Indian Drug Makers Squeezed Between Bulk Costs, Price Controls

Indian drug makers are facing an obstacle in getting drugs to market by the twin impact of increasing costs for raw materials and government pricing limits. Drug makers saw a 20 percent to 100 percent increase in the bulk drugs they imported from China during the past six months. At the same time, Indian pharmas face a 10 percent cap on their ability to raise prices. The conundrum could lead some companies to stop producing several drugs, in turn causing a shortage of those drugs on the market. Pharma industry estimates put the cost of raw materials at up to 60 percent of manufacturing costs. (Click here for more