IGI Logo

Price-hike driven growth; volumes for the month contract

In Oct’22, the IPM grew 7.2% y/y, primarily driven by price hikes (6.3 percentage points) followed by new products (1.8pps) though volumes declined 0.9 pps. On a MAT basis, the IPM rose a steady 6.4%, driven by price hikes (5.7 percentage points) and new products (1.7pps), but volumes declined a slight (0.9pps). Except for anti-infectives (down 1.2% y/y) all other therapies grew, the most growth coming in dermatology (12%), followed by cardiology (9.8%), pain (8.4%) and neuro (7.6%). These four form 41% of the IPM. Chronic and sub-chronic therapies, which form respectively 32% and 21% of the IPM, grew ~8.5-9% each, and acute therapies (47% of the IPM) grew 5%. Among MNCs, Merck grew the most (49%), followed by Astra Zeneca (14%), GSK (13%) and Abbott + Novo Nordisk (9.4%). Pfizer, Novartis and Sanofi declined 1- 8%. Domestic companies such as Eris, Natco, Glenmark and JB Chemicals grew 14-26% and other companies grew in mid-to-high single digits.

A few companies recorded double-digit growth. Companies such as Eris, Natco, Glenmark and JB Chemicals grew 14-26%. For the fifth consecutive month, Natco grew more than 25%. Other companies such as Zydus, Ipca, Indoco, Alkem, Alembic, Dr Reddy’s, Sun, Torrent, Lupin and Cipla grew in single digits.

Subdued performance from MNCs. Merck grew the most (49%), October being the 28th consecutive month it recorded growth. Abbott+Novo Nordisk, Astra Zeneca and GSK grew 10-14%. All other MNCs such as Novartis, Pfizer and Sanofi declined 1-8%

Most therapies recorded growth. Except for anti-infectives (down 1%), all therapies recorded good growth. The most growth was recorded by gynaecology, anti-neoplastics, dermatology, ophthalmology, urology and respiratory (11-16%); other therapies such as cardiology, VMN, pain, CNS and blood-related grew 7-10%. Growth was driven by price hike and new products, though volumes for most therapies declined. Chronic and sub-chronic therapies (53% of the IPM) grew 8.8% and 8.6% respectively; while acute therapies grew 5.3%

Our view. For the past four to five months, most therapies have picked up pace. Chronic and sub-chronic therapies such as dermatology, stomatology, ophthalmology, neurology and gynaecology have also been ramping up well. Demand in acute therapies (excl. Covid’19-related products) is also picking up momentum. We maintain our positive view on chronic therapy-focused companies such as Ajanta, JB Chemicals, Eris and Torrent Pharma.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at  https://www.rathi.com/LeadGenerate/Static/disclaimer.aspx
SEBI Registration No.: INZ000170832

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