Anti-diabetic drugs dominate pharma market with ₹155 crore value growth

The Indian pharmaceuticals market is booming, led by anti-diabetic drugs, which posted over ₹155 crore in value growth among new brands launched in the past year. The respiratory segment closely followed, achieving sales of ₹152.9 crore from 223 new brands, while the vitamin, mineral, and nutrients category reached ₹144.4 crore from 467 brands.

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The pharmaceutical market in India has witnessed substantial growth in the last year, with anti-diabetic drugs emerging as the leading category. According to data from market research firm IQVIA, the anti-diabetic segment posted the highest value growth of over Rs 155 crore among new brands launched in the past 12 months. The respiratory segment followed closely, recording sales of Rs 152.9 crore from 223 new brands, while the vitamin, mineral, and nutrients category achieved Rs 144.4 crore from 467 brands.

In the anti-diabetic category alone, 485 brands were introduced during this period. The market for anti-diabetic drugs has shown remarkable expansion over the last five years, with a compound annual growth rate (CAGR) of 32%, reaching Rs 474 crore in January 2024. Anoop Misra, chairman of Fortis C-DOC Hospital for Diabetes and Allied Sciences and director of the National Diabetes Obesity and Cholesterol Foundation (NDOC), attributes this trend to several factors, including the increasing number of diabetes patients and the introduction of new drug combinations.

Misra highlighted that in places like Delhi and tier-two cities, there is a preference for combination drugs among patients, which may be driving the growth in this segment. These combinations are often seen as more effective in managing the complex needs of diabetic patients.

The IQVIA report also pointed out that many new drug launches are brand extensions of well-established names. Some notable examples include Omez (gastrointestinal), Codistar (cough syrup), Zifi (bacterial infections), Budamate (asthma drug), and Foracort (inhaler). This strategy of brand extensions helps companies leverage existing brand recognition and trust while introducing new formulations or uses.

The Indian pharmaceutical market experienced a rebound in growth, reporting an 8.8% monthly increase in April 2024 after the lowest growth in March 2024. This was the fourth highest growth in the past 13 months. Chronic segments continued to outpace the growth of acute segments, with a 9.9% increase compared to 5.8% for acute segments, based on the moving annual total (MAT) as of the end of April.

April 2024 sales demonstrated significant improvement over March, with a 12.3% increase. The acute segment grew by 12.9%, while the chronic segment saw an 11.5% rise. This performance marked the second-best April in the last five years.

In addition to anti-diabetic drugs, segments such as dermatology and cardiac also reported higher growth in April compared to their MAT growth. However, the anti-infective segment showed sluggish growth, and respiratory and anti-viral segments experienced a year-on-year decline in April.

Among the top-ranking drugs, Foracort, used for asthma and respiratory issues, stood out with a growth of 8.74%, achieving sales of over Rs 874 crore in the 12 months ending in April.

Indian pharmaceutical companies are expanding more rapidly than their multinational counterparts in both acute and chronic segments, though multinational companies are steadily catching up. This competitive dynamic suggests a robust and evolving market, with domestic firms leveraging their local expertise and market presence to outpace global competitors.

Overall, the pharmaceutical market in India is witnessing dynamic changes with anti-diabetic drugs at the forefront, driven by innovation, increasing patient needs, and strategic brand expansions.