High base effect and price revisions take toll on IPM growth
Indian Pharma Market – Monthly checkup
* The Indian Pharmaceutical Market (IPM) reported sub-par growth of c3% YoY to Rs.90.3bn for the month of Feb’17. A high base YoY as well as continuing pricing interventions by the NPPA continue to ensure monthly growth remains low.
* On moving annual total (MAT) basis IPM grew 9.2% YoY to Rs1,134bn in Feb’17 as against growth of 15.1% YoY in Feb’16 and of 12.8% YoY in Feb’15.Within the key therapies Derma has reported growth of 14.6% YoY and Anti-diabetic grew by 14.9% YoY in Feb 2017.
* Amongst the domestic companies Lupin (LPC) recorded the strongest growth at 8.3% while Cadila (CDH) and Dr Reddys (DRRD) were weakest at -1.7% and -2.5% respectively. Amongst MNC’s Pfizer (PFIZ) continues to be a laggard.
February 2017: Domestic market grew by 3% YoY (as per IMS)
* IPM reported sales of Rs.90.3bn in Feb’17 which is a growth of 3% YoY as against growth of 7% YoY in Jan’16 and 2.7% YoY in Dec’16.
* LPC has been consistently shown growth over the past three months and for the month of February 2017 it recorded a growth of 8% YoY whereas PFIZ has shown down trend over the past three months and in February 2017, it recorded a negative growth of 9% YoY.
* Emkay coverage companies exhibited growth of 4% YoY in Feb’ 17, higher compared to the overall IPM growth of 3% YoY. Our coverage universe growth rate was of 9% YoY in Jan’ 17 and 4% YoY in Dec’ 16.
Leaders and Laggards
* Companies: Within our coverage companies LPC (8.3% YoY), SUNP (6.5% YoY), GNP (6.2% YoY), CIPLA (5.7% YoY), IPCA (4.3% YoY) and TRP (3.9% YoY) outperformed overall IPM growth for the month whereas CDH (-1.7% YoY) and DRRD (-2.5% YoY) underperformed IPM growth. Amongst the other listed companies ALKEM reported growth of 1.2% YoY which is lower than the overall IPM growth. In the MNC space, BOOT (2.9% YoY), GLXO (2.9% YoY), SANL (0.8% YoY), HCBA (2.5% YoY) and PFIZ (-9.4% YoY) underperformed overall IPM growth for the month and lagged in the industry growth.
* Therapies: Antivirals (19.4%), Anti-diabetic (14.9%), Derma (14.6%), Urology (11.6%), Ophthal (8.6%) and Gastro Intestinal (4.4%) exhibited strong growth on YoY basis in Feb 2017 whereas Respiratory (-0.1% YoY), Anti-infective (-7.4% YoY) and Hormones (-6.1% YoY) were unable to match the industry growth rate.
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