Pharmacy consolidation may disrupt domestic drug market: Credit Suisse

The report says if chemists are allowed to replace doctor's prescription with a generic drug, firms with high exposure to chronic therapeutic drugs will be impacted more

As organised pharma retail channel consolidates in India with the entry of big players, a recent Credit Suisse report highlights that volume-based discounts may increase and end up disrupting the branded generic drugs market. 

The report says that if substitution of medicines (where chemists can replace the doctor's prescription with a generic drug) is allowed in India, then firms which have high exposure to chronic therapeutic drugs will be impacted more as the trade channel becomes more consolidated. Firms like Torrent Pharmaceutical, Sun Pharma, Lupin, and Cipla would be impacted more, Credit Suisse feels. 

"Our discussion with the industry suggests