Ipca, Ajanta, Sun, Torrent report strong sales growth during December: IPM data

However, this was in line with expected with December being seasonally softer and looking at a high base from last year. Analysts attribute the drop to flat volume growth.

Price and new product growth, on the other hand, was 5.4% and 1.2% year-on-year, respectively, according to Motilal Oswal Financial Services Ltd (MOFSL).

The stimulus, however, is provided by growth in sales in the acute segment. Likewise, the industry grew 14.9% YoY on a MAT basis (annual moving total). Among the segments, the anti-infectives, analgesics and gastrointestinal segments grew 25.5%, 22.6% and 20.9% YoY, respectively, which drove the growth of MAT. The respiratory segment also posted strong year-on-year growth during May-December 2021 and outperformed IPM in MAT according to MOFSL analysts.

During December, respiratory product sales grew at an accelerated rate of 21% year-over-year. This was well supported by the Ophthalmology and Pain Relief product segments which posted strong growth of 13.7% and 13.5% YoY, respectively.

However, therapies such as anti-infectives, VMN (vitamins and minerals) and drugs for the treatment of diabetes experienced more moderate growth. Anti-infectives registered a 2.8% year-on-year decrease in sales, while VMN and antidiabetics grew at a slower pace of 1% year-on-year and 1.3% year-on-year, the MOFSL report suggests. This slowed the overall growth of the IPM.

Among the publicly traded companies, IPCA Laboratories Ltd, Ajanta Pharma Ltd, Sun Pharmaceutical Industries Ltd, Torrent Pharmaceuticals Ltd recorded the highest growth. While the secondary sales of IPCA have grown 22.1% year-on-year during December. Ajanta, Sun, Torrent posted very healthy growth of 12-17% year over year.

Indoco Remedies Ltd, Eris Lifesciences Ltd, GlaxoSmithKline Pharmaceuticals Limited, Dr Reddy's Laboratories Ltd also saw their secondary sales grow ahead of IPM.

Meanwhile, companies that made large contributions from COVID drug sales during 2020 (Cadila Healthcare Ltd, Cipla Ltd, Glenmark Pharmaceuticals Ltd) experienced slight sales growth on a high basis from last year.