Friday 18 October 2013

Indian pharmaceutical companies will experience a windfall due to falling Rupee & Obamacare

Contradictory to some industries the rupee depreciation is a much delight to the pharmaceutical industry In India. This is because the export oriented Indian pharmaceutical firms will get more rupees in return of every dollar that they earn.

However the Indian currency that has fallen 15% since May this year is expected to show losses as well as gain. The Indian pharma industry is moving towards Specialty generic drugs and this will lead to better price realization.

The president of United States Barack Obama’s healthcare plan known as Obamacare aims at making medical treatments affordable to every American. This puts the Indian pharma industry in a happy place as it sees a boost in its growth, especially for the Indian drug exporter.

This scope for growth also brings the demand for high quality due to the increasing number of  United States FDA audits although exports may be cheaper due to the decline of Indian rupee.

Every pharma manufacturing company in India including SAVA Global is well aware of this and is taking measures where there will be zero tolerance towards any such thing that is against the US FDA norms. Drug makers are trying hard to attain a balance between exposures and hedge by adopting as well as in the building calibrated approach. 

As per the current status, pharmaceutical drugs exporter in India exports to more than 220 countries in the world which includes Russia, Singapore, Kenya and Brazil. 

As per expert analysis generics will continue dominating the market while the patent protected products will have a share of 10% till 2015.

It is expected that that the Indian pharma industry as well as Indian pharma exporter will experience a profitable scenario in their growth in the coming years.

Sava is well poised to meet this market volatility and garner larger  business profits in the coming years from its burgeoning exports to the target countries including Russia, Singapore, Kenya , Europe etc.

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