27 January 2016
Sector Update| Healthcare
Healthcare
Performance of top companies:
Dec 2015 (3QFY16)
Company
IPM
Sun Pharma
Abbott India
Cipla
Zydus Cadila
Mankind
Alkem
GSK Pharma
Lupin
Sanofi
Torrent Pharma
Glenmark
Dr Reddy Labs
Ipca Labs
Alembic Pharma
Biocon
3Q’16
14.3
10.1
12.0
17.8
11.7
23.2
15.7
13.0
14.8
6.9
9.3
23.5
15.7
14.8
24.6
4.8
Dec’15
11.9
9.2
7.3
16.7
8.6
18.1
18.0
8.2
15.0
4.0
3.7
18.6
14.0
11.8
24.0
5.2
Sector Update
Indian pharma growth normalizes in December 2015
Indian pharma market (IPM) grew 11.9% YoY to INR83b in December 2015,
resulting in 14.3% YoY growth for the October-December 2015 period.
Moving annual total (MAT) growth for December 2015 stood at 14.4% YoY,
driven by volumes (6.9% YoY growth). MAT growth was 4.7% for pricing and
2.8% for new products in December 2015.
Cipla, Glenmark, Alkem and Alembic report highest growth in Dec-2015
Benefitted by growth in anti-infective, respiratory and gastro portfolio, Cipla
reported 17% YoY growth in December 2015. Glenmark (18.6% YoY), Alkem
(18.0% YoY) and Alembic (24.0%YoY) also grew in excess of 15% in December.
Glenmark growth was driven by derma (17% YoY), cardiac (21.2% YoY) and
respiratory (29.4% YoY) portfolio.
Sanofi (4.0% YoY), Torrent (3.7%), GSK Pharma (8.2%) and Cadila (8.6%) were
significantly below the market growth.
Respiratory leads in therapies and MSD’s Janumet in drugs
Respiratory therapy accounts for 8% of the IPM market; it grew 18.1% YoY in
December 2015. Other therapies that outperformed the market growth were
anti-diabetic (15.1%), anti-infective (14.4%), gastro-intestinal (13.2%), CNS
(12.5%) and hormones (12.2%). Within brands, Janumet registered the highest
growth (86%) in December 2015. However, Mixtard (human insulin) continues
to be the largest brand in India (INR4.5b); it declined 8% in December 2015.
DPCO v/s non-DPCO Market (December 15)
In value terms, DPCO-listed products grew 7.5% YoY whereas non-DPCO
products registered 12.7% YoY growth.
Volume-wise, DPCO registered unit growth of 4.7% and non-DPCO 3.8%.
Exhibit 1: Volume and price increase driving IPM growth (Quarterly trend)
Volume Growth (%)
Price Growth (%)
New Product Growth (%)
17.1
2.6
10.9
2.0
5.1
3.8
3QFY15
4QFY15
5.2
9.3
Total Growth (%)
10.4
3.6
1.7
5.1
1QFY15
13.6
1.5
4.6
7.5
2QFY15
14.8
2.8
4.8
7.2
1QFY16
11.8
2.8
4.6
4.4
2QFY16
14.3
2.9
5.0
6.4
3QFY16
Source: AIOCD, MOSL
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 39825423
Investors are advised to refer through important disclosures made at the last page of the Research Report.
27 January 2016
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Sector Update| Healthcare
Indian Pharma Market - Dec 2015
Exhibit 2: Performance of top companies: December 2015
Company
MAT Dec -15
Last 8 Quarters in Growth (%)
1M
Value
Market Growth
(INR m) Share (%)
(%)
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Dec-15
IPM
Sun Pharma
Abbott India
Cipla
Zydus Cadila
Mankind
Alkem
GSK Pharma
Lupin
Sanofi
Torrent Pharma
Dr Reddy Labs
Ipca Labs
Alembic Pharma
Biocon
962,887
84,720
59,748
48,039
40,134
35,222
33,338
31,739
33,294
23,730
22,409
22,116
12,413
13,280
3,280
100.0
8.8
6.2
5.0
4.2
3.7
3.5
3.3
3.5
2.5
2.3
2.4
2.3
1.3
1.4
0.3
14.4
25.9
14.7
16.3
11.6
18.1
11.8
6.1
18.0
15.1
20.4
25.5
