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Indian pharmaceutical firms braced for effect from US drug supply market mergers

March 17, 2014
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The U.S. pharmaceutical supply chain is predicted to go through a stage of consolidation that will have an impact on the Indian drug manufacturing market, according to industry experts.

In a new analysis published by the Financial Express, Indian pharmaceutical industry representatives shared their opinion on how a series of mergers, acquisitions and joint ventures in the U.S. supply chain will affect their business and prospects for growth.

Vinita Gupta, chief executive officer of Mumbai-based Lupin Ltd., one of the biggest drug makers in India, believes that the consolidation of the supply chain in the United States will put pressure on pricing. But Gupta pointed out that there have been similar developments on the market in previous years, after which manufacturers managed to recover.

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This view was shared by Abhijit Mukherjee, president and head of global generics at Hyderabad-headquartered Dr Reddy's Laboratories Ltd. The impact on Indian manufacturers will depend on the number of customers they have in the United States but in general the effect of mergers between wholesalers and retailers will be felt, he explained.

The latest consolidation trends on the U.S. market began in 2012, when there were 16 deals in the pharmaceutical supply chain. Those were followed by a further 10 deals last year, including several large players on the market. In the short term, experts expect the trend to continue and to spread beyond the biggest generic drug firms, the Financial Express reported.

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