IGI Logo

IPM sees a sharp spike in YoY growth in Mar’21 led by COVID-19 drugs

* IPM grew 10.3% YoY in Mar’21 v/s 1.1% in Feb’21 and 8.9% in Mar’20.

* VMNs/Gastro/Pain therapies exhibited a growth of 22.2%/21.6%/14.6% YoY. Anti-Infectives Therapy recovered, with 8.5% YoY growth compared to an 11% decline in Feb’21. Strong growth in these therapies is partly on account of higher offtake of COVID-19 related medicines on a YoY basis.

* Respiratory sales are on a downtrend, with a 15.1% YoY decline in Mar’21 as well.

* NLEM/non-NLEM (~17%/~83% of IPM) grew 4.3%/11.6% YoY.

* On a MAT basis, IPM growth stood at 2.1% YoY.

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

* For the quarter-ending Mar’21, YoY growth was 5.3%. Price/NP growth of 5%/2.7% was offset to some extent by a YoY dip of 2.4% in volumes.

* For the quarter-ending Mar’21, NLEM/non-NLEM (~17%/~83% of IPM) grew 0.7%/6.3% YoY.

Emcure, Glenmark, Biocon, and FDC were the outperformers in Mar’21

* In Mar’21, Emcure Pharmaceuticals (+32.6% YoY), Glenmark Pharmaceuticals (+23.2% YoY), Biocon (+20.1% YoY), and FDC (+18.5% YoY) delivered a robust performance.

* COVID-19 related medicines like VMNs in the case of Emcure/Alkem Laboratories/Sun Pharmaceutical Industries, Favipiravir in the case of Glenmark, and Remedesivir in the case of Cadila Healthcare/Cipla have partly aided growth in respective companies.

* Biocon’s growth was driven by Anti-Neoplastic/Anti-Infectives (+91.6%/80.8% YoY). Ajanta Pharma’s growth was led by Pain/Ophthalmology/Dermatology therapies (26.2% YoY/22.8% YoY/21.7% YoY). Ipca Laboratories posted good traction in Pain/Analgesics (+39% YoY) and Gastro (36% YoY) segments.

* GlaxoSmithKline Pharmaceuticals, Torrent Pharmaceuticals, Lupin, and Alembic Pharmaceuticals posted lower than industry growth in Mar’21 (9.1%/3.9%/3.8%/-4.1%) on a YoY basis.

* On a MAT basis, JB Chemicals & Pharmaceuticals/Merck India/Torrent reported the highest price growth (+9.7%/7.6%/6.8% YoY).

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

* Chronic therapies saw strong growth with Cardiac/VMN/Anti-Diabetic grew 11.2%/8.1%/5.5% YoY.

* Respiratory/Anti-Infectives/Pain therapy sales declined 8.7%/4.7%/2.7% YoY impacting overall growth.

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer