5 Minutes Read

Maiden Pharma cough syrup scandal: What happened in Gambia?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Police investigations found that four syrups manufactured by New Delhi-based Maiden Pharmaceuticals Ltd are linked to the death of 69 children in the West African country.

A preliminary investigation conducted by the police in Gambia found links between the death of 69 children in the West African country from acute kidney injury to four cough syrups manufactured by an Indian pharmaceutical company.

Last week, the World Health Organization (WHO) issued a global alert over the four brands of Indian Maiden Pharmaceuticals after its investigators found ‘unacceptable’ levels of diethylene glycol and ethylene glycol in the cough syrups.

ALSO READ: As inflation rises and IIP shrinks, economists warn India might struggle to hit 6% GDP next year

How did it end up in Gambia?

The four products — Promethazine Oral Solution, Kofexmalin Baby Cough Syrup, Makoff Baby Cough Syrup and Magrip N Cold Syrup – are made by New Delhi-based Maiden Pharmaceuticals Ltd. Although the police report did not name Maiden directly, it listed the four products mentioned by the WHO, Reuters reported.

United States-based Atlantic Pharmaceuticals Company Ltd ordered 50,000 bottles of these cough syrups for export to Gambia, the police report said.

Of these, the Gambian police have quarantined/seized 41,462 contaminated bottles. However, 8,538 bottles remained unaccounted for, the Gambian police said in a statement, adding that investigations were ongoing.

What happened in Gambia?

In July, doctors in Gambia noticed that a number of children started showing symptoms of kidney failure after consuming locally-sold paracetamol syrup used to treat fevers. Gambian authorities started probing the issue in September. The government said kidney injuries led to the death of 69 children.

ALSO READ: Karnataka hijab ban: Supreme Court has a split verdict. Now what?

“We are all victims of the malpractice from manufacturers,” Reuters quoted Gambian health minister Ahmad Lamin Samateh as saying, last week. He said that the government was taking action against manufacturers in India.

Production halted

Meanwhile, Maiden Pharmaceuticals said these syrups were exported to Gambia only. Indian health authorities have stopped all production of the company at its Haryana unit following the WHO report. Inspections were conducted in Maiden’s manufacturing facility in Sonipat four times this month. On October 11, the authorities said all manufacturing activities had been suspended after they found the firm had been manufacturing and testing drugs in violation of rules, Al Jazeera reported.

Problems galore

Although Maiden Pharmaceuticals claims that it follows internationally recognised quality-control standards, official records show it was blacklisted in Bihar in 2011 for selling a syrup that failed to meet local standards. The company faced charges from the Drug Controller General of India in 2018 for violating quality control standards. In 2020, the company failed a quality-control test in Jammu and Kashmir and in Kerala, it failed quality-control tests four times in 2022.

Maiden Pharmaceuticals is also among nearly 40 Indian pharmaceutical firms that have been blacklisted by Vietnam for exporting sub-standard products.

ALSO READ: Passenger vehicle wholesales surge 92% in September on robust festive demand

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Aether Industries inaugurates newly expanded R&D centre to cater to CRAMS opportunity

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Shares of Aether Industries have risen 22 percent from its IPO price.

[wealthdesk shortname=”Aether Ind” isinid=”INE0BWX01014″ bseid=”543534″ nseid=”AETHER” sector=”Speciality Chemicals” exchange=”nse”]

Aether Industries Ltd on Wednesday inaugurated their newly expanded research and development (R&D) centre in Surat, Gujarat.

This centre will serve the growing demand in the contract research and manufacturing services (CRAMS) business segments and underpin the company’s efforts to achieve improved efficiency for existing products.

In a press release issued on Wednesday, Aether Industries disclosed that it has invested approximately Rs 33 crore to revamp and grow the size of the R&D centre by three times.

With this move, the company aims to facilitate business expansion into new markets by way of new and innovative products as well as processes for international projects.

The employee count has also grown at the R&D centre, increasing from 164 employees in March 2022 to 193 as of September 30.

