November domestic pharma sales grow just 1% after strong show last month

Oct growth rate was 9.6%; Most big corporates saw volumes drop in November

After posting a strong growth in October, domestic pharma sales has once again slipped to a low single digit growth in November. From a 9.6 per cent growth in October, it has slowed down to one per cent growth in November even as major therapies continued to show positive growth. 

The overall market growth slowed down in November as the volume growth was in negative terrain, clocking a -6.9 per cent while price growth came in at 4.7 per cent and new introductions grew by 3.2 per cent. 

According to data from market research firm AIOCD AWACS, therapies like cardiac posted a growth of 8.7 per cent compared to a 19.5 per cent growth in the same month previous year. Similarly, anti-diabetic, another chronic therapy area showed a growth of 1.9 per cent compared to 9.7 per cent in the same month last year. 

Rakesh Dave, president of AIOCD AWACS, had pointed out post the robust October numbers that in 2019 Diwali was in October and hence this year the growth was on 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 had said then.  

Anti-infectives as a category has struggled since the the unlocking started in June - from a 6.6 per cent in October, it slipped to 0.2 per cent in November. An associated therapy area gastrointestinal exhibited a growth of 3.1 per cent in November after growing in strong double digits (13.6 per cent) in October. Usually an antibiotic prescription is associated with an antacid too. 

Of the corporates, Cipla (12.6), Glenmark (14.5) and Zuventus (19.5) continued to clock strong double digit growth riding on drugs that are doing well during Covid. Cipla and Glenmark both have a portfolio of Covid drugs like remdesivir, favipiravir etc. Zuventus has some strong vitamin brands like Zinconia which have seen traction in the pandemic. Delhi-based Mankind Pharma, a primarily acute therapy brands driven company, saw its sales decline yoY by -5.4 per cent.