Healthcare Sector Update - Weak IPM growth despite low base of last year By Motilal Oswal
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Weak IPM growth despite low base of last year
IPM was almost flat YoY in Feb’22 v/s +13.9% YoY in Jan’22. This was despite the low base of Feb’21, wherein the YoY growth stood at just 1.1%. Derma/Anti-Infectives/VMN/Gastro/Anti-Diabetic dragged IPM with YoY decline of 6.6% /3.9%/2.7%/1.4%/1.4% YoY, respectively.
Particularly, anti-virals/anti-fungals have led to the inferior performance in the anti-infective segment. Even Cardiac therapy declined 8.8% YoY in Feb’22.
Interestingly, gastro-intestinal, nutritionals and derma segments were the strong contributors to offset the decline in IPM for Feb’22.
The respiratory therapy continued to outperform the industry with 12.9% growth YoY.
Price has been the key growth driver for the quarter ending Feb’22
For the quarter ending Feb’22, IPM YoY growth stood at 6.5% YoY
Price/New Products growth was 5.4%/2.0% while volume declined 1% YoY
Astrazeneca/Merck/Ipca/Mankind/Intas outperform in Feb’22
Among the top 20 corporates, AstraZeneca Pharma (+24.2% YoY), Merck (+15.4% YoY), Ipca (+13.3% YoY), Mankind (+10.6% YoY), Intas (+8.1% YoY), Torrent (+7.6% YoY), Sun Pharm (+6.8% YoY), and USV (+5.2% YoY) grew notably higher than the IPM growth. Glenmark Pharmaceuticals declined 12% YoY in Feb’22.
Ipca posted a strong off-take in Pain products (Zerodol franchise, ~33% of sales), which grew 51.3% YoY.
For Torrent, growth was led by Gastro/CNS franchises that rose 16.3%/10.4% YoY, respectively.
On a MAT basis, FDC/Ipca/ Wockhardt/Indoco reported industry-leading volume growth at +20.3%/+20.2%/+19.5%/+18.5% YoY, respectively. Glenmark posted the highest growth in new launches (+14.5% YoY)
On MAT basis, Respiratory, Anti-Infectives, Pain/Analgesics and Gastro drive YoY growth for 12M ending Feb’22
On MAT basis, the industry growth came in at 15.7% YoY
Respiratory/ Anti-Infectives/Pain grew 31.1%/28.9%/24.3% YoY, respectively.
Vaccine sales declined 17.4% YoY impacting overall growth.
Respiratory posted strong YoY growth during May’21-Feb’22 and has exhibited strong outperformance against IPM on MAT basis
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