Indian generic drug companies beat market trends, registering a growth of 14.4% for the 12 months ended December 2014. The Indian pharmaceutical market (IPM) clocked an 11% growth a year earlier, according to data released by market researcher, IMS Health.
The top ten companies commanded a 40% market share with seven domestic players in the list. Cipla led the Indian tally with sales of R4,571 crore in CY14, with a growth of 19%. Macleods Pharma registered the highest growth of 21%, followed closely by Mankind Pharma at 17%.
Sales of drugs included in the National List of Essential Medicines (NLEM) grew at 0.4% in December 2014, compared with a 14.8% growth for the same period recorded by non-NLEM drugs.
The lower sales were not compensated by higher volumes, with volumes declining 4% in the NLEM segment for the same period.
“NLEM-impacted drugs constituted 13% of IPM in value terms with a stagnant growth of 0.4% in December 2014 over the same period last year,” the analysts wrote.
In July 2014, The National Pharmaceutical Pricing Authority (NPPA) capped the prices of 108 diabetes and cardiac drugs under the auspices of the Drug Pricing Control Order, which amounts to approximately R5,500 crore, or 6% of the Indian pharmaceutical market.
The move came a year after the NPPA added 348 drugs to the NLEM in May 2013.
The foreign drug companies have suffered the maximum adverse impact of this change in policy.
Foreign drug players, which constitute 30% of the IPM, underperformed the market and Indian companies almost throughout the year.
However, the top company by value in the IPM was Abbott India with a market share of 6.5% and sales of R5,630 crore.
Drugs for infectious diseases continued to dominate therapies with sales of R1,009 crore for the period.
India — with the largest population of diabetics in the world — registered a growth of 20% in sales of anti-diabetes drugs with sales of R615 crore.
Sales in the dermatology segment followed closely with a growth of 19% to R509 crore in the 12 months.