CIPLA LIMITED

In 2024, India's CDSCO approved 19 new drugs, including next-gen therapies for chronic diseases by global majors. Eli Lilly's Mounjaro for diabetes/obesity, Orchid Pharma's Enmetazobactam for resistant bacteria, Cipla's plazomicin for UTIs, Sun Pharma's Etifoxine for anxiety, Dr Reddy's Elobixibat for constipation, and Zydus/Lupin's Vonoprazan for stomach ulcers were notable. New cancer drugs like Eli Lilly's Retevmo and Zydus's nelarabine were also approved.

Dr. Reddy's launched Toripalimab in India on Nov 28, 2024, an immune oncology drug for rare head and neck cancer. India is the third country to access this next-gen PD-1 inhibitor. Dr. Reddy's R&D increased at 8% CAGR over FY19-FY24, with FY24 R&D growth at 18%. Revenues grew 17% YoY to INR80.2bn in 2QFY25, driven by Global Generics and new product launches. Dr. Reddy's trades at a P/E of 18.0x, lower than peers Cipla and Zydus.

The Indian pharmaceutical retail market rebounded in November with double-digit growth, driven by increased demand for dermatological, cardiac, and respiratory medications. Foracort, an asthma drug, topped sales at ₹82 crore. Urology, dermatology, cardiology, and pain relief therapies saw significant growth. Sun Pharma leads with an 8% market share. Analysts predict high-single-digit growth through 2025, driven by price increases and new product launches.

Foracort led with Rs 82 crore in sales, followed by Augmentin and Glycomet GP. Urology grew 18%, dermatology 16%, and cardiac/pain relief 13%. Respiratory therapies grew due to air pollution. Cold Preparation Ethicals and paracetamol subgroups performed well. VMN and dermatology segments grew significantly. Sun Pharma led with an 8% market share. 746 new SKUs were introduced, and 3,024 SKUs saw PTR changes.

India's organized pharma retail market grew 11% in November, led by derma, cardiac, and respiratory drugs. Foracort topped sales at Rs 82 crore, followed by Augmentin and Glycomet GP. Urology, derma, cardiac, and pain-relief segments grew 18%, 16%, 13%, and 13% respectively. Sun Pharma led with an 8% market share, while domestic companies slightly outpaced MNCs. The market is expected to grow in high single digits by 2025, driven by price increases and new launches, including GLP-1 drugs.

Strong demand for derma and cardiac drugs drove pharma retail market growth in Nov, with Foracort sales topping at Rs 82 crore. Urology led with 18% growth, followed by derma, cardiac, and pain-relief at 16%, 13%, and 13%. Sun Pharma led with 8% share, while domestic companies grew nearly 11% and MNCs over 10%. The market is expected to grow by high-single digits in 2025, with Indian companies launching GLP-1 drugs.

HSBC sees minimal risk for Cipla and Sun Pharma, with Indian pharma companies entering GLP-1 drug market for long-term growth. Stable generic pricing and US product launches to drive 2025 performance. Focus on complex generics and GLP-1 drugs crucial for US growth. Improved biotech funding and diversification in contract development and manufacturing expected to boost partnerships.

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Eli Lilly plans to introduce Tirzepatide, marketed as Mounjaro, to India in 2025, targeting type 2 diabetes and obesity. The move aligns with the company's strategy to expand its portfolio in India, considering local affordability and value. Eli Lilly has been operating in India since 1993, collaborating with local firms for its diabetes portfolio, and aims to address India's growing healthcare challenges.

The global generic drugs market is projected to grow from USD 424.2 billion in 2023 to USD 691 billion by 2033, driven by patent expirations, cost-effective medications, and chronic disease prevalence. North America led in 2023 with a 38.4% share. Generics offer affordability and are essential for managing chronic conditions, benefiting patients without comprehensive insurance. The market is supported by FDA approvals, collaborations, and advancements in complex generics, despite challenges like patent litigation.