16.8
9.2
17.9
6.4
8.9
11.2
6.1
4.2
6.5
3.6
16.8
(9.1)
3.7
(6.0)
3.2
15.8
12.9
(8.9)
10.7
39.1
11.8
10.4
5.3
9.3
9.6
13.4
15.6
(8.0)
25.4
3.2
5.8
14.7
17.8
15.9
11.2
34.4
14.1
12.4
11.4
19.7
10.3
16.8
15.8
2.4
13.8
9.8
12.6
15.6
18.4
17.6
15.3
20.7
11.2
12.1
6.4
10.7
9.1
14.0
7.6
5.9
14.1
15.1
19.8
14.9
7.6
11.6
8.7
5.8
17.0
12.8
18.7
20.5
10.2
20.3
16.0
6.6
20.5
29.0
27.5
24.5
17.1
24.7
14.8
15.7
14.8
20.0
16.3
19.4
12.9
14.1
10.8
5.1
17.9
13.6
28.2
31.6
21.3
0.3
17.7
6.6
11.8
13.5
12.4
8.7
11.5
15.2
6.0
0.3
19.4
13.7
18.6
23.2
13.5
2.2
14.1
0.1
14.3
10.1
12.0
17.8
11.7
23.2
15.7
13.0
14.8
6.9
9.3
23.5
15.7
14.8
24.6
4.8
11.9
9.2
7.3
16.7
8.6
18.1
18.0
8.2
15.0
4.0
3.7
18.6
14.0
11.8
24.0
5.2
Glenmark Pharma 22,854
Source: AIOCD, MOSL
Exhibit 3: Performance of top therapies: December 2015
Therapy
MAT Dec -15
Last 8 Quarters in Growth (%)
1M
Value
Market Growth
(INR m) Share (%)
(%)
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
962,887
147,359
120,220
112,761
86,034
75,722
77,591
66,506
59,063
57,593
47,070
17,271
16,308
15,713
100.0
15.3
12.5
11.7
8.9
7.9
8.1
6.9
6.1
6.0
4.9
1.8
1.7
1.6
14.4
9.9
15.0
16.3
11.3
14.6
24.2
12.6
14.9
17.7
11.5
19.9
12.2
12.5
8.9
2.9
9.4
10.6
11.8
11.5
16.5
5.6
9.1
19.1
(0.0)
11.5
6.5
25.7
11.8
6.9
12.6
13.6
12.5
16.5
19.4
9.8
8.4
19.5
6.0
11.6
5.0
35.3
14.1
12.4
12.9
15.9
15.6
15.0
24.5
13.6
10.5
15.8
7.9
15.4
8.9
35.3
11.2
5.9
12.4
13.7
13.8
7.4
22.9
9.2
10.8
17.1
6.9
18.8
8.2
13.4
17.0
15.6
15.8
18.4
13.8
20.5
28.7
15.0
12.1
19.2
11.1
15.6
12.1
20.2
14.8
8.0
15.8
17.1
13.4
15.0
26.1
12.1
15.9
20.6
12.3
14.0
11.3
11.4
11.8
2.5
15.7
14.7
10.4
5.2
22.8
9.9
16.6
17.3
12.3
10.5
11.2
12.5
14.3
15.0
12.9
15.3
8.2
17.8
20.1
14.0
14.7
14.2
10.3
4.8
14.3
Dec-15
11.9
14.4
9.4
13.2
4.9
18.1
15.1
11.3
12.5
11.4
8.5
6.6
12.2
IPM
Anti-Infectives
Cardiac
Gastro Intestinal
Vitamins/Minerals/
Nutrients
Respiratory
Anti Diabetic
Pain / Analgesics
Neuro / Cns
Derma
Gynaecological
Ophthal
Hormones
Anti-Neoplastics
6.8
4.4
Source: AIOCD, MOSL
27 January 2016
2
 Motilal Oswal Financial Services
Sector Update| Healthcare
Sun Pharma (Sun+Ranbaxy)
Exhibit 4: Top 10 Drugs
Drug
Therapy
Pain / Analgesics
Cardiac
Anti Diabetic
Anti Diabetic
Gynaecological
Neuro / Cns
Gastro Intestinal
Cardiac
Gastro Intestinal
Cardiac
MAT Dec 15
Value(INR m) Growth(%)
84,720
14.0
2,112
(1.1)
1,550
30.2
1,517
19.0
1,489
42.9
1,441
23.2
1,413
30.9
1,385
15.0
1,168
18.7
1,163
30.7
1,122
22.0
Mkt
8.8
6.7
4.9
2.8
2.8
2.7
2.7
2.6
3.7
2.2
2.1
Growth (%)
3M*
Dec -15
10.1
9.2
16.2
15.5
23.8
23.1
14.7
10.8
23.1
14.5
15.3
9.5
22.9
19.5
9.1
8.9
12.1
12.8
14.2
14.9
13.5
9.2
Source: AIOCD, MOSL
In December 2015, Sun
+Ranbaxy portfolio grew
9%YoY driven by 8% growth
in Sun and 12% growth in
Ranbaxy
Total
Growth of Istamet has
come down in December
2015 at 14.5% from 43%
on MAT basis
Volini
Rosuvas
Gemer
Istamet
Susten
Levipil
Pantocid
Storvas
Pantocid Dsr
Aztor
*3M: Oct-Dec 2015
Exhibit 5: Therapy Mix (%)
Share
100.0
18.1
17.6
11.9
12.0
8.9
7.2
MAT Growth
14.0
17.9
19.0
13.8
22.2
24.8
9.9
3M*
10.1
10.1
13.1
13.1
11.3
14.6
14.0
Volume growth is primary
growth driver for
Sun Pharma
Neuro / Cns
Cardiac
Anti-Infectives
Gastro Intestinal
Anti Diabetic
Pain / Analgesics
*3M: Oct-Dec 2015
Dec 15 Growth
9.2
7.5
11.4
11.7
10.7
9.5
13.4
