India's pharma market (IPM) posted a 6.9% year-on-year growth in May, driven primarily by good performance in chronic therapies like cardiac, respiratory, and anti-diabetic medicines, as per a report issued on Tuesday by Motilal Oswal Financial Services Ltd.
The domestic pharmaceutical companies grew by 6.6% year-on-year in the month, while multinational companies (MNCs) recorded a more robust growth rate of 8.4%.
The acute therapy category recorded a comparatively low 5% year-to-year growth in May, following a pattern of damped momentum for the second consecutive month.
During the 12 months ended May, the IPM growth was spearheaded by the synergy of price increases (4.2%), product launches (2.3%), and volume improvements (1.1%).
Indian pharma companies continue to dominate the local market, with an 83% share, while MNCs hold the remaining 17%.
Glenmark (11.8% YoY), JB Chemicals (11.6% YoY), and Ajanta Pharma (10.6% YoY) were among the top 20 pharma players that performed better than the market average. Ajanta was boosted by strong double-digit increases in its anti-diabetic and ophthalmic portfolios, while JB Chemicals achieved good progress in cardiac, ophthalmic, and anti-parasitic segments.
On a moving annual turnover (MAT) basis, the industry recorded a healthy 7.6% rise over the last year. Chronic therapies accounted for the top growth with 10% YoY growth, while acute therapies continued a flat 5% rate.
Outlook Remains Positive for 2025
In the future, the Indian pharmaceutical industry is likely to expand at 7.8% YoY in April 2025, as per India Ratings analysts. This expansion is likely to be driven by sustained robust demand, product innovation, and new therapeutic area expansion.
India's pharmaceutical sector, globally acclaimed as the largest producer of cheap generic drugs in the world, is today ranked third internationally by volume and 14th by value. The industry provides around 20% of the global demand for medicines, solidifying its position as a prominent player in global healthcare.
During the fiscal year 2023–24, the overall turnover of India's pharmaceutical sector was ₹4.17 lakh crore, registering a steady annual growth rate of more than 10% over the last five years.
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