The domestic pharmaceutical retail market experienced a significant 11% growth in July, driven by increased sales of anti-infectives and pain relief medications due to the rise in flu and viral infections. Antibiotic Augmentin emerged as the top-selling product, generating sales of Rs 72 crore and leading the charts. The overall market value reached Rs 2,22,906 crore, marking a 7% growth compared to the previous month.
Sun Pharma maintained its position as the top player in the market, with Indian companies recording a growth rate of 11.4% and multinational corporations (MNCs) at 10.2% in July. Analysts are optimistic about a projected 10% growth in the coming months, fueled by the increasing demand for acute therapies such as anti-infectives.
In a contrasting development, Aurobindo Pharma’s subsidiary, Eugia Pharma Specialities, received a warning letter from the US Food and Drug Administration (USFDA) regarding its formulations manufacturing unit in Telangana. This warning followed an earlier inspection that resulted in an ‚Official Action Indicated‘ status. Despite this setback, Aurobindo Pharma assured that its current supplies to the US market remain unaffected and reiterated its commitment to enhancing compliance with regulatory standards.
On another front, AstraZeneca successfully overturned a $107 million verdict awarded to Pfizer in a patent dispute related to the cancer drug Nerlynx. U.S. District Judge Matthew Kennelly invalidated Pfizer’s patents, citing insufficient written descriptions and lack of reproducibility by a skilled scientist. This ruling nullified the damages awarded in May and impacted Pfizer’s ongoing patent infringement claims against AstraZeneca.
Meanwhile, Mankind Pharma expressed confidence in clearing its debt of ₹13,630 crore, acquired from the purchase of Bharat Serums and Vaccines, within three years. Managing Director Rajeev Juneja highlighted the company’s strategy to leverage its marketing expertise and expansive reach to expand BSV’s product range. The successful integration of Panacea in 2022 served as a positive precedent for Mankind Pharma.
In a strategic move, Aurobindo Pharma is considering taking its injectable unit, Eugia Pharma Specialities, public through an initial public offering (IPO). The company aims to overcome valuation challenges faced with private equity investors and achieve a revenue target of $600 million in the current fiscal year. However, regulatory issues at Unit-3 remain a concern for Aurobindo Pharma.
The Delhi High Court urged a swift decision on Mankind Pharma’s plea against Mercykind Pharmaceuticals, instructing its single judge bench to reconsider the request to block the use of the name ‚Mercykind Pharmaceuticals‘ by Chandra Mani Tiwari. The court noted alleged ‚dishonest adoption‘ and branding changes by Tiwari, prompting Mankind Pharma’s trademark concerns.
In the realm of pharmaceutical approvals, Alembic Pharmaceuticals received the green light from the USFDA to market Dabigatran Etexilate Capsules for deep vein thrombosis prophylaxis, equivalent to Pradaxa Capsules. With 211 ANDA approvals under its belt, Alembic Pharmaceuticals continues to expand its product portfolio.
Torrent Pharmaceuticals is reportedly seeking to raise up to $3 billion from global banks to acquire a controlling stake in JB Chemicals & Pharmaceuticals Ltd., currently owned by KKR & Co. The move signifies Torrent’s strategic expansion plans in the pharmaceutical sector.
Biocon Biologics outlined its growth strategy, focusing on the introduction of six new biosimilar products in the US market over the next two years, subject to regulatory approvals. The company emphasized debt reduction and cost optimization, with a revenue increase of 3% in Q1FY25 driven by gains in the biosimilars market.
Looking ahead, the revenue of domestic active pharmaceutical ingredients (API) producers in India is projected to grow by 7-8% annually by 2029, according to a report by ICRA. The industry is poised for steady growth, driven by factors such as the pharmaceutical formulations market, an aging population, rising chronic diseases, and contract manufacturing demand.
In a policy shift, the Indian government eased the drug approval process by waiving local clinical trial requirements for drugs and vaccines approved by major international regulators. This move aims to expedite access to advanced therapies like CAR T-cell therapy and Sacituzumab govitecan while ensuring post-marketing surveillance by the Central Drugs Standard Control Organization (CDSCO).
In a bid to foster innovation, US biotech giant Amgen announced plans to establish a technology and innovation center in Hyderabad, India. The facility, set to open in Q4 2024, will occupy six floors of the RMZ Spire Tower in HITEC City and has the capacity to accommodate up to 3,000 employees.
As the pharmaceutical industry continues to evolve, companies like Torrent Pharma, Zydus Lifesciences, and EQT are poised to make significant moves in the market. Torrent Pharma and Zydus Lifesciences are competing to acquire JB Chemicals and Pharmaceuticals, with private equity firm EQT also expressing interest in the buyout. Dr. Reddy’s Laboratories is also considering participation in the acquisition process.
In conclusion, the pharmaceutical sector in India is witnessing dynamic growth and strategic developments across various segments. From market expansions and regulatory challenges to innovation and strategic acquisitions, the industry is poised for continued evolution and advancement in the coming years.