Source: AIOCD, MOSL
Exhibit 6: Brand wise growth distribution
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
% of sales
100.0
16.9
12.5
12.7
57.9
MAT growth (%)
14.0
20.8
30.2
18.3
8.5
Growth Contribution (%)
100.0
23.7
23.6
15.9
36.7
Source: AIOCD, MOSL
Exhibit 7: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
19.0
Exhibit 8: Growth Distribution (%) (MAT Dec’15)
10.1
7.3
46.1
ACUTE
38.6
CHRONIC
Source: AIOCD, MOSL
Vol GR
3.6
Price GR
3.2
NP GR
Source: AIOCD, MOSL
27 January 2016
3
 Motilal Oswal Financial Services
Sector Update| Healthcare
Cipla
Exhibit 9: Top 10 Drugs
Drug
Therapy
Respiratory
Respiratory
Respiratory
Respiratory
Respiratory
Respiratory
Anti-Infectives
Anti-Infectives
Respiratory
Gastro Intestinal
Growth (%)
MAT Dec 15
Value(INR m) Growth (%) Mkt Share
3M Dec -15
48,039
16.3
100.0
17.8
16.7
1,938
22.7
4.0
19.8
13.8
1,544
27.4
3.2
32.3
38.4
1,407
3.8
2.9
4.4
3.9
1,371
10.0
2.9
1.8
(4.7)
1,192
15.7
2.5
12.4
10.8
988
1.8
2.1
(2.2)
(5.2)
930
22.3
1.9
26.8
33.4
801
1.5
1.7
14.3
5.8
784
27.3
1.6
30.3
26.3
728
46.1
1.5
38.9
44.9
Source: AIOCD, MOSL
Cipla’s domestic business
grew 16.7%YoY in
December 2015, higher
than the market growth
of 11.9%
Total
Foracort
Budecort
Asthalin
Seroflo
Duolin
Aerocort
Azee
Novamox
Montair Lc
Emeset
Growth is primarily driven
by Volumes
Exhibit 10: Therapy Mix (%)
Share
100.0
30.4
26.6
12.2
7.6
4.7
3.6
MAT Growth
16.3
15.5
16.6
12.8
20.5
27.9
22.0
Dec15 Growth
17.8
16.7
16.3
15.0
23.9
27.3
6.2
1.9
24.5
25.0
17.5
13.2
15.8
9.2
Source: Source: AIOCD, MOSL
3M
Acute and Chronic
portfolios are growing at
equal rates for Cipla
Respiratory
Anti-Infectives
Cardiac
Gastro Intestinal
Urology
Neuro / Cns
Exhibit 11: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
24.3
16.4
16.2
43.0
MAT growth (%)
16.3
16.2
16.3
20.8
14.8
Growth Contribution (%)
100.0
24.1
16.4
19.9
39.6
Source: AIOCD, MOSL
Exhibit 12: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
16.8
MAT Val Gr Dec'15 (%)
Exhibit 13: Growth Distribution (%)(MAT Dec’15)
15.6
28.2
ACUTE
19.8
CHRONIC
Source: AIOCD, MOSL
11.1
3.6
Vol GR
Price GR
1.7
NP GR
Source: AIOCD, MOSL
27 January 2016
4
 Motilal Oswal Financial Services
Sector Update| Healthcare
Cadila Healthcare
Exhibit 14: Top 10 Drugs
Drug
Therapy
Derma
Gynaecological
Cardiac
Respiratory
Gastro Intestinal
Cardiac
Blood Related
Cardiac
Cardiac
Anti Malarials
Growth (%)
MAT Dec 15
Value(INR Growth Mkt Share
3M Dec -15
40,134
11.6
100.0
11.7
8.6
1,821
5.5
4.5
(19.6)
(18.5)
1,313
8.1
3.3
14.0
18.5
1,270
16.0
3.2
13.8
9.5
996
23.5
2.5
25.9
11.2
933
3.3
2.3
0.5
(2.6)
703
1.6
1.8
(0.2)
(3.6)
641
(8.1)
1.6
(23.4)
(37.9)
598
(8.4)
1.5
(15.5)
(32.7)
588
47.4
1.5
50.9
43.8
588
12.2
1.5
(3.3)
(36.7)
Source: AIOCD, MOSL
Cadila underperformed the
market growth for
December 2015
Total
Skinlite
Mifegest Kit
Atorva
Deriphyllin
Pantodac
Amlodac
Zyrop
Aten
Clopitorva
Falcigo
Cardiac, Gynaec and Derma
dragged overall growth in
December 2015
Exhibit 15: Therapy Mix (%)
Share
100.0
17.0
13.2
12.6
10.9
9.7
7.7
Cardiac
Anti-Infectives
Gastro Intestinal
Gynaecological
Respiratory
Derma
MAT Growth
11.6
13.1
9.1
8.5
11.0
19.7
14.6
3M
Dec 15 Growth
11.7
8.6
11.3
6.3
24.4
29.5
15.0
13.6
3.4
1.2
20.1
13.9
(5.1)
(8.5)
Source: Source: AIOCD, MOSL
Exhibit 16: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
