industry, have grown faster than the market. The Top 10 companies – though growing below the market growth, top contribution of incremental sales in absolute terms (Rs 287 crores).

Therapy
November 2013
Value Rs crore
Contribution%
Growth %
Total Market
6763
100
13.8
Acute
4782
71
14.3
Chronic
1981
29
12.5
Source: IMS Health TSA, November 2013.

For the month, growth of local companies outstripped that of MNCs; after posting a decline in October for the first time in 2013, growth of MNCs have shown a marginal improvement in November.

Monthly growth trends Industry vs Therapies

For the month of November 2013, dermatological, anti diabetics and respiratory therapies have posted the highest growths.

2013: Industry growth trend by company type

Seasonal swing during the month of November has pushed sales of acute therapies which contribute to ~70 per cent of the market, outperforming growth of chronic therapies (which continued to grow at healthy double digit levels).

 
Jan 13
Feb 13
Mar 13
Apr 13
May 13
June 13
July 13
Aug 13
Sep 13
Oct 13
Nov 13
  • Indian
12.0
9.2
7.2
15.8
7.5
10.2
15.3
5.7
2.0
7.9
17.3
  • MNC
10.1
6.7
3.4
12.3
5.4
5.5
10.1
2.8
1.3
-1.6
5.3
Source: IMS Health TSA, November 2013.

As seen above, while chronic therapies have continued to post consistent healthy growths throughout 2013, it is the fluctuations in acute segment (seasonal / DPCO related) that have impacted overall market growth.

NOV’13 Ranking
Brands
Month
Moving annual total
Mat
Mon
Val Crs.
MS%
Val Gr%
Val Crs.
MS%
Val Gr%
    Total Market
6,763
100.00
13.8
77,834
100.00
9.2
1
1
COREX
30.3
0.45
4.1
299.7
0.39
8.3
8
2
VOUNI
25.1
0.37
41.1
218.4
0.28
19.0
6
3
MONOCEF
22.2
0.33
24.3
244.3
0.31
6.0
7
4
REVITAL
21.9
0.32
82.5
233.2
0.30
33.8
13
5
CLAVAM
21.5
0.32
40.8
197.4
0.25
16.7
2
6
PHENSEDYL COUGH
21.1
0.31
-14.1
293.1
0.38
12.0
4
7
HUMAN MIXTRAD30 / 70
20.1
0.30
-8.6
257.4
0.33
-1.0
3
8
AUGMENTIN
20.0
0.30
-18.4
269.7
0.35
-7.4
11
9
GLYCOMET-GP
19.8
0.29
51.8
210.6
0.27
60.1
5
10
VOVERAN
18.2
0.27
-13.3
247.6
0.32
0.2
Source: IMS Health TSA, November 2013.
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