Low base: India’s pharma sector growth accelerates in May

The ratings agency opined that the 47.8 per cent YoY growth in India's pharmaceutical market (IPM) during May 2021 was led by a low base effect.

New Delhi: Low base effect accelerated the growth of India’s pharma sector in May, India Ratings and Research (Ind-Ra) said.

The ratings agency opined that the 47.8 per cent YoY growth in India’s pharmaceutical market (IPM) during May 2021 was led by a low base effect.

Last year, the IPM declined by 8.5 per cent YoY in May 2020 due to the lockdown.

“IPM growth would have been stronger on an adjusted basis,” Ind-Ra said in a statement.

“Acute therapies namely anti-infective, analgesics and vitamins benefited significantly due to the second Covid wave as these therapies have a direct/indirect role in the treatment of Covid patients. Acute therapy growth was also aided by the low base in May 2020.”

As per the report, during May 2021, volumes grew 31.5 per cent YoY, price growth was 7 per cent and products launches were at 9.3 per cent, attributed to acute therapy products.

“Ind-Ra estimates the market to grow 8-10 per cent YoY in size during FY22.”

Besides, it cited that acute therapies such as anti-infectives, analgesic and vitamins witnessed sales growth of 141.19 per cent YoY, 50.3 per cent YoY and 59.8 per cent YoY respectively, while gastro grew 47.7 per cent YoY during May 2021.

“Growth under-performance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 31 per cent YoY and 20.2 per cent YoY, respectively.”

“However, on a moving average total (MAT) May 2021 basis, a growth out-performance was observed across these therapies.”