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600 May 08, 2020
Impact of COVID-19 on Pharmaceutical Sector in India – The Indian Pharmaceutical industry is the top third-largest drug producer in the world and contributes a big amount of Pharma supplies to the World Health Organization for different vaccines. Due to the Covid-19 pandemic, the Pharma industries all around the globe have been affected. Thus, the outbreak of coronavirus is also affecting the prices of medicines and drugs in the Pharmaceutical sector in India. In this blog, we will be mentioning the Impact of COVID-19 on Pharmaceutical Sector in India.
During this crucial time in the entire world, the pharmaceutical and the Derma companies in India are facing rapid challenges and this has affected the business chains drastically. Moreover, if the current situation of COVID-19 lasts for a longer period of time it can change the entire scenario of the Pharmaceutical Sector in India. Thus, the Indian Government should definitely take some serious measures to the situation of coronavirus cases under control to make it a better market space for the Pharma companies in India.
Based on several assessments and studies of the market here are some impacts of COVID 19 on the Indian Pharmaceutical Industry –
Rising Price of Pharma Drugs – The Indian Pharmaceutical Manufacturing companies highly depends on the imports of their APIs from China. But as a result of this lockdown and complete closure of product movement, it has slowed the production of APIs. Thus, this has resulted in less availability of the Pharma resources and that too on higher costs for the production of generic Pharma range. As per some data, the price of the paracetamol has risen up from Rs. 250-300 kg to 400-450 kg. Prices of other Pharma medicines in vitamin and penicillin range have also increased tremendously.
Global Presence of Indian Pharma – as mentioned above, India has contributed well in the Global Pharma markets completing the demand for generic medicines all around. All our products and medicines are supplied in leading countries such as the US, EU, and Japan and are known for quality and safety.
Supply Chain Disturbance for Indian Pharma – The Disturbance in the supply of APIs result in a significant shortage in the supply of other essential drugs in India. There are certain critical APIs for high burden diseases such as cardiovascular diseases, diabetes & TB that come under the National List of Essential Medicines (NLEM). The current Pharma market depends on China for many APIs for manufacturing the different medicinal ranges. This is because of China’s efforts towards developing economies of scale and helping in easing the regulation of bulk orders of drugs in the market. India is lost out on the manufacturing of API and has inadequate support from the government.
Major Earning Cuts Ahead in the Pharma Sector – Coronavirus pandemic has caused serious supply-side disruptions in several sectors with the earning cuts by 10 to 15 percent. Although the Pharma sector is contributing strongly in the market and it is strongly contributing to the Pharma stock levels in the long run but got the short term period all the Pharma companies are backing from the last 5 years of underperformance.
As the coronavirus continues to spread across the globe, it has spread concerns for the disturbance in the manufacturing and the distribution of Pharma products in the Indian Market. The Government is recommending several measures and steps to keep all the situations under control. Thus, the government is working to encourage ways for the domestic manufacturing of APIs in our country. Domestic Pharma Manufacturing Companies are moderating the shortage of Pharma medicines in the country. The Indian Government has now restricted the sale and distribution of hydroxychloroquine by stating the importance of it for meeting the emergency that can arise due to the COVID 19 Pandemic. Hydroxychloroquine is found to give the most effective result against coronavirus in the laboratory studies. The Indian Government has also stopped the export of diagnostic kits immediately and is ensuring that no company should increase the price of medical devices under any circumstances. There have been proper important steps for fixing the price of sanitizers and the surgical markets. Also, our government is planning to grow in the sector for producing its own APIs for the future.
So, these were the impacts on the Indian Pharmaceutical sector due to the Covid-19. We hope that the situations get good in the future and everything goes well.
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