The visible decline in COVID cases is clearly visible with a 13.7 per cent revenue growth in India’s Pharmaceutical Market (IPM), as it is indicative of demand normalisation post the high growth months of April 2021 (51.5% growth) and May 2021 (47.8% growth). The growth for June 2021 stood at 14.1%. According to India Ratings and Research (Ind-Ra), which issued a release on the same also said that the higher growth in April and May 2021 was because of the lower base effect and covid-induced demand during the second wave.

It further added that the lower-though-healthy growth in July 2021 was witnessed in therapies that have not benefitted from covid-led demand in the past. Therapies that have benefitted from covid-led demand include anti-infectives, gastro and vitamins. Ind-Ra expects the demand normalisation to continue if the pace of vaccination remains strong. Ind-Ra expects IPM revenue growth of over 12% YoY for FY22.

During 1QFY22, IPM reported growth of 37.2%, aided by the lower base effect during 1QFY21 which was impacted due to the nationwide lockdown. 

During July 2021, volumes grew 4.5% YoY (June 2021: 4.0% YoY), price growth was 5.7% (5.7%) and new products launches were at 3.5% (4.4%), attributed to acute therapy products.

Therapy-wise Performance: Acute therapies such as anti-infectives, analgesic and respiratory witnessed sales growth of 30.2% YoY, 24.1% YoY and 22.8% YoY respectively, while gastro grew 19.6% yoy during July 2021. Growth underperformance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 4.1% yoy and 3.3% yoy, respectively.

 Historical Growth Trends of Key Therapies