Healthcare Sector Update - IPM growth on an uptrend, led by select therapies By Motilal Oswal
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IPM growth on an uptrend, led by select therapies
Aug’21: IPM growth strengthens on monthly basis
* IPM growth was 17.7% YoY in Aug’21 v/s 13.7 % YoY in Jul’21.
* Respiratory/Analgesics/Anti-Infectives grew 38.2%/32.4%/29.2% YoY.
* Respiratory sales growth increased sequentially, with 38.2% YoY growth achieved in Aug’21 (v/s 22.8% YoY growth in Jul’21).
For quarter ended Aug’21: Volume/Price/NP drive IPM growth
* For the quarter ended Aug’21, YoY growth stood at 15.2% YoY.
* Price growth of 5.8% YoY and New Product growth of 3.5% YoY was further boosted by 5.9% YoY volume growth.
Ipca, Aristo, FDC, and Ajanta – top performers for Aug’21
* Among the top 30 corporates, Ipca (+38.5% YoY), Aristo (+34% YoY), FDC (+33.6 % YoY), Indoco Remedies (+33% YoY), Ajanta (31.7% YoY), Macleods (+28.8% YoY), and Mankind (+27.1% YoY) delivered better-than-IPM growth. With a lower number of COVID cases, Glenmark’s sales declined 17% YoY in Aug’21.
* Ipca posted a strong offtake of products (Zerodol franchise) in the Pain segment (~32% of sales; up 46% YoY), which grew 46% YoY.
* Ajanta saw broad-based growth across therapies driving overall YoY growth.
* Cadila and Cipla showed lower-than-industry growth in Aug’21 (11.9%/12.6% YoY) v/s +8.8%/+5.7% YoY in Jul’21.
* On a MAT basis, Merck/Ipca/Ajanta/Alkem reported the highest volume growth (+15.6%/14.3%/11.9%/10.9% YoY). Glenmark posted the highest growth in new launches (+26.1% YoY).
On MAT basis, Anti-Infectives, VMN, Gastro, and Pain/Analgesics drive YoY growth
* On a MAT basis, industry growth came in at 14.5% YoY.
* Anti-Infectives/VMN/Gastro grew 25.4%/21.6%/20% YoY
* Anti-Malarials sales declined 4.6% YoY, impacting overall growth.
* While Respiratory posted strong YoY growth in May, June, July, and Aug’21, it remained a drag on YoY growth on a MAT basis.
Cardio/Diabetes therapy growth showing no signs of revival
* Cardiology/Diabetes grew at a moderate rate of 1.2%/5.2% YoY for Aug’21. Experts indicate fewer patient follow-ups and the smaller total patient pool are due to patients who succumbed to COVID being comorbid and diabetic/cardiac patients.
* The new diagnosis in Diabetes for COVID-induced patients and the normalization of the patient-doctor connect would revive growth in the Cardio/Diabetes therapy over the near-to-medium term.
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