Torrent, Glenmark, Alkem, Mankind, Lupin among key drivers of Indian pharma market growth during July

Stock Market today: Indian Pharma market growth softened during the month of July'2024 surprising many. Analysts attribute the same to high base of last year and lower than expected growth in the acute segment.

The volume growth remains soft while pharma market growth currently is generally being driven by new launches and price hikes.

Analysts at Elara Securities India Pvt Ltd referring to data by Pharmatrac, a pharmaceuticals market research company, said that India’s pharma market (IPM) grew 6.1% year on year (YoY) in July 2024, below street expectations of 8-11%. Volume declined 0.3% YoY and price increase contributed to growth.

Value growth drivers

In July 2024, among the top 20 corporates, as per Elara Torrent Pharmaceuticals, Glenmark Pharmaceuticals were key gainers in the listed space while another unlisted pharma company, Intas Pharmaceuticals also stood among top 3. Torrent achieved a 15.9% YoY growth, Intas grew at 15.7% YoY and Glenmark’s growth stood at 13.6% YoY.

Among other notable companies, Alkem Laboratories, Mankind Pharma and Lupin ltd value growth stood at strong 7.4%- 9.4% YoY. Sun Pharmaceutical Industries at 7.1% YoY and Zydus Lifesciences at 6.9% YoY also were prominent companies whose growth beat pharma market growth.

Conversely, Abbott, Dr Reddy’s Laboratories, Emcure Pharmaceutical Pfizer's growth was softer 3.7%-5.6%. Pfizer , IPCA Laboratories and Glaxo with tepid growth of 2.1-3.4% contributed to the drag on IPM growth, as per Elara.

Analysts optimistic on Pharma market growth

Elara Securities expects a slight uptick in growth for Indian Pharma Market in FY25 compared with FY24 levels. Volume growth as per them might accelerate albeit with moderate price increases. They expect that organic growth would be in the range of 11-13% for pharma stocks.

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