Patna : The Indian Pharma and Healthcare industry had been passing through a very difficult phase for the past one year or so. Business opportunities were not expanding as much as they should have. Although the companies from these sectors were not incurring losses, the anticipated profits were not coming either. The Pharma companies were not in a position to generate good profits and the sector was losing the confidence of investors.
This can be seen from the following set of data :
Pharma Nifty Index which was at 9375 on April 1, 2019 had fallen to 7026 on April 1, 2020. However, the situation has improved dramatically during the past few days. Just look at some of the good news that has poured into India during the past fortnight.
Ø Alembic Pharmaceuticals receives US Food and Drug Administration (USFDA) Tentative Approval for Alcaftadine Ophthalmic Solution, 0.25%.
Ø Strides Pharma’s wholly owned subsidiary in Singapore receives approval for Flucytosine Capsules from USFDA. It needs to be added that the product is likely to be manufactured at the company’s Bangalore facility.
Ø Wockhardt receives Qualified Infectious Disease Product (QIDP) designation for WCK 6777 from USFDA. It needs to be added that WCK is an antibiotic under development by the company. It further needs to be explained that QIDP status is granted for the study of complicated urinary tract infections & intra-abdominal infections
Ø On April 13, 2020 (Monday) Lupin, a major Pharma company of India, received EIR (Establishment Inspection Report), informing about the closure of investigation by the USFDA of its manufacturing plant based in Nagpur. The investigation had been going on in the wake of inspection of Lupin’s Nagpur manufacturing facility by USFDA in January, 2020.
Ø On April 13, 2020 (Monday) Dr. Reddy’s Laboratories, another major Pharma company of India, received EIR (Establishment Inspection Report), informing about the closure of investigation by the USFDA of its active pharmaceutical plant 5 at Miryalaguda in Telangana.
Ø Biocon, another Indian company, got its Insulin plant in Malaysia cleared by the USFDA.
Ø USFDA also lifts the import ban it had put on IPCA, one of the major Indian manufacturers of Hydroxychloroquine (HCQ) Tablets.
Ø US President Donald Trump himself rang up Indian PM Narendra Modi and requests for supplies of Hydroxychloroquine (HCQ) Tablets from India to US.
Were these a coincidence or actually a side-effect of the worldwide CORONA crisis ?
What was the result of these developments ?
The shares of all Indian Pharma Companies are going up, up and up only.
The Pharma Nifty Index is almost at a 52 – week high. It closed at 9,200 on April 19, 2020 and closed at 9,381 on April 21, 2020.
Can we see the India growth story emerging in the Indian Pharma and Healthcare Sector?
Can we say that ‘Achche Din’ are ahead for the Indian Pharma and Healthcare Sector and that the green shoots are visible!