 "Indian pharma market crosses Rs 1 lakh cr MAT; growth slows")
The Indian pharma market (IPM) growth might have slowed down in the past few months for a combination of factors including price control and ban on fixed dose combinations, the market, however, crossed Rs 1 lakh crore on a moving annual turnover (MAT) basis in June 2016.
As per data from the the AIOCD-AWACS, the market research wing of All India Organisation of Chemists and Druggists (AIOCD), the association representing over 500,000 medicines sellers across India, the pharma market clocked a 6.4 per cent growth in June 2016 as against 13 per cent in June 2015, and the IPM also crossed Rs 1 lakh crore on MAT basis. The IPM clocked Rs 8,460 crore in June-16
Hari Natarajan, vice president, business intelligence, India and global audit, AIOCD Pharmasofttech AWACS private Ltd said, "We saw April 2016 saw the market dipping to 3.5 per cent, whereas June-16 seems to be slightly better at 6.4 per cent though far away from the last year growths for June 2015."
AIOCD data analysis further highlighted that for the month of June 2016, the growth drivers of the IPM (which is determined by volumes, prices and new introductions) as negative 0.6 per cent in volumes, 3.8 per cent in price increases and 3.2 per cent in new introductions.
"Also in terms of price component in growth drivers, we see the lowest in last 18 months at 3.8 per cent thereby signaling that market has witnessed price cuts," Natarajan said.
In fact, the June quarter saw a volume decline of 1 per cent and price growth of 4.4 per cent, the lowest in the past six quarters.
The FDCs related market degrew at 14.6 per cent whereas the non-FDCs market grew at 7.0 per cent. On top of this, Indian companies degrew by 18.5 per cent in the FDC portfolio whereas the MNCs degrew by 5 per cent for June 2016. In terms of therapies, the respiratory market grew at 8.2 per cent, gastrointestinal at 8.8 per cent, pain and analgesics at 3.5 per cent whereas anti-infectives grew at 3.4 per cent. Anti-diabetics, however, clocked an 11.7 per cent growth. From a regional perspective, Odisha market grew the highest at 17.9 per cent followed by Haryana market at 14.9 per cent and North East market at 12.3 per cent.
"We see new launches by corporates to offset the loss in FDCs by launching new combinations to come out of this Impact," AIOCD felt. In all 324 brands and 526 stock keeping units (SKUs) were launched in Jun 2016.
As per data from the the AIOCD-AWACS, the market research wing of All India Organisation of Chemists and Druggists (AIOCD), the association representing over 500,000 medicines sellers across India, the pharma market clocked a 6.4 per cent growth in June 2016 as against 13 per cent in June 2015, and the IPM also crossed Rs 1 lakh crore on MAT basis. The IPM clocked Rs 8,460 crore in June-16
Hari Natarajan, vice president, business intelligence, India and global audit, AIOCD Pharmasofttech AWACS private Ltd said, "We saw April 2016 saw the market dipping to 3.5 per cent, whereas June-16 seems to be slightly better at 6.4 per cent though far away from the last year growths for June 2015."
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AIOCD data showed that the market has added Rs 507 crore over last year, whereas last year, the market had added up to Rs 1025 crore. Therefore, the growth rate has definitely slowed down. Average growth for the quarter is 6.4 per cent against 14.8 per cent in the last year, Natarajan said.
AIOCD data analysis further highlighted that for the month of June 2016, the growth drivers of the IPM (which is determined by volumes, prices and new introductions) as negative 0.6 per cent in volumes, 3.8 per cent in price increases and 3.2 per cent in new introductions.
"Also in terms of price component in growth drivers, we see the lowest in last 18 months at 3.8 per cent thereby signaling that market has witnessed price cuts," Natarajan said.
In fact, the June quarter saw a volume decline of 1 per cent and price growth of 4.4 per cent, the lowest in the past six quarters.
The FDCs related market degrew at 14.6 per cent whereas the non-FDCs market grew at 7.0 per cent. On top of this, Indian companies degrew by 18.5 per cent in the FDC portfolio whereas the MNCs degrew by 5 per cent for June 2016. In terms of therapies, the respiratory market grew at 8.2 per cent, gastrointestinal at 8.8 per cent, pain and analgesics at 3.5 per cent whereas anti-infectives grew at 3.4 per cent. Anti-diabetics, however, clocked an 11.7 per cent growth. From a regional perspective, Odisha market grew the highest at 17.9 per cent followed by Haryana market at 14.9 per cent and North East market at 12.3 per cent.
"We see new launches by corporates to offset the loss in FDCs by launching new combinations to come out of this Impact," AIOCD felt. In all 324 brands and 526 stock keeping units (SKUs) were launched in Jun 2016.