Despite the implementation of the new drug pricing policy, secondary drug sales remained resilient in July, growing 9.3 per cent (excluding free units) over the previous year. This is according to data compiled by pharma research firm AIOCD AWACS. Higher sales of anti-infective and respiratory drugs helped the growth, even as chronic (long-duration) therapies such as anti-diabetes and cardiovascular lagged.
In the listed space, the highest growth was clocked by Biocon (48.7 per cent) and AstraZeneca (44.3 per cent), albeit on a low base. A good monsoon aided demand for anti-infective, respiratory and anti-malarial drugs. Anti-infective drug producer Alembic Pharma (18.4 per cent), and respiratory players Cipla (18 per cent) and Glenmark Pharma (18.4 per cent) posted healthy growth during the month, ahead of the market. This also helped anti-malarial drug major IPCA Labs post 16.7 per cent growth for the month.
The ban on anti-diabetic drug pioglitazone in June impacted the growth of the anti-diabetes segment. Companies such as Sun Pharma and Lupin, which derive significant sales from pioglitazone, were affected by the move.
However, with the revocation of the ban earlier this month, growth may improve hereon.
Elder Pharma and Panacea Biotech topped the losers’ list, declining 13.1 per cent and 7.7 per cent respectively. Drug sales by multinationals — GlaxoSmithkline Pharma and Sanofi India — declined during the month due to price cuts under the new pricing policy.
The Government has extended the deadline for re-labelling the drugs, to adjust for the price declines under the new policy, by an additional 30 days. This, along with the revocation of ban on piogliatzone, should provide some respite to the Indian pharma market.