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USFDA sweetener for Indian Pharma
Jul 28, 2017

By the way, there is an interesting development that will give Ankit enough fodder to gain fresh perspectives on pharma companies. In recent times, pharma companies were bogged down by mounting pressure from US Food and Drug Administration (USFDA) to adhere to quality standards at their manufacturing plants. In the past three years, the USFDA raised numerous regulatory concerns resulting in import bans and suspension of new drug approvals from facilities of Indian pharma companies. But what has come as a breather is a sharp pick-up in new drug approvals in 2017. During the period January-July 2017, 129 approvals for generic drugs were made. This is 45% higher from 89 approvals made in the corresponding period last year.

As per the Indian Pharmaceutical Alliance, the pace of drug approvals has gained momentum after they complained to FDA about delays last year. Approvals for drugs have also picked up after USFDA concerns at some of the manufacturing units were addressed. Companies such as Divi's Laboratories, Cadila Healthcare, Sun Pharmaceuticals and Dr Reddy's Laboratories got regulatory clearances for some of their plants during the year. But several companies are still grappling to resolve FDA concerns. Some facilities of Wockhardt, IPCA and Sun Pharma are still under import alert whereas a few units of Divi's Laboratories and Dr Reddy's have received warning letters. However, FDA's move to speed up generic drug approvals in a bid to reduce healthcare costs is likely to provide some earnings relief to domestic pharma companies.

Data Source: Business Standard, FDA

This Chart Of The Day was published in The 5 Minute WrapUp - Why We're Allowing Daylight Robbery of Our Research

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