Led by seasonal factors and a stable growth of chronic segment, Indian pharmaceutical market (IPM) expanded 11.5 percent for the quarter ended September 30, according to market research firm AIOCD-AWACS.
The July-October, the wettest period of FY20, saw outbreaks of infectious diseases in many parts of the country, aiding the growth of anti-infective segment to 14 percent YoY in the second quarter, beating overall IPM growth.
At the near close of the monsoon season, India received above normal rainfall or 9 percent above long period average as on September 29 even with a weak and delayed start to the monsoon, according to Kotak Institutional Equities latest report on Monsoon.
In many regions, particularly western, central and south India, there were floods, that increased the risk of people acquiring infectious diseases such as dengue, chikungunya, malaria, cholera, viral fevers, typhoid, diarrhoea and common flu.
The anti-infective segment traditionally grew at 4-5 percent.
Anti-infectives along with analgesics/pain that constitutes acute segment exhibited a growth of 11.7 percent. Acute segment accounts for 47 percent of the IPM.
Companies with strong anti-infective portfolios like Alkem Laboratories, GSK, Mankind, Aristo Pharma grew well above the rest. GSK, Alkem, Aristo and Mankind, which primarily derives sales from domestic formulation market grew sales well above 15 percent in Q2FY20.
Alkem Laboratories, with 85 percent of domestic formulation sales coming from the acute segment, grew 18.3 percent in the quarter ended September.
GSK, on the other hand, grew at 21.9 percent. More than two-thirds of GSK sales come from the acute segment
GSK's Augmentin and Alkem's Clavam registered growth rates of more than 15 percent. Augmentin and Clavam are different brands with same antibiotic combination drug Amoxycillin plus Clavunic Acid, ranked among top-10 of India’s top-selling brands.
Chronic, which accounts for 31 percent of the IPM, has exhibited growth of 13 percent and sub-chronic segment has grown by 10.7 percent.
Chronic segment that constitutes medicines for diabetes and cardiovascular continued their growth trajectory as life style diseases explodes
Anti-diabetes segment saw 12.7 percent growth in Q2FY20, while cardiac grew at 11 percent.
The second quarter of FY20 also saw decent uptake in price and volume growth. While the volume growth during the quarter stood at 3.2 percent, the price growth stood at 5.5 percent. New products growth was at 2.8 percent.
The IPM stood at Rs 1.36 lakh crore for the moving annual total (MAT) ended September growing at 9.8 percent.
Market leader Sun Pharma grew at 11.4 percent, Lupin 16.9 percent, Cipla 7.6 percent Cadila Healthcare 13.5 percent and Dr Reddy’s 19.3 percent in the second quarter.
In MNC pack Abbott grew 12.3.
The top 10 drug makers contribute about 43 percent to the IPM.