Indian Pharma Market Sales - March 2022

Indian Pharma Market is at Rs. 14, 190 Crores (~142 Bn Rs) in March 2022 according to IQVIA.

While Cardiac and Gastro continue to be leading segments in the market, Anti-infectives segment has seen a decline by 6% in the month of month growth. Perhaps the first in the last two years.

Operating profit of 100 Indian pharma cos jumps by 22%, net sales up by 13% in 2010-11

Indian pharmaceutical industry reported a satisfactory performance during 2010-11 with only marginal growth in sales and operating profits. This is despite stiff competition, challenging economic conditions, cost cutting measures in the US and Europe and government intervention in highly regulated markets. The earnings before depreciation, interest, tax and adjustments (EBDITA) of Pharmabiz sample of 100 listed pharma entities increased by 21.9 per cent to Rs.23,317 crore from Rs.19,133 crore in the previous year. The EBDITA margins improved to 22.5 per cent from 20.9 per cent. These companies recommended handsome dividend to shareholders and created healthy reserve position during 2010-11.

The net sales increased by 13.1 per cent to Rs.1,03,500 crore (US$ 22.8 billion) during 2010-11 from Rs.91,518 crore ($ 20.3 billion) in 2009-10. The net sales growth of almost similar set of companies was only 11.6 per cent in 2009-10 over the previous year. Out of 100 companies, 26 companies recorded net sales of over Rs.1,000 crore during 2010-11. Ranbaxy Laboratories remained on top with consolidated net sales of Rs.8,535 crore followed by Dr Reddy's Laboratories at Rs.7,469 crore and Cipla at Rs.6,123 crore. With acquisition of Taro Pharmaceutical Industries, Sun Pharmaceutical has climbed to fourth place from sixth in the previous year with net sales of Rs.5,721 crore and it has overtaken Lupin and Wockhardt in ranking. Lupin went to fifth position from fourth with net sales of Rs.5,707 crore and Wockhardt went down to eight spot from fifth in the preceding year.

The sales of 26 companies, with sales volume of over Rs.1000 core, improved by 14 per cent to Rs.78,580 crore from Rs.68,939 crore in the 2009-10. This worked out to almost 76 per cent of net sales of 100 companies as against 75.3 per cent in the previous year. The EBDITA of these 26 companies moved up by 25.8 per cent to Rs.18,896 crore from Rs.15,018 crore. EBDITA of 26 companies worked out to 81 per cent and 78.1 per cent of aggregate EBDITA of 100 companies. Pfizer's sales crossed Rs.1000 crore mainly due to 16 months period in 2010-11.

There were several adjustments done by Pharmabiz in respect of restructuring of operations including selling of part of business, demerger of business operations, mergers & acquisitions, change in financial period, foreign exchange gains/losses and one time adjustment regarding income/cost. We have arrived at aggregate profit figures by taking these adjustment after profit after tax to get true picture of financial working. We have taken consolidated figures where ever available which includes working of subsidiaries and joint ventures. While taking aggregate figures we have not annualised figures for change in accounting period.

The net profit after tax but before adjustments (NPBA) of 25 companies with sales above Rs.1,000 crore, excluding Piramal Healthcare, jumped by 51.3 per cent to Rs.11,762 crore from Rs.7,772 crore in the previous year. Ranbaxy earned NPBA of Rs.1,100 crore as against a loss before adjustment of Rs.213 crore. Similarly, Orchid Chemical's NPBA worked out to Rs.154 crore as against a loss of Rs.554 crore. The NPBA of Cipla and Aventis was under pressure during 2010-11 and declined by 2 per cent and 1.5 per cent respectively. The NPBA of Jubilant Life Sciences declined due to demerger of its agri and polymer product division and that of Piramal Healthcare due to hefty tax provision. The NPBA of Strides Arcolab, Panacea Biotec, Ind-Swift Laboratories, Wockhardt, and Arch Pharmalabs moved up by over 50 per cent during 2010-11.

The NPBA of Dishman Pharma, Abbott India, Unichem Laboratories, Hikal, Aarti Drugs, Parenteral Drugs, Anu's Laboratories, Themis Medicare, Bliss GVS Pharma, Fulford (India) and Jagsonpal Pharmaceuticals, etc., was under pressure during 2010-11 and declined. The net loss before adjustment of Wanbury, and Morepen Laboratories increased and a few companies like Ankur Drugs, Alembic, Marksans Pharma and Vimta Labs incurred losses as against profit in the previous year.

The Indian companies are entering aggressively into the highly regulated market with investments in research and development. Further, investments in expansion and up-gradation of facilities as per international standards helped them to generate higher revenues from CRAMS, clinical trials, in-licensing and product launches. The relatively small and medium size companies are focusing more on emerging markets.

