17 May 2016
Sector Update| Healthcare
Healthcare
Performance of top companies:
(April 2016)
Company
MAT Apr 16
3.5
5.2
9.9
2.1
1.0
12.3
(4.4)
(0.9)
(8.6)
2.8
(1.5)
4.5
(0.5)
(3.0)
5.7
3.3
0.0
7.6
7.7
Sector Update
Regulatory factors impacted IPM growth in April-2016
IPM
Sun Pharma
Abbott India
Cipla
Zydus Cadila
Mankind
Lupin
Alkem
GSK Pharma
Pfizer
Dr Reddy Labs
Glenmark
Sanofi
Torrent Pharma
Alembic Pharma
Ipca Labs
Merck
Ajanta Pharma
Biocon
11.5
13.2
10.7
11.3
11.0
18.1
14.7
8.3
3.0
8.5
18.4
20.7
5.8
12.5
16.6
5.1
11.3
10.3
5.1
Indian pharma market (IPM) grew 3.5%YoY to INR82b in April 2016, much
lower than 6.5%YoY reported in April 2016. Growth was largely impacted by
external factors like FDC ban and NLEM list.
Moving annual (MAT) growth for Arpil 2016 stood at 11.5% YoY, primarily
driven by pricing with 4.7%YoY growth. Volume growth was at 4.0% and new
products growth was at 2.8% for MAT April 2016.
Mankind registered 12.3% growth in April 2016, highest among all Indian
companies.
Abbott India reported 9.9%YoY growth, followed by Sun Pharma at 5.2%YoY.
Other companies that delivered positive growth are Glenmark (4.5%), Alembic
Pharma (5.7%), and Pfizer (2.8%).
However, GSK Pharma (-8.6% YoY), Lupin (-4.4%), Torrent Pharma (-3.0%) and
Alkem (-0.9%) showed decline for April 2016.
Neuro/CNS therapy accounts for 6% of the IPM market; it grew 9%YoY in April
2016. Other therapies that outperformed the market growth were Cardiac
(7.4%), Gastro Intestinal (5.0%) and Vitamins (5.4%). Within brands, Lantus
registered the highest growth (36%) in April 2016. Other big brands which
reported growth in excess of 25% were Corex, Januvia, Rosuvas, and
Duphaston.
In value terms, DPCO-listed products grew -2.7% YoY whereas non-DPCO
products registered 4.3% YoY growth.
Volume-wise, DPCO registered unit growth of -3.2% and non-DPCO -6.5%.
Mankind, Sun Pharma and Abbott reported highest growth in Apr-2016
Neuro/CNS led in therapies
DPCO v/s non-DPCO Market (April 16)
Exhibit 1: Volume growth substantially lower in 4QFY16 (Quarterly trend)
Volume Growth (%)
Price Growth (%)
16.9
13.6
1.5
4.6
7.5
2QFY15
10.9
2.5
5.1
3.3
3QFY15
3.3
5.2
8.4
4QFY15
New Product Growth (%)
Total Growth (%)
14.7
3.3
4.8
6.6
1QFY16
11.8
3.0
4.6
4.2
2QFY16
14.7
3.0
5.0
6.7
3QFY16
9.3
2.9
5.0
1.4
4QFY16
Source: AIOCD, MOSL
17 May 2016
1
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 39825423