India Steps Up Scrutiny After Chinese API Prices, Military Tensions Rise
Drug Shortages Not Expected In The Short-Term
Executive Summary
A recent military skirmish with China and a 35-40% average increase in prices of drug raw materials has seen India step up scrutiny of imports from the country. While the industry is seeking a hike in domestic formulations prices, product shortages are not expected in the short term.
You may also be interested in...
Russia Sanctions, China Lockdown To Pinch Globally With Higher Freight, API Costs
With the Shanghai lockdown extended, Russian vessels blacklisted and oil prices fluctuating, global freight rates are expected to increase further. Apart from a direct hit, pharma manufacturers will also feel the ripple effect as prices of raw materials like APIs increase. Scrip spoke to Indian industry to gauge the impact.
Will The $3bn Stimulus Amid COVID-19 Place Indian Cos Among Goliaths?
Following an INR69bn incentive scheme for APIs, the Indian government has come up with an INR150bn scheme for formulations and more. Will this $3bn push prove to be the one that companies like Sun Pharma and Aurobindo, currently at 36 and 48 respectively in Scrip 100 rankings, need to break into the top league?
India’s Bulk Drugs Incentive Scheme Finds Takers In Mankind, Aarti
As India revealed finer details of two schemes to promote bulk drug production, Mankind Pharma and Aarti Drugs spelled out a preference for chemical synthesis products - they are likely to be joined by more companies reluctant to invest in some that are fermentation-based. Whether a “plug and play” format for bulk drug parks will attract foreign investment remains to be seen.