The company expects to employ at least 225 individuals at the centre by the end of FY23, creating jobs in South Gujarat for eligible candidates in the chemical and technology segments.

Promoter & Whole-time director Aman Desai said that the new centre will help the company enhance its capabilities to develop products and chemistries for niche markets.

Desai expects the labs at the new centre to be able to operate at full capacity resulting in increased revenue and a boost for the bottom line since the CRAMS business segments have higher EBITDA margins.

Also Read: Aether Industries sees a lot of opportunities in contract research and manufacturing

Shares of Aether Industries ended 2 percent lower at Rs 945.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Call for caution: Why the full impact of coronavirus is not yet known

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

With the nCoV-2019 infecting more people outside China, India is gearing up to facing the challenges posed by the disease.

As the head of the World Health Organisation says that the window of opportunity to contain the coronavirus is narrowing, the three people in Kerala who were infected with the nCoV-2019 have been declared virus-free. While the state of Kerala has displayed successful public health measures in early detection and containment of the virus, the spread of the virus has meant that the Indian government should actively look to mitigation strategies to prep for a global pandemic. Outside India, eight Indian nationals aboard the cruise ship the Diamond Princess and one in the Middle East have been diagnosed with the coronavirus. While this is a miniscule number, worries about the rise of non-transmissible cases as is the problem with Iran, Italy and South Korea show that India is not immune from a public health crisis as these countries are now facing. Indeed, as cases surfaced in Nepal and Sri Lanka over the last month, India should note that the public health systems across South Asia are ill-equipped to deal with a large-scale outbreak as we are now witnessing in East Asia.

As this column has discussed in earlier weeks, misinformation about the epidemic is rife. Last week, a man in Andhra Pradesh killed himself after believing that his symptoms betrayed the disease – a conclusion he reached by watching Youtube videos. While misinformation and mediation about the spread of the disease are important, the debate in India is now also taking cognisance of the economic impact that the nCoV-2019 could have not only on the global economy but also for India. One particular sector that will be impacted is the pharmaceutical industry. As Reuters points out, “An important supplier of generic drugs to the world, Indian companies procure almost 70 percent of the active pharmaceutical ingredients (APIs) for their medicines from China.” If the shutdown continues, sectors including automobiles, consumer durables and agrichemicals that depend on China for components will be forced to shut down owing to the shortages.

Another report from the Hindustan Times points out that exports to China such as human hair, crabs and cumin seeds have seen a nosedive. Similarly other reports posit that the diamond industry could also face huge loses if the situation does not improve. However, all of these reports seem to be searching for strands that support the hypothesis that the Indian economy will be affected by the coronavirus. Because of the lack of information regarding the situation in China, it is difficult to ascertain a time frame during which the economy will be affected.

Furthermore, our trade deficit with China means that we export to them far less than we import from them. 2019 figures show that Indian exports to China are around $16 billion while imports from China are around $68 billion. Therefore, in a short term, while the prices of electronics and automobiles could get more expensive, it may result in India substituting some of these imports with the same from other countries. Other experts have even made the argument that some manufacturing in China can be shifted to India for business continuity to cushion the short-term shock. However, this approach will not prove fruitful for India’s interests unless our domestic policies can prove friendly enough for foreign businesses that need an alternative over countries in South or South-East Asia.

While combating the coronavirus, there are so many variables that we simply do not know. The numbers of infected people within China are estimated to be much higher than the official estimates. The rise of cases outside the country shows that we still do not know the nature of what we are dealing with. So, I would urge caution before estimating medium- or long-term impacts to the economy.

Hamsini Hariharan is the host of the States of Anarchy podcast and is currently based in Beijing.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Counting the cost of coronavirus outbreak: Why it could hurt the global economy badly

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

China’s global presence and impact on the world economy is so great that the coronavirus outbreak in the country has infected economies across the globe.

