Healthcare Sector Update - IPM growth normalizes to 13.7% YoY in Jul`21, with reduced COVID-19 cases By Motilal Oswal
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IPM growth normalizes to 13.7% YoY in Jul’21, with reduced COVID-19 cases
* IPM growth was 13.7% YoY in Jul’21 v/s 14.1% YoY in Jun’21.
* Anti-Infectives/Analgesics/Respiratory exhibited a growth of 30%/24.1%/22.8% YoY.
* Respiratory sales were steady YoY in Jul’21 (23.3% YoY growth in Jun’21) as well.
* On a MAT basis, industry growth stood at 12.8% YoY.
For the quarter-ending Jul’21: Volumes/prices/NP drive IPM growth
* For the quarter-ending Jul’21, YoY growth was 24.3%.
* Prices/new products grew 6.1%/5.4% YoY, boosted by a 12.8% volume increase
Wockhardt, FDC, Indoco Remedies, Ipca, Mankind, and Ajanta outperform
* Among the top 30 corporates, Wockhardt (+45.6% YoY), FDC (+30.3 % YoY), Indoco Remedies (+26.6 YoY), Ipca Laboratories (+25.4% YoY), Mankind Pharma (+23.6% YoY), and Ajanta Pharma (23% YoY) delivered better than IPM growth. With a reduction in the number of COVID-19 cases, Glenmark Pharmaceuticals’ sales declined by 14.4% YoY in Jul’21.
* Ajanta grew on the back of Ophthalmic (~22% of sales), which grew 32% YoY.
* Ipca grew on the back of strong offtake in Pain (~32% of sales), which grew 33% YoY, driven by the Zerodol product franchise.
* GlaxoSmithKline Pharmaceuticals and Alembic Pharmaceuticals showed lower than industry growth in Jul’21 (6.1%/8.4% YoY) v/s +8.5%/+9% YoY in Jun’21.
* On a MAT basis, Merck India/Ajanta/Ipca/Alkem reported the highest price growth (up 15%/10.2%/12%/8.4% YoY). Glenmark saw the highest growth in new launches (+31% YoY).
On a MAT basis, VMN, Anti-Infectives, Gastrointestinal, and Cardiac drove YoY growth in Jul’21
* On a MAT basis, industry growth stood at 12.8% YoY.
* VMN/Anti-Infectives/Gastrointestinal grew 21.5%/21.3%/18% YoY.
* Anti-Malarial therapy sales declined by 8.3% YoY, impacting overall growth.
* While Respiratory posted strong YoY growth in Apr’21, May’21, Jun’21, and Jul’21, it dragged growth YoY on a MAT basis due to the previously reported decline.
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