The growth for IPM was almost flat YoY in Feb’22 v/s +13.9% YoY in Jan’22. This was despite the low base of Feb’21, wherein the YoY growth stood at just 1.1%. Pricing has been the key growth driver for the quarter ending February 2022. IPM YoY growth stood at 6.5% YoY. The price/new products’ growth was 5.4%/2.0% while volume declined 1% YoY. This data was part of a research report by Motilal Oswal Financial Services.

Weak IPM growth despite low base of last year; IPM flat YoY in Feb’22

The growth for IPM was almost flat YoY in Feb’22 v/s +13.9% YoY in Jan’22. This was despite the low base of Feb’21, wherein the YoY growth stood at just 1.1%. The Derma/Ant-infectives/VMN/ Gastro/ Anti-Diabetic dragged IPM with YoY decline of 6.6%/3.9%/2.7%/1.4%/1.4% YoY, respectively.

The anti-virals/anti-fungals particularly have led to inferior performance in the anti-infective segment. Even Cardiac therapy declined 8.8% YoY in Feb’22. Interestingly, gastrointestinal, nutritionals and derma segment were the strong contributors to offset the decline in IPM for Feb’22. Respiratory therapy continued to outperform the industry with 12.9% growth YoY.

Price has been the key growth driver for the quarter ending Feb’22

For the quarter ending Feb’22, IPM YoY growth stood at 6.5% YoY. Price/New Products growth was 5.4%/2.0% while volume declined 1% YoY.

On MAT basis, Respiratory, Anti-Infectives, Pain/Analgesics and Gastro drive YoY growth for 12M ending Feb’22.

On MAT basis, the industry growth came in at 15.7% YoY. Respiratory/ Anti-Infectives/Pain grew 31.1%/28.9%/24.3% YoY, respectively. Vaccine sales declined 17.4% YoY impacting overall growth. Respiratory posted strong YoY growth during May’21-Feb’22 and has exhibited strong outperformance against IPM on MAT basis.

Speaking on the development, Raheel Shah, the Director at BDR Pharmaceuticals said that pricing remains to be a key contribution to growth. Indian pharmaceutical industry is the 3rd largest by volumes in the world. Mainly driven by a push from emerging and domestic markets, in (2021-2022) FY22, the pharmaceutical industry recorded a growth of 9-11%. By showing strength amidst the disruption caused by the pandemic, the industry exhibited its ability to provide adequate medicines. As we progress in 2022, it is anticipated that a culture of R&D and innovation will get fostered to enable drug discovery rapidly with the goal to improve the health outcomes of people worldwide.