This was because of the lower base effect and covid-induced demand during the second wave.
Ind-Ra expects the normalisation of the demand to continue if the pace of vaccination remains strong which can reduce the instances disruptions in activities during future covid waves, if any. Ind-Ra expects IPM growth of over 10% yoy for FY22.
During 1QFY22, IPM reported growth of 37.2%, aided by the lower base effect during 1QFY21 which was impacted due to the nationwide lockdown.
Accordingly, during June 2021, volumes grew 4.0% yoy (May 2021: 31.5% yoy), price growth was 5.7% (7%) and new products launches were at 4.4% (9.3%), attributed to acute therapy products.
Further, Acute therapies such as anti-infectives, analgesic and vitamins witnessed sales growth of 37.7% yoy, 17.1% yoy and 17.3% yoy respectively, while gastro grew 18.2% yoy during June 2021. Respiratory therapy growth rebounded to 23.3% during June 2021, led by normalisation of sales which was earlier impacted due to covid. Growth underperformance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 8.2% yoy and 4.0% yoy, respectively, reported Ind-Ra.
According to the reort, during moving annual total (MAT) June 2021, Cipla, Glenmark and Emcure significantly outperformed the market, with yoy growth of 19.9%, 38.8% and 24.9%, respectively. This was led by higher sales of COVID-19 related products and the continued outperformance of chronic therapies.