23.5
17.2
14.2
45.1
MAT growth (%)
11.6
8.5
10.9
17.6
11.8
Growth Contribution (%)
100.0
17.7
16.3
20.4
45.7
Source: AIOCD, MOSL
Exhibit 17: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
11.6
MAT Val Gr Dec'15 (%)
11.6
Exhibit 18: Growth Distribution (%)(MAT Dec’15)
4.1
4.4
3.2
27.0
ACUTE
13.2
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
27 January 2016
5
 Motilal Oswal Financial Services
Sector Update| Healthcare
GSK Pharma
Exhibit 19: Top 10 Drugs
GSK pharma continues to
grow in single digit for
December 2015
Drug
Total
Augmentin
Synflorix
Calpol
Betnovate C
Zinetac
Betnovate N
Eltroxin
Ceftum
Rotarix
Betnesol
Therapy
Anti-Infectives
Vaccines
Pain / Analgesics
Derma
Gastro Intestinal
Derma
Hormones
Anti-Infectives
Vaccines
Hormones
Growth (%)
MAT Dec 15
Value(INR m) Growth Mkt Share
3M Dec-15
31,739
6.1
100.0
13.0
8.2
3,243
8.2
10.2
(4.6)
(4.5)
1,892
38.0
6.0
21.8
22.9
1,718
14.2
5.4
33.4
21.7
1,551
45.9
4.9
50.6
40.0
1,545
5.4
4.9
9.6
(6.9)
1,449
25.9
4.6
37.7
24.5
1,301
10.5
4.1
9.3
20.0
1,266
3.3
4.0
(0.8)
(5.5)
1,183
50.9
3.7
99.4
60.7
1,174
57.2
3.7
51.2
30.2
Source: AIOCD, MOSL
Anti-infective and Derma
are growing in low single
digit
Exhibit 20: Therapy Mix (%)
Share
100.0
23.9
20.7
13.1
9.1
8.1
7.4
Chronic portfolio is growing
at 14.6% YoY on MAT basis
Anti-Infectives
Derma
Vaccines
Pain / Analgesics
Hormones
Vitamins / Minerals / Nutrients
MAT Growth
6.1
(3.2)
14.3
14.2
12.6
28.4
6.8
3M
Dec 15 Growth
13.0
8.2
1.4
1.4
6.5
2.7
68.1
62.5
27.6
15.0
28.1
23.9
9.5
0.8
Source: Source: AIOCD, MOSL
Exhibit 21: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
51.4
20.0
14.0
14.6
MAT growth (%)
6.1
21.0
3.3
(5.1)
(17.3)
Growth Contribution (%)
100.0
154.9
11.1
(12.9)
(53.1)
Source: AIOCD, MOSL
Exhibit 22: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
14.6
Exhibit 23: Growth Distribution (%) (MAT Dec’ 15)
4.2
4.9
1.9
27.4
ACUTE
4.3
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
0.0
NP GR
Source: AIOCD, MOSL
27 January 2016
6
 Motilal Oswal Financial Services
Sector Update| Healthcare
Lupin
Exhibit 24: Top 10 Drugs
Drug
Therapy
Anti Diabetic
Cardiac
Respiratory
Respiratory
Gastro Intestinal
Cardiac
Gastro Intestinal
Anti-Infectives
Respiratory
Anti-Infectives
Growth (%)
MAT Dec 15
Value(INR Growth Mkt Share 3M Dec 15
33,294
18.0
100.0
14.8
15.0
1,383
16.6
4.2
21.3
21.9
996
14.1
3.0
2.5
3.7
903
40.0
2.7
37.0
27.4
541
33.6
1.6
18.1
13.0
539
21.9
1.6
9.8
14.2
528
7.6
1.6
0.3
(0.6)
509
17.4
1.5
8.6
8.6
495
1.1
1.5
(0.8)
(0.0)
422
16.2
1.3
7.0
9.5
418
7.7
1.3
20.6
25.7
Source: AIOCD, MOSL
Lupin reported 15%YoY
growth in Dec-2015, much
higher than the market
growth of 11.9%
Total
Gluconorm-G
Tonact
Budamate
Esiflo
Rablet-D
Ramistar
Rablet
R-Cinex
Telekast-L
Tazar
Most of the top therapies
are growing in double digits
Exhibit 25: Therapy Mix (%)
Share
100.0
25.0
21.7
12.4
10.7
7.9
5.8
MAT Growth
18.0
20.8
6.4
27.1
22.6
20.5
13.6
Volumes are the key growth
driver for Lupin
Cardiac
Anti-Infectives
Respiratory
Anti Diabetic
Gastro Intestinal
Vitamins / Minerals / Nutrients
Dec 15 Growth
14.8
15.0
13.6
12.0
10.4
16.0
22.7
19.5
18.9
18.7
14.1
14.3
3.8
2.8
Source: Source: AIOCD, MOSL
3M
Exhibit 26: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
20.2
16.1
17.0
46.7
