pharma industry

Indian Pharma Market clocks slower growth of over 7.2% in May 2017

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Indian Pharmaceutical Market (IPM) has registered a slower growth of 7.2 per cent during the month of May 2017as against 9.7 per cent in the corresponding period of last year basically due to degrowth in anti-infectives and single digit growth in dermatology, gastro intestinal and CVS. However, anti-diabetic segment moved up by double digit growth. Indian companies grew by 7.7 per cent while the MNC grew by 5.7 per cent. In the Non-NLEM category Indian companies grew at 13.4 per cent

According to AIOCD Pharmasofttech AWACS Pvt. Ltd report out of leading 10 companies, Zydus has the highest growth at 11.3 per cent for the May 2017 followed by Lupin at 13.2 per cent Glaxo posted monthly growth of 6.4 per cent. Out of top 50 companies, 27 corporate have crossed the growth of IPM. Amongst the top 50 companies, Boehringer Ingelheim has the highest growth of 20.9 per cent followed by Fourtts growing at 18.1 per cent and Wockhardt at 17.6 per cent. Emcure grows by 16.2 per cent, Micro Labs moved up by 12.6 per cent. Sun Pharma’s portfolio grew by 7.4 per cent. Total 45 companies launched in last 36 months and two companies crossed Rs 10 crore mark in revenue.

From therapy perspective 10 therapies have outgrown the IPM growth for the month of May 2017. Respiratory market grew at 4.3 per cent, gastro intestinal market grew at 8.1 per cent, pain & analgesics market grew at 6.7 per cent and anti infective has declined by 0.3 per cent for the month of May 2017. Anti-diabetic market grows at 15.3 per cent and cardiac at 8.3 per cent, Neuro/CNS at 3.6 per cent in chronic business.

From regional perspective 14 regions have outgrown the IPM growth for the month. South Rajasthan market grew the highest at 27.4 followed by Jharkhand at 20.7 per cent and North Karnataka at 16.7 per cent.

Mixtard brand leads the pack with Rs. 40 crore followed by Glycomet GP at 32 crore, Spasmoproxyvon plus at Rs 23 crore, Lantus at Rs. 32 crore and Galvus Met at 25 crore and Liv 52 at Rs. 28 crore and Janumet at Rs. 22 crore during May 2017. Total 214 brands and 407 SKUs launched in May 2017. Top 5 new brands for May 2017 are Numec SL, Cbcount, Ebspor, Rythmix Plus and Edrive C Mita

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Pharma sector faces a spell of business slowdown by 50%

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Pharma sector is facing a slow down at a time the sector gears up to be compliant with the Goods and Service Tax(GST) regime which takes off from July 1,2017. The business decline is by over 50 percent at wholesale/manufacturers levels.

The pharmacy trade outlets are working to clear out existing stocks and maintain a minimum inventory. There is an uncertainty in the air and most of the outlets which were not paying taxes now will come under the ambit of the GST levy. The small and unwieldy business operations which did not declare their earnings needs to suddenly buck up to the pressure of sharing the revenue details for which are they are unprepared. So these outlets are trying to get rid of the stocks as much as possible and maintain a limited supply. However from July 1, the sector is confident that sales will be brisk and normal.

In the case of the small pharma companies engaged in manufacture and marketing are facing a standstill in business operations. This is a temporary phase and we are certain that post GST implementation it will be a win-win situation for the industry and the trade, said industry observers.

The best part of GST is that tax evasion will become next to impossible and the system is so designed that self compliance will be the norm in order to remain competitive . Government can expect a very good revenue growth, said Harish K Jain, director, Embiotic Laboratories and secretary, Karnataka Drugs and Pharmaceutical Manufacturers Association.

NPPA is likely to come out with a notification soon revising the prices in view of the GST, Jain added.

According to Jatish N Sheth, director, Srushti Pharmaceuticals and former president KDPMA, liquidation of inventory has stalled supply chain sales and procurement which has affected revenue generation anywhere from 10-25 percent or even more.

“Drug shortage is also looming large. This together with the arrival of monsoon in the country which is phase for the onset of infectious diseases, should not impact patients. More over the monsoon months are most remunerative for pharma companies with a growing demand for drugs for all age-groups and diseases. This time the GST could play a spoil sport. However, we expect business to pick up only after July 15,2017 and for now it is a visible slowdown”, stated Sheth.

“For businesses in the healthcare sector, GST is a landscape of discussions, debates and speculations. Now, that the government has exempted healthcare services from GST, it is good news. However, for patients or end-consumers the cost could rise, given the increase in input costs due to GST. Any imposition of high GST on medical equipment would affect the overall cost structure of healthcare,” stated Ameera Shah, Managing Director and CEO, Metropolis Healthcare.

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