Bulk drugs exporters may see price hike this fiscal

Last fiscal, bulk drugs exporters had ‘not so good’ experience in business. However, exporters have higher expectations from this fiscal year due to price hike in domestic market. The bulk drugs exporting industry believes that the prices of APIs (Active Pharmaceutical Ingredients) can rise up to 15% due to inflation.

The domestic bulk drugs exporters in India also blame the stiff competition in the market between locals and imported drugs from China has resulted in price hike. India and China are two major leaders in bulk drugs or APIs industry. Both the countries cater up to 50% of global bulk drug production.

Do you know the regulatory procedures for releasing new bulk drug in the industry?

Introducing new bulk drug is highly expensive proposition that includes scientific research, validation trails, and risk of costly failures. Not any company can afford the formulation and R &D facilities for launching new bulk drug in the market. Some multinational companies claim that they had spent $800m for releasing a new drug and they filed an investigational new drug application prior regulatory procedure.


China is a top supplier of bulk drugs and India is second. What’s the real reason behind it?

It is true that India is the second largest veterinary drugs suppliers. It is due to the low costing bulk drugs supplied by China in the market and this diminishes the exporting of Indian bulk drugs in the pharma sector. Moreover, the Indian bulk drug market value is US$ 13.5 billion, whereas Chinese market value is US$ 30 billion. The only reason behind this ranking is the low costing bulk drugs offered by China.

Do low costing bulk drugs suppliers meet quality standards?

Of course not, India holds second position in the list of bulk drug exporters. Indian manufacturers of bulk drugs consider quality standards at first. That’s why Indian drug manufacturers ignore Chinese bulk drugs due to inferior quality production. 

Generally veterinary products are having properties to treat and prevent disease in animals. The domestic drug companies have to take care about the proportion of various chemicals while manufacturing these drugs. 
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