Abbott growth to benefit from strong brands

Abbott India Limited's five major brands grow faster than the market

Strong brands are set to drive growth at Abbott India Limited (AIL), which reported 9% revenue growth in the domestic market despite trade-related issues affecting the industry. The company announced recently that its revenues rose year-on-year to US$78m (Rs 4.87bn) from $72m (Rs 4.48bn).

AIL’s five major brands grew faster than the market. These were gynaecological drug Duphastone, which saw growth of 10.4%; Thyronorm, a thyroid hormone, with 14.8% growth; antiemetic Vertin with growth of 17.5%; laxative Duphalac with 12.8% growth; and antacid Digene, which recorded growth of 13.1%.

Analysts expect these major brands to drive the future growth of the company. However, two products – Thyronorm and Eptoin – came under drug price control as part of India’s National Pharmaceuticals Pricing Policy. Despite this, Thyronorm was able to report growth of almost 15%, although Eptoin reported a 5% drop in revenues.

In addition AIL distributes Novo Nordisk’s insulin range of products in the Indian market. These products are also under government price control.

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