The latest public health scare to hit the world is the COVID 19 – coronavirus. According to the World Health Organisation (WHO), there were over 73,000 reported cases of COVID 19, with most of the epidemic contained in one province in China – Hubei. Outside China, there are a shade over 800 cases. According to the European Centre for Disease Control, there have been 2,012 deaths, 2,006 of which are in China.

The term coronavirus is a family of viruses that cause a variety of ailments ranging from the relatively harmless common cold to the more virulent illnesses such as the Severe Acute Respiratory Syndrome (SARS-CoV) and Middle Eastern Respiratory Syndrome (MERS-CoV). The current outbreak is caused by a new type of coronavirus that has hitherto not been detected in humans. Coronaviruses are zoonotic ie, are transmitted between animals and people. For example, Swine flu–transmitted from pigs to humans – or bird flu – between birds and humans; or Ebola – from bats to humans – are all examples of zoonotic infections. According to a paper in the prestigious Chinese Medical Journal, scientists have said that this new coronavirus has been borne by bats to humans.

While it is very infectious and has spread rapidly since December 30, the WHO has been muted in its commentary about the outbreak. Tedros Andhanom – the Director-General of WHO – has said that COVID-19 is not “as deadly as other coronaviruses, including SARS and MERS”. To put it in perspective, there were between 14,000–36,000 deaths due to influenza in the United States, in the four-month period between October 2019 and January 2020. Yet, you don’t see the kind of response that you have with the world reaction to COVID 19. The panic that has been caused by a flu for which there is no vaccine yet has been a virtual quarantining of all activity with travel into or out of China, having severe economic consequences not just for China, but for countries across the world. Moody’s has revised its China GDP growth forecast from 5.8 percent to 5.2 percent — blaming the coronavirus.

At the most basic level, an already troubled airline industry worldwide has been hit by the coronavirus. Airlines across the world have suspended flights to China. According to the United Nations World Tourism Organisation (UNWTO), 62.9 million tourists visited China in 2018, and revenue from tourism accounted for almost 11 percent of the Chinese GDP. This includes the massive Chinese domestic tourism market – estimated to be $650 billion — that is also going to be impacted. Chinese participation in tourism outside China is also expected to decrease.

The second is with much of the Chinese working population being advised to work from home, there has been a massive impact on global supply chains. Many manufacturing units have shut down until the crisis passes. Apple has already indicated that its revenue will fall owing to the outbreak. Vehicle manufacturers who depend on supply parts from China have said that their operations could be impacted by coronavirus. There has been a virtual write-off of all economic activity in China since the beginning of the year, and the two months of disruption to the economy would have a fallout on not just the Chinese economy but those in the region and the world.

Global supply chain is disrupted 

The third major sector to be impacted is pharmaceuticals. Hubei province – the epicentre of the outbreak – is also the province from which most pharmaceutical raw material is produced. It is expected that India that produces 20 percent of the world’s drug supply will be impacted by the virtual shutdown in production. Unless the crisis passes, and people get back to work in China, there will be a major shortfall in bulk drug manufacturing, leading to a spike in prices of basic medicines.

There are those who say that this is a great opportunity for Indian manufacturing replacing Chinese manufacturing in the short run, and maybe even in the long run. However, it is not easy to shift production lines. Besides, with India in a slowdown, and many factories already shut – it might be difficult to even produce what they produced earlier – let alone change tracks and replace Chinese goods in the global supply chain.

The coronavirus will be combatted. Scientists will develop a vaccine. The only question is when, and it is likely to be sooner rather than later. As population spreads across the world become denser, as we migrate from the rural to city life; as tourism spreads – so too will never-seen-before bugs that can disrupt lives, economies, and futures. There will always be a gap between the outbreak of the virus and the finding of the cure. What is required are protocols to prevent panic and economic tsunamis from hitting populations already ravaged by illness.

At one point in time, it was said that if America sneezes, the world catches a cold; the same can be said of China today – its global presence and impact on the world economy is so great that the coronavirus outbreak in the country has infected economies across the globe.

