Stock Market today: Indian Pharma market growth during January 2024 at 7.9% as per reports remained slightly soft with acute range of products growing at a slower pace compared to chronic range of products.
The chromic range of products while saw 11% year on year growth rate, the acute range of products could grow at 6% y o y during the month. ’
The growth in Chronic range of products has remained strong for past few months while acute range of products are growing at slightly a softer pace.
Analysts at Kotak institutional equities said that “we note that while chronic growth has recovered from single digits over the past couple of months, the acute slowdown phenomenon is yet to be completely addressed".
Bulk of the IPM growth in January 2024 was largely driven by therapies such as immunomodulators, hepatoprotectives, antivirals, cardiac and urology.
However the softer growth rate in acute range is also attributed to high base and seasonal factors in January.
On moving twelve months basis Indian Pharma market growth at 10.1 % still remains strong.
“Buoyed by improved field-force productivity across most companies, price hikes, new launches and higher sales from other channels, we continue to bake in an 10-13% organic domestic sales growth in FY2024 (estimated) for our coverage, except for Dr Reddy’s Laboratories, where we bake in a 2% yoy decline.]" said analysts at Kotak Institutional Equities. Sun Pharmaceuticals , Cipla and Mankind are their preferred picks in the pharma sector.
Growth leaders in January 2024 as per Kotak Institutional equities report were Ipca Laboratories, Sanofi, JB Pharma, Ajanta Pharma, Abbott, Cipla, Eris Lifesciences , Mankind and Sun, which posted growth in the 9-14% year-on-year range. Key underperformers were Pfizer and Micro Labs, which posted 0-3% y-o-y decline as per the report.
The domestic growth remains important for companies as they provide a cushion in case of volatility in international sales. Though currently US sales remain strong for Indian pharma companies having exposure to the region, the sales in rest of world apart from developed markets is seeing lot a volatility and currency headwinds too.