MAT growth (%)
18.0
17.8
14.3
14.7
20.7
Growth Contribution (%)
100.0
20.0
13.2
14.3
52.5
Source: AIOCD, MOSL
Exhibit 27: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
22.0
Exhibit 28: Growth Distribution (%) (MAT Dec’ 15)
14.4
9.2
4.9
17.2
ACUTE
16.1
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
3.9
27 January 2016
7
 Motilal Oswal Financial Services
Sector Update| Healthcare
Sanofi India
Exhibit 29: Top 10 Drugs
Drug
Therapy
Anti Diabetic
Pain / Analgesics
Respiratory
Cardiac
Vaccines
Cardiac
Vaccines
Anti Diabetic
Neuro / Cns
Gastro Intestinal
MAT Dec 15
Value(INR Growth
Mkt
23,730
15.1
100.0
2,545
22.5
10.7
1,621
6.0
6.8
1,213
15.4
5.1
1,179
21.2
5.0
1,055
(9.8)
4.4
990
(10.0)
4.2
913
170.1
3.8
891
13.0
3.8
858
8.9
3.6
822
18.2
3.5
Growth (%)
3M
Dec-15
6.9
4.0
18.1
22.4
9.2
(0.1)
15.2
19.8
0.7
(0.6)
(92.9) (98.7)
23.0
19.3
211.6
258.2
9.8
15.3
7.9
8.2
42.3
52.3
Source: AIOCD, MOSL
Sanofi significantly
underperformed the
market in December 2015
Top 10 brands accounts for
51% of growth for Sanofi
Total
Lantus
Combiflam
Allegra
Clexane
Pentaxim
Cardace
Vaxigrip
Amaryl M
Frisium
Enterogermina
Exhibit 30: Therapy Mix (%)
Share
100.0
22.1
18.9
14.0
9.9
9.2
9.0
MAT Growth
15.1
14.1
13.3
22.2
7.9
21.2
6.1
Dec 15 Growth
6.9
4.0
17.9
15.7
16.4
13.1
(32.6)
(35.2)
5.4
(1.4)
20.1
24.6
7.2
6.0
Source: Source: AIOCD, MOSL
3M
Volume growth has been
the primary growth driver
for Sanofi
Anti Diabetic
Cardiac
Vaccines
Pain / Analgesics
Respiratory
Neuro / Cns
Exhibit 31: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
50.9
26.8
13.5
8.8
MAT growth (%)
15.1
15.0
12.3
20.8
15.9
Growth Contribution (%)
100.0
50.7
22.3
17.8
9.2
Source: AIOCD, MOSL
Exhibit 32: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
18.0
12.3
MAT Val Gr Dec'15 (%)
Exhibit 33: Growth Distribution (%)(MAT Dec’15)
12.6
11.9
ACUTE
11.9
CHRONIC
Source: AIOCD, MOSL
Vol GR
1.9
Price GR
0.5
NP GR
Source: AIOCD, MOSL
8
27 January 2016
 Motilal Oswal Financial Services
Sector Update| Healthcare
Torrent Pharma
Exhibit 34: Top 10 Drugs
.
Torrent registered 3.7%YoY
growth in December 2015,
affected by significant
slowdown in key brands
Drug
Total
Shelcal
Chymoral Forte
Nikoran
Dilzem
Nebicard
Azulix-Mf
Nexpro Rd
Nexpro
Alprax
Rozucor
Therapy
Vitamins
Pain / Analgesics
Cardiac
Cardiac
Cardiac
Anti Diabetic
Gastro Intestinal
Gastro Intestinal
Neuro / Cns
Cardiac
Growth (%)
MAT Dec 15
Value(INR Growth
Mkt
3M Dec-15
22,409
20.4
100.0
9.3
3.7
1,955
53.1
8.7
0.9
(7.0)
1,149
64.6
5.1
3.0
4.1
814
12.8
3.6
9.0
5.5
627
2.9
2.8
0.5
(6.4)
581
19.3
2.6
23.4
21.9
543
23.8
2.4
17.6
6.7
519
15.1
2.3
8.2
10.1
477
14.2
2.1
4.1
(3.7)
386
8.0
1.7
7.4
5.8
359
20.4
1.6
15.0
6.1
Source: AIOCD, MOSL
Torrent growth has slowed
down due to change in
strategy of low bonus sales
Exhibit 35: Therapy Mix (%)
Share
100.0
29.0
16.1
15.2
14.9
7.7
5.8
Volume and Price hike are
key growth drivers for
Torrent pharma
Cardiac
Neuro / Cns
Vitamins
Gastro Intestinal
Pain / Analgesics
Anti Diabetic
MAT Growth
20.4
15.8
16.2
41.8
15.7
57.4
22.3
3M
Dec 15 Growth
9.3
3.7
10.5
4.9
11.1
5.9
17.9
8.9
5.6
5.6
13.8
11.4
12.4
(0.7)
Source: Source: AIOCD, MOSL
Exhibit 36: Brand wise growth distribution
% of sales
Total
Top 10 brands
11 to 25 brands
26 to 50 brands
Above 50 brands
100.0
33.1
18.1
16.1
