What is the issue?
India’s champion generic drug industry which has a global presence is losing its sheen.
What are the causes?
- Indian pharmaceuticals are heavily dependent on the US market.
- Tightening regulations and inspections by international drug control regulators like the US Food and Drug Administration (FDA) is a hindrance.
- FDA has streamlined its processes and is now fast-tracking approvals for new generic drugs which is a good thing.
- However it means that competition in the marketplace has stepped up dramatically as well as prices are getting competitive.
- Indian drug companies are also uncertain due to speculations with Trump's emphasis of manufacturing in America.
What are the desired actions?
- Indian companies should start making more niche creations that will give them better pricing leverage.
- Need for stepping up R&D spending.
Source: The Hindu - BussinessLine