The Pharmabiz study shows that the profit before tax provisions and adjustments relating to foreign exchange gains/loss, profit on sale of assets and mergers & acquisitions worked out to Rs.16,939 crore during 2010-11 as compared to Rs.13,183 crore, a strong growth of 28.5 per cent. However, the net profit after tax but before adjustments remained flat with small growth of 0.2 per cent to Rs.10,136 crore from Rs.10,120 crore as the aggregate tax provision jumped by over 120 per cent to Rs.6,803 crore from Rs.3,063 crore in the previous year.

The higher tax provision is mainly due to significant higher amount of tax paid by Piramal Healthcare on selling of its domestic formulation business to Abbott Healthcare Pvt Ltd and diagnostic business to Super Religare Ltd. Piriamal shown an exceptional income of Rs.16,221 crore in 2010-11 and provided Rs.3,680 crore for taxation as against Rs.18.03 crore in the previous year. Excluding Piramal's tax provision the net profit before adjustments shown a stronger growth of 36.3 per cent to Rs.13,816 crore from Rs.10,138 crore.

The cost of raw materials, including increase/decrease in stocks and purchases, went up by 10.4 per cent to Rs.45,525 crore from Rs.41,255 crore and staff cost by 14.8 per cent to Rs.14,522 crore from Rs.12,647 crore. The other expenditure including other administrative expenses and research & development, increased by 12.1 per cent to Rs.23,616 crore from Rs.21,069 crore. Thus the Indian companies managed to keep manufacturing cost at reasonable level and performance at operating level has shown satisfactory growth.

The depreciation provision of 100 companies moved up by 14 per cent to Rs.3,889 crore from Rs.3,412 crore. However, with low interest rate regime in 2010-11, the interest cost of these companies declined by 1.9 per cent to Rs.2,489 crore from Rs.2,538 crore in the previous year. Due to lower interest burden, the profit before tax and adjustments has taken a quantum jump of 28.5 per cent and reached at Rs.16,939 crore from Rs.13,183 crore in the previous year.

At present there are 12 listed multinational companies in India viz Ranbaxy Laboratories, GlaxoSmithKline Pharma, Aventis Pharma, Pfizer, Novartis India, Abbott India, AstraZeneca Pharma, Merck, Fresenius Kabi Oncology, Solvay Pharma, Fulford (India) and Wyeth, and these companies achieved net sales growth of over 20 per cent to Rs.17,362 crore during 2010-11 from Rs.14,419 crore. EBDITA of these MNCs went up smartly by 66.7 per cent to Rs.4,525 crore from Rs.2,715 crore in the previous year. Pfizer, Wyeth and AstraZeneca Pharma changed their financial year during 2010-11 and announced results for 16 months or 15 months. Solvay Pharma is now merging with Abbott India with a swap ratio for the merger of 2:3. Matrix Laboratories, now a wholly owned subsidiary of of Mylan Inc., was delisted from BSE and NSE.

With overall better growth in profit before tax and adjustments, several companies rewarded their shareholders and announced higher dividend for the year 2010-11. Merck declared equity dividend of 950 per cent followed by Piramal Healthcare (600 per cent), Aventis (550), Divi's Laboratories (500), AstraZeneca (500), GSK (400) and Torrent Pharma (400). Sun Pharmaceutical announced equity dividend of 350 per cent, Solvay Pharma 255 per cent and Dr Reddy's Laboratories 225 per cent.

IMS Health India launches total sales audit

IMS Health India recently launched a new sales audit–TSA (Total Sales Audit), which provides a 'complete and comprehensive' picture of the pharmaceutical industry. Upto now, IMS Health Information and Consulting Services India IMS Health India, which is a 100 per cent subsidiary of IMS Health, used to capture retail and hospital sales through the Stockist Secondary Audit (SSA) and Hospital Secondary Audit (HSA) respectively. But these two audits capture only around 85 per cent of the Indian pharma sales market.

The remaining slice of the pie is now available as a Doctor Sales Audit (DSA). A miniscule sales channel, that of speciality products like certain medications in nephrology and oncology, that are purchased by patients directly from stockists, as they are too expensive and require special storage conditions, to be stocked at sub-stockists, is still not captured.

All the data will be integrated into one single product and offered on one platform, with updates available on a monthly basis for all business segments. The TSA computed on MAT December 2010 data has some surprises for the industry, in terms of rankings (of companies and brands) and growth rates in different therapy areas. For the first time, industry analysts can compare growth rates of therapy areas across the three main pharma sales channels in India: retail, hospitals and doctors.

Giving more details, Sameer Savkur, managing director, IMS Health India, says, “This raises the worth of the total audited pharma market from Rs 46787 crore to Rs 54849 crore. While SSA contributes 85 per cent, HSA accounts for nine per cent and DSA for six per cent of the pie.” Comparing the SSA with the TSA, the latter has improved capture of certain therapies. For isntance the vaccines market capture improves by as much as 60 per cent, by Rs 490 crore.

