India Ratings and Research (Ind-Ra) opines the 47.8% yoy growth in India's pharmaceutical market (IPM) during May 2021 was led by a low base effect, as IPM declined by 8.5% yoy in May 2020 due to the lockdown. IPM growth would have been stronger on an adjusted basis.

Acute therapies namely anti-infective, analgesics and vitamins benefitted significantly due to the second covid wave as these therapies have a direct/indirect role in the treatment of covid patients. Acute therapy growth was also aided by the low base in May 2020.

During May 2021, volumes grew 31.5% yoy (April 2021: 34.5% yoy), price growth was 7% (7%) and products launches were at 9.3% (10%), attributed to acute therapy products. Ind-Ra estimates the market to grow of 8%-10% yoy in size during FY22.

Acute therapies such as anti-infectives, analgesic and vitamins witnessed sales growth of 141.9% yoy, 50.3% yoy and 59.8% yoy respectively, while gastro grew 47.7% yoy during May 2021. Growth underperformance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 31.0% yoy and 20.2% yoy, respectively. However, on a moving average total (MAT) May 2021 basis, a growth outperformance was observed across these therapies.

During MAT May 2021, Cipla, Glenmark and Emcure significantly outperformed the market, with yoy growth of 19.9%, 39.7% and 23.1%, respectively. This was led by higher sales of COVID-19 related products and the continued outperformance of chronic therapies.