After two months of sluggishness, pharma sales (at the distributor level) picked up in January. Drug sales growth which slipped to around 5 per cent in November and December last year rebounded in January.
Data compiled by pharma market research firm AIOCD AWACS suggests a 10.1 per cent year-on-year growth in drug sales (excluding free samples) during January.
Higher sales of anti-infective brands which constitute 19 per cent of the total market helped the recovery in overall drug sales on a sequential basis.
The sales of anti-infective drugs rose 6.9 per cent in January, compared to 0.3 per cent in December and 3.3 per cent growth in November last year. Similarly, sale of drugs used to treat cardiovascular and gastro-intestinal disorders, which account for 13 per cent and 12 per cent of the industry sales, improved in January.
Zydus Cadila’s sales grew 22.9 per cent, fastest among the listed pharma companies. Ajanta Pharma (22.4 per cent), Sun Pharma (21.9 per cent), JB Chemicals (18.7 per cent), Merck (15.7 per cent), Ranbaxy (15.6 per cent), Glenmark (15.6 per cent) and Lupin (14.3 per cent) were the other prominent gainers.
AstraZeneca’s sales continued to slide for the third month in a row. The company’s sales declined over 24 per cent in January compared to the same period last year. Claris Life Sciences (21.4 per cent decline) and Biocon (11.9 per cent) also figure in the loser’s list.
Despite traction in secondary sales during January, industry sources point to an increase in substitution of high-margin branded drugs with their unbranded equivalents.
If this trend persists, operating margins of pharma companies may witness pressure.
Also, slowing pace of new product approvals by the drug regulator and increased scrutiny on combination drugs may have a bearing on the pharma industry growth in the near future.
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thehindu.co.in