Harini Calamur writes on politics, gender and her areas of interest are the intersection of technology, media, and audiences. Read her columns here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Coronavirus fallout: Prices of paracetamol, raw materials for key antibiotics soar in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

According to industry heads, raw materials of key drugs used to manufacture painkiller paracetamol and common antibiotics such as Azithromycin and Amoxicillin have seen prices spike anywhere between 20 percent to over 50 percent since the outbreak.

Prices of raw materials of key drugs such as paracetamol and antibiotics have seen a spike owing to the Coronavirus outbreak. The viral outbreak that began in China has infected more than 71,000 people globally.

According to industry heads, raw materials of key drugs used to manufacture painkiller paracetamol and common antibiotics such as Azithromycin and Amoxicillin have seen prices spike anywhere between 20 percent to over 50 percent since the outbreak. Prices of paracetamol raw material has moved up to Rs 450 per kg versus Rs 250 kg earlier, Azithromycin has risen to Rs 12,500 per kg versus Rs 7,800 per kg earlier and Amoxicillin prices have moved to Rs 1,800 per kg versus Rs 1,500 per kg earlier, industry sources say.

One of the key reasons for this increase is that many of the starting materials or raw materials to manufacture these drugs are sourced from China. For example, most fermentation-based active pharmaceutical ingredients (APIs) such as cephalosporin, penicillin and erythromycin are imported from China, with the country being either the largest or the only source globally for these supplies. Wuhan, the capital of Central China’s Hubei province, the epicentre of the outbreak and a hub for API supplies, has not seen manufacturing restart and supplies from other regions in China are also slow, says the head of an API manufacturing company on condition of anonymity. Supplies from other regions in China are mainly impacted by logistic issues such as slow government clearances.

One of India’s largest manufacturers of paracetamol on condition of anonymity has said shortages have risen. For example, there is currently a 20-30 percent shortage of a key raw material used to manufacture paracetamol. In this case, alternate supplies are unusually tough, according to the company head, as China provides 80 percent of supplies for it. Traders are also taking advantage of the situation and hiking prices of inventory, says Zydus Cadila Chairman Pankaj Patel.

While prices of these key raw materials have surged, the industry doesn’t expect it to filter down to the finished product, as many of these drugs are under price control. Any decision on a hike in prices will have to be taken by the Centre.

Looking for secondary sources

However, the manufacturers remain worried. Most companies currently have inventory for 1 or 2.5 months only. A few have raw materials to meet their needs until Q1FY21 as most companies stocked up on inventory ahead of the Chinese New Year, which is a normal industry practice. But if the current situation lasts beyond April, the raw material shortage will become an issue, Patel noted.

Furthermore, the industry could brace itself for further price hikes. Many companies are already looking for secondary sources of API supplies, buying at higher prices in the spot market and trying to backward integrate as much and as quickly as possible.

While the spike in prices of key raw materials is negative for most pharmaceutical companies, it is an opportunity for some. IOL Chemicals, which manufacturers APIs for pain drug ibuprofen and exports 50 percent of it, says they are receiving more queries from Latin America and countries such as Vietnam. Currently, around 30 percent of global ibuprofen supplies are impacted, as per the company, because one of the key suppliers of ibuprofen API is Hubei Biocause, which is impacted as it is based in Wuhan region.

On the other hand, US-based chemical company BASF is currently facing technical issues and expected to restart supplies only in March. The impact is already seen on ibuprofen API prices. From around $15 the prices have moved up to $18 and expected to rise to $20 as per IOL Chemicals. The company expects its capacity utilization, which is currently at 80 percent, to increase due to the expectant incremental order inflows.

But are incremental supplies an opportunity for the rest of the industry? The likes of Glenmark believe so. In their Q3 earnings conference call, Glenmark said the developments in China are a significant opportunity and it expects flows to come to India from China. Biocon chief Kiran Mazumdar Shaw and Patel also echoed this view, saying that the time is ripe to ramp up API supplies irrespective of the price as the shortage of APIs is a long term opportunity for India if the government offers support.

