Sector Update |
Update| Healthcare
Sector
17 January 2018
Healthcare
Performance of top
companies: Dec-17, %)
Company
IPM
Sun Pharma
Abbott India
Cipla
Zydus Cadila
Mankind
Alkem
Lupin
Torrent Pharma
Pfizer
Glenmark
Pharma
Sanofi
Dr Reddy Labs
GSK Pharma
Alembic Pharma
Ipca Labs
Natco
Ajanta Pharma
Merck
Biocon
MAT gr Dec-17
5.5
7.8
7.6
8.1
7.4
7.1
3.2
10.2
9.5
8.6
5.4
19.9
3.7
12.4
7.9
12.7
5.9
1.6
(3.5)
(0.6)
9.3
9.2
3.9
7.6
(1.7)
(4.4)
(7.4)
9.1
5.0
10.6
10.5
8.6
7.0
9.3
(2.0)
(4.3)
14.8
8.5
(0.3)
11.4
IPM – growth picks up on higher volumes
Indian pharmaceutical market's (IPM) secondary sales continued to grow at a
healthy rate in December, led by strong volume growth, while price growth
continued its downtrend during the month. IPM grew by 7.8% YoY in December
2017 and 7.2% YoY in 3QFY18.
After declining trend in YoY quarterly growth till 2QFY18, industry volumes grew
by 5.9% in 3QFY18. Growth in new products was 2.8% in 3QFY18, as compared
to 2.7% in 2QFY18. After declining 2.1% in 2QFY18, prices further reduced YoY in
3QFY18 as well (-1.5%).
Moving annual total (MAT) growth for December was 5.5% as against 5.6% YoY
in November.
Natco’s secondary sales (+24.5%) posted robust growth for 3QFY18 YoY,
followed by Mankind (+14.1%) and Alkem (+13.1%). More than 65% of the
companies posted improvement in YoY growth in 3QFY18 compared to previous
three quarters.
Exceptionally, IPCA’ secondary sales continued to decline (-7.1%) in 3QFY18 YoY,
followed by Pfizer, which declined 3.4% during the quarter.
Ophthal & Vaccines (1.9% each of IPM) posted robust growth of 13.2% YoY in
3QFY18, followed by Respiratory (+12.3%; 7.5% of IPM) and Derma (+11.5%;
6.4% of IPM). Although all therapies reported growth in December, ~40% of
them underperformed the IPMs.
In value terms, secondary sales of DPCO-listed products increased by 3% YoY
and non-DPCO products by 8.7% YoY.
FDC-banned drugs (~2.4% of IPM) grew 4% in December, while non-banned
drugs grew by 8.7% YoY. Secondary sales for Indian companies increased 8.2%
YoY, while those of MNC companies grew by 6.3% YoY.
Natco, Mankind and Alkem witness highest YoY growth for the quarter
Ophthal & Vaccine, Respiratory and Derma lead among therapies
DPCO v/s non-DPCO market (December-17)
FDC ban impact (December-17)
Exhibit 1: Volume-led high industry growth
13.9
Volume Growth (%)
9.9
7.8
4
2.1
4.7
3.8
1.4
Price Growth (%)
New Product Growth (%)
Total Growth (%)
8.2
3.7
3.4
1.1
6.7
3.1
1.8
1.8
1QFY18
0.7
0.1
-2.1
2QFY18
2.7
7.2
5.9
2.8
-1.5
3QFY18
Source: AIOCD, MOSL
2QFY17
3QFY17
4QFY17
Kumar Saurabh – Research analyst
(Kumar.Saurabh@MotilalOswal.com); +91 22 6129 1519
Ankeet Pandya – Research analyst
(Ankeet.Pandya@MotilalOswal.com)
18 August 2017
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.
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