Slowdown hits Indian generic players' US sales

MUMBAI: The global economic slowdown seems to have affected Indian generic players in the US, which is a key market for them. According to data gathered from US-based IMS Health Retail Drug Monitor, total sales of medication through retail pharmacies in the US grew by a mere 1% to $208.4 billion year-on-year for the 12-month period ended October 2008. The US alone accounts for 50% of the global pharma market.

Besides, total sales in the 13 key markets such as North America, Western Europe, Japan, three countries in Latin America and Australia, rose by a 2% to $431 billion y-o-y during the same period. For January-December 2007, the growth across these markets was 5%.

For Ranbaxy, the country���s largest generic player, the US sales amounted to Rs 413.6 crore for the September 2008 quarter, which was 21.8% of its consolidated sales for the quarter. According to a report by brokerage house Prabhudas Lilladher, the slowdown will witness enhanced sales for generics that could augur well for the Indian players.

Meanwhile, in other large markets like Western Europe (comprising Germany, France, Italy, UK and Spain) sales through retail pharmacies rose 2% to $116.4 billion for the 12-month period ended October 2008.

However, emerging markets showed a better growth in sales. Sales in Argentina grew by a healthy 23% to $3.1 billion. India���s large generic players, Dr Reddy���s, Sun Pharma and Ranbaxy, have been ramping up their sales force in these countries to leverage the opportunity.