Indian Pharma Monitoring Coronavirus Fallout On Production
Zhejiang Major Supply Base For Intermediates, APIs
With several Chinese manufacturing facilities shut at least till 10 February, Indian pharma companies are keeping a close watch on the evolving coronavirus situation. API inventory can last for a while, but if intermediates supplies don’t resume soon the fallout could be grim.
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Companies including Dr Reddy’s will consider investing in new API units if the Indian government tweaks its incentive scheme to permit exports of surplus production. Other suggested changes to the $1.3bn stimulus, aimed at enhancing the country's medicines security, include extending incentives to brownfield expansions and removing restrictions on a change in product mix.
In a bid to ensure long-term medicines security, the Indian government has earmarked $1.32bn to promote domestic production of 53 APIs, including lopinavir and ritonavir currently being evaluated to treat COVID-19 cases, as well as antibiotics, for which India is highly dependent on China.
As virus impedes China’s API production and spreads to other global manufacturing centers, need for robust supply chain alternatives becomes clear.