15 January 2015
Sector Update| Healthcare
Indian pharma market – Monthly performance tracker
Sustained growth recovery, expect momentum to pick up
Performance of top companies:
Dr Reddy Labs
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
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
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)
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%
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.
(Arvind.Bothra@MotilalOswal.com); +91 22 3982 5584
(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