Covid-19 drugs portfolio boost domestic sales of companies in FY21

Chronic therapy areas like cardiac and anti-diabetic have maintained their growth rates during FY21 despite a washout in the first quarter

Covid-19 drugs portfolio boost domestic sales of companies in FY21
Sohini Das Mumbai
3 min read Last Updated : Jun 14 2021 | 6:10 AM IST
Drug companies with a strong Covid-19 drugs portfolio have clocked healthy growth in India sales in FY21, the data showed.
 
This is primarily because the acute therapies (includes segments like antibiotics) did not do well in FY21 with most people staying indoors and being cautious about health.
 
A look at therapy-wise growth rates would give a clear picture. India Ratings and Research analysis using AIOCD AWACS data showed that the anti-infective segment, which accounts for 13 per cent of the Indian pharma market (IPM), has clocked a decline of 5 per cent in FY21 vis a vis 8 per cent growth in FY20. In comparison, chronic therapy areas like cardiac and anti-diabetic have maintained their growth rates during FY21 despite a washout (in terms of overall sales) in the first quarter of the financial year due to lockdown.
 
Cardiac has clocked 11 per cent growth in FY21 while anti-diabetic has grown 6 per cent during the financial year. The data from Edelweiss Securities showed that firms like Cipla, DRL, and Glenmark have posted strong growth (YoY) in their India sales despite tough market conditions. Cipla clocked 11.3 per cent growth in India sales for the year, while DRL reported 13 per cent growth, and Glenmark posted 7.5 per cent growth.
 
The overall IPM has grown by 2 per cent during 2020-21, in comparison to 10 per cent growth in FY20. Kunal Randeria, analyst at Edelweiss Securities, felt that the Covid portfolio did help domestic sales as some of the other therapy areas like the acute segment did not grow well. Therapy areas like respiratory and dermatology, which were fast-growing areas, did not post good growth in FY21 owing to many people staying indoors etc.  The respiratory segment declined 9 per cent during the year while dermatology grew only 3 per cent growth. Cipla’s global CFO Kedar Upadhye agreed that the Covid-19 portfolio helped domestic business growth during FY21.


 
He said acute therapies and hospitals business suffered to an extent during the year. Covid drug sales accounted for almost 5 per cent of Cipla’s domestic sales.
 
Industry experts, however, point out that the bulk of the sales from Covid drugs have come in the third quarter.
Cadila Healthcare’s MD, Sharvil Patel, said the company was doing well in non-Covid therapies, too. During the first quarter of FY21, there were no Covid drug sales. The bulk of the Covid drug sales were in the third quarter of the financial year, he said.
 
In the fourth quarter, the case count had gone down, thereby bringing the demand for such drugs down. Cadila Healthcare, which has a strong portfolio of Covid drugs like remdesivir, steroids etc, has posted better than IPM growth in its India business at 3.4 per cent during FY21.

Topics :Companiesdrugs

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