Indian Pharma Market Regains Growth

Indian pharmaceutical market regained its growth momentum in July after a weak trajectory in the previous three to four months. According to drug market researcher Aiocd Awacs, the market grew at 9.5 per cent in July, largely due to a strong sales in the anti-infective and respiratory segments. More importantly, the sales volume increased across the market segments despite the prolonged pricing pressure following the controlled prices on drugs in the National Essential Medicines List.

The market data showed that the fixed doze combinations (FDC) market improved led by better volumes and modest price hikes. In this, the respiratory segment posted even a high double-digit growth. While most of the drug makers individually grew at par with the market growth with hardly anyone beating the same, some of the therapeutic segments including cardiac, vitamin supplement and neurology grew below the market growth, the Aiocd Awacs data showed.

“The rebound was driven by strong double-digit growth in the anti-infective, anti-malarial and respiratory segments,” says a market growth analysis report released by Religare Institutional Research team.

According to Religare analysis, the new launches grew at 3.1 per cent (year on year), broadly in line with historical trends, and the growth in the price controlled segment remained under pressure.
Following lumpiness in the past four months, both price controlled and non- controlled drugs posted robust volume growth, though products in the essential medicines continue to face severe pricing pressure, the Religare report stated.

However, the price controlled segment revenue growth improved to 1.6 per cent from a decline of 1.5 per cent in June (both year on year basis). In the non-price controlled category, the growth of foreign drug makers remained unchanged at 4.2 per cent, while, Indian companies saw a healthy pick-up at 3.8 per cent as compared to a decline of 0.6 per cent in June.

The Aiocd Awacs data also shows that the decline in the revenues for fixed dose combinations (FDC) slowed to -3.9 per cent compared to -14.6 per cent in June. Non-FDC sales grew 9.8 per cent year on year, up from 7 per cent in June, mainly on the back of better volumes and modest prices hikes. Overall, Indian companies and MNCs posted a decline of 4.1 per cent and 3.4 per cent respectively as compared to declines of 18.5 per cent and 5 per cent in June. However, the sales of FDCs in the respiratory segment surged by 17.2 per cent in July.

While, the respiratory and anti-infective segments, which accounts for about 23 per cent of market share in India, posted solid double-digit growth at 27 per cent and 15 percent (year on year ) respectively.

The anti-diabetic and pain segments, which contribute some 15 per cent to the total market share, grew merely 50 basis points above the overall market growth. On the other hand, the gastrointestinal, gynaecology and dermatology segments (23 per cent of total market share) were 100 basis points and 370 basis points below the market growth. While, the chronic segment including cardiac, vitamin supplements and neurology (accounts for 27 per cent market share) posted distressed growth of 430-760 basis points below the market growth, according to Religare analysts Praful Bohra and Aarti Rao.