Local pharma industry in trouble with manufacturing stagnation in China

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Ahmedabad. 11 February 2020, Tuesday

The direct adverse impact of production stagnation in China due to corona virus has been adversely affected by other pharma manufacturers including Gujarat. If the adversity does not go away in the next time, the prospects of a dramatic financial recovery in the region have become strong.

It is worth mentioning here that Indian pharmaceutical manufacturers rely mostly on China to obtain Active Pharmaceutical Ingredients (APIs). Manufacturers of antibiotics and vitamin C drugs such as vitamin C and D are based on China. "Concerns about supply have been increasing following the impact of the current Corona virus," said Ankur Agarwal of MedCart Pharmacy.

Following this, paracetamol which was previously Rs. It was available at a price of 2 kg. It's done. Anzithromycin that was previously used for Rs. It was currently available at Rs. Has reached the price of 1.2. The list is too long. Companies that fall within the limits of price control will have an impact on the margins of the companies as the scope for price increases is very limited.

In the worst case scenario, negative margins can also be seen in orphan drugs, as was seen in femtodine and co-trimezol. Both of these drugs have not been available in the market for more than three years.

Most of the pharma units in Gujarat who are dependent on China's imports can have difficulties. Due to low availability of API, Rs. Anxiety may be exacerbated by small manufacturers with a turnover of less than 10 million.

As a result, these units will have to invoke raw materials from other sources which in addition will increase their production cost.

Chinese New Year holidays were extended until February 7, and today, Chinese markets are trying to return to their former state. However, the uncertainties regarding trade remain the same. And if they increase, big manufacturers can be affected too.


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