Shortage in the supply of API from China has hit 270 units.
The drug industry in Baddi is severely affected by the shortage in the supply of Active Pharmaceutical Ingredients (API) from China.
The shortage in API supply, which is because of the closure of manufacturing units during the Beijing Olympics, has left more than 270 units in the Baddi-Barotiwala-Nalagarh (BBN) region in the lurch.
To tackle this, the drug manufacturers in Baddi have demanded from the National Pharmaceutical Pricing Authority (NPPA) to allow the drug manufacturers to revise the prices of drugs in proportion with increase in the input cost material.
Talking to Business Standard, Sanjay Guleria, president, Himachal Pradesh Drug Manufacturers Association, said, “The shortage in input material has resulted in the decline of production by the pharmaceutical companies in the Baddi region.”
“The period from April till September is considered profit season for the drug industry. With the profit season for the pharmaceutical industry getting severely affected due to raw material shortage, the pharmaceutical industry in the BBN region is in a tight spot,” Guleria adds.
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Guleria maintains that the shortage in raw material supply has increased the input costs but Central government’s cap of 10 per cent on the drug companies has affected the profitability of the drug manufacturers. Also with profitability getting affected the drug manufacturers have stopped manufacturing the medicines that has become unviable.
“Prices of a few drugs have started moderating in the past few days, however, he cautions that the fall in prices may be momentary resulting from the decrease in demand of some drugs. The market could remain volatile for the next few months,” says Sanjeev Rai Mehta, senior vice-president, Himachal Pradesh Drug Manufacturers Association.
Celebrity Bio Pharma Executive Director Tej K Magazine does not foresee any moderation in prices of raw material for the next three to four months.
According to Tej, the Chinese Government would take at least one more month after the Olympics to allow the operations in the closed manufacturing units.
The normalcy in supply to India could only be resumed till October. Till then the market is likely to remain volatile.