Drug firms rationalise portfolio, expect pricing pressure to ease in US

Drug makers are consolidating manufacturing facilities and rationalising their product portfolio in the US as they battle price erosion and weak profits

Pricing pressure in the US, the world's largest single country drug market, is showing signs of easing. Analysts expect the pricing pressure to normalise in a year or so reverting to earlier levels of low to mid-single digit. This is primarily because the companies have off late focussed on rationalising product portfolios as well manufacturing facilities and have exited products with thin margins. 

The US market has seen price erosion levels of 5-6 per cent. However, with faster drug approvals and higher rate of launches coupled with consolidation in the wholesale and distribution network, the price erosion got worse in the