QRT-I: Struggling for GROWTH @ Indian Pharma
As we have seen in April -16 market dipping to 3.5%, whereas June-16 seems to be slightly better at 6.4% though far away from the last year growths for June -15. Also in terms of price component in GDs we see the lowest in last 18 months at 3.8% thereby signaling that market has witnessed price cuts.
By this time total IPM also crossed 1 Lac Cr on MAT Basis.
Key Industry Insights for June-16:
- June-16 shows a growth of 6.4% against 13.0% in June-15. Average Growth for the quarter is 6.4% against 14.8% in the last year
- Market has added 507 Crs over last year, whereas last year the Market had added up 1025 Crs.
- For Month of June-16 we have seen the GDs as -0.6% in Volumes, 3.8% in Price Increases & 3.2% in NIs. June-16 Qtr saw a volume growth of -1.0% & Price Growth the lowest in last 6 Qtrs at 4.4%
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Impact of FDCs
ü The FDCs related market degrew at 14.6% whereas the Non FDCs market grew at 7.0%. The Non FDC Market in June-16 showed slightly better growths than April-16 at 7.0%
ü From a GD perspective the FDC containing market showed a huge Volume degrowth of -21.5%
ü Indian Companies degrew by -18.5% in the FDC portfolio whereas the MNCs degrew by -5.0% for June-16 Month
ü We see New Launches by Corporates to offset the loss in FDCs by launching new combinations to come out of this Impact
Therapy:
v From therapy perspective 10 therapies have outgrown the IPM growth
v Respiratory Market grew at 8.2%, Gastrointestinal market grew at 8.8% , Pain & Analgesics market grew at 3.5% whereas Anti-infectives grew at 3.4%
v Anti-diabetic market grows at 11.7% & Cardiac at 3.9%, Neuro/ CNS at 5.2% in Chronic Business
v Anti-Malarials grew at -2.4%, VMS Market at 6.4%
v Derma market grew by 8.5% & Urology Market at 9.4%.
Regional Dynamics:
v From regional perspective 15 regions have outgrown the IPM growth
v Odisha market grew the highest at 17.9% followed by Haryana Market at 14.9% & North East Market at 12.3%
v 2 regions had negative growth in June-16
Co-founder & COO at Avenida Healthcare Pvt. Limited
8 年You are welcome Rajesh
A highly successful Marketing strategic & Business developer in Pharma industry
8 年Thanks..Good analysis & eye opener.
Pharma Consultant in Training & Development, MDP and Rural Marketing in Pharma Industry!
8 年Very good insight!! Pharma Industry will continue to struggle with growth and revenue generation. Because of the following reasons: 1. Absence of Specialist Marketing people in the ranks of Marketing department, 2. Aloofness to develop a marketing mix in a scientific manner, 3. Aloofness to conduct Market Research for new product development to bridge the therapeutic gaps, resulting in flooding of "Me too" products & "Unethical combinations ( banned FDC's) in the market, instigating "Corruption" to win over the mind shares of the doctors, and generate revenue and growth, 4. Aloofness to think beyond the Metros, Urban and Sub-urban markets for revenue Generation, 5. Aloofness to think about the 594,000 inhabited rural markets out of 650,000, of the country where the real India resides, a whopping 88 Crores out of 132 Crores ( as on 10.7.2016), 6. Aloofness to develop a new Field Force Engagement System, to access the 594,000 inhabited rural markets of the country for optimum market capitalization, increase brand market shares and thus the company's market shares, 7. Aloofness to break the "Complacency Quotient" and come out of the "Comfort Zones", 8. Aloofness to drive the revenue generation and growth instead of being driven by the market, In my opinion, with so many "Aloofness's", if taken care of, the struggling pharmaceuticals industry can propel in to the orbit, in growth and revenue generation. If an organization, take care of the points 5 and 6, the revenue generation could be, @ Rs.5000 / Month and Rs.60,000 / Year, Rs. 3,564 Crores, Pharma Industry must work to come out of their Aloofness's and comfort zones to translate the real market potential in to revenue and growth and thus Profit.