Finding The Silver Lining Of Coronavirus Pandemic

As India Pharma Inc reels under the far-reaching impact of the coronavirus epidemic, industry experts suggest policy reforms to insulate the sector and improve its emergency-preparedness

- Usha Sharma

The novel coronavirus pandemic (COVID-19), which began with an outbreak in China, has killed over 4,990people worldwide and the death toll is increasing constantly. With over 120 countries affected by the virus, this threat has put a dent on the global economy as well. The COVID-19 pandemic’s impact on India Pharma Inc too will be mammoth in stature.

One of the most significant impact will be the lack of availability of key raw materials for the pharma industry. Presently, the Indian pharma companies who lead the global generic business markets are largely dependent on China for up to 90 per cent of their APIs imports, and they stock a maximum six months worth market requirements. The Indian regulatory agency anticipates that 50 plus APIs of crucial antibiotics, vitamins, and hormones or steroids could go out of stock in case of a prolonged lockdown in China.Also, the sector is already witnessing a rise in prices of several key ingredients which will certainly disturb product availability in the market.

According to Pharmaceutical Export Promotion Council (Pharmexcil) reports, there has been a rise of nearly 40 per cent in the cost of paracetamol from Rs 250-300 kg to 400-450 kg.‘Montelukast sodium’(an anti-asthma drug) is now trading between Rs 52,000 - 58,000 per kg, compared to Rs 33,000-38,000 per kg a few months ago. Similarly, the prices of vitamins and penicillin have increased by 4050 per cent and the majority of the vitamins are trading at double or triple the original price.The cost of azithromycin - an antibiotic used for curing various bacterial infections increased by 70 per cent. The companies may end up exhausting most of their stock of active ingredients for high-demand drugs like paracetamol and ibuprofen in another two to three months. There are also fears that an artificial shortage of essential drugs might get created in the market.