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A latest study has warned the pharmaceutical industry of a sudden disruption in drug supplies as well as price rise as the sector is heavily dependent on China for essential and large volume drugs.
"One of the perceptible challenges before the Indian pharmaceutical industry is the gradual erosion of domestic manufacturing capacity for certain keys APIs (Active Pharmaceutical Ingredients) and their advanced intermediates", said a study conducted by Assocham.
As Indian pharmaceutical companies are moving up the value chain to focus on value-added formations with higher margins, they have become severely dependent on imports for many essential and large-volume drugs, the study said. In the past few years, leading Indian drug makers such as Ranbaxy, Sun Pharma, Aurobindo Pharma, Lupin went up the value chain making a shift from API to formulations.
