Pharma Industry Round Up (16/12 to 22/12)
Industry Overview : Global chemical price

Published on December 23, 2013

With year ending every industry is busy in making out their calculations and deciding their profit margins. Although in current scenario industries like laminate and dyes are badly affected due to hike in raw material prices. But for pharma- the industry is so huge that the impact is there but gains are also there in the same path.

With globalization pharma industry has grown by leaps and bounds but it has suffered setbacks as well. Industry is leading in the world of generic drugs but the legal norms and issues of other countries are constantly affecting the industry growth. People associated with this industry accept that they have to allocate a huge sum for the legal enquiries and courts cases.

In a recent development GlaxoSmithKline (SK) announced a proposal to increase its stake in publicly listed pharmaceutical subsidiary India, GlaxoSmithKline Pharmaceuticals Ltd. The company has plans to increase its stake from 50.7% to 75 %. According to company officials, their company believes in long term commitment with India and find Indian markets more lucrative in terms of investment. Recently there was an article about bumper increase in the imports of active pharma ingredients (API). Indian pharma industry is quite concerned and worried due to this increase. Indian API manufacturers are facing tough competition from Chinese manufacturers. Due to higher cost of production in India many formulation companies are fully dependent on China. There is every likelihood of the Chinese manufacturers hiking their prices later on stopping supplies, which can put Indian formulation industry in jeopardy.

Experts believe that Indian manufacturers need to focus on quality and service. Moreover Indian government should provide support in terms of infrastructure subsidies, power transportation and effluent treatment facilities and industry-friendly labor laws. Pharma industry seeks government help and want them to improve the facilities so that they could challenge the over growing Chinese market.


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