India’s pharmaceutical sector witnessed steady growth in May 2025, with the Indian Pharmaceutical Market (IPM) expanding by 7.2% year-on-year, according to the latest report from Pharmarack, a prominent pharma market research firm. This growth was largely driven by chronic therapies, new drug launches, and modest pricing increases, though unit growth remained subdued.

Chronic Therapies Powering Market Growth

Chronic therapy segments, particularly cardiac care and anti-infectives, played a significant role in May’s performance. These two therapeutic areas together accounted for nearly 25% of total market value and grew by 11.7% and 7.6% respectively. These categories continue to outperform due to long-term medication adherence, high disease prevalence, and consistent product innovation.

Meanwhile, smaller therapy areas also made a noticeable impact. Urology and antineoplastics (used in cancer treatment), each contributing about 2% to monthly IPM sales, registered double-digit growth of 12.3% and 11.7%, respectively.

The market’s volume growth, however, remained muted at 0.4%, indicating that price hikes and new product introductions—rather than increases in the number of units sold—were the primary growth levers. Notably, antidiabetics recorded 6.1% volume growth, buoyed by the off-patent status of empagliflozin, which led to price competition and new drug combinations in the category.

Market Turnover and Therapy-Wise Volume Trends

The IPM’s Moving Annual Turnover (MAT) from June 2024 to May 2025 stood at over ₹2,29,000 crore (approximately US$ 26.72 billion), reflecting 8.1% growth over the previous year. Within this MAT period, domestic volume growth was recorded at 1.1%, suggesting that while pricing and value additions remain robust, volume acceleration is modest.

Major therapy areas showed strong volume growth over the MAT period:

• Cardiac therapies grew by 10.4%,

• Gastrointestinal drugs by 9.5%, and

• Anti-infectives by 6.5%.

These three segments alone constitute around 38% of the total pharma market in India and continue to be the backbone of therapeutic demand.

Company-Wise Performance

Several leading Indian pharmaceutical companies recorded healthy double-digit growth rates in May 2025:

• Sun Pharmaceutical Industries and Dr Reddy’s Laboratories both saw a growth of 11.2%,

• Torrent Pharmaceuticals and Ipca Laboratories followed closely with 10.8% each,

• Alkem Laboratories posted 10.3% growth.

This growth is reflective of a diversified product portfolio, robust chronic therapy offerings, and continued presence in both domestic and export markets.

Top-Selling Brands and Products

At the MAT level, a few standout drugs maintained their market dominance:

• GlaxoSmithKline’s Augmentin, a widely used antibiotic, clocked sales of ₹819 crore (about US$ 95.57 million).

• USV’s Glycomet GP, a prominent antidiabetic combination, registered ₹810 crore (approximately US$ 94.52 million).

These figures highlight the enduring relevance of established brands in the Indian market, even as new drugs make their way into prescriptions.

Trends and Insights

• New product launches are increasingly driving therapy-specific growth, especially in the chronic segment.

• Price-led growth, rather than volume expansion, remains the dominant trend.

• Off-patent molecules, such as empagliflozin, are creating competitive space for Indian generics, benefiting both patients and companies.

• Therapy areas like oncology (antineoplastics), although smaller in share, are rising rapidly and likely to become a major future growth engine.

• Urban and Tier-2/3 cities continue to show a strong demand for chronic medications due to increasing lifestyle-related diseases.

While the broader pharmaceutical market is performing steadily, experts note that regulatory interventions, pricing caps, and intense competition in key therapies may limit outsized gains in the near term. However, the industry’s focus on innovation, strategic product mix, and digital engagement with healthcare providers could help sustain growth in a competitive environment.

Outlook

Going forward, the Indian pharmaceutical industry is expected to maintain a 7–9% growth trajectory for the rest of FY2025, supported by:

• Continued demand for chronic disease medications,

• Growing export markets,

• Expansion in tier-2 and rural markets, and

• Increasing penetration of health insurance and government healthcare programs.

The Indian pharmaceutical sector, with its blend of value-driven products, low-cost manufacturing, and R&D capabilities, is well-positioned to cater to domestic as well as global healthcare needs. As newer therapies gain traction and volumes gradually recover, India’s pharma industry remains a pillar of economic and healthcare resilience.

The Upcoming IPOs in this week and coming weeks are Oswal Pumps,Samay Projects Services, Monolithisch India, Jainik Power Cables.

The Current active IPO are Sacheerome Limited.

The Closed IPOs are Ganga Bath Fittings.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.