Team Blitz India
NEW DELHI: Even as US drug shortages hit a decade-high of in the January-March quarter of 2024, analysts feel this presents a big opportunity for Indian pharmaceutical companies to cash in.
US active drug shortages have further increased, after stabilising at 300-310 drugs in calendar year 2023, to 323 drugs in the first quarter (Q1) of CY24, according to American Society of Health-System Pharmacists data, said IIFL Securities.
While analysts were not able to give market size estimates of these 323 drugs spread across categories like anti-infectives, hormones, oncology, etc., overall exports to the US have already risen sharply in 2023-24 (FY24).
Udaya Bhaskar, Director-General of the Pharmaceutical Export Promotion Council of India (Pharmexcil), told Business Standard that shortages helped Indian pharma exports to grow not only in the US but also contributed to overall growth.
“We exported $8.72 billion with 15.6 per cent growth. Total pharma exports from India grew by 9.6 per cent to $27.8 billion.” India Ratings and Research (Ind-Ra) analysts feel that this will not only provide the potential for volume growth but also limit price erosion to single digits over the next 12-18 months, leading to improved returns,” he said.