According to Patel, to combat the present shortage, in the near term the industry must ramp up indigenous API capacity whilst for the long term, fresh investments are imperative.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Coronavirus impact: India’s dependence on Chinese APIs may lead to drug price rise, shortage

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

While this situation could return to normalcy, the larger picture of dependence on Chinese APIs cannot be ignored and one has to ask if there is an opportunity for India?

The dependence of pharmaceutical companies on China when it comes to active pharmaceutical ingredients (APIs), intermediates and other key starting materials is well documented. As per the USFDA, as of August 2019, up to 13 percent of manufacturing sites for APIs for drugs in the US market are located in China, 18 percent in India and 13 percent in the rest of the world.

While the amount of API manufacturing sites is limited to only 13 percent in China, experts say a bulk of US drugs are linked to API imports from that country. This dependence is either via final drug manufacturers or directly via API suppliers to US drug manufacturers. As per Gary Cohn, a former economic adviser to Donald Trump, China produces 97 percent of antibiotics used in the US.

For India, as of FY19, China accounted for 67 percent of total imports of bulk drugs and intermediates. Heads of pharma companies point out that almost 80 percent of India’s key starting material for the production of cephalosporin, a type of antibiotic, is from China. The supply chain, according to pharma companies, runs deep and is complicated. For example, as Dilip Shanghvi of Sun Pharma explained on its Q3 earnings conference call, while the company’s formulations business is not so dependent on China, the companies from whom it sources raw materials could have some dependence on Chinese intermediates. So one might think they are buying from India but there is a link to China.

China exports bulk drugs from regions such as Hubei, Jiangsu and Shandong amongst others. However, drug manufacturers and analysts point out that the majority of pharma ingredient production is in the Hubei province which is the capital of Wuhan, the epicentre of the Coronavirus outbreak. In fact, reports point out that 60-70 percent of bulk drugs used to manufacture common antibiotics is from this region. The fear then is that if production stoppage prolongs in regions such as Hubei, the industry will eventually suffer from a spike in prices and possible shortages. But as of now, big pharma companies are not pressing the panic button as they have inventory on an average for 1-3 months. Aurobindo, for example, said their average stock is 2-3 months. Cipla and Lupin too told analysts and investors on their earnings conference call that they have stock available.

Impact on the supply chain

However, the situation is being monitored closely by companies and they fear an impact on the supply chain if the problem persists beyond a few weeks. According to Scott Gottlieb, former USFDA chief, the fear is not just generic drugs facing shortages. Branded drugs use Clinical Research Organisations (CROs) in China and clinical trials could be put on hold. Also, drug firms could see delayed filings on new drugs if they have to shift work outside China.

The next few weeks hence will be crucial, the head of a pharma company said on condition of anonymity. Many Chinese companies are expected to restart operations this week and a gradual ramp-up is expected. Pharma companies with dependence on Chinese APIs are monitoring the situation on a daily basis with their suppliers. Analysts, on the other hand, are not perturbed. While they expect a temporary disruption and spike in prices to impact margins in the near term, they are not changing estimates for the longer term.

While this situation could return to normalcy, the larger picture of dependence on Chinese APIs cannot be ignored and one has to ask if there is an opportunity for India? Kiran Mazumdar Shaw, Chairperson and CMD of Biocon, who expressed concern that the current situation could extend to 6-9 months, said there is an opportunity for Indian companies to ramp up production to meet the global needs.

Gottlieb also pointed out that unutilised manufacturing capacity can be brought on stream. India has about 1500 API plants which are running at 40 percent capacity and regulators can work closely with the industry too. On the other hand, cost competitiveness has been a problem for Indian API companies. However, according to Shaw, this is not the time to think of prices but focus on production as inventories will soon run out. In fact, the government according to Shaw needs to look at this opportunity and offer support such as the rapid release of credit.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?