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Hans India
25-05-2025
- Business
- Hans India
Centre invites drugmakers to apply for PLI scheme aimed at boosting key medicines production
New Delhi: The Department of Pharmaceuticals has invited applications from drug manufacturers under the Production Linked Incentive (PLI) scheme to set up new manufacturing units for 11 key pharmaceutical products. This move aims to strengthen India's domestic drug production capabilities. The products include important antibiotics and painkillers such as Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These medicines are either unsubscribed or only partially subscribed under the earlier phases of the scheme. Manufacturers can submit their applications until June 14. The PLI scheme comes with certain conditions. Incentives will be provided based on available capacity, a defined ceiling for each product, and the production timeline. For chemical synthesis products, the incentive period will last until the financial year 2027-28, while for fermentation-based products, it will extend up to 2028-29. However, companies that were previously approved and later withdrew or had their approvals cancelled are not eligible to reapply. The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has encouraged its members to make the most of this opportunity. Pharmexcil Director General Raja Bhanu said the scheme offers a significant chance for companies to boost their manufacturing capacity in essential drug ingredients. This fresh call for applications is part of the government's ongoing push to promote domestic production of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). The PLI scheme for these categories was first introduced in 2020 and later revised to better suit the industry's needs. It covers a total of 41 products and has a financial outlay of Rs 6,940 crore. The initiative is part of a broader effort by the government, which launched PLI schemes for 14 major sectors four years ago. These include bulk drugs, medical devices, electronics, food processing and automobiles. According to official data, till November 2024, about 764 applications had been approved under these schemes, leading to an investment of Rs 1.61 lakh crore (around $18.7 billion). The government has disbursed Rs 14,020 crore in incentives so far under 10 sectors.
The Hindu
24-05-2025
- Business
- The Hindu
PLI scheme for 11 pharma products rolled out
The Centre's Department of Pharmaceuticals is inviting applications from drugmakers for a production linked incentive (PLI) scheme to encourage setting up new manufacturing capacities for as many as 11 eligible products. Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin and Diclofenac Sodium figure in the list. These are either unsubscribed or partially subscribed eligible products, the Department said in a notification earlier this month. June 14 has been set as the last date for the manufacturers to submit the applications. Conditions such as allocation according to available capacities, incentive ceiling in respect of products, and limit of incentive up to the production tenure, which will be up to FY28 for chemical synthesis products and up to FY29 for fermentation-based products, have to be complied with. Companies that were granted approval earlier, but subsequently withdrew or whose approval was cancelled are not eligible to apply, it said. The Pharmaceuticals Export Promotion Council of India has urged its members to take advantage of the decision. The scheme presents a significant opportunity to enhance their manufacturing capabilities in critical pharmaceutical components, Pharmexcil Director General Raja Bhanu said. The Department of Pharmaceuticals' decision is in continuation of India's emphasis on encouraging domestic manufacturing of critical key starting materials, drug intermediates and active pharmaceutical ingredients. Four years ago the government had rolled out PLI schemes for 14 key sectors, which included bulk drugs, medical devices and pharma, with an eye on boosting production, generating jobs and boosting exports by incentivising domestic manufacturing. The scheme for KSMs, DIs and APIs, whose guidelines were issued in July 2020 and revised in October the same year, cover a total of 41 products and has a financial outlay of ₹6,940 crore, as per official documents. In March 2025, the government had announced that 764 applications have been approved under the schemes for the 14 key sectors and investment of around ₹1.61 lakh crore ($18.72 billion) reported till November 2024. Incentive of around ₹14,020 crore have been disbursed under the PLI schemes for 10 sectors, including large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, automobiles and auto components and drones and drone components.
Hindustan Times
06-05-2025
- Automotive
- Hindustan Times
Sensex, Nifty fall as pharma stocks weaken despite Mahindra's strong gains
India's benchmark indexes traded lower on Tuesday, as broader losses led by pharma stocks on U.S. manufacturing measures outweighed gains in Mahindra & Mahindra, which surged on optimism about the future earnings outlook. The Nifty 50 fell 0.35% to 24,375.55 and the BSE Sensex also lost 0.32% to 80,539.3 as of 10:22 a.m. IST. Eleven of the 13 major sectors logged losses. The broader, more domestically focussed small- and mid-caps dropped 1% each. The auto index rose 1%, led by Mahindra & Mahindra, which advanced 3.1% to top the list of Nifty 50 gainers. Several brokerages expect a potential re-rating of the stock, driven by anticipated margin expansion in the farm and auto segments and growth in the sport utility vehicle market. The pharma index lost 1.5% after U.S. President Donald Trump signed an executive order to reduce the time it takes to approve pharmaceutical plants in the U.S. to encourage domestic manufacturing. Indian drugmakers earn a significant share of revenue from the U.S., the largest importer of India-made medicines. India's pharma exports to the U.S. reached $8.73 billion in fiscal year 2024, a 16% year-on-year rise and accounting for 31% of the industry's total pharma exports, per data from the Pharmaceuticals Export Promotion Council of India. Financials lost 0.7%, while Reliance fell 1.2% after gaining in the last five sessions. "After the recent rise, the markets' momentum is moderating, with action shifting from broad-based movement to stock and sector-specific trends based on corporate earnings," said Vinod Nair, head of research at Geojit Investments. Among individual stocks, Ather Energy listed at a 2.18% premium over its issue price in its debut trade on the day. The e-scooter maker's $352 million IPO was fully subscribed last week. IT company Coforge added 3.5% despite its profit missing analysts' estimate in the March quarter as multiple brokerages reiterated a positive view on future earnings. ($1 = 84.2670 Indian rupees)
