The growth in March is weaker than the 12.4% clocked in February, however, given the disruption to supply chains and economic activity in general, the growth is surprising, said analysts.
For the financial year ended March, the Indian pharmaceutical market grew 9.8% to 1.4 trln rupees, while the for the March quarter sales grew 9.7%. Sales in the markets in March were driven by likely hoarding of medicines for chronic conditions such as diabetes, cardiac and respiratory conditions, as these therapies grew 19-23%. During the March quarter, growth in sales was largely due to a 5.3% increase in the price of drugs and 2.7% increase in launch of new products in the market.
The performance of the pharmaceutical companies in the March quarter, despite the coronavirus-related disruption, will further boost investors' view that the sector will outperform others in terms of earnings.
Among listed pharmaceutical companies, Torrent Pharmaceuticals Ltd was among the top performers in March as its sales rose 16% on year to 3.7 bln rupees. Following it was Dr Reddy's Laboratories Ltd, whose recent push in the domestic market appears to be paying off as its sales jumped 15.2% on year to 3 bln rupees in March. Industry leader Sun Pharmaceutical Industries Ltd clocked sales of 9.9 bln rupees, up 13.7% on year, while second-placed Cipla Ltd saw its revenues rise 9.8% on year to 5.8 bln rupees. Glenmark Pharmaceuticals Ltd managed sales of 2.8 bln rupees, up 14.7% on year, and Lupin saw revenues grow 11.4% on year to 4.7 bln rupees.
