Glenmark, JB Pharma, Sun, Zydus Lifescience drive pharma market growth in August

Stock Market today: The Nifty Pharma Indexhas gained around 37% year to date. The gains are being led by strong earnings growth being reported by Indian Pharmaceutical companies in the US and well supported by the India markets.

The India Pharma market growth remained decent in the month of August '2024 on a large base of last year. The Indian Pharma market as per reports grew 7.6% year on year in August’2024 (versus 11.2% in July’24 and 6% in August’2023).

In August’24, among the top-20 pharma companies, JB Pharma (JB Chemical & Pharmaceuticals) clocked 13.7% YoY growth followed by Glenmark Pharma (up 13.5% YoY), and Intas Pharmaceuticals (unlisted that saw sales grow 11.4% YoY as per Motilal Oswal Financial Services Ltd. The growth recorded notably was higher that the Indian Pharma Market growth.

Among other outperformers are Sun Pharmaceutical Industries Ltd and Zydus Lifescience Ltd that recorded growth of 9.9% and 9.7% year on year, closely followed by Ajanta Pharma Ltd, Abbott that clocked 9.4% and 9.5% year on year growth respectively. Lupin, Torrent Pharma and Dr Reddy's also reported 8% or more growth

As of August’24, Indian pharma companies hold a majority share of 84% in IPM, while the remaining is held by multi-national pharmaceutical companies, said analysts. Both MNCs and Indian companies registered single-digit growth sequentially during August’2024.

The growth rate however remains stronger on trailing basis and for ther months (June, July and August 2024) the Indian Pharma market has grown 8.6% year on year.

Analysts also remain positive on the prospects

As per CRISIL Research, Domestic revenue is likely to see growth of 7-9% this fiscal, primarily price-driven, with volume growth to be backed by new product launches. Price growth will be led by the non-NLEM (National List of Essential Medicines) portfolio, as price growth for NLEM portfolio shall remain muted, due to minimal change in Wholesale Price Index (WPI) last fiscal. CRISIL expects the chronic segment to be the key revenue contributor amid increasing lifestyle-related diseases and continued emphasis on health awareness since the pandemic.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.