Indian Pharma Firms Go Local Seeking To End Reliance On China

Popular

RBI asks HDFC Bank to stop digital launches and credit card...

The Reserve Bank of India (RBI) has asked the country's largest private sector lender, HDFC bank to stop all launches of its digital business...

Assam’s Dibrugarh University Teacher Arrested For Sharing Porn Video: Police

During interrogation, the accused confessed to the crime. (Representational)Dibrugarh: An assistant professor in Assam's Dibrugarh University was arrested today for allegedly uploading pornographic content...

Process to avail full refund on Lockdown Air Tickets

The Supreme Court approved the Directorate General of Civil Aviation's (DGCA) proposal on air tickets refund and credit shell on flights booked prior and...

Why was CDS Gen. Bipin Rawat’s attending China-owned MG Motor event;...

US Ambassador Kenneth Juster greets CDS Gen Bipin Rawat with elbow bump | Watch ...

Explained: How new H-1B visa regime will impact Indians, Indian firms

In yet another policy stance change on H-1B visa within six months, the US administration on October 6 said it was announcing an “interim...

India’s drug industry will have to boost infrastructure and accelerate drug approval to take on China.

Indian drug companies are looking to local makers of so-called active pharmaceutical ingredients (API) or trying to make them in-house in a bid to end their reliance on China as ties between the two countries soured after a deadly border clash last June.

Though India is known as the pharmacy of the world for its massive production capacities of both generic drugs and vaccines, China accounted for half of its API needs in 2019 from nearly nothing three decades ago, industry data shows.

Executives at India’s Cadila Healthcare, Cipla, Sun Pharmaceutical and ‎Biocon said on Tuesday they were aggressively working on reducing the dependence on the richer rival for raw materials.

Disruption to supplies from China due to the Covid-19 pandemic was also a major factor, they said, as early last year many of them had to scramble for ingredients to make important drugs sold worldwide.

“Because of the anti-China sentiment … most of the companies are working towards de-risking themselves in terms of making it clear that their supply chain linkages with China are limited,” Gaurav Suchak, supply head of Cadila, told the BioAsia conference organised by Telangana.

“For the critical API molecules, the idea is to go for a backward integration where you are in control of that pie which is going to make the most impact on your business, and also to make sure that the entire value chain is secure.”

Companies are also eyeing reliable local vendors who can promise consistency and competitive prices, he said.

Newsbeep

Cipla’s supply chief Swapn Malpani said it had launched an “API re-imagination” programme to possibly expand its own manufacturing capacities using recent government incentives such as production subsidies, apart from working with local suppliers.

Biocon’s supply head Prasad Deshpande said the company had a target on “how much per cent of revenue is independent of China”.

“We are happy to say that by the last quarter, we were almost 50 per cent completely independent of China,” Deshpande said. “That does not mean we will not source from China, but we are not dependent on China anymore.”

But he also said India would have to improve its infrastructure and accelerate approval processes to take on the scale and speed of China.

Source link

Latest News

YOUR MONEY: Decoding return on equity with Dupont Multiplier

Therefore, its ROE is 20%, i.e, (50/250) *100. If the firm’s average ROE in the last five years is 16% and its ROE is...

Over 50,000 offline retailers neighbourhood stores now part of Local Shops: Amazon India

Launched in April this year, 'Local Shops' aims to enable local shopkeepers and kirana store owners to sell online E-commerce major Amazon on March...

DoT to issue Demand Notes to telcos on upfront payment for Spectrum bought in...

The demand note follows auctions raking-in winning bids of over ₹77,800 crore, for 855.6 MHz of spectrum The Department of Telecommunications (DoT) will issue demand...

India Inc’s overseas direct investment declines 31% to $1.85 billion in February

Among the major companies who invested in their overseas ventures during the month included Tata Steel and Sun Pharmaceutical Industries India Inc's overseas...