Sector Update | 8 January 2021
Sector Update| Healthcare
Healthcare
Performance of top companies:
Dec’20
MAT
Dec’2
Company
growth
0 (%)
(%)
IPM
Merck
JB Chemicals
Ajanta Pharma
Eris Lifesciences
Biocon
Ipca Laboratories
Cipla
Glenmark Pharma
Zydus Wellness
Lupin
Torrent Pharma
Wockhardt
Intas Pharma
Sanofi India
Abbott India
Mankind Pharma
Alkem Laboratories
Sun Pharma
Pfizer India
Dr. Reddy’s Labs
FDC
Indoco Remedies
GlaxoSmithKline Ph.
Alembic Pharma
Astrazeneca Pharma
Natco Pharma
3.1
19.0
14.3
10.0
9.2
-5.9
11.4
8.2
16.1
4.0
4.0
6.9
-21.4
4.4
4.0
4.1
6.0
1.0
4.4
7.4
2.1
0.6
-3.7
-5.4
0.8
3.2
-10.1
8.5
27.3
22.4
18.8
18.3
18.1
16.6
15.3
13.6
11.6
11.4
11.0
11.0
10.7
10.4
10.0
8.8
8.4
7.9
7.5
6.2
5.1
5.0
3.8
1.2
-2.5
-23.4
IPM growth accelerates in Dec’20 after a subdued Nov’20
IPM growth increased to 8.5% YoY in Dec’20 v/s. 1% YoY in Nov’20.
Gastro/Cardiac/VMN therapies exhibited a YoY growth of 16.2%/14.9%/14%.
Anti-Infectives therapy is back on the growth path, with 5.2% YoY growth in
Dec’20 v/s flat sales YoY in Nov’20.
Respiratory sales remained in a downtrend with 8.7% YoY decline in Dec’20.
NLEM (~17% of IPM) grew 6.3%% YoY. Non-NLEM (~83% of IPM) grew at 9%.
On a MAT basis, industry growth came in at 3.1% YoY.
For the quarter-ending Dec’20, YoY growth was 6.4%. Price/new product (NP)
growth of 4.9%/3.4% YoY was offset to some extent by a 1.9% dip in volumes.
NLEM (~17% of IPM) grew 3.6% YoY, while Non-NLEM (~83% of IPM) grew 7%.
In Dec’20, Merck India (+27.3% YoY), JB Chemicals (+22.4% YoY), Ajanta Pharma
(+18.8% YoY), Eris Lifesciences (+18.3% YoY), and Biocon (+18.1% YoY) delivered
robust performances.
Ajanta Pharma grew on strong offtake in Pain/Cardiac therapies (~50% of
therapy mix), which grew 33.3%/28.7% YoY.
Biocon witnessed strong growth in its Anti-Infective (+107% YoY) and Anti-
Neoplastic (+67.3%) segments.
Ipca Laboratories posted good traction in Pain/Analgesics (+32.7% YoY) and
Gastro (27.4%) segments.
Alembic Pharma and Dr. Reddy’s Laboratories posted lower-than-industry
growth in Dec’20 (1.2%/6.2% YoY) v/s -0.8%/0.3% in Nov’20.
On a MAT basis, JB Chemicals/Torrent Pharmaceuticals reported the highest
price growth (+10.1%/7.3% YoY). Glenmark Pharmaceuticals saw the highest
growth in new launches (+14.7% YoY).
Chronic therapies saw strong growth with Cardiac/Anti-diabetic/VMN growing
at 13.4%/7.8%/6.6% YoY for MAT ending Dec’20.
Gynecology/Pain/Anti-infective sales declined 3.5%/2.8%/2% YoY impacting
overall growth to some extent.
Prices aided overall growth for the quarter-ending Dec’20
Merck, JB Chemicals, Ajanta, Eris Lifesciences, and Biocon outperform
Cardiac, Anti-Diabetic and VMN drive overall sales growth on a MAT basis
Tushar Manudhane – Research analyst
(Tushar.Manudhane@MotilalOswal.com)
Bharat Hegde, CFA – Research analyst
(Bharat.Hegde@MotilalOswal.com);
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.