IPM growth momentum picks up
* According to total sales data from IMS, IPM grew 18.3% yoy in Aug’21 vs. 15.4% yoy in Jul’21, aided by improving traction in the non-Covid products portfolio. On a MAT basis, IPM grew 17.5%, driven by volume growth of 8.2%, new product growth of 5.3% and pricing growth of 4%.
* All major therapies, excluding Antiviral, maintained their growth trajectory, with Respiratory posting the highest growth at 50% yoy in Aug’21. Other Acute therapies such as Anti-infectives, Gastro, and Pain registered 17-33% growth. Recovery in acute therapies was driven by the low base effect of last year. Growth in Chronic therapies remained stable.
* Within our coverage, Dr. Reddy’s grew at the fastest pace at 26% yoy, followed by Ipca at 25%. Cipla, Lupin and Sun grew in the range of 13% and 19%. Cadila grew at the slowest pace at 13.3%. Other notable outperformers were Emcure (28%), Alkem (27%) and Macleods (25%).
* We expect domestic revenue growth for our coverage companies to be in the mid to high teens in FY22. However, IPM’s growth momentum is expected to moderate in the coming months due to the relatively stronger base of H2FY21.
SUNP (+18.5% yoy): Top-3 therapies – Neuro (+9.8%), Cardiac (+12.4%) and Gastro (+24.8%). Growth across major therapies was positive. Total volumes grew 7.1% yoy. Top-10 brands grew 6.9% yoy, Top 11-25 brands grew 17.2%, and the rest of the brands grew 22.5%.
CIPLA (+13.5% yoy): Top-3 therapies – Respiratory (+25.2%), Anti-infectives (+29.8%) and Cardiac (-2.9%). Antineoplast (-66.4%) and Derma (-2.5%) were the only major therapies to post a decline. Total volumes grew 17% yoy. Top-10 brands declined -1% yoy, Top 11-25 brands recorded 19.8% growth, and the rest of the brands grew 19.5%.
LPC (+16.4% yoy): Top-3 therapies – Cardiac (+9.2%), Anti-Diabetic (+6.4%) and Respiratory (+33.8%). All major therapies posted growth. Volume growth was 13.3% yoy. Top-10 brands grew 7.5% yoy, Top 11-25 brands posted 2.7% growth, and the rest of the brands grew 23.6%.
CDH (+13.3% yoy): Top-3 therapies – Respiratory (+40.9%), Anti-infectives (+29.9%) and Cardiac (+5.2%). VMN (-4.6%) and Antiviral (-78.6%) were the only major therapies to post a decline. Volumes grew 8.1%. Top-10 brands grew -0.4% yoy, Top 11-25 brands grew 17.3%, and the rest of the brands grew 17.7%.
DRRD (+26% yoy): Top-3 therapies – Gastro (+18.3%), Respiratory (+51.5%) and Cardiac (+4.9%). All other major therapies posted double-digit growth, except for Antiviral (-42%). Volume growth was strong at 19.5%. Top-10 brands posted 29.2% yoy growth, Top 11-25 brands grew 29%, while the rest of the brands grew 23%.
IPCA (+25.3% yoy): Top-3 therapies – Pain/Analgesic (+20.3%), Cardiac (-1.8%), and Antiinfectives (+47.5%). Apart from Cardiac, Antineoplast (-4.1%) was the only major therapy that saw a decline. Total volumes grew 16.7%. Top-10 brands fell 16.2% yoy, Top 11-25 brands grew 15%, and the rest of the brands grew 41.6%.
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