Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets will remain closed on 21st April, 2021 on account of Ram Navami.

Will US budget aid Indian pharma?
Thu, 25 Apr Pre-Open

Recently, Barack Obama - the US president had presented the budget for fiscal 2014. It's a known fact that Indian pharma companies have a sizeable presence in the US pharma market. Among various proposals, one of the proposal states that the USFDA should strengthen the safety of drugs especially the ones imported in United States. So what does it mean for Indian pharma companies?

As per the budget the United States Food and Drug Administration (USFDA) have been allocated US$ 4.7 bn. This amount also includes US$10 m to hire new resources in order to improve the safety of food and medical products, which are imported in the United States. The amount should be utilized to take various measures where FDA has higher presence especially in countries like China. This proposal is positive and negative for Indian companies

  • Positive - Speed up drug approval process. Last year the USFDA, had imposed Generic drug user fees amendment (GDUFA). As per this regulation, a generic company will have to provide user fees to supplement the costs of reviewing generic drug applications and inspecting facilities. This will also ensure timely review of applications for generic drugs. Due to this action, though the costs pertaining to research and development of the companies have increased a bit, the approval process is expected to be faster than earlier. The budget proposal to add new resources will seemingly further speed-up the approval process.

  • Negative - Strict regulatory control. Though the budget explicitly says that the imports should be under strict regulatory control especially from China, it does not mean that Indian drug companies will be overlooked? Greater focus on Chinese imports looks like good news, but at the same time Indian firms cannot be deemed to be safe. Even Indian companies would come under stricter scrutiny. One should note that many Indian companies have witnessed several warning letters and also drug recalls. With a greater USFDA presence, Indian companies will have to remain more cautious in following the GMP (Good manufacturing practices) norms.
Thus, the way things will eventually shape up looks difficult to predict right now, we believe the positive in the form of faster approval is likely to outweigh most of the other negatives.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Will US budget aid Indian pharma?". Click here!


Views on News

DISHMAN CARBOGEN AMCIS Share Price Up by 12%; BSE HEALTHCARE Index Up 1.2% (Market Updates)

Apr 20, 2021 | Updated on Apr 20, 2021

DISHMAN CARBOGEN AMCIS share price is trading up by 12% and its current market price is Rs 149. The BSE HEALTHCARE is up by 1.2%. The top gainers in the BSE HEALTHCARE Index are DISHMAN CARBOGEN AMCIS (up 12.1%) and WOCKHARDT (up 10.8%). The top losers are ALKEM LABORATORIES (down 0.1%) and ALEMBIC PHARMA (down 0.1%).

WOCKHARDT Share Price Up by 13%; BSE HEALTHCARE Index Up 1.4% (Market Updates)

Apr 20, 2021 | Updated on Apr 20, 2021

WOCKHARDT share price is trading up by 13% and its current market price is Rs 527. The BSE HEALTHCARE is up by 1.4%. The top gainers in the BSE HEALTHCARE Index are WOCKHARDT (up 12.6%) and ASTRAZENECA PHARMA (up 5.7%). The top losers are GSK PHARMA and ALKEM LABORATORIES (down 0.1%).

CIPLA at All Time High; BSE HEALTHCARE Index Up 1.1% (Market Updates)

Apr 20, 2021 | Updated on Apr 20, 2021

CIPLA share price has hit an all time high at Rs 966 (up 0.6%). The BSE HEALTHCARE Index is up by 1.1%. Among the top gainers in the BSE HEALTHCARE Index today are CIPLA (up 0.6%) and ABBOTT INDIA (up 1.1%). The top losers include PROCTER & GAMBLE HEALTH (down 0.3%) and BIOCON (down 0.3%).

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

11x Bankruptcy to Bluechip Stock: A Rare India Revival Story (Profit Hunter)

Apr 16, 2021

There is no stopping this 11-bagger stock from significant upside.

Top 3 Nifty ETFs to Buy Now (Fast Profits Daily)

Apr 20, 2021

In this video I tell you the three Nifty ETFs I think are the best.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 20, 2021 (Close)