32.7
MAT growth (%)
20.4
28.7
13.2
20.0
16.9
Growth Contribution (%)
100.0
43.6
12.5
15.9
28.0
Source: AIOCD, MOSL
Exhibit 37: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
23.9
17.1
MAT Val Gr Dec'15 (%)
Exhibit 38: Growth Distribution (%)(MAT Dec’15)
12.4
6.6
11.1
ACUTE
11.3
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
1.3
NP GR
Source: AIOCD, MOSL
9
27 January 2016
 Motilal Oswal Financial Services
Sector Update| Healthcare
Glenmark Pharma
Exhibit 39: Top 10 Drugs
Drug
Therapy
0
Cardiac
Cardiac
Respiratory
Derma
Derma
Anti Diabetic
Cardiac
Anti Diabetic
Respiratory
Derma
Growth (%)
MAT Dec 15
Value(INR Growth (%) Mkt Share 3M
Dec-15
22,854
25.5
100.0
23.5
18.6
1,677
21.9
7.3
24.9
25.9
1,322
18.9
5.8
18.5
24.9
1,044
14.6
4.6
24.9
22.1
872
14.0
3.8
13.6
6.7
822
41.2
3.6
35.0
19.1
744
57.1
3.3
(10.3)
(43.9)
695
34.3
3.0
35.7
37.0
524
56.4
2.3
(4.6)
(32.0)
469
53.3
2.1
60.1
66.6
339
17.0
1.5
12.2
34.9
Source: AIOCD, MOSL
Glenmark continues to
outperform market growth
for Dec’15, 3M and on MAT
basis
Total
Telma
Telma H
Ascoril Plus
Candid-B
Candid
Zitamet
Telma Am
Zita(Glenmark)
Ascoril Ls
Candid Mouth
Volume growth is key driver
for Glenmark
Exhibit 40: Therapy Mix (%)
Share
100.0
28.2
22.4
15.5
13.9
8.8
2.5
Top 10 brands account for
40% of MAT growth for
Glenmark
Derma
Cardiac
Respiratory
Anti-Infectives
Anti Diabetic
Vitamins / Minerals / Nutrients
MAT Growth
25.5
22.7
22.3
28.4
23.5
48.3
37.7
3M
Dec 15 Growth
23.5
18.6
19.4
16.9
20.5
21.2
35.4
29.4
17.1
1.8
27.2
9.1
41.0
38.8
Source: Source: AIOCD, MOSL
Exhibit 41: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
37.2
17.9
16.2
28.7
MAT growth (%)
25.5
27.6
22.8
29.8
22.2
Growth Contribution (%)
100.0
39.7
16.4
18.3
25.6
Source: AIOCD, MOSL
Exhibit 42: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
27.7
Exhibit 43: Growth Distribution (%)(MAT Dec’15)
23.7
8.5
5.8
3.6
8.5
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
10
14.3
ACUTE
27 January 2016
 Motilal Oswal Financial Services
Sector Update| Healthcare
Dr Reddy’s Labs
Exhibit 44: Top 10 Drugs
Drug
Therapy
0
Gastro Intestinal
Gastro Intestinal
Gastro Intestinal
Cardiac
Pain / Analgesics
Gastro Intestinal
Anti-Neoplastics
Derma
Cardiac
Anti-Neoplastics
Growth (%)
MAT Dec 15
Value(INR Growth (%) Mkt Share 3M
Dec -15
22,116
16.8
100.0
15.7
14.0
1,236
32.3
5.6
28.3
18.0
882
20.9
4.0
30.5
16.6
660
25.4
3.0
23.8
16.3
637
15.4
2.9
17.5
1.6
633
1.8
2.9
(1.8)
13.0
584
34.2
2.6
33.1
28.4
566
194.2
2.6
142.3
127.5
537
18.0
2.4
21.3
10.6
477
2.4
2.2
(12.3)
(27.1)
472
4.0
2.1
21.0
59.2
Source: AIOCD, MOSL
Dr Reddy’s Labs grew 14%
YoY in December 2015
Some of the key Anti-
neoplastic brands (Grafeel,
Reditux) are reporting
superior growth for Dr
Reddy’s Lab
Total
Omez
Omez D
Econorm
Stamlo
Nise
Razo D
Grafeel
Mintop
Stamlo Beta
Reditux
Exhibit 45: Therapy Mix (%)
Share
100.0
22.4
15.0
10.9
8.7
7.9
6.9
Gastro Intestinal
Cardiac
Anti-Neoplastics
Respiratory
Anti-Infectives
Pain / Analgesics
MAT Growth
16.8
21.2
15.3
26.8
12.5
17.9
6.2
3M
Dec 15 Growth
15.7
14.0
18.6
10.9
8.3
0.5
43.2
65.1
3.8
(4.3)
16.9
17.9
6.4
13.3
Source: Source: AIOCD, MOSL
Volume and Price are
contributing equally to
overall growth
Exhibit 46: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
30.2
21.5
15.8
32.5
