Remarkable Growth in Indian Pharma Sector Noted in September 2023

Remarkable Growth in Indian Pharma Sector Noted in September 2023

VoM News Desk | October 13, 2023 | 06:16 PM IST | Breaking News | Follow on Google News

Remarkable Growth in Indian Pharma Sector Noted in September 2023

Remarkable Growth in Indian Pharma Sector Noted in September 2023

On a day when benchmark indices experienced a minor dip of half a percent, the Nifty Pharma Index displayed remarkable resilience, surging by up to 0.9% in intraday trades. This robust performance within the domestic pharmaceutical sector is contributing to positive sentiments, particularly as the growth outlook for Indian pharma companies in the US market continues to show unwavering strength.

Steady Growth in the Indian Pharma Market

A report from Motilal Oswal Financial Services has shed light on the impressive growth of the Indian Pharma market, showcasing an 8.6% year-on-year expansion in September 2023. This is particularly noteworthy, given that the previous month, August 2023, had witnessed a more modest growth rate of 5.8%. Additionally, this growth rate surpasses the 6.5% recorded in September 2022. Analysts attribute this growth to several factors, including a substantial 4.6% increase in prices, a 2.8% rise in volumes, and a 2.9% YoY surge in new product launches.

Positive Trends in the Pharma Sector

September 2023’s upturn in growth augurs well for the 12-month period ending in September 2023, with a robust YoY growth rate of 10.3%. Encouragingly, even the acute segment, which had been experiencing a downturn in growth, has begun to rebound. Seasonal factors, such as a dry spell in August due to scanty monsoon rains and a high base from the previous year, were the primary contributors to the decline in sales of acute segment products, including pain relief, anti-bacterial, and respiratory items. This segment’s share in the overall Indian Pharma market accounted for 62% for the twelve months ending in September 2023, with YoY growth of 10.3%. In contrast, the chronic segment, representing 38% of the Indian Pharma market, surged by an impressive 11.6% YoY.

Positive Momentum in the Indian Pharma Market

As the Indian Pharma market experiences a revival in growth, both domestic and multinational pharmaceutical companies in India are witnessing a surge in performance in the month of September. Analysts at Motilal Oswal Financial Services acknowledge this positive trend. Meanwhile, analysts at Kotak Institutional Equities emphasize the significance of sustained momentum in domestic sales, stating that it is crucial for driving overall growth within the formulations sector. Despite challenges like a relatively slower acute season, there was notable recovery in September 2023, with a solid 9% YoY growth, leading to a 7% YoY growth in the Indian Pharma market for 2QFY24. Notably, Sun Pharma, Mankind, and Cipla are their preferred choices within the pharma sector.

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