Domestic Formulations – May, 2012: 2MFY12 – Robust growth continues ::Karvy

Domestic Formulations – May, 2012: 2MFY12 – Robust growth continues
Growth for 2MFY13 (Apr,12 + May,12) at 17.6%, while growth for May‐12 at 16.8% y‐o‐y. Growth for the month has been lower than 18.4% reported for Apr‐12. Companies that
have witnessed higher than industry growth for 2MFY13 basis are Sun (+19.6%), Glaxosmithkline (+23.1%), Zydus Cadila (+21.0%), Sanofi‐Aventis (+17.8%) IPCA (+21.7%),
Indoco (+19.8%), Glenmark (+33.6%), Mankind (+22.1%) and Pfizer (+31.8%). Companies that have witnessed a single digit growth include Dr.Reddy’s (+9.2%) and Unichem
Labs (+6.2%). Ranbaxy is the only company showing a a big negative divergence
for May 12.

��



 The MAT May’12 value growth has been 16.5%. The growth has been on
account of 8.6% volume growth, 3.6 % price growth and 4.3 % on account of
new product introductions.
 Growth observed in key acute therapies for 2MFY13 namely anti‐infectives
(+16.6% y‐o‐y); GI (+16.5% y‐o‐y), pain (+15.1% y‐o‐y) and respiratory
(+13.6% y‐o‐y). Anti‐diabetic (+29.8% y‐o‐y), Cardiac (+18.8% y‐o‐y) and
vitamins and minerals (+19.6% y‐o‐y) have reported a strong growth for
2MFY13.
 Key products for Cipla namely MTP KIT (gynaecology) and Asthalin
(Respiratory) have shown lower momentum compared to 2MFY13 sales.
Glaxo’s Augmentin (key focus of NLEM) is growing above 35% on a May‐12
and 2MFY13 basis. NISE (DRL) which had witnessed degrowth on FY12
basis has started witnessing flat growth. Combiflam (Sanofi‐Aventis) was
earlier witnessing degrowth has moved to flat growth territory.
 We like Dr Reddys Lab, Cipla, Zydus Cadila and IPCA Labs.