MAT growth (%)
16.8
24.6
14.4
17.0
11.7
Growth Contribution (%)
100.0
41.4
18.8
16.0
23.8
Source: AIOCD, MOSL
Exhibit 47: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
18.0
MAT Val Gr Dec'15 (%)
13.7
Exhibit 48: Growth Distribution (%)(MAT Dec’15)
15.5
ACUTE
6.6
CHRONIC
Source: AIOCD, MOSL
8.3
Vol GR
6.0
Price GR
2.5
NP GR
Source: AIOCD, MOSL
27 January 2016
11
 Motilal Oswal Financial Services
Sector Update| Healthcare
IPCA labs
Exhibit 49: Top 10 Drugs
Drug
Therapy
Pain / Analgesics
Pain / Analgesics
Anti Malarials
Anti Malarials
Anti Malarials
Anti Malarials
Anti Diabetic
Anti-Neoplastics
Pain / Analgesics
Anti-Infectives
Growth (%)
MAT Dec 15
Value(INR Growth Mkt Share 3M
Dec-15
12,413
9.2
100.0
14.8
11.8
838
40.2
6.8
53.9
67.2
686
21.8
5.5
36.0
31.1
624
19.4
5.0
15.5
20.2
484
18.0
3.9
27.5
(17.2)
425
13.9
3.4
9.2
15.1
343
(1.0)
2.8
9.0
14.2
327
4.4
2.6
21.2
19.7
306
9.9
2.5
12.4
23.1
267
5.5
2.2
16.1
4.9
229
(11.3)
1.8
5.4
13.6
Source: AIOCD, MOSL
IPCA reported double
growth in December 2015
However, MAT growth
stood at 9% YoY
Total
Zerodol Sp
Zerodol P
Hcqs
Larinate
Rapither-Ab
Lariago
Glycinorm M
Folitrax
Zerodol
Azibact
Top 10 brands are
contributing 59% to MAT
growth
Exhibit 50: Therapy Mix (%)
Share
100.0
24.8
20.0
16.9
8.2
6.4
5.1
Volume and price growth
are the key growth drivers
for IPCA
Pain / Analgesics
Anti Malarials
Cardiac
Gastro Intestinal
Anti-Infectives
Anti Diabetic
MAT Growth
9.2
18.6
5.6
8.5
8.1
(2.1)
1.3
3M
Dec 15 Growth
14.8
11.8
31.0
32.3
13.8
3.7
13.7
6.2
13.5
14.7
(5.0)
(5.3)
14.2
11.5
Source: Source: AIOCD, MOSL
Exhibit 51: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
36.5
21.6
17.7
24.3
MAT growth (%)
9.2
15.6
9.0
3.4
4.9
Growth Contribution (%)
100.0
58.6
21.0
7.0
13.4
Source: AIOCD, MOSL
Exhibit 52: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
10.5
MAT Val Gr Dec'15 (%)
Exhibit 53: Growth Distribution (%)(MAT Dec’15)
6.0
3.4
3.9
2.0
9.0
ACUTE
3.4
CHRONIC
Source: AIOCD, MOSL
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
27 January 2016
12
 Motilal Oswal Financial Services
Sector Update| Healthcare
Alembic Pharma
Exhibit 54: Top 10 Drugs
Drug
Therapy
0
Anti-Infectives
Anti-Infectives
Anti-Infectives
Gynaecological
Respiratory
Gastro Intestinal
Gastro Intestinal
Respiratory
Gastro Intestinal
Anti Diabetic
MAT Dec 15
Value(INR Growth
Mkt
13,280
17.9
100.0
1,409
16.3
10.6
843
(9.6)
6.3
574
12.0
4.3
508
32.9
3.8
375
(4.3)
2.8
350
29.5
2.6
302
18.4
2.3
251
8.3
1.9
239
11.9
1.8
236
25.5
1.8
Growth (%)
3M
Dec-15
24.6
24.0
21.4
26.6
(23.4) (13.7)
10.9
12.1
36.4
33.1
13.1
26.1
42.5
34.0
29.4
25.7
24.0
42.6
16.0
6.7
19.0
5.7
Source: AIOCD, MOSL
Alembic Pharma grew
24%YoY in December 2015
Respiratory and cardiac
therapies grew in excess of
40% in December 2015
Total
Azithral
Althrocin
Roxid
Gestofit
Wikoryl
Ulgel
Rekool D
Zeet
Rekool L
Glisen Mf
Exhibit 55: Therapy Mix (%)
Share
100.0
25.4
14.1
13.2
13.0
10.2
6.0
Volume growth is key
growth driver for Alembic
Pharma
Anti-Infectives
Gastro Intestinal
Respiratory
Cardiac
Gynaecological
Vitamins / Minerals / Nutrients
MAT Growth
17.9
2.3
18.2
18.8
44.8
31.2
7.8
3M
Dec 15 Growth
24.6
24.0
5.7
12.2
24.7
21.0
34.2
42.4
51.3
40.3
39.0
28.6
17.5
13.7
Source: Source: AIOCD, MOSL
Exhibit 56: Brand wise growth distribution
.
