Wait...

Online Export Import Data Search Search

Complete Training Video : Click Here

Domestic drugmakers face squeeze in US healthcare market.


Date: 18-03-2017
Subject: Domestic drugmakers face squeeze in US healthcare market
MUMBAI: India's small and medium-sized generic drugmakers say the threat of tougher rules and higher barriers for outsiders in the U.S. healthcare market will force many to find a niche or focus their expansion efforts on other countries. 

India supplies nearly a third of medicines sold in the United States, the world's largest healthcare market. Cut-price generics sold by India's small- and medium-sized drugmakers have been critical in bringing down prices there. 

A more protectionist stance by President Donald Trump, with the prospect of import tariffs and the U.S. boosting local drug manufacturing, mean the operating environment for smaller generic players will get worse, executives at Indian companies said. 

"If the challenges keep increasing, competition will reduce, and this could actually increase prices there," said D.G. Shah, secretary general of the Indian Pharmaceutical Association, which represents 20 large Indian drugmakers. 

J. Jayaseelan, who owns Nuray Chemicals, a maker of drug ingredients, said many Indian firms are reconsidering, or putting on hold, U.S. expansion plans. 

Ajanta PharmaBSE 1.80 % (AJPH.NS) is one such firm. The mid-sized generics drug maker said it had no plans to scale up its U.S. business and would invest more in Asia and Africa instead. 

"It's not a major market for us right now ... you've got to look at the risk-reward ratio," said Rajeev Agarwal, general manager of finance at Ajanta. 

The risks comes as U.S. revenue growth for these firms is falling. U.S. revenues for Indian drugmakers rose 15 percent in 2016, half the average annual growth rate of 33 percent between 2011 and 2015, ratings agency ICRABSE 0.24 % said. It expects the growth rate to fall further this year. 

Consolidation among U.S. drugs distributors and a federal investigation into drug pricing have also reduced the pricing power of drugsmakers. 

The U.S. drugs regulator, the Food and Drug Administration, has also banned dozens of Indian drug factories from supplying the U.S. market following inspections that found inadequate quality-control practices. Companies have invested significant sums to raise their quality standards. 

Firms that want to focus on the United States will have to increase investment in higher-margin niche therapies, or products requiring specialized manufacturing, said Mitanshu Shah, senior vice president of finance at Alembic PharmaceuticalsBSE 0.17 % (ALEM.NS). 

"Smaller companies with a few regular products and no long-term vision for the United States won't last," Shah said. 

Even with a vision, the U.S. market is just getting tougher for companies to operate in, said Vijay Ramanavarapu, the head of the U.S. business of drugmaker Granules India BSE -0.31 % (GRAN.NS). 

"You have to fight twice as hard today," Ramanavarapu said. "It will be harder for new entrants to enter the U.S. market unless they are able to find niche areas."

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 21-09-2017
Notification No. 90/2017 - Customs (N.T.)
Exchange Rates Notification No.90/2017-Custom(NT) dated 21.09.2017

Date: 21-09-2017
Notification No. 89/2017 - Customs (N.T.)
All Industry Rates of Duty Drawback Schedule

Date: 21-09-2017
Notification No. 88/2017 - Customs (N.T.)
The Customs and Central Excise Duties Drawback Rules, 2017

Date: 21-09-2017
Notification No. 29/2015-2020
Amendment in Appendix 3 (SCOMET items) to Schedule -2 of ITC(HS) Classification of Export and Import Items, 2012.

Date: 20-09-2017
Circular No. 37/2017-Customs
Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28th August, 2017.

Date: 18-09-2017
Notification No. 45/2017-Customs (ADD)
Seeks to impose anti-dumping duty on "New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16'' used in buses and lorries/trucks",originating in or exported from China PR.

Date: 16-09-2017
Circular No. 35/2017-Customs
Guidelines for provisional release of seized imported goods pending adjudication under Section 110A of the Customs Act, 1962.

Date: 15-09-2017
Notification No. 87/2017 - Customs (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver.

Date: 15-09-2017
A. P. (DIR Series) Circular No. 04
Export Data Processing and Monitoring System (EDPMS) Issuance of Electronic Bank Realisation Certificate (eBRC)

Date: 15-09-2017
Notification No. 76/2017-Customs
Seeks to amend certain customs notifications in pursuance to change made in Budget 2017-18.



Exim Guru Copyright © 1999-2017 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001