Healthcare Sector Update - IPM witnesses double-digit growth in Jan’22 By Motilal Oswal
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IPM witnesses double-digit growth in Jan’22
* IPM grew 13.9% YoY in Jan’22 v/s +5.3% YoY in Dec’21 and +4.5% YoY in Jan’21.
* On a low base of last year, respiratory/anti-Infectives/Pain exhibited growth of 65.1% /27.3% /24.1% YoY, respectively.
* Gastrointestinal/VMN/Cardiac/ therapies witnessed steady YoY growth of 9.9%/8.9%/7%, respectively.
* At Therapy level, YoY growth was impaired by Vaccines (-26% YoY) as well as Derma (-0.8%).
Price growth the key driver of IPM in the Jan’22 quarter
* For the quarter ending Jan’22, IPM grew 8.7% YoY.
* Price/New Products/Volume growth was 5.5%/1.7%/1.5% YoY, respectively.
Indoco/Alembic/Ipca/Mankind/Glaxo outperform in Jan’22
* Among the top corporates, Indoco Remedies (+44.9% YoY), Alembic Pharma (+35.1% YoY), Ipca Labs (+33.9% YoY), Mankind Pharma (+27.6%), GSK Pharma (+27.4%), AstraZeneca Pharma (+27.1% YoY), Cipla (+25.5%), FDC (+22.3%), and Eris Lifesciences (+17.5%) grew significantly higher than IPM.
* Glenmark Pharma was back on growth track due to the third COVID wave of Jan’22 (Omicron variant).
* Alembic Pharma exhibited strong growth in Azithral (which grew ~1.9x) leading to a strong outperformance against IPM.
* Ipca posted a strong off-take in Pain products (Zerodol franchise, ~33% of sales), which rose 51.3% YoY.
* Cipla grew on the back of the respiratory franchise, which reported 44.5% YoY growth.
* Healthy traction in Cardiac/VMN led the growth for Eris in Jan’22.
* On a MAT basis, Wockhardt/FDC/Ipca/Indoco reported industry leading volume growth of +22.9%/+21.2%/+20.2%/+17.7% YoY, respectively. Glenmark posted the highest growth in new launches (+14.9% YoY).
On a MAT basis, Anti-Infectives, Respiratory, Pain/Analgesics and Gastro drive YoY growth for the 12 months ending Jan’22
* Industry growth came in at 15.8% YoY, on a MAT basis.
* Anti-Infectives/Respiratory/Pain grew 28%/27.3%/24.2% YoY, respectively.
* Vaccines sales declined 16.8% YoY impacting overall growth.
* Respiratory posted strong YoY growth during May’21-Jan’22 and outperformed IPM on a MAT basis.
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