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
% of sales
100.0
38.3
18.3
16.9
26.5
MAT growth (%)
17.9
10.9
31.0
26.8
15.3
Growth Contribution (%)
100.0
24.7
28.6
23.6
23.1
Source: AIOCD, MOSL
Exhibit 57: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
41.5
Exhibit 58: Growth Distribution (%)(MAT Dec’15)
8.5
13.0
10.6
ACUTE
2.7
CHRONIC
Source: AIOCD, MOSL
27 January 2016
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
13
5.8
3.6
 Motilal Oswal Financial Services
Sector Update| Healthcare
Biocon
Exhibit 59: Top 10 Drugs
Drug
Therapy
0
Anti Diabetic
Anti Diabetic
Anti Diabetic
Blood Related
Anti-Neoplastics
Anti Diabetic
Anti-Neoplastics
Anti Diabetic
Anti-Neoplastics
Anti-Neoplastics
Growth (%)
MAT Dec 15
Value(INR Growth (%) Mkt Share 3M
Dec -15
3,280
6.4
100.0
4.8
5.2
857
16.2
26.1
12.8
6.9
538
34.4
16.4
31.5
33.9
188
(15.6)
5.7
(9.2)
(13.3)
184
66.4
5.6
57.8
40.4
179
180.2
5.5
15.8
52.5
165
22.2
5.0
22.3
24.7
143
(33.8)
4.4
(64.4)
(53.6)
93
12.3
2.8
(0.3)
(11.7)
63
89.8
1.9
147.2
133.9
57
142.2
1.7
44.0
(18.0)
Source: AIOCD, MOSL
Overall company growth at
5% YoY in September 2015
and in 3 months period
Basalog, Erypro, Canmab
and Psorid growing in
excess of 30% in December
2015
Total
Insugen
Basalog
Blisto Mf
Erypro
Canmab
Insugen R
Abraxane
Insugen N
Psorid
Abstet
Exhibit 60: Therapy Mix (%)
Share
100.0
61.0
19.4
6.1
5.7
2.8
2.6
MAT Growth
6.4
13.1
12.8
(39.7)
67.5
1.3
(40.8)
Dec 15 Growth
4.8
5.2
13.5
11.2
(20.2)
(12.1)
(28.3)
(27.0)
60.0
41.7
25.8
39.8
39.7
37.6
Source: Source: AIOCD, MOSL
3M
New products are key
growth drivers for Biocon
Anti Diabetic
Anti-Neoplastics
Cardiac
Blood Related
Derma
Anti-Infectives
Exhibit 61: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
75.2
14.2
8.1
2.5
MAT growth (%)
6.4
21.8
(16.0)
(28.1)
(38.3)
Growth Contribution (%)
100.0
223.1
(45.0)
(52.7)
(25.4)
Source: AIOCD, MOSL
Exhibit 62: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
8.0
Exhibit 63: Growth Distribution (%)(MAT Dec’15)
4.4
2.8
2.1
0.9
ACUTE
2.4
CHRONIC
Source: AIOCD, MOSL
Source: AIOCD, MOSL
-0.7
Vol GR
Price GR
NP GR
27 January 2016
14
 Motilal Oswal Financial Services
Sector Update| Healthcare
Alkem
Exhibit 64: Top 10 Drugs
Drug
Therapy
Anti-Infectives
Anti-Infectives
Gastro Intestinal
Anti-Infectives
Gastro Intestinal
Anti-Infectives
Vitamins / Minerals / Nutrients
Gastro Intestinal
Pain / Analgesics
Vitamins / Minerals / Nutrients
MAT Dec 15
Value(INR) Growth(%)
33,338
11.8
2,359
7.9
1,879
13.1
1,858
14.2
1,687
1.1
1,538
16.2
917
9.2
861
9.9
813
17.7
810
6.2
764
14.4
Growth (%)
Mkt
3M
Dec -15
100.0
15.7
18.0
7.1
23.2
29.8
5.6
19.6
16.8
5.6
7.1
15.4
5.1
(25.3) (25.8)
4.6
7.3
15.8
2.8
25.9
16.3
2.6
4.1
4.6
2.4
15.6
17.0
2.4
(1.7)
0.7
2.3
16.2
19.7
Source: AIOCD, MOSL
Alkem grew 18% for
December, 16% for 3M and
12% on MAT basis
Total
Clavam
Taxim O
Pan
Taxim
Pan D
Xone
Gemcal
Ondem
Sumo
A To Z Ns
In Dec 2015, Neuro/CNS
and Derma grew 33% and
29% respectively
Exhibit 65: Therapy Mix (%)
Share
100.0
43.5
16.2
13.1
7.3
4.2
3.3
Price is primary growth
drivers for MAT growth
Anti-Infectives
Gastro Intestinal
Vitamins / Minerals / Nutrients
Pain / Analgesics
Neuro / Cns
Derma
MAT Growth
11.8
10.8
14.5
13.7
10.6
13.4
19.1
3M
Dec 15 Growth
15.7
18.0
15.7
18.3
10.2
17.0
13.9
15.0
14.1
15.1
34.1
33.1
30.9
29.2
Source: Source: AIOCD, MOSL
Exhibit 66: Brand wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
40.4
17.9
12.2
29.5
MAT growth (%)
11.8
10.4
16.3
19.6
8.3
Growth Contribution (%)
100.0
36.1
23.7
18.9
21.3
Source: AIOCD, MOSL
Exhibit 67: Acute v/s Chronic (MAT growth)
MAT Val Dec'15 (INR b)
MAT Val Gr Dec'15 (%)
18.0
11.1
Exhibit 68: Growth Distribution (%)(MAT Dec’15)
5.6
4.1
2.2
Vol GR
Price GR
NP GR
Source: AIOCD, MOSL
30.0
ACUTE
3.3
CHRONIC
Source: AIOCD, MOSL
27 January 2016
15
 Motilal Oswal Financial Services
Sector Update| Healthcare
NOTES
27 January 2016
16
 Motilal Oswal Financial Services
HEALTHCARE
GALLERY
HEALTHCARE MONTHLY
HEALTHCARE MONTHLY
SECTOR UPDATES
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