Contact Your Financial Adviser Money Making MC
11
November 2016
The probe by the US Department of
Justice into the suspected price cartelization in the pharmaceutical industry
will not have a major impact on the Indian drug firms, Fitch Ratings said on
Friday.
In a statement Fitch Ratings said:
"The ongoing probe by the US Department of Justice (DoJ) into suspected
price collusion in the pharmaceutical industry is unlikely to have a
significant impact on Indian pharma firms." The Total Investment & Insurance Solutions
Citing news reports, Fitch said while
the probe is likely to include more generic drugs, the situation is still
evolving amid the current political environment in the US.
"In any case, we expect the impact
to be minimal for Indian pharma, given the already-high price-based competition
across most categories over the past few years and the reasonably diversified
generic portfolios of Indian pharma companies," Fitch said. The Total Investment & Insurance
Solutions
The antitrust investigations which began
about two years ago have attracted investor attention recently, with news of
the likely expansion of the investigation into more generic drugs and the first
charges being filed possibly by end-2016. The Total Investment & Insurance Solutions
The probe has focused on a few
high-priced complex generic drugs so far, which attracted prosecutors'
attention due to considerable price increases amid the ongoing policy focus on
limiting healthcare costs in the US. The
Total Investment & Insurance Solutions
Indian pharma exports to the US are
focused mainly on simple generics, competing with a substantial set of
competitors offering similar post-patent products. The Total Investment & Insurance Solutions
Indeed, the high level of direct
competition along with channel consolidation has caused downward pressure on
prices, leading to deflationary trends in many generic drugs.
"Overall, we expect the regulatory
environment in the US to remain supportive for generics-focused pharma,"
Fitch added. The Total Investment &
Insurance Solutions
This is in light of the underlying
policy focus on containing healthcare costs and steps to enhance drug
affordability such as faster Abbreviated New Drug Application (ANDA) approvals
under Generic Drug User Fee Amendments (GDUFA), which will increase the
availability of economically priced generic alternatives, said Fitch.The Total Investment & Insurance
Solutions
No comments:
Post a Comment