15 January 2015
Sector Update| Healthcare
Sector Update
Healthcare
Indian pharma market – Monthly performance tracker
Sustained growth recovery, expect momentum to pick up
Performance of top companies:
December 2014
Company
Abbott India
Sun Pharma
Cipla
Zydus Cadila
Ranbaxy
Mankind
Alkem
GSK Pharma
Lupin
Sanofi
Torrent
Pharma
Glenmark
Pharma
Dr Reddy Labs
Ipca Labs
Alembic
Pharma
Biocon
MAT gr
(%)
6.9
15.3
11.4
8.7
10.7
12.5
11.1
-4.0
12.2
5.8
10.5
15.2
9.0
18.6
11.5
24.9
3QFY15
gr (%)
9.2
15.3
10.4
8.4
21.2
13.8
4.8
6.2
8.7
15.1
19.7
14.8
8.0
2.9
8.6
0.9
IPM Dec 2014 growth was at 13.6%, 3QFY15 growth at 10.3%
IPM grew 13.6% YoY to INR74b for December, higher than the 11% YoY and 6%
YoY growth registered in November and October respectively.
3QFY15 growth was in double digit for the second consecutive quarter at 10.3%
YoY (12.8% YoY in 2QFY15), reflecting the continued recovery in India pharma
market, aided by price hikes undertaken on NLEM drugs and a favorable base
effect (6.8% YoY in 3QFY14).
Overall on MAT (Moving Annual Total) basis, IPM growth was at 10.2% YoY
(INR830b).
Ranbaxy posted the highest growth at 21.2% YoY in our coverage, attributed to
the price hikes taken in NLEM brands.
Sun Pharma (15.3% YoY) and Glenmark (14.8% YoY) also grew in double digits,
supported by a high volume growth (9% YoY) during the quarter.
Torrent Pharma (19.7% YoY) also grew in excess of 15%, with a price hike taken
in key Elder brands – Shelcal and Chymoral (10% price hike).
In 3QFY15, Anti-Diabetic therapy grew 19.7% YoY, with good growth seen in
drugs like Glargines, Sitagliptins, Vildagliptins and Glimepride+Metformin
products.
Respiratory, 8% of IPM, grew at 15% YoY, with big brands like Allegra, Foracort
and Duolin growing in excess of 15% for the quarter.
Anti-infectives, 16% of IPM, reported double digit growth for this quarter at
12.2% YoY (11.1% YoY in 2QFY15). The resurgence seen in Anti-infectives for the
last two quarters is a combination of – 1) lower base of last year (-2.1% YoY
growth for 3QFY14), 2) price hike taken in NLEM affected brands and 3)
seasonality.
DPCO listed products grew at 8% YoY, while non DPCO products registered
14.8% YoY growth in December.
DPCO and non DPCO category showed unit growth at 0.7% and 3.2%
respectively.
The DPCO 2013 portfolio for Pfizer grew at 13.9% YoY, GSK 1.7% and Ranbaxy
41.9% for December.
3QFY15: Company-wise performance
Anti-diabetic and Respiratory led in therapies
DPCO v/s non DPCO market (Dec 2014)
MAT performance analysis
IPM has grown at 10.2% for MAT Dec 2014. Growth is primarily driven by a
volume growth of 4.6% and new products growth of 2.9%. From therapy
perspective, Acute drugs grew 9% YoY for MAT Dec 2014, while chronic growth
was at 13% YoY.
1
Arvind Bothra
(Arvind.Bothra@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 3982 5423
Investors are advised to refer through disclosures made at the end of the Research Report.
15 January 2015