INSUBCONTINENT EXCLUSIVE:
Due to its dependence on China for the supply of some basic ingredients and intermediates, the pharma sector in India has been closely
watched to assess the impact of corona virus on its supply chain
However, there may not be any immediate threat to the sector as the current quarter performance is unlikely to be impacted on account of the
impact on their performance
Lack of information about the spread of virus and lack of visibility on supply shipments is resulting in speculative increase in prices of
But he also clarified that the geography in which the majority of the pharma manufacturing units are located is physically different from
the location of the spread of the virus
According to Shanghvi, the alleged near-80 per cent price increase in some raw materials (that may be almost entirely dependent on China) is
not justified and that speculative buying would have raised these prices.
Responding to an analyst question on coronavirus during last
According to Sharma, if the situation takes three to four months to return to normalcy, there would be disruption on some of the APIs,
in the pharmaceutical industry have some stock cover available
But if this virus continues for more than a month or 45 days it will begin to create a huge issue for the pharma sector for the supplies
that are dependent on China
Aurobindo Pharma, N Govindarajan, said that the company has an average stock of raw materials of approximately 2-3 months
Originally, certain facilities in China were supposed to start by February after the new year holidays
They have now been told to start by around February 10 or 11
They might start with certain local staff
of drugs like Lopinavir and Ritonavir to the Chinese government.
Given this situation, the Street would be able to quantify any adverse