India's Pharma Market Sees Sustained Double-Digit Growth
India's pharmaceutical market is experiencing its most robust expansion in over two years, with a notable 12.1% year-on-year growth in May. This marks the sixth consecutive month the Indian Pharmaceutical Market (IPM) has achieved double-digit growth, according to recent data analyzed by Equirus Securities from IQVIA.
On a moving annual total (MAT) basis, the market expanded by 10.7%, a significant increase from 7.7% recorded a year prior. This sustained momentum is attributed to a combination of increased prescription volumes, strategic price adjustments, and the introduction of new pharmaceutical products.
Obesity, Diabetes, and Cardiac Therapies Lead the Way
Chronic therapies, particularly those targeting obesity, diabetes, and cardiovascular diseases, are emerging as the primary engines of this growth. The anti-diabetic segment alone surged by 14.5% in May, continuing to gain a larger share of the domestic market. Analysts highlight drugs like Mounjaro and its combinations as key contributors to this segment's strong performance.
Overall, chronic therapies, which encompass long-term treatments, constituted 40.6% of the market in May and recorded an impressive 14.6% growth, outperforming the broader industry. Cardiac therapies remain the largest individual segment, accounting for 13.5% of sales on a MAT basis and growing by 14.7%.
Key Drivers: Volume, Pricing, and New Product Launches
The growth in the India pharma market is a multifaceted phenomenon. Volume expansion contributed 3.2% to the overall growth, while price increases added 4.6%. New product introductions played a substantial role, accounting for 3% of the market's expansion, underscoring the industry's innovation and responsiveness to health demands.
Broad-Based Expansion Across Therapeutic Areas
While chronic conditions are at the forefront, the market's positive momentum is not confined to these areas. Acute therapies also demonstrated their strongest growth in the current series, expanding by 8.3% in May. Respiratory medicines saw a 10.9% increase, and anti-infectives grew by 8.1%.
Analysts noted that nine out of ten key therapeutic segments reported double-digit growth during the month, indicating a widespread demand across various health concerns within the domestic market.
Top Companies and Evolving Market Dynamics
Several pharmaceutical companies recorded impressive growth rates in the domestic market. Lupin led with a 17.4% increase in May, followed by Torrent Pharmaceuticals at 15.1%, and Cipla at 14.2%. Sun Pharma, India's largest drugmaker, reported 14.1% growth, bolstered by its strong portfolios in cardiac, anti-diabetic, and respiratory medicines.
Indian companies, which hold nearly 83% of the market share, grew by 11.9%, while multinational drugmakers expanded by 13.3%. The market composition is also shifting, with gastrointestinal therapies now surpassing anti-infectives to become the second-largest therapy area, reflecting the increasing prominence and market share of chronic disease treatments.