Zawya
21-02-2025
- Business
- Zawya
Indian drugmakers can retain US dominance even with tariffs, says industry body
Indian pharmaceutical companies will be able to retain their dominant market share in the U.S. in selling generic drugs even if President Donald Trump imposes high tariffs because they are "highly competitive", a government-backed trade body said. The U.S. accounts for nearly a third of India's pharmaceutical exports, mainly cheaper versions of popular drugs, with sales jumping 16% to about $9 billion last fiscal year. Trump has said he could impose tariffs of 25% or more on pharmaceutical imports and an announcement could be made by next month. India's drug industry has said it hopes bilateral talks will earn them an exception, though Trump has ruled out any such concession so far. The Pharmaceuticals Export Promotion Council of India (Pharmexcil), set up by the trade ministry, said it believed that the Trump warning was mostly directed at costly imports of patented and other such products from other countries. "India pharma will not selectively be imposed high duties and its exports are highly competitive, so it can still compete in the newer environment (with import duties if at all imposed) without losing its share," Pharmexcil Director General Raja Bhanu told Reuters. "The government will certainly have discussions about the changing situations and try to bring the best possible solution." India imposes about 10% tax on pharma imports from the U.S. while paying nearly no tariff for its exports to the country, according to industry experts. India sells about 65% of all generic drugs in the U.S, according to Citi Research. According to the Indian government, generic drugs are 50% to 90% cheaper than branded ones. Higher tariffs will further pressure thin margins of up to 15% of core earnings for most Indian generic drugs unless costs are passed onto consumers, analysts said. "Tariffs (if not passed through) may result in a large part of the Indian generic drug supply to the U.S. turning unviable," Citi Research said in a note. "Companies may be forced to rationalize portfolios or (make) exits that may result in massive shortages in the U.S. and resultant drug price increases. If Indian players start exiting from the generics, drug shortages in the U.S. may escalate beyond control." According to research firm IQVIA, overall cheaper generic drugs saved the U.S. healthcare system about $408 billion in 2022. Sun Pharma, India's largest drugmaker that made 32%of its total revenue through U.S. sales last fiscal year, has already said it will pass on any costs to consumers. Other big Indian players include Dr Reddy's, Cipla and Zydus Lifesciences. The tariff uncertainty could dominate discussions at the BioAsia conference in India's Telangana state next week, expected to be attended by executives from pharma giants including Eli Lilly, Novo Nordisk. (Reporting by Rishika Sadam in Hyderabad; Kashish Tanon and Bhanvi Satija in Bengaluru; editing by David Evans)
Reuters
19-02-2025
- Business
- Reuters
Indian drugmakers with big US exposure as Trump plans pharmaceutical import tariffs
HYDERABAD Feb 19 (Reuters) - U.S. President Donald Trump said on Tuesday he intends to impose a "25% or higher" levies on semiconductors and pharmaceutical imports, and raise it substantially over the course of a year, a move likely to hit India's sprawling pharmaceutical industry. Most Indian generic drugmakers count the U.S. as their largest market, with exports reaching $8.7 billion in fiscal 2024, or about 31% of the industry's overall exports, according to the government-backed trade body Pharmaceuticals Export Promotion Council of India (Pharmexcil). India's drugmakers export generic drugs to the U.S., offering a cost-effective alternate to expensive innovative drugs. Nearly half of all generic prescriptions filled in the U.S. in 2022 were supplied by Indian drugmakers and generated $408 billion in savings for the U.S. healthcare system for the year, according to research firm IQVIA. Following are India's major drugmakers relying heavily on the U.S. market. SUN PHARMACEUTICAL ( opens new tab India's largest drugmaker had 32% of its total revenue come from the U.S. market in fiscal 2024. Sun's MD Dilip Shanghvi told local media earlier this week that the extra tariffs, if imposed, will be passed on to consumers. It exports to 100 countries and overseas sales accounted to 72.7% of the company's total revenue in the year. DR REDDY'S LABORATORIES ( opens new tab North America is the largest market for the company, contributing 47% of its total sales in fiscal 2024. The company relies on its key generic drugs in oncology and immunology therapies for sales in the region, which rose 28% from a year earlier. Reddy's, like other Indian drugmakers, is banking on yet to be launched generic weight-loss drugs for growth over the next few years in the U.S. CIPLA ( opens new tab India's third-largest drugmaker by revenue generated 30% of its total revenue from North America in fiscal 2024, its second-biggest market. The company is among the top 15 players in the U.S. providing prescription drugs and supplies generic respiratory and oncology medicines. BIOCON ( opens new tab It earned 44% of its total revenue from the U.S., its largest market for the year ended March 2024, primarily driven by demand for its biosimilars which are copies of complex biologics drugs used to treat illnesses such as rheumatoid arthritis and cancer. In 2022, Indian companies supplied 15% of the volume of biosimilars in the U.S., according to IQVIA. LUPIN ( opens new tab Sales in North America contributed to 37% of overall fiscal 2024 sales, up 30% from the previous year thanks to solid demand for the company's respiratory, antiretroviral generic drugs. GLENMARK PHARMA ( opens new tab The company generated 26% of its total revenue from North America, its second-biggest market, in fiscal 2024. The company is focusing on expanding its respiratory drug portfolio offerings. U.S. is the largest market for the company, generating 46% of its total revenue in 2024. The company distributes over 200 generic products in the market. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
