Domestic pharma sales dip 3.5% in November

In November 2023, India's domestic pharmaceutical sales experienced a notable decline, reaching a low-single digit, marking the lowest point in the year.

This downturn follows a rebound in the previous month and is attributed to an unfavorable base and inventory destocking.

The overall sales growth for Indian pharma companies was reported at 4 percent year-on-year, with multinational drug makers seeing a 3 percent increase.

Motilal Oswal Financial Services identified weaker seasonal trends and the festival season in November as contributing factors to the tepid growth.

Consequently, all therapy sectors witnessed mid-to-high single-digit growth during this period.

Indian pharma companies control approximately 83 percent of the domestic market, with MNCs holding the remaining 17 percent.

Despite robust performances in the US market, subdued domestic sales limited overall growth for many drug manufacturers.

The slowdown in sales growth was evident across various therapeutic segments.

Anti-neoplastic therapies stood out with a notable 29 percent year-on-year growth, while other significant areas like cardiac, anti-infective, gastro, anti-diabetic, and respiratory underperformed.

Acute therapies, constituting 62 percent of total domestic pharma sales, experienced a mere 2 percent growth in November.

In contrast, the chronic therapies segment, accounting for 38 percent of the market, grew by 6 percent compared to the previous year. Throughout 2023, chronic therapies consistently delivered double-digit sales growth.

Ipca Labs, Cipla, and JB Chemicals and Pharmaceuticals emerged as growth leaders in November. Ipca Labs reported a 10 percent year-on-year sales growth, while Cipla and JB Chemicals registered increases of 8.8 percent and 7.4 percent, respectively.

On the other hand, P&G Health and GlaxSmithKline Pharma (GSK) were the underperformers, experiencing a decline of 9.8 percent and 3.8 percent in sales growth.

The pharmaceutical landscape in India during November 2023 reflects a nuanced picture of diverse performances across therapy sectors and individual companies.

Understanding these dynamics is crucial for stakeholders navigating the evolving market conditions.