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Economic Times
8 hours ago
- Business
- Economic Times
Medtech firms flag inflated MRPs on imported devices
Indian manufacturers of medical devices have alleged that several private hospitals and retailers, in the chase for higher margins, are pushing sales of imported products, some of which carry inflated price tags or do not mention the maximum retail price (MRP). These imported devices of established brands account for about 65% of the medical devices sold in India, according to industry matter was discussed at a recent meeting with commerce and industry minister Piyush Goyal, industry executives told ET."It has been seen that the private hospitals and retailers preferentially push imported medical devices, often labelled with inflated or absent MRPs," a senior industry executive who attended the meeting told ET. "The hospitals are doing this to earn higher trade margins compared to affordable Indian made devices." The executive did not wish to be the meeting, representatives of domestic manufacturers discussed the procurement challenges the industry is facing in this regard. "They are making higher margins and more money. The consumer would bear the brunt and, hence, this issue was discussed during the meeting. The ministry has asked the NPPA (National Pharmaceutical Pricing Authority) to look into the matter," said another executive, requesting not to be named. Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AiMeD), said domestic manufacturers face a stiff challenge in the market from imported devices despite offering the same product at rates that are 20-40% less, "as private hospitals and retailers are preferentially pushing imported established brands of medical devices, often carrying inflated prices or at times labels even without MRPs"."Indian manufacturers are forced to hike their labelled MRP to satisfy these buyers," he said domestic manufacturers have demanded that all import e-bills of lading should capture the import landed price as well as the MRP on the medical device, and any irrationally excessive MRP of 20 to 30 times of landed cost should be flagged for investigation for duty evasion and unfair trade practices.
Time of India
2 days ago
- Business
- Time of India
Maker of GLP1 pens scales up for generic debuts
As weight-loss drug sales surge with semaglutide's patent expiration, Gujarat's Shaily Engineering Plastics, an injector pen manufacturer, anticipates significant growth. Its stock has nearly doubled, and the company is doubling its production capacity to 80-85 million pens by fiscal year-end to meet rising domestic and export demands. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: With sales of weight-loss drugs surging and set to go up even more as semaglutide goes off patent early next year, a low-profile manufacturer of injector pens, Gujarat-based Shaily Engineering Plastics , is set to reap a windfall. Its stock has nearly doubled over the past 12 months. Manufacturers of the pen-like devices that make it easy to self-administer metered doses that would otherwise need to be injected with a syringe are the unnoticed beneficiaries of weight-loss drugs becoming is doubling capacity in line with plans of top pharma companies to launch generic versions of GLP1 weight-loss drugs early next year in India and overseas, said a senior company executive. It will be increasing capacity to 80-85 million pens by this fiscal year end from 40-45 million currently to cater to domestic and export demand, Sanjay Shah, chief strategy officer, told ET."We will look at further expansion and ramp up (in FY27). Currently, we are working with multiple players who are looking to launch generic semaglutide in different markets," he to Shah, various estimates suggest global demand for injector pens is likely to reach 500 million per year in the next two-three years and about 2 billion by is leading industry insiders to predict a looming supply crunch for pen leading drugmakers like Sun Pharma , Dr Reddy's, Cipla and Lupin are expected to be a part of the first-day launch wave in several international markets and India as soon as the patent is investing about '125 crore in FY26 on capacity expansion of its IP-led pen platform."We will be expanding (capacity) going forward to cater to the global as well as domestic market," said drugmaker Novo Nordisk 's weight-loss molecule semaglutide, branded Ozempic and Wegovy , will go off patent in March next year, opening up the gates for Indian and overseas drugmakers to launch cheaper generic expect an immediate price reduction of 50% and further by 60-80% over the coming years. This will boost affordability, potentially spurring sales of the drug and consequently, injector the past, shortages of both Eli Lilly's tirzepatide and Novo's semaglutide in the US were largely due to lack of devices and fill-n-finish capacities after demand for the drugs far outstripped supply.
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First Post
5 days ago
- Business
- First Post
Not covered in FTA, carbon tax may spoil in India-UK free trade mood; here's why
Britain's proposed Carbon Border Adjustment Mechanism (CBAM) is not included in the FTA with India because London has not yet formally notified the tax. read more The free trade agreement between India and the UK does not cover Britain's proposed Carbon Border Adjustment Mechanism (CBAM). However, officials stated on Friday (July 25) that if such a tax is introduced later, India will have the right to take measures to offset its impact on domestic exports, reported Economic Times. The CBAM is not included in the agreement because Britain has not yet formally notified the tax. In December 2023, the UK announced plans to implement the CBAM starting in 2027. STORY CONTINUES BELOW THIS AD The issue was raised during negotiations for the Comprehensive Economic and Trade Agreement (CETA). 'If it is implemented and negates the trade benefits of India under the agreement, India will have the freedom to rebalance it. We can take counterbalancing measures. This much understanding has been made in the form of note verbale,' an official was quoted as saying by the ET.. A note verbale refers to a diplomatic communication exchanged between two countries. 'There is an understanding that in case the UK make it effective against India in future, then we will also have the right to take counterbalance measures… India can take away the concessions and there will be a mechanism for that,' the official further noted. India is also engaged in discussions with the European Union, which is planning its own CBAM. The two parties are negotiating a trade agreement, expected to be finalised this year. India has labelled the CBAM as a trade barrier. A carbon tax is considered a non-tariff barrier. The European Union has already implemented such a tax on imports exceeding a specific carbon emission threshold. For every tonne of excess carbon emission, a levy ranging from €1 to €100 per tonne is imposed. India and the United Kingdom (UK) signed the Free Trade Agreement (FTA) on Thursday (July 24) during PM Narendra Modi's visit to the UK. STORY CONTINUES BELOW THIS AD New Delhi and London concluded talks in May to reach a bilateral Free Trade Agreement, discussions for which first began in January 2022. As per the British government estimates, the FTA will boost its GDP by £4.8 billion ($6.5 billion) annually. Indian exports to the UK are expected to double by 2030.
