Are Indian Pharma Companies Finally Making Their Way Into US Business?

By siliconindia   |   Thursday, 24 August 2023, 00:38 IST
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email
Are Indian Pharma Companies Finally Making Their Way Into US Business?

The Indian pharmaceutical industry is expanding in the US, benefiting from reduced price erosion, improved US sales, and strategic product launches.

Indian pharmaceutical businesses have expanded their operations in the US market during the first quarter and are considering strengthening their position in that market further in the future. Already securing a sweet spot, these companies are excelling with growth, exceeding the anticipated value. They are US FDA-compliant currently and spending a decent portion of revenue on research and development.

Quality and financial problems causing manufacturing facility closures have led to obscured and disrupted supply chains in the US market, resulting in drug supply shortages. Additionally, the subsidization of inventory built-up also resulted in a decline in prices. This reduction in price erosion, rounded in single digits, has opened up formidable opportunities for Indian companies, especially in sales from India to the US. As a result, the former’s biggest market has risen from 6.2 percent to 7.5 billion USD in the past fiscal year.  

Various pharmaceutical industry leaders are predicting that the growth in D1FY24 will likely be driven by volumes in the US market while highlighting that there is a potential for growth in the aggregate US sales of the covered companies. This growth is anticipated to be supported by reduced prices in the core business segment and enhanced supplies, as a result of some companies exiting the market, which could potentially lead to sequential growth across all companies. This has led Indian pharma companies to gain a critical share in the US generic market, with about 12 percent to 79 percent growth in Q1, and have attained a successful outgrowth in recent years.

Sudharsan Jain, secretary general of the Indian Pharmaceutical Association, has underlined a wide range of opportunities available in the US market for Indian pharmaceutical companies, aiding their potential growth. These organizations are looking forward to receiving final approvals for the launch of abbreviated new drug applications (ANDAs). An increase in the approval rate within the US, coupled with an increased introduction of specialized products like injectables that encounter minimal competition, is poised to positively impact the companies' margin profiles.