Chennai: Notwithstanding the higher base, the pharma market grew 4.5 per cent in the month of September. Prices compensated for the lower volumes in the month.
The pharmaceutical market recovered 4.5 per cent in September against the same month last year. The market had registered 11.9 per cent growth in September last year. Volumes declined 4 per cent, but were compensated by prices that grew by 4.6 per cent and new launches which grew by 3.8 per cent, according to Motilal Oswal Financial Services.
Cardiac drugs grew by 17 per cent, vitamins, minerals and nutrients by 16.3 per cent and anti-diabetic therapy posted growth of 6.5 per cent last month.
From 2.2 per cent decline in August, the market had made considerable recovery in September. Anti-infectives therapy showed a good recovery of 1.4 per cent in September against 11 per cent y-o-y decline in August. There has been a healthy uptick in Covid-related medicine.
But the growth was muted for the quarter ended by September. Volumes fell 6.5 per cent, while prices grew 4.6 per cent. Though volumes of drugs outside the national list of essential medicines declined by 4.9 per cent, prices rose by 4.8 per cent. Essential medicines too saw price growth of 3.6 per cent.
Meanwhile, Crisil expects pharma exports to grow by 11-12 per cent this fiscal, better than last year’s 10 per cent growth. Export growth will outpace growth in domestic formulations expected at 5-6 per cent, leading to 8-9 per cent overall growth.
“Higher exports should offset some of the reduction in domestic formulation sales because of pandemic-led disruptions, especially in the acute therapies segment. Lower footfalls in hospitals and fewer field visits by medical representatives have affected prescription-based sales in acute therapies, as evident from the steep moderation in the first-quarter sales of anti-infectives and gastro-intestinal medicines. On the other hand, steady demand for chronic therapies pertaining to lifestyle diseases should help keep domestic formulation sales growth at 5-6 per cent,” said Tanvi Shah, associate director, CRISIL Ratings.