Sun Pharma, Torrent, Dr Reddy’s among drugmakers beating pharma market


by 5paisa Research Team Last Updated: Dec 15, 2022 - 07:30 am 25.6k Views
Listen icon

The Indian pharmaceutical market (IPM) reported a drop in year-on-year growth in May 2022, for the third month running, though the decline was less than what the analysts were expecting given the high base effect of the previous year.

Sales of medicines in the local market declined 3.3% from May 2021. This was largely due to lower sales volumes that fell 6.6% and a 1.7% decline in product growth. The only positive factor for the local drugmakers was the 5% rise in prices, as per data collated by All India Chemists & Distributors (AIOCD).

In comparison, during April 2022, sales volume had slipped 8% and product launches had seen a 2% decline. The drugmakers had reported a similar 5% price rise in the previous month, too.

The decline in sales volume last month was mainly attributed to lower demand for acute segment therapies such as anti-infectives, vitamins and respiratory products. This, in turn, was due to the higher base effect during May 2021 and an inventory correction in the channel.

The industry had notched a staggering 47.8% year-on-year growth in May 2021 due to strong demand because of the COVID-19 outbreak. The decline in May 2022 is expected to be stemmed in the current month, even as the base effect will still mean drop for the quarter ending June 30.

During the full financial year ended March 31, 2022, the Indian market had registered 15% sales growth. This was much higher than the 8-10% growth recorded during FY18-FY22.

India Ratings and Research, a Fitch affiliate, expects mid-to-high single digit growth for the Indian pharma market during FY23 led by the price hikes (around 10% in certain categories).

Companies outpacing market growth

If we consider the moving annual total for the 12 months to May 2022, the overall pharma market grew 6.3%.

However, a clutch of local companies, including a few listed companies, have performed much better.

At the top of the outlier charts is Mankind Pharma, which is a privately held company. Among others, Torrent Pharma, Macleods, Intas Pharma, Sun Pharma and Aristo sported double-digit growth in the June 2021-May 2022 period.

Dr Reddy’s Labs and Glaxo are the other top-tier companies that outgrew the industry with high single-digit sales increase.

Share Market Today


How do you rate this article?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
What you must know about Marinetrans India IPO?

Net Marinetrans India Ltd was incorporated in the year 2004 and it is engaged in the business of sea freight forwarding. Marinetrans India Ltd started off as a freight forwarder and later expanded to offer Door-to-Door Delivery and 3PL services for the logistics industry.

Net Avenue Technologies IPO GMP (Grey Market Premium)

Net Avenue Technologies IPO opens for subscription on 30th November 2023 and closes for subscription on 04th December 2023.

Warren Buffett Offloads Entire 2.46% Paytm Stake, Faces ₹507 Crore Loss

On November 28, 2023, shares of One 97 Communications, the parent company of Paytm, opened 1% lower following Warren Buffett's move to sell his entire stake in the digital payment giant.