Pharmaceuticals - Domestic Pharma Monthly Review; monthly update ::Edelweiss (pdf link)

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The domestic pharma market remained on strong track with 16.5% YoY growth (15.6% in Dec’11), led by key segments of cardiac, diabetes & vitamins. We highlight that this consistent performance is in-line with long-term growth trend of 15-16%. On a monthly basis, Sun Pharma has overtaken GSK to bag the 3rd rank – first time ever. Ranbaxy has de-grown for the month and ranks 6th. Cipla has been showing consistent improvement MoM. Cadila has had a positive turnaround and even Unichem’s performance inched up during the month.

Key takeaways from trends during January

·         January shows a steady progress in domestic market with 16.5% Y-o-Y growth.  MoM, however, it de-grew 5% as December had a peak winter season.

·         Chronic segment continued to remain on a firm trajectory (21% growth) with all three segments - diabetes, CVS and CNS - showing strong traction. Volume growth has been healthy across segments (diabetes among the highest), indicating higher prevalence of diseases and increasing demand.

·         Chronic focused players, Sun Pharma, Lupin, and Aventis maintained buoyant growth and are the best plays in the domestic market. 

·         Acute segment for the month grew 15% Y-o-Y. However, growth in anti-infective remains in early double digit.

·         Segments such as derma/ opthal/ gynac and gastro have been showing strong traction since the past few months. Vitamins segment has also been catching up with highest new launches during the month.

·         Market leaders in key therapies were able to sustain growth momentum while others lost to competition, highlighting the strength of a vigorous franchise with key opinion leaders (KOLs). Top 5 players are losing market share in favor of players positioned between 6 and 25 who are growing faster than industry.

·         Cipla is improving consistently and gaining market share. Other notable highlights are positive turnaround of Cadila and some improvement in Unichem. We have witnessed some slowdown in case of Lupin in the past 2-3 months, though primary numbers are still robust. Ranbaxy too has witnessed slowdown in the past 3-4 months and losing out market share. Other companies who are gaining market share are Sun Pharma, Glenmark, and Pfizer.

·         Outperformers:  Glenmark,  Sun Pharma, Aventis, and Pfizer

·         Underperformers: Ranbaxy, Dr Reddy, Torrent Pharma, and Lupin

·         Among MNCs, Aventis leads the pack with a sharp growth rate of 23% YoY, followed by Pfizer and GSK.

Pharmaceuticals - Domestic Pharma Monthly Review; monthly update