The industry witnessed a drastic drop in the number of new introductions launched in the month of December post de-monetisation
The Indian Pharmaceutical Market (IPM) was valued at Rs 9,321 crores in the month of December 2016. The Government of India’s well intentioned move to de-monetise currency notes of Rs 500 and Rs 1000 disrupted the market to a certain extent rendering the growth in December to a mere three per cent over same period last year (SPLY).
On a MAT basis, the industry was valued at Rs 112,570 crores and reflected 11 per cent growth with volumes contributing 31 per cent of this growth and new introductions playing an important role with 46 per cent contribution to the overall growth.
Growth across company slabs was sluggish for the month with top 10 companies reflecting a three per cent, 11-20 companies reflecting stagnancy and 21-30 companies reflecting three per cent growth respectively.
Among the top 20 companies, Lupin was the only company to reflect a double digit growth for the month (14 per cent) while Sun Pharma (eight per cent), Intas (four per cent), Torrent (eight per cent) and USV (eight per cent) were the only companies to reflect a growth higher than the IPM.
Domestic companies continued to dominate the market with a 78 per cent share in December 2016 with a growth of 2.8 per cent. MNCs on the other hand reflected a growth of 1.9 per cent for the month on a SPLY basis. Out of Abbott, GSK, Pfizer and Sanofi which contributed around 66 per cent of the overall MNC turnover in IPM, only Abbott reflected a growth while GSK, Pfizer and Sanofi reflected de-growths.
The demonetisation drive had lesser impact on chronic therapy areas with the category reflecting 7.6 per cent growth over SPLY. Cardiac therapy reflected a six per cent growth while anti-diabetics grew at 14 per cent on a month basis. Among acute therapy areas, anti-infectives de-grew at 12 per cent while gastrointestinals and respiratory reflected a growth of three per cent and minus two per cent respectively.
Cardiac replaced anti-infectives to be the largest therapy area for the month for the first time, clocking a revenue of Rs 1149 crores. Rosuvastatin (10 per cent), Telmisartan + HCT (16 per cent), Amlodipine + Telmisartan (19 per cent) were among the fastest growing cardiac molecules for the month while Atorvastatin (-14 per cent) and Telmisartan (-18 per cent) were top molecules which reflected de-growth.
IPM Overview
- IPM was valued at Rs 112,570 crores and the retail sector was valued at Rs 94,528 crores as of MAT Dec 2016
- TSA has grown by 11 per cent at MAT and three per cent at month. Retail sector has grown by 10 per cent at MAT and 3% at month
Anti-infectives slipped to the number two spot for the month with top five molecules reflecting de-growth for the month. Amoxyclav solids (-8 per cent), Meropenem (-1 per cent), Ceftrixone injection (-27 per cent), Cefixime solids (-18 per cent) and Amoxyclav injection (-5 per cent) were among the top molecules reflecting de-growth.
Gastrointestinals continued to be the third largest therapy area for the month garnering a revenue of Rs 929 crores with a growth of three per cent over SPLY. Proton Pump Inhibitors (PPIs) and their combination with Domperidone contributed around 18 per cent of the overall therapy area value. While most molecules reflected robust growth over SPLY, average growth of the top 10 molecules in gastrointestinals over SPLY was to the tune of seven per cent. Ranitidine solids (-3 per cent), Omeprazole + Domperidone (-5 per cent) and Antacid + Antiflatulant liquids (-5 per cent) were among the top molecules which reflected de-growth.
Indian/ MNC Trends
- Indian companies registered growth of 2.8 per cent during the month and continue to dominate IPM in value terms
- Indian companies constitutes around 78 per cent of IPM during the month and MAT basis
Anti-diabetics maintained its fourth position in IPM for December 2016 and emerged as the therapy area to reflect second highest growth on SPLY basis clocking a growth of 14 per cent. Dipeptidyl peptidase-4 (DPP4) inhibitors was the largest drug category in the anti-diabetic space with Teneligliptin contributing 19 per cent of the category by value. Top five categories in the anti-diabetic space which contribute 66 per cent to overall therapy area value reflected a growth in excess of 13 per cent with Glimiperide + Metformin + Voglibose combination and Glimiperide + Metformin combination reflecting 43 per cent and 25 per cent growth respectively.
Dermatology, one of the fastest growing therapy areas in IPM registered the highest growth for the month, clocking growth at 15 per cent SPLY with a value of Rs 704 crores. Anti-fungals, Itraconazole (116 per cent) and Terbinafine (25 per cent) reflected highest growth among top categories with emollients continuing to dominate the therapy area.
Acute/ Chronic Trends
- Acute therapies continue to dominate the market constituting 64 per cent of the IPM
- The top TC4 in the IPM is DPP4 Inhibitor & Comb with a value growth of 15 per cent
Neurology reflected a seven 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 14 per cent growth for the month. Sodium Valproate solids reflected a slowdown in growth with only four per cent for the month, down from 14 per cent reflected in November 2016.
In terms of new introductions, the industry witnessed a drastic drop in number of new introductions launched in the month of December post de-monetisation.
Global (November 2016)
The global pharma market is valued at $1057 billion growing at 4.5 per cent. The US continues to dominate the market with 42 per cent market share with growth of 5.8 per cent.
Amongst the top market, India has moved three positions down and is ranked 10th in November 2016. The markets which have shown value growth more than 10 per cent in the month of November globally is Venezuela, Australia and Brazil. Critical observation to be made in the month of November is, four of the Top EU5 markets have de-grown.
Indian companies hold 1.5 per cent share in the global market and growing faster than the global market as per November 2016 data. For the month of November 2016, the IPM showed growth and the Top 10 companies showed positive growth just leaving aside GSK. Sun Pharma, Abbott and Mankind Pharma showed double digit growth in November 2016.
(QuintilesIMS is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry)
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