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IPM growth moderates in Jan’21 after a strong Dec’20

* IPM growth moderated to 4.5% YoY in Jan’21 v/s 8.5% in Dec’20 (7.6% in Jan’20), led by price/new launches of ~4.9%/2.4%. This was offset to some extent by the volume decline of 2.9% YoY in Jan’21.

* Gastro/VMN/Cardiac therapies exhibited a YoY growth of 14.3%/12.2%/8.8%. Anti-Infectives therapy declined marginally (2.7% YoY) v/s 5% growth in Dec’20.

* Respiratory sales remained in a downtrend with a 14.1% YoY decline in Jan’21.

* NLEM (~16% of IPM) grew 1.8% YoY, while Non-NLEM (~84%) fell 3.6% in Jan’21.

* On a MAT basis, industry growth stood at 2.8% YoY.

Price/NP growth offsets volume decline for the quarter-ending Jan’21

* For the quarter ending Jan’21, YoY growth was 4.6%. YoY price/NP growth of 4.9%/2.9% was offset to some extent by the 3.2% dip in volumes

* For the quarter ending Jan’21, NLEM (~17% of IPM) grew 1.6% YoY, while NonNLEM (~83%) grew 5.3%

Merck, Wockhardt, Ajanta, JB Chemicals and Ipca outperformed

* In Jan’21, Merck India (+23% YoY), Wockardt (+21.3% YoY), Ajanta Pharma (+16% YoY), JB Chemicals (+13.5% YoY), and Ipca Laboratories (+12.5% YoY) delivered robust performances.

* Ajanta grew on strong offtake in Cardiac/Pain therapies (~50% of therapy mix), up 27%/27.3% YoY. ◼ Ipca posted good traction in Pain/Analgesics (+23.8% YoY) and Gastro (23.4% YoY) segments.

* Alembic, Biocon and Dr. Reddy’s Laboratories showed lower than industry growth in Jan’21 (-3.6%/+1.2%/+4.3% YoY).

* On a MAT basis, JB Chemicals/Merck/Torrent Pharmaceuticals reported highest price growth (+10.2%/7.5%/7.2% YoY). Glenmark Pharmaceuticals saw the highest growth in new launches (+14.8% YoY).

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