Why are Indian pharma companies shifting focus from US generics?

They are facing intense pricing pressure and flat growth in the US generics market, leading them to explore more profitable segments.

How significant is the US market for Indian generics?

The US market is critical, with Indian companies supplying over 40% of the generics demand in the United States.

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Indian Pharma Shifts Gears: Beyond US Generics

Q: What new areas are Sun Pharma and Dr Reddy's investing in?

Sun Pharma and Dr Reddy's are focusing on complex generics, specialty drugs, and innovative therapies to counter US market challenges.

7 Dec

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Summary

Indian pharma giants face flat US generic sales.
Companies pivot to complex generics and specialty drugs.
US market is crucial, supplying over 40% of generics.

Indian Pharma Shifts Gears: Beyond US Generics

Facing significant pricing pressures and stagnant growth in the United States generics market, major Indian pharmaceutical companies are initiating a strategic pivot. Firms such as Sun Pharma and Dr Reddy's Labs are increasingly focusing on high-value segments, including complex generics, specialty drugs, and innovative products. This strategic shift is a direct response to the challenging dynamics of the US generics landscape.

The US market, which accounts for a substantial portion of Indian pharmaceutical exports, has become increasingly volatile. Reports indicate double-digit dips in various generics segments, exacerbated by geopolitical realignments and rising operational costs. Consequently, companies are re-evaluating their strategies to ensure long-term sustainability and profitability in this crucial market.

In addition to focusing on differentiated products, Indian drugmakers are also exploring other avenues. These include improving manufacturing efficiencies and expanding into the contract development and manufacturing organization (CDMO) space. Companies like Cipla and Aurobindo Pharma are actively investing in new-age platforms and seeking to capture value in newer market segments to navigate the evolving global pharmaceutical environment.