In November, the Nifty Pharma index had a 4% drop. Even though it started on a high base, the growth of the Indian pharmaceutical industry in October was not particularly encouraging, and the selling pressure in the domestic markets is what caused this fall.
According to reports, the growth of the pharmaceutical market in October 2024 stayed in the mid-single digits. Although last year’s large base was a contributing factor, the growth was not appreciably higher month over month.
According to a Centrum Stock Broking study, the Indian Pharma Market (IPM) grew by less than 5% year over year on October 24 as opposed to 16% year over year on October 23 and about 5% year over year on September 24. According to Centrum analysts, this was mostly because of last year’s strong base, but the growth was flat month over month.
MAT growth, or growth over the last 12 months, is still significantly better at 6.7%. Acute therapy saw a mild 5% YoY gain on MAT, whereas chronic therapy saw a 10% YoY growth. Acute therapy climbed by only 2% YoY on October 24th, however chronic therapy grew by 10% YoY.
Despite price increases and new launches contributing more to the growth, the volume growth is still modest.
The Indian pharmaceuticals market continues to show mid-single digit growth on an annual basis in October, according to Deepak Jasani, Head of Retail Research at HDFC Securities. Price increases of 5.2% year over year and new launches of 2.7% year over year drove overall growth, while volume growth (negative 1.8% YoY) remained modest.
With a 12% year-over-year increase, J B Pharma (J. B. Chemicals & Pharmaceuticals Ltd.) continues to outpace the growth of the Indian pharmaceutical market. With 10% annual growth, J B Pharma was followed by Sun Pharmaceutical Industries Ltd. and Torrent Pharmaceuticals Ltd. Suggested by Centrum Data, Lupin Ltd., Abbott India Ltd., Glenmark Pharmaceuticals, Dr Reddy’s Laboratories Ltd., CIPLA Ltd., Zydus Lifesciences outperformed IPM with an increase of 6-8% in October. According to Centrum, two major laggards that underperformed IPM in October 2024 were Alkem Laboratories Ltd., which grew 2% year over year, and Mankind Pharma, which grew 1% year over year.
