Pricing pressure in US market to impact margins of pharma companies

Lack of new launches due to inspection delays, intensifying competition key headwinds

The margins of Indian generic drug makers could be under pressure given rising instance price erosion in the US market. Further, the drop in new launches given the lack of inspection and approvals by the US Food and Drug Administration (USFDA) amid intensifying competition is adding to the margin worries. 

The National Average Drug Acquisition Cost or NADAC data, which captures the price pharmacies in the US pay for medications indicates that 73 per cent of generic drugs during February to March 2021 have seen some degree of price erosion as compared to 47 per cent of drugs in this