Domestic drug market shows resilience, posts strong growth in October

Maintains the growth momentum from September with a 9.6 per cent growth

The pandemic blues seem to be over for the domestic drug industry, which has shown strong resilience in the last three months by maintaining a growth momentum.
 

In October, the Indian pharma market clocked a strong 9.6 per cent growth after growing by 4.5 per cent in September and 2.2 per cent in August.
 

Data from market research firm AIOCD AWACS shows that chronic therapies have continued to do well during October while some of the other therapy areas like respiratory (still in negative growth territory) have seen some revival.
 

Rakesh Dave, president of AIOCD AWACS, however, pointed out that last year October was the Diwali month, and hence, had a low base. Typically, medicine sales are hit during the Diwali week. Also, some stocking happens right before Diwali, which pushes up volumes right before the festival. This year, Diwali is in November and once the sales data from this month comes in, it would paint a more clear picture of how the domestic market demand is growing.
 

Dave also said that the pharma industry has quickly adapted to the long haul — adopting new business models with digital marketing — that helped in revival of sales.
 

Drug firms have seen a fall in their marketing costs, thanks to lesser conferences and travel. Firms, however, expect the expenses to go up in the coming quarters.
 

Kedar Upadhye, global chief financial officer (CFO), Cipla, said that growth in expenses are expected due to easing of lockdowns and more movement of the field force. This, however, would be in line with sales growth, he added.

 

Among therapies, cardiac therapy has clocked a monthly growth of 19.5 per cent in October, better than the 17.1 per cent growth in the previous month.
 

Similarly, anti-diabetic medicines clocked a 9.7 per cent growth in October compared to the 6.5 per cent growth in September.

Even therapy areas like respiratory — which are still in negative terrain — have shown signs of revival. Respiratory growth is at -6.6 per cent for October compared to -10.5 per cent in September. Anti-infectives, a segment that has been facing challenges since antibiotic sales have come down, has posted a positive growth of 6.6 per cent in the month.
 

Gastroenterological prescriptions, too, grew, resulting in a 13.6 per cent growth in October (vis a vis a 5.5 per cent growth in September). Vitamins continued their strong double-digit growth — clocking a 22.6 per cent rise.
 

Dave added that in winters, sales of respiratory medicines and anti-infectives are likely to surge further.
 

Big firms bounced back to growth — from a -1.8 per cent in September, the country’s largest drug maker Sun Pharmaceutical Industries bounced back to 8.4 per cent growth in October. Similarly, from a meagre 0.6 per cent growth in September, Dr Reddy’s posted a strong 8 per cent sales growth in October. Cipla continued its strong run — posting a 22 per cent growth while Zydus Cadila posted 14.9 per cent growth during October.