Blog

COVID-19 is one of the largest global pandemics in recent years, and it has affected almost every part of the Indian economy, including active pharmaceutical ingredient manufacturers, drug makers, and pharmaceutical research companies. In this blog, we will discuss the effects of COVID-19 on API manufacturing companies and the pharmaceutical industry in India at-large, and it may impact the future of this industry in post corona COVID 19 times

The State Of The Pharmaceutical Industry In India During COVID-19

COVID-19 has caused major shutdowns, interruptions in global supply chains, and lockdowns throughout 2020, and has affected many different parts of the economy in India, including the API pharmaceutical industry and pharmaceutical intermediate industry.

In April of 2020, for example, the pharmaceutical industry’s’ year-over-year (YoY) sales dropped 11.7% compared to April of 2019, with major API manufacturing companies and drug makers like Cipla, Zydus Cadila, and GlaxoSmith being impacted with major hits to their stock prices.

There are many different reasons for this. Active pharmaceutical ingredient manufacturers and drug makers have experienced major supply chain disruptions during the pandemic. There have also been changes in demand due to factors like delays on elective surgeries, and high demand for COVID-19 related drugs (respiratory medications) along with a corresponding drop in demand for non-COVID-19 related drugs.

However, since April and May, the industry has rebounded somewhat. COVID-19 is still spreading throughout India, but API manufacturing companies and drugmakers are adapting to this new environment.

What Will Happen During Post Corona COVID-19 Times? Our Predictions

Despite a drop in growth in 2020, we anticipate that the API pharmaceutical industry and drug making industries in India will continue to grow in the years to come – due to high demand for low-cost active ingredients and intermediates from global pharmaceutical companies.

The pharmaceutical industry in India has grown dramatically since 2009, when it was valued at US $12.6 billion. In 2019 – just 10 years later – it was valued at $40.2 billion.

Due to the low cost of manufacturing drugs in India, a large infrastructure of FDA-compliant drug makers and pharmaceutical intermediate manufacturers, and strong support from the Indian government, it’s likely that this growth will continue in the years and decades to come.

One major change is that Indian drug markers may attempt to reduce their reliance on API manufacturing companies from China. 70% of APIs used in India come from Chinese sources, which is one reason that drug makers had difficulty producing products when China’s supply chain was locked down. However, by investing in products from API manufacturing companies based in India, future disruptions to Indian pharmaceutical supply chains can be dramatically reduced.

The Outlook Is Strong For The Pharmaceutical Industry In India Post COVID-19 

With every challenge comes opportunities, and the Indian pharmaceutical industry is in a great position to continue innovating and becoming a larger competitor to other global pharmaceutical suppliers in China and other countries. Only time will tell what effects COVID-19 will have on the industry in the long-term, but it’s safe to assume that, despite this minor dip due to the coronavirus, the demand for high-quality, low-cost Indian pharmaceutical products and APIs will continue to grow in the coming years – both in India and worldwide.