Healthcare Sector Update - COVID-19 boost to IPM sustains in May`21 as well By Motilal Oswal
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COVID-19 boost to IPM sustains in May’21 as well
* IPM growth was 47.8% YoY in May’21 v/s 51.5% YoY in Apr’21. Strict lockdowns in May’20 had impacted sales and production (8.9% YoY decline in May’20)
* Anti-Infectives/Respiratory/VMN exhibited a growth of 142%/87%/60% YoY.
* In addition to a low base of the past year, Anti-Infectives therapies grew sharply in May’21 due to high demand for COVID-19 drugs as well.
* Sales momentum in Respiratory strengthened further with 87% YoY growth in May’21 (50% YoY growth in Apr’21).
* On a MAT basis, industry growth came in at 10.8% YoY.
Volume/price/new introductions drive IPM growth in the quarter-ending May’21
* Growth in prices/new products at 6.4%/7.4% YoY was further boosted by a 21.5% YoY increase in volumes.
* For the quarter-ending May’21, growth was 35.2% YoY.
Glenmark, Aristo, Emcure, FDC, and Cipla outperform
* In May’21, Glenmark Pharmaceuticals (144% YoY), Aristo Pharmaceuticals Pvt (90.3% YoY), Emcure Pharmaceuticals (+85 % YoY), and Cipla (73.3% YoY), delivered robust growth in May’21.
* Glenmark grew on the back of strong offtake in Anti-Infectives (~32% of sales), which grew 11x YoY, driven by FabiFlu, which became the numero uno drug in IPM in Apr’21.
* Cipla’s growth was driven by Anti-Infectives, which grew 1.75x YoY. COVID-19 products such as Cipremi (Remdesivir) and Actemra (Tocilizumab) showed a strong performance for the second month in a row.
* Ajanta Pharma, Torrent Pharmaceuticals, Sun Pharmaceutical Industries, and GlaxoSmithKline Pharmaceuticals also showed healthy YoY growth in May’21 (+28.7%/+30.4%/+32.5% YoY/+32.6% YoY).
* On a MAT basis, JB Chemicals & Pharmaceuticals/Merck India/GSK reported the highest price growth (+8.9%/8.3%/6.9% YoY). Glenmark saw the highest growth in new launches (+33.8% YoY).
VMN/Cardiac/Gastrointestinal drove sales growth on a MAT basis
* On a MAT basis, industry growth stood at 10.8% YoY.
* VMN/Cardiac/Gastrointestinal grew 20.2%/14.9%/14.6% YoY.
* Sales of Ophthalmic/Anti-Malarials therapy declined 8.1%/7.4% YoY, impacting growth to a small extent.
* While Respiratory posted strong YoY growth in Apr-May’21, it dragged YoY growth on a MAT basis due to a YoY decline in preceding months.
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