These companies are among the major drivers of growth of the Indian pharma market
BUSINESS: Stock Market Today: Indian pharma market growth moderated in the month of July 2024, surprising many. Analysts believe the reason for this is the high base of last year and lower-than-expected growth in the acute segment. Volume growth remains soft, while pharma market growth is currently generally driven by new launches and price increases. Analysts at Elara Securities India Pvt Ltd, citing data from Pharmatrac, a pharmaceuticals market research company, said India’s pharma market (IPM) grew 6.1% year-on-year (YoY) in July 2024, lower than street expectations of 8-11%. Volumes declined 0.3% and price increases contributed to the growth.
Price growth drivers in July 2024,
According to Elara Torrent Pharmaceuticals, among the top 20 corporates, Glenmark Pharmaceuticals was the major gainer in the listed sector, while another unlisted pharma company, Intas Pharmaceuticals, also ranked in the top 3. Torrent achieved a growth of 15.9% YoY, Intas grew 15.7% YoY and Glenmark grew 13.6% YoY. Among other notable companies, Alkem Laboratories, Mankind Pharma and Lupin Ltd. saw price growth of 7.4%-9.4% YoY. Sun Pharmaceutical Industries 7.1% YoY and Zydus Lifesciences 6.9% YoY were also major companies whose growth outpaced the pharma market growth. In contrast, Abbott, Dr. Reddy’s Laboratories, Emcure Pharmaceutical Pfizer grew less at 3.7%-5.6%. According to Elara, Pfizer, IPCA Laboratories and Glaxo contributed to the slowdown in IPM growth with slower growth of 2.1-3.4%. Analyst optimistic about pharma market growth Elara Securities expects the Indian pharma market to see a marginal pick-up in growth in FY25 compared to FY24 levels. According to them, volume growth may pick up with a marginal increase in prices. They expect organic growth for pharma stocks to be in the range of 11-13%.