Economic Times
6 days ago
- Business
- Economic Times
Hexaware Technologies Q2 Results: Profit jumps 38% YoY to Rs 380 crore but misses estimates
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Carlyle-backed Hexaware Technologies reported a 38% on-year rise in June quarter net profit in rupee terms at Rs 380 crore. Profit rose 16% trailed expectations, largely due to a more than 20% increase in other expenses such as acquisition-related cost, and impairment of customer contract associated with an earlier issued a muted revenue guidance for the year ahead. The company follows a January to December financial its mid-tier peers, Hexaware's Q2 revenue was relatively subdued at Rs 3,260 crore, rising 11.1% on-year and 1.6% sequentially in constant currency terms, lagging Street estimates. In constant currency terms, revenue stood at $382.1 million, growing 1.3% sequentially and 7.5% from a year the quarter, revenue growth was impacted by decline in manufacturing and consumer segments, and flat growth in financial services.'Our growth expectations for the year are a little bit lower now than it was in the beginning of Q2,' R. Srikrishna, CEO, Hexaware told ET.'With lots of new promises of higher tariffs against multiple countries…that's on the negative side. On the positive side, some trade deals have been announced with some smaller countries and there could be a slew of them in the next few weeks,' he of Hexaware fell sharply on the earnings announcement. They closed 10.7% lower at Rs 738.25 apiece, underperforming a 0.88% decline in the benchmark BSE Hexaware management said there is softness and cyclicality in the macro environment, and that all large consolidation deals are continuing.'Small and mid-sized deals are progressing well. However, decision making is slowed. Consequently, lowered expectations for the rest of the year,' the company Europe witnessed growth both on-year and sequentially, but Asia Pacific witnessed a decline from a year ago, and marginal growth from the March quarter.'There will be one or two quarters which will have blips (in Asia Pacific) but long-term, in general, it will be positive,' said Srikrishna. 'In India, we made an acquisition to serve GCC (global capability centre) customers here. In the Middle East, we continue to have a strong pipeline and expect to convert in Q3 and grow revenues in Q4.'This month, Hexaware acquired Bengaluru-based SMC Squared for $120 million (about Rs 1,038 crore) in an all-cash deal, which is expected to add revenue growth in the coming two adjusted margin improved to 18.1%, up from 17.1% in the March quarter, its full-year margin guidance stood at 17.1–17.4%.The company expects banking to continue to deliver better sequential growth despite a one-off degrowth in Q1 which will impact financial services for the full year.'On manufacturing, customers are waiting for clarity on costs. Once that happens, it takes a few weeks to translate that into what it means for them,' Srikrishna said.
Economic Times
23-07-2025
- Business
- Economic Times
Potential US tariff a significant 'unknown' for business, says Dr Reddy's Lab CEO
Dr. Reddy's Laboratories is closely monitoring a potential US tariff on the pharma sector, viewing it as both a risk and opportunity. The company plans a significant expansion with the generic version of semaglutide across 87 countries by 2026, alongside developing 26 GLP-1 products over the next decade. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A potential US tariff on the pharma sector is a significant 'unknown' and will be one of the key developments for Dr Reddy's Laboratories to watch over the next few quarters, its chief executive officer, Erez Israeli , told ET.'Don't know whether to call it a risk, but it is an unknown that could develop into a risk, and that is the tariff. We will know better as time will come about what it means and what we can do,' Israeli said over an earning call on Wednesday. 'It's not necessarily bad, it can also create an opportunity. It very much depends on what will be our relative situation to Chinese players or others.'The Hyderabad-based drug maker, which announced its first-quarter earnings, is betting big on generic version of Novo Nordisk 's weight loss molecule semaglutide – that it plans to launch in 87 countries in 2026 - as a future growth driver.'Our levers for the future consist of double-digit growth of the main business and then on top of it the success of semaglutide, which is very important to us, business development and our ability to optimise our resources,' Israeli said in response to ET's query.'We are planning to launch semaglutide in 87 countries as the patent in the relevant country will allow us… We have some countries where there is no active patent as we speak, and in those we can launch. In the other countries, we need to wait for the patent expiration - for example Brazil or India - in which the patent goes on till March 2026. We are absolutely ready to launch on day 1 (post patent expiry) in each one of these markets,' he company which is among the frontrunners for GLP-1 drugs is looking at launching 26 other products in the space over the next decade.'We have 26 products (all peptides) in the GLP1 pipeline and will be launched over the next decade, according to the patent situation,' said Wednesday, the company reported consolidated revenue for the first quarter at Rs 8,545 crore, an 11% increase from a year ago, mainly on account of contributions from its acquired consumer healthcare portfolio in nicotine replacement therapy (NRT) and sustained performance in branded markets. Net profit for the quarter stood at Rs 1,418 crore, up 2% said an ongoing litigation over semaglutide with innovator company Novo Nordisk in India is not likely to hamper its planned product company's global generics revenue in Q1FY26 stood at Rs 7,562 crore, a growth of 10% revenue from North America–one of its key markets–declined 11% y-o-y to Rs 3,412 crore due to increased price erosion in select products, including lenalidomide. Its Europe revenue stood at Rs 1,274 crore, up 142% on account of NRT portfolio company's India and emerging markets business grew 11% and 17% company's EBITDA margin for the first quarter stood at 26.7%.
