Drug Prices to Rise, China Cuts Sops (India)
This article was originally published in PharmAsia News
Executive Summary
China's finance ministry announced recently it will reduce tax rebates for exports from China for about 3,000 various categories, including tax rebates for pharmaceutical products and bulk drug exports, according to export manufacturers. Some drug exporters who sell China-made drugs in India contend that profit margins already are narrow. The new tax rebate sunset will reportedly cause retail drug price increases in India of between 8 percent to 15 percent. Cipla official Amar Lulla in India says the tax move "will affect imports of intermediates and bulk drugs into the country." Satish Reddy, MD and COO of Dr Reddy's Laboratories, says, "The slash in incentives for exports is going to impact active pharmaceutical ingredient (API) manufacturers worldwide." He adds that "this slash also applies to basic chemicals and intermediate exports out of China, so it would result in an increase in input costs for API manufacturers relying on these raw materials from Chinese sources." (Click here for more