Now, Sun Pharma, Cipla, Cadila Healthcare, Torrent Pharma, DRL, Eris Life are key stocks to watch

COVID related treatment rollout continues to make a strong and positive impact on growth. Antiviral drugs (led by Favipiravir and Remdesivir) have been the fastest growing segment with 300%+ yoy growth during November to Rs 3 bn; Remdesivir and Favipiravir clocked sales of Rs 1.6 bn / Rs 0.6 bn respectively. Notably, Remdesivir / Favipiravir sales were Rs 1.2 bn / 0.68 bn during Oct 20 and Rs 1 bn / Rs 1.2 bn for Sep20, indicating continued pick-up in Remdesivir sales while Favipiravir seems to have plateaued.

Among the top 30 companies Mylan clocked the highest growth of 144% for November followed by Glenmark Pharma(+11%), IPCA Labs (+10%) and Ajanta Pharma(+10%) clocking double digit growth while Novartis, Micro, Indoco Remedies, FDC & Mankind Pharma were impacted the most. With 144% growth for the month (sales of Rs 920 m), Mylan has been the standout performer for the month primarily aided by Rs 540 mn sales contribution from its COVID treatment drug, Desrem. Notably, Desrem was the second largest selling brand in IPM for Nov20. Sun Pharma, Cipla, Cadila Healthcare, Torrent Pharma, DRL, Eris Life were among some local listed players that clocked a single digit growth.

Larger companies faring relatively better; Brand power – Top brands outperforming:

Top 20 companies have continued to outperform the market which grew by +1% in November; in particular companies ranked 11-20 have outperformed the market with 3% growth. Performance of the larger companies was due to brand resilience of their flagship products. Overall, 13 of the top 40 brands have clocked a double-digit growth (despite a subdued market growth) underlining their strong brand power. Brand building capabilities will increasingly become an imperative to succeed in IPM going forward. Notably, 4 novel COVID treatments were in the top 20 brands for the month.

Therapy wise growth trends:

Anti-Virals (primarily driven by COVID treatment sales) have been the fastest growing therapy for the month clocking a yoy/mom growth of 298%/15%. Barring Anti-Virals, Cardiac (+9% yoy), Anti diabetes (+4%) and Vitamins (+6%) and CNS (+4%) have been the fastest growing therapies. Anti-infectives continue to be the most impacted therapy with a -11% /-12% mom/yoy decline. Due to its usage in COVID treatment, Azithromycin is the only AI sub-therapy which has continued to grow during this period. Respiratory, Pain, Ophtal, Gynac, & Urology were other therapies that remain impacted for the month.