The domestic pharma market clocked negligible growth in July - only 0.2 per cent - after showing signs of recovery in June. Most therapy areas posted a drop in sales growth rate.

Market growth has been under pressure ever since the government imposed lockdowns to curb the spread of Covid-19 and fresh prescription generation slowed down. In May, the Indian Pharma Market (IPM) declined by 9 per cent after slipping by 11 per cent in April. June, however, saw some recovery with the growth coming back to positive terrain at 2.4 per cent.

According to data from market research firm AIOCD AWACS, the Covid-19 crisis impacted the growth rate of the domestic market. However, some therapies continued to post positive growth during July.

Chronic therapy areas (that usually see stickiness from patients) continued to post positive growth. Cardiac therapy, for example, clocked a 13.1 per cent growth, anti-diabetic grew by 5.9 per cent. Respiratory medicine sales, however, slipped to -2 per cent. Even after the relaxation in lockdown, anti-infectives sales fell by 10.2 per cent in July. Anti-infective (primarily antibiotics) sales usually grow during the monsoons as cold and fever related illnesses rise.

Vitamins bounced back and grew by 5.5 per cent during July as focus on over the counter immunity boosting medicines rose. Several companies have either launched, or renewed focus on such brands. Dr Reddy's Laboratories, for example, has launched nutraceutical brands, similarly Zuventus Healthcare's zinc supplement Zinconia has seen traction in the market.

The June growth was also partly due to the low base in the previous year.\

Ameesh Masurekar, director of AIOCD AWACS said that June 2019 had a low base as the monsoons were delayed slightly. "In comparison, this year the monsoons are early. This typically pushes up sales of categories like anti-infectives," he said.

Credit rating agency ICRA recently noted that it expected the Indian pharma industry to clock 4-6 per cent growth during the fiscal.