IMS Health Market Reflection Report for July 2016

IMS

Every month, MedicinMan in partnership with IMS Health, brings our readers the latest industry numbers related to sales and revenues of the top companies, brands and therapy areas in the Indian Pharmaceutical Market.

The Indian Pharmaceutical Market (IPM) was valued atRs. 10,025 crores in the month of July 2016 clocking a 14.7% growth over same period last year (SPLY). This was the first time ever the market crossed the 10,000 crore mark in a single month.

The Indian Pharmaceutical Market (IPM) was valued at Rs. 10,025 crores in the month of July 2016 clocking a 14.7% growth over same period last year (SPLY). This was the first time ever the market crossed the 10,000 crore mark in a single month. The robust performance was aided by a strong monsoon witnessed across the country. On a MAT July basis, the industry was valued at Rs. 108,362 crores and reflected a 13% growth with volumes contributing to 37% of the growth.

The retail channel remained the largest channel in IPM contributing 84% of the overall sales and reflected a 13% growth. The hospital and doctor channel contributed to 16% of the overall sales and reflected a growth of 17% on a MAT July basis. It is expected that the hospital channel will continue to report robust growth rates due to rapid capacity expansion in this space. As per IMS Health data which captures sales from trade stockists more than 10 Therapy Areas in the IPM have already crossed a sale of Rs. 500 crores in the hospital segment viz. Anti Infectives, Cardiac, Gastrointestinals, Pain, Neuro, VMN, Gynaecology, Anti-diabetics, Vaccines and Respiratory.

Among top 10 companies, Mankind, Alkem, GSK, Macleods & Lupin registered a growth higher than IPM.

IPM has witnessed consolidation over the last few years, the industry however remains fragmented with top 10 players contributing 43% of overall sales and reflecting a robust 17% growth for the month. Among top 10 companies, Mankind, Alkem, GSK, Macleods & Lupin registered a growth higher than IPM.

Companies ranked 11-20 contributed 21% of total revenues for the month reflecting a growth of 15% aided by strong growth posted by Aristo (34%), Glenmark (22%), Alembic (17%) and Micro (16%).

Amongst top 25 companies, GSK reflected a robust performance for the month climbing back to 6th rank.  Aristo, Emcure & Glenmark gained 2 ranks each & moved to 12th, 14th, & 16th respectively while Pfizer, Alembic, Ipca gained 1 rank each and moved to 10th, 20th & 21st rank respectively in comparison to previous month.

Domestic companies continued to dominate the market with a 78% share in July 2016 with a growth of 16.3%. MNCs reflected an improvement in growth, clocking a 9.3% growth vis-à-vis a 5.3% in June 2016. Large MNCs like Abbott, GSK and Pfizer who contribute to ~56% of the total MNC share in the month reflected a growth of 10%, 18% and 7% respectively which was a marked improvement over previous months.

Acute therapies continued to dominate the IPM with a 68% contribution to the total market. After a gap of 5 months, acute therapy areas (16.2%) have outpaced chronic therapy areas (11.9%) in terms of growth with anti-infectives and cough preparations spearheading growth for acute therapies.

Anti-infective was the largest therapy area for the month with a revenue of Rs. 1469 crores reflecting a 29% growth on the back of a good monsoon witnessed by the country. This was an impressive performance considering 14% of the portfolio impacted by the FDC ban comprised of anti infectives while it was also one of the largest therapy to be affected by the NLEM notification.

Anti-infective was the largest therapy area for the month with a revenue of Rs. 1469 crores reflecting a 29% growth on the back of a good monsoon witnessed by the country. This was an impressive performance considering 14% of the portfolio impacted by the FDC ban comprised of anti infectives while it was also one of the largest therapy to be affected by the NLEM notification. Amoxyclav solids & liquids reflected a strong growth of 32% & 47% respectively while Cefpodoxime solids & Ceftriaxone injectables were among the fastest growing anti infectives registering a 58% and 43% growth for the month respectively.

Gastrointestinals surpassed cardiac therapy to be the 2nd largest therapy area for the month garnering a revenue of Rs. 1117 crores with a growth of 11%. PPIs and their combination with Domperidone reflected strong double digit growth. Omeprazole + Domperidone and ranitidine were the fastest growing molecules among top 10 with a growth of 23% and 19% respectively. Digestive enzymatic liquids reflected a 17% growth driven primarily by the east zone.

Cardiac was the 3rd largest therapy area for the month of July 2016 clocking a revenue of Rs. 1115 crores growing at 8% driven by Rosuvastatin (14% growth), Amlodipine + Telmisartan (18% growth), Telmisartan being affected by NLEM reflected a growth of -3% for the month while largest statin Atorvastatin reflected a growth of -5%.

Respiratory, though the 7th largest therapy area for the month, was the fastest growing clocking a growth of 35%

Respiratory, though the 7th largest therapy area for the month, was the fastest growing clocking a growth of 35%. Cough preparations, Levosalbutamol combinations & cold preparations (liquids & solids) were among the fastest growing categories in the respiratory space reflecting growth of 70%, 152%, 46% & 47% respectively.

Among chronic therapy areas, Anti-Diabetic and Neurology were the fastest growing therapy areas, growing at 16% & 10% for the month respectively. DPP4 inhibitors and Glim + Met formulations spearheaded growth for the anti-diabetic market owing to rising prevalence, diagnostic and treatment rates of diabetes. In the neurology space Levetiracetam continued to be the fastest growing molecule in neuro psychiatry for the month clocking a value of Rs. 42 crores with a growth of 25% in July 2016. Escitalopram plain & its combination with Clonazepam found place among the fastest growing CNS molecules for the month with a growth of 13% and 15% respectively.

Brand building efforts across top companies continued to be evident with 7 out of top 10 companies driving robust double digit growth for their portfolio falling under top 300 brands with only Sanofi, Zydus and Pfizer reflecting single digit growth. Calpol propelled GSK performance for the month while Aristo was driven by Monocef.

Company No. of Brands in Top 300 (July 2016) Value of Brands in Top 300 (July 2016) (Rs. Crores) Growth
2015 2016 2015 2016
SUN 27 29 215 273 27%
ABBOTT 26 28 267 308 15%
CIPLA 22 23 167 205 23%
PFIZER 17 16 170 184 8%
GLAXOSMITHKLINE 14 15 159 204 28%
ALKEM 14 15 140 182 29%
ARISTO PHARMA 10 11 93 141 51%
SANOFI 12 11 108 114 6%
MANKIND 9 11 68 98 43%
ZYDUS CADILA 12 11 80 82 2%

Note: Companies have been ranked as per number of brands which feature in top 300 brands in IPM.

IPM Snapshot

TSA = Total Sales Audit which includes Hospital, doctor and retail channels

SSA = Secondary Sales Audit which is retail channel sales from the local pharmacy retailers

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