New rankings

While the TSA and HSA rankings for the top seven companies show no changes, it’s interesting to note that GSK, at third position, is closing the gap between Ranbaxy at the second place, thanks to its hospital sales. In fact, GSK is number one in the HSA with Sun Pharma and Cipla coming second and third. GSK also tops the DSA, with Piramal Healthcare and Cipla at second and third positions respectively.

Among the top-20 companies the following improve their ranking as compared to SSA: sanofi aventis (+3), Pfizer (+1), and Micro Labs (+1). While Pfizer and sanofi aventis benefit on account of their strong hospital portfolio as well as vaccines business which provides them with a sizable franchise among doctors, Micro Labs moves up on account of its relatively stronger combined hospital and doctor sales (relative to others companies close to its ranking).

Companies who drop in rankings (in TSA as compared to SSA alone) as a result of the above changes are Mankind (-1), Aristo Pharma (-1), Intas Pharma (-1) and Dr Reddy’s Labs (-1).

National Pharmaceutical Pricing Authority (NPPA) slaps fine on Cipla for overpricing

National Pharmaceutical Pricing Authority (NPPA) has issued notices to Cipla for overpricing of two drugs demanding an amount of Rs 47.70 crore in respect of the drug Salbutamol and an amount of Rs 25.46 crore in respect of the drug Ciprofloxacin.

The total estimated overcharged amount, including interest, by various pharma companies since the inception of the NPPA in 1997 is a whopping Rs 2,208.35 crore. But so far, the Authority could recover a paltry Rs 202.20 crore from this and is fighting litigations in various courts with the companies to recover the rest of the sum.

Mumbai wholesalers may suspend purchase of drugs from AstraZeneca

The wholesalers from Mumbai may suspend the purchase of drugs manufactured by AstraZeneca soon, as they suspect the company is involved in selling physician samples of certain drugs directly to the patients. It was recently discovered that the company has been selling physician's samples of Onglyza 5 mg directly to the consumers in Andheri. Selling of medicines by companies directly to the consumer is illegal and punishable under Indian drug rules.

A source from the Pharmaceutical Wholesalers Association (PWA) informed that the company
representatives have been caught red handed selling physicians' samples of Onglyza 5 mg to the patients in Andheri. Onglyza is indicated as an adjunct to diet and exercise to improve blood sugar (glycemic) control in adults for the treatment of type 2 diabetes mellitus. Physicians samples are not supposed to be sold to patients without prescription. The Association is contemplating to file a complaint with the competent authority against the company and others involved in this case.

It is suspected that apart from the company, even a chemist and some doctors from this area are involved in such unethical practice. In this case, its the patients who are suffering the most. They are being fooled by the chemists who are giving them PS without a proper bill, the source said.

The only way in which a medicine can be bought is through a valid prescription from a doctor without which it is deemed to be illegally obtained. It is understood that under the rule once a drug gets an approval the company is supposed to send the medicines to the clearing and forwarding (CNF) agents then it comes to the stockist and from there they are supplied to the chemist and finally to patients.

The main aim behind providing sample to physicians is to obtain a qualitative analysis of the performance of drug from the doctor after the completion of survey as its an important part of the clinical trial stage IV. Whereas the other important objective is to create awareness about the brand name among the doctors.

Pharma market hit by monsoon shortfall, growth at 8.9% in July 09: ORG IMS

The value growth in Indian pharma retail market has decreased in the month of July to 8.9 per cent, as compared to a growth of 18.3 per cent in the pervious month, owing to the monsoon shortfall in most parts of the country, according to the monthly Indian Pharmaceutical Market (IPM) report of ORG IMS.

The top five companies - Cipla Ltd, Ranbaxy Laboratories, GlaxoSmithKline Pharma, Piramal Healthcare and Sun Pharmaceuticals - continues to hold their position intact. Mankind Pharmaceuticals has jumped one rank up to secure the eighth position in the top 10 companies.
Among the top marketed products, Novartis' painkiller Voveran maintains its top position in July '09 too as compared to the performance of the previous month.

ORG IMS reflections captured some major movers and shakers when it came to top 10 products. In the month of July'09, Voveran has maintained its top position as compared to the month Jun'09. Zifi, the antibacterial medicine from FDC Limited, has leaped five ranks and moved up to rank eight in July. Revital, the dietary food supplement from Ranbaxy Lab has gained two ranks and moved up to rank seven, whereas the antibiotic drugs - Taxim from Alkem Lab and Augmentin from GSK - have gained one rank each and moved up to rank six and nine respectively.

Other top gainers include, Azithral leaped five ranks and moved up to rank 17, Calpol and Storvas leaped three ranks and Aciloc jumped up six ranks to 14, 18 and 22 respectively. Sporidex has gained five ranks and moved up to rank 25, details the report.