A steep rise in the cost of raw materials for essential drugs, called active pharmaceutical ingredients (API) in pharma circles, by 139% in certain cases since the pre-pandemic level, is pinching the industry hard.
A steep rise in the cost of raw materials for essential drugs, called active Pharmaceutical Ingredients (API) in pharma circles, by 139% in certain cases since the pre-pandemic level, is pinching the industry hard. The overall increase, averaging nearly 50% in the wake of high-priced imports and supply disruptions from China, have raised doubts on the availability of drugs and could lead to shortages, particularly of those that are key in Covid therapy.
API prices of certain drugs like fever and pain relief drug paracetamol and life-saving antibiotic Meropenem (also used for Covid), and anti-diabetic metformin, have more than doubled to as high as 139%, 127% and 124% respectively, putting the spotlight back on India’s near total-dependence on the Dragon. Nearly 70% of the country’s APIs are imported from China, while the dependence is as high as 90% for certain life-saving antibiotics like cephalosporins, azithromycin and penicillin. Since these medicines are under price control, companies are forced to absorb the higher cost, raising questions about their viability. In this scenario, over time, certain medicines could disappear from retail shelves with companies switching to high-value products where margins are protected. In the wake of limited availability, patients may have to bear the brunt and be forced to shift to newer, steeply priced alternatives, industry experts say.
Source: Rupali Mukherjee, TNN
