In the recent economic slowdown where the industrial sector in India has been grossly affected, the Pharmaceutical Industry is no exception. The Pharmaceutical Industry has been facing pressure on the export front because of the ups and downs in the dollar, stricter laws from the US FDA, increase in the generic drug fee of the ANDA dossier, rising manufacturing costs, rising cost of the raw material, pricing pressures (DPCO) and the Pharma MNC’s trying to buy out existing units in Indian and trying to increase their geographic presence.
Even semi regulated markets are in the process of enforcing stricter regulations for exports of medicines from India.
Recent predictions from IMS says that the domestic side of the pharmaceutical business will continue to under perform in the near term, leaving companies dependent on overseas markets to drive growth. Large Indian generic players with an overseas market will have an edge over their peers. IMS has also downgraded the growth of the Indian pharmaceutical market from 15% to 10% in 2013. Although the growth is expected to remain downgraded till 2014 and 2015, the estimates are likely to above the numbers in 2013.
The sectors which are linked to the Pharmaceutical Industry like clinical research are likely to be affected too and the related impact of that can be termed as “reduced production”.