Pharmaceutical companies with significant exposure to the chronic diseases segments reported higher growth in revenues than their peers for September and the last quarter. Changes in lifestyle and food habits, aided by higher disposable income, have caused an unprecedented rise in chronic diseases such as cardiovascular (CVS), diabetes, oncology and central nervous system (CNS), according to experts.
Nitin Bidikar, associate director, KPMG India, said, “Non-communicable diseases in India, especially those in the chronic segments, are increasing rapidly due to the many changes that the country has witnessed over the past few years. These changes could be classified as lifestyle changes, driven by rapid urbanisation, rising incomes of households, westernisation of dietary habits, lack of physical efforts due to improved transportation facilities.”
According to a recent report by Edelweiss Securities, the cardiovascular segment grew by 22.8 per cent in September, compared to the same month last year, and 19 per cent in the July-September quarter. The oncology, diabetes and CNS sectors grew by 39.8, 29 and 17 per cent, respectively, in September.
Sales in the acute segments such as anti-infectives grew by six per cent in September, gastroenterology by 12.8 per cent and pain management by 14.2 per cent.
Sun Pharma registered 20.6 per cent growth in the September quarter. Sixty per cent of its sales were in three therapeutic areas — neuro psychiatry (27 per cent), cardiology (19 per cent) and diabetics (14 per cent). Recently, it tied up with MSD (India), an arm of US-based Merck, to market the latter’s diabetes drugs in India.
A Sun Pharma spokesperson said, “As a result of focusing on the chronic disease segments, we have leadership positions in several of these segments. Longer prescription life and faster growth made it an attractive space.” According to him, Sun Pharma is set to launch more drugs in the therapeutic areas of CVS, CNS and diabetes.
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The chronic segments accounted for 58 per cent of Aventis’ sales and 41 per cent of Lupin’s sales. Aventis and Lupin grew by 22.6 and 19.4 per cent, respectively, in the second quarter.
Nilesh Gupta, executive director, Lupin, had earlier told Business Standard, “Five years ago, India was not a huge profit contributor, as we were dependent on tuberculosis and anti-infectives and these are low-margin products. The switch from the acute to the chronic, which now constitutes 80 per cent of our portfolio, has been successful.”
Companies with lower exposure to the chronic segments reported poor numbers for September. Cadila, with one-third of its sales coming from the chronic segments, grew 12 per cent, against an industry growth of 15 per cent. Dr Reddy’s Labs, for which 34 per cent of sales comes from the chronic segments, grew by nine per cent. During the September quarter, Cadila and Dr Reddy’s grew by 8.3 and 4.6 per cent, respectively.
“After all, brand recall in the medical fraternity is very strong and it is believed the Indian diaspora would not be too different from its western counterparts and would in all probability continue to prescribe the same brand over a number of years to treat the patient. The very nature of the disease termed chronic is that it’s a lifelong treatment,” Bidikar said.