The Indian pharmaceutical market (IPM) grew 6.8 per cent to touch a turnover of ~1.93 trillion in calendar year 2023, despite volumes going down marginally by 0.9 per cent.
This indicates the price increase has been the major growth driver.
Growth in the moving annual turnover (the previous 12 months’ turnover) in December was 5.1 per cent and that in new product introduction 2.6 per cent, while volumes dipped 0.9 per cent, leading to an overall growth rate of 6.8 per cent, according to the data from market research firm Pharmatrac.
Cardiology, anti-infectives, and gastro-intestinal therapies were in the top three — growing 6.3 per cent, 8 per cent, and 5.2 per cent, respectively, in value terms.
Together these three therapy areas constitute 38 per cent of the IPM.
Interestingly, cardiac and gastro-intestinal therapies saw a decline in unit sales (or volumes), the data showed.
“All the growth drivers are positive. While anti-infective therapy has shown overall growth of 10.3 per cent, its contribution in volumes is high, thereby indicating an increase in demand for such drugs,” said Sheetal Sapale, vice-president (commercial), Pharmarack.
With an 8 per cent growth rate in the anti-infectives category, it is not surprising that GlaxoSmithKline Pharmaceuticals (GSK) Augmentin is the top-selling brand in 2023, the second year in a row.
In 2023 sales of Augmentin grew 9.9 per cent to Rs 804 crore, and the volumes almost 12 per cent.
“Augmentin has been setting standards in quality and innovation for over four decades, and continues to be the hallmark of quality and trust with health care professionals for patient care and improving treatment outcomes,” the GSK India spokesperson told Business Standard.
He added last year they contemporised their portfolio with the launch of Augmentin ES, indicated for short-term treatment of paediatric patients with bacterial infections.
Among companies, while the top players registered value growth in the domestic market, for some players, however, the volumes declined.
Companies like Macleods (12.1 per cent), Aristo (11.2 per cent), Mankind Pharma (11.1 per cent), Cipla (10.4 per cent), and USV (10.4 per cent) have posted significant value growth.
The top five companies remained the same as in 2022.
However, there have been changes in the pecking order.
For example, Torrent Pharmaceuticals and Alkem improved their ranks from seventh to sixth and eighth to seventh, respectively. Similarly, Lupin dropped from sixth spot to eighth spot.
Dr Reddy’s Laboratories dropped from 11th spot to 12th one. USV jumped from 18th in 2022 to 15th in 2023.
The value includes bonus units, which are given by companies to trade in the form of several schemes.
It is based on the invoice value or the price to the retailer.
Without the bonus units, however, Cipla is at third position, followed by Mankind at fourth.
“Our aim has always been to create an institution keeping the long-term intangibles in mind. People in Mankind must be happy,” said Rajeev Juneja, vice-chairman and managing director.
“We want to keep offering differentiated products -- and also focus on quality, affordability and accessibility for patients.
"These numbers are an outcome of that,” he added.
Cipla posted 12.3 per cent growth in volumes too, apart from strong turnover growth.
This may be attributed to its strength in trade generics.
Among multinationals, Pfizer saw an 8.8 per cent decline in turnover, and a 10.2 per cent drop in volumes.
Sanofi India too declined 4.7 per cent in value and 6.6 per cent unit volumes.
