Lowering prices to weigh down earnings of Indian API players in near term

According to the brokerage, prices of APIs such as Paracetamol, Azithromycin, Montelukast, and Meropenem, have all declined in the range of 10-30 per cent over the last one year

The prices of active pharmaceutical ingredients (APIs) have fallen drastically in the last one year and this comes at a time when revenue growth for Indian API players is bottoming. Analysts, thus, concur that the listed API entities will continue to see lower revenue traction in coming quarters as well.

“The movement in API prices reveals that the trajectory continues to remain downward. Recent media reports suggest the correction has deepened which may continue to impact Indian API players (due to lower revenues). Key APIs in therapies such as pain, cardiac, CNS and anti-infectives have declined in double digits over