Indian Pharma firms begin the 2006 fiscal year on a healthy footing

The majority of Indian pharmaceutical companies have begun the current fiscal year ending March 31, 2007, on a high note with the industry overall seeing 21.8% cumulative growth in April 2006. On a moving annual turnover (MAT) basis, the sector achieved 15.6% growth, according to a survey reported in India's Economic Times, which also features analyst's forecasts that the country's drug industry will reach double digit-growth in 2006-07.

The report said that Nicholas Piramal registered the highest growth in April 2006 at 34.6%, followed by Aristo Pharma at 29.6%, Ranbaxy 27.2% and Sun Pharma 27.1%. GlaxoSmithKline leads the field with 5.59% market share, followed by Cipla at 5.36% and Ranbaxy with a 4.9% stake on the cumulative January-April growth front.

Analysts contributing to the report said that the major reasons for the high growth figures this time around were the low base in the corresponding period in 2005 that was due to the value-added tax dispute as well as a number of new product launches, reports the newspaper. Senior executives at the leading pharmaceutical companies, however, attribute the better performance in April to improved volume growth in addition to the VAT-related slowdown that happened during March of last year.