Hospital Sector - IPM growth accelerates in Dec`20 after a subdued Nov`20 - Motilal Oswal
IPM growth accelerates in Dec’20 after a subdued Nov’20
* IPM growth increased to 8.5% YoY in Dec’20 v/s. 1% YoY in Nov’20.
* Gastro/Cardiac/VMN therapies exhibited a YoY growth of 16.2%/14.9%/14%. Anti-Infectives therapy is back on the growth path, with 5.2% YoY growth in Dec’20 v/s flat sales YoY in Nov’20.
* Respiratory sales remained in a downtrend with 8.7% YoY decline in Dec’20.
* NLEM (~17% of IPM) grew 6.3%% YoY. Non-NLEM (~83% of IPM) grew at 9%.
* On a MAT basis, industry growth came in at 3.1% YoY
Prices aided overall growth for the quarter-ending Dec’20
* For the quarter-ending Dec’20, YoY growth was 6.4%. Price/new product (NP) growth of 4.9%/3.4% YoY was offset to some extent by a 1.9% dip in volumes.
* NLEM (~17% of IPM) grew 3.6% YoY, while Non-NLEM (~83% of IPM) grew 7%.
Merck, JB Chemicals, Ajanta, Eris Lifesciences, and Biocon outperform
* In Dec’20, Merck India (+27.3% YoY), JB Chemicals (+22.4% YoY), Ajanta Pharma (+18.8% YoY), Eris Lifesciences (+18.3% YoY), and Biocon (+18.1% YoY) delivered robust performances.
* Ajanta Pharma grew on strong offtake in Pain/Cardiac therapies (~50% of therapy mix), which grew 33.3%/28.7% YoY.
* Biocon witnessed strong growth in its Anti-Infective (+107% YoY) and AntiNeoplastic (+67.3%) segments.
* Ipca Laboratories posted good traction in Pain/Analgesics (+32.7% YoY) and Gastro (27.4%) segments.
* Alembic Pharma and Dr. Reddy’s Laboratories posted lower-than-industry growth in Dec’20 (1.2%/6.2% YoY) v/s -0.8%/0.3% in Nov’20.
* On a MAT basis, JB Chemicals/Torrent Pharmaceuticals reported the highest price growth (+10.1%/7.3% YoY). Glenmark Pharmaceuticals saw the highest growth in new launches (+14.7% YoY).
Cardiac, Anti-Diabetic and VMN drive overall sales growth on a MAT basis
* Chronic therapies saw strong growth with Cardiac/Anti-diabetic/VMN growing at 13.4%/7.8%/6.6% YoY for MAT ending Dec’20.
* Gynecology/Pain/Anti-infective sales declined 3.5%/2.8%/2% YoY impacting overall growth to some extent.
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