Indian pharma industry shakes off slowdown blues; retail sales up by 18 %.
Retails sales in the Indian pharmaceutical market grew by 18% in the month of March 2009, despite fears of stalling industrial growth following the slowdown across economies.
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The value growth of Indian pharma market as per secondary sales for the month of Mar 2009 was higher at 18.4%, as compared to 13.3% growth in the month of Feb 2009, according the latest data from ORG IMS, a business intelligence firm.
The value growth as per Mar 2009 MAT once again touched the double-digit mark of 10.1%, with marginally higher growth, as compared to 9.8% as per Feb 2009 MAT.
The value growth in the month of Mar 2009 was higher at 16.8%, as compared to 12.5% in the month of Feb 2009. The value growth as per Mar 2009 MAT (14.1%) was marginally higher as compared to Feb 2009 MAT (13.6%).
In October 2008, sales in the Rs 35,000-crore drug retail market had dipped by 1.2%, the first time in many years, due to consumers shifting to cheaper brands and stockists facing a financial crunch. However, retail sales has gradually strengthened and in February, it rose 13.3%.
ORG IMS tracks the sales figures of stockists and not the actual sales of drugs sold by over five lakh chemists across the country. During March, drugs worth Rs 2,908 crore were sold to stockists.
Despite the brief slowdown in growth in 2008, ORG projects the Indian pharmaceutical industry to grow at 15-20% over the next few years. The industry has been growing at 14-15% over the last few years.
Due to economic prosperity, a lot more customers are entering organised healthcare, antibiotics and acute therapies are normally the first line of defence, say analysts.
While India’s metros and class I cities drive the growth tier II cities and rural market add to the growth momentum.
Rising disposable income, improving health infrastructure such as the government’s incentives to set up 100-bed hospitals in non-metro towns, and the general increase in health awareness due to deep penetration of the electronic media are the corner stones of sales expansion.
Even though export and overseas trade remains key for most of the domestic companies, many of them derive nearly 40% of their sales from the desi market.
As far as MNCs in India are concerned most of the sales are generated in urban or semi-urban areas. However, multinationals like GSK, Sanofi-Aventis, MSD India (Merck) etc., have started tapping the rural sector too, of late, realizing their growing potential.
As per Mar 2009 MAT, there has been no change in the ranking of the top ten pharma companies in India, as compared to Feb 2009 MAT. Novartis Intl. (rank 20) has gained four ranks by virtue of acquisition of Rabipur from Sanofi Aventis and has thus entered among the top twenty companies. Among the other top companies, Pfizer (rank 12), Dr. Reddy’s Labs (rank 13), Emcure (rank 14) and Wockhardt-Merind (rank 15) have gained one rank each.
Novartis Intl. (rank 20) has gained four ranks in the month of Mar’09 as well, while Emcure has gained two ranks to move up to rank 15. The other companies that have gained ranks are Aristo Pharma (rank 10), Abbott (rank 11), Dr. Reddy’s Labs (rank 12) and Torrent Pharma (rank 14), each of them having moved one notch up in the month of Mar’09, as compared to the month of Feb’09, said ORG IMS.
ORG IMS is a leading provider business intelligence about the pharmaceutical market. ORG IMS track and assess billions of transactions, from more than 1 million drug products and measure 75% of ethical drug sales which supports more than 3,000 pharma manufacturers through 29,000 data suppliers and 225,000 chemists.
IMS ORG’s Market Intelligence Report June 2008 highlights the dynamics of Indian Pharmaceutical market through the key influencers of growth elements, top performers, therapeutic areas and regional blocks.
This year, a plethora of factors across the value chain such as companies becoming more progressive in terms of brand building and lifestyle diseases continuing to grow at a faster pace, influenced the growth of the Indian pharma market, IMS ORG noted.