IPM valued at Rs 9,225 crores in March 2017

Domestic companies continued to dominate the market with a 78 per cent share in March 2017

The Indian Pharmaceutical Market (IPM) was valued at Rs 9,225 crores in the month of March 2017. After a subdued February, growth revived to double digits for the first time in 2017 and recorded a 10 per cent growth for the month. On a MAT March basis, the industry was valued at Rs 114,326 crores and reflected a 9 per cent growth with volumes contributing 28 per cent of this growth and new Introductions playing an important role with 54 per cent contribution to the overall growth.

Number of new launches in Q1 of 2017 (370) have halved as compared to Q1 2016 (721). However, average value of new brands launched has doubled from Rs 0.05 crore to Rs 0.1 crore in respective quarters.

The retail channel remained the largest channel in IPM contributing 84 per cent of the overall sales and reflected a 9 per cent growth on MAT Basis. The hospital and doctor channel contributed to 10 per cent and 6 per cent of the overall sales and reflected a 7 per cent and 11 per cent growth respectively. As per QuintilesIMS data, which captures sales from trade stockists, more than 10 therapy areas in the IPM have already crossed a sale of Rs 500 crores in the hospital segment and reflect healthy growth. Lower growth in the hospital segment was primarily on account of Albumin market which reflected de-growth of -59 per cent.

IPM continued to remain fragmented with top 10 companies occupying 43 per cent share. Top 10 companies reflected a collective growth of 11 per cent for the month while companies in the 11-20 and 21-30 bracket grew slower at 8 per cent and 7 per cent respectively. Five of the top 10 companies grew faster than the market. Lupin with 17 per cent growth was the fastest growing company in the top 10 for the month.

Among the 11-20 companies, DRL (6 per cent), Sanofi (6 per cent) and Emcure (6 per cent) reflected single digit growth while Pfizer reflected de-growth to the tune of -6 per cent for the month on account of discontinuation of Corex.

Domestic companies continued to dominate the market with a 78 per cent share in March 2017 and grew faster than the market with a growth of 10.7per cent while MNCs reflected a 6.5 per cent growth for the month. The largest MNC, Abbott grew slower than the market for the month with 8.59per cent growth while GSK reflected a growth faster than the market for the first time since July 2016. Pfizer reflected de-growth for the fourth month in a row.

Acute therapies remained the strongest pillar of IPM with a 64 per cent contribution to the total market. However, chronic therapies grew 1.3 times the market at 13.2 per cent vis-à-vis a market growth of 9.7 per cent while acute therapies reflected a low growth of 7.9 per cent for the month.

Cardiac continued to be the largest therapy area for the month, clocking a revenue of Rs 1122 crores. Atorvastatin was the largest molecule in the cardiac space. Though it reflected a value de-growth to the tune of -14per cent the molecule witnessed a volume growth of 6 per cent for the month. Telmisartan which was affected by the NLEM last year reflected a value de-growth (-7.6 per cent) however, robust volume growth was recorded for the month (12.6 per cent). Rosuvastatin continued to reflect strong value (9.2 per cent) and volume growth (13.9 per cent). Metoprolol and Amlodipine reflected strong volumes for the month at 10 per cent and 9 per cent growth respectively.

Anti-infectives retained its number two slot for the month with a value of Rs 1061 crores, growth, however, was stagnant at 0.7 per cent, making anti-infectives the only therapy area in top 10 to reflect a growth of less than 4 per cent for the month. Ceftriaxine injectables (-10.2per cent) and Cefixime oral solids (-6.7per cent) and Piperacillin + Tazobactam (-0.6per cent) were the large molecules which reflected value de-growth for the month.

Gastrointestinals continued to be the third largest therapy area for the month garnering a revenue of Rs 982 crores and continued to impress with 11 per cent growth over SPLY. Ranitidine oral solids were stagnant for the month with a 0.3 per cent volume growth and 1 per cent value growth. Pantoprazole oral solids and Omeprazole + Domperidone combination reflected low volume growth for the month at 4.9 per cent and 3.4 per cent respectively. Growth was largely driven by top molecules of Pantoprazole + Domperidone and Raneprazole + Domperidone. The Bacillus Clausii market reflected a 47 per cent value growth on account of new launches in this space in the recent past.

Anti-diabetics maintained its fourth position in IPM for the month of March 2017 clocking a growth of 23 per cent over SPLY. DPP4 inhibitors was the largest drug category in the anti-diabetic space with Teneligliptin contributing 20 per cent of the category by value. Vildagliptin reflected a de-growth for the month while its combination with Metformin reflected a de-growth in terms of volumes (-2.6 per cent) and a low value growth (6.4 per cent) for the month.

Dermatology, one of the fastest growing therapy areas in IPM clocked a growth of 21 per cent SPLY with a value of Rs 665 crores. Emollients remained the largest sub category with a 27 per cent growth while Itraconazole reflected 88 per cent growth for the month and continued to be the largest anti-fungal agent.

Neurology reflected a 11 per cent growth for the month over SPLY, Levetiracetam continued to be the largest molecule in the space clocking a value of Rs 42 crore with a 14 per cent growth for the month. Escitalopram + Clonazepam reflected a healthy 18 per cent growth with a value of Rs 20 crores for the month. Plain Escitalopram was the only molecule in the top 10 to reflect a value de-growth to the tune of -0.3 per cent for the month though it reflected a 9 per cent volume growth.

Global (February 2017)

The global pharma market was valued at $1061 billion growing at 4.3 per cent. The US continued to dominate the market with 42 per cent share and growth of 4.1 per cent.

Amongst the top market, India has moved three positions down and is ranked 10th. Markets which has shown value growth more than 5 per cent in the month of February 2017 globally are Venezuela, Brazil and Australia; wherein Venezuela has shown more than 100 per cent growth. The Top five EU markets are all de-growing as per February 2017 data. Indian companies hold 1.7 per cent share in the global market and growing faster than the global market as per February 2017 data. Lupin showed double digit growth for February 2017.

(QuintilesIMS is a leading global information and technology services company providing end-to-end solutions to the life sciences and healthcare industry)