Published on 9/03/2021 9:40:14 AM | Source: Motilal Oswal Financial Services Ltd

Healthcare Sector Update - IPM growth moderates further in Feb`21 By Motilal Oswal

Posted in Broking Firm Views - Sector Report| #Sector Report #Motilal Oswal Financial Services Ltd

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IPM growth moderates further in Feb’21

* IPM growth moderated further to 1.1% YoY in Feb’21 v/s 4.5% YoY in Jan’21 (12.1% in Feb’20).

* The Gastro, Derma, and VMN therapies exhibited growth of 9.9% YoY, 9.6% YoY, and 8.6% YoY, respectively. The Anti-Infective therapy declined 11.3% YoY vis-àvis decline of 2.7% YoY in Jan’21.

* Respiratory sales continued on the downtrend with 20.3% YoY decline in Feb’21.

* NLEM (~16% of IPM) declined 3% YoY, while non-NLEM (~84% of IPM) grew 2% YoY.

* On a MAT basis, industry growth came in at 1.9% YoY.


Price/NP growth offsets volume decline for 3M ended Feb’21

* For the 3M ended Feb’21, YoY growth stood at 4.7% YoY. YoY price growth of 4.9% and NP growth of 2.6% was offset, to some extent, by a YoY drop of 2.8% in volumes.

* For the 3M ended Feb’21, NLEM (~17% of IPM) grew 1.4% YoY and non-NLEM (~83% of IPM) was up 5.4% YoY.


Merck, Wockhardt, Ajanta, JB Chemicals, Biocon, and Ipca outperform

* In Feb’21, Merck India (+22.7% YoY), Wockhardt (+20% YoY), Ajanta Pharma (+15.7% YoY), JB Chemicals (+11.7% YoY), Biocon (+10% YoY), and Ipca (+9.7% YoY) delivered robust performances.

* Ajanta grew on a strong offtake in the Cardiac and Pain therapies (~50% of the therapy mix) of 20% and 22.7% YoY, respectively.

* Biocon’s growth was driven by Anti-Infectsives/Anti-Neoplasts (+75%/+22.6% YoY).

* Ipca posted good traction in the Pain/Analgesics (+20.5% YoY) and Gastro (22.2% YoY) segments.

* Lupin / Alembic / Dr Reddy’s reported below industry growth in Feb’21 (+0.5%/- 2.8%/-7.9% YoY) v/s +4.6%/+4.3/-3.6% in Jan’21.

* On a MAT basis, JB Chemicals / Merck / Torrent reported the highest price growth (+10.4%/7.5%/7% YoY). Glenmark saw the highest growth in new launches (+14.9% YoY).


Cardiac, Anti-Diabetic, and VMN drive overall sales growth on a MAT basis

* Chronic therapies saw strong growth – Cardiac / Anti-diabetic / VMN therapies exhibited growth of 12.5%/7.1%/6.7% YoY.

* Respiratory/Pain/Gynaec sales declined 5.4%/3.5%/3.2 YoY, impacting overall growth.




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