Sector News

India investing $1.3B to cut dependence on Chinese APIs

March 25, 2020
Life sciences

India, like other countries, has grown dependent on cheap active pharmaceutical ingredients from China. With the COVID-19 outbreak having put pressure on prices and supplies, the country is now doing something to wean itself away from that API habit.

The government is setting up a 100-billion-rupees ($1.3 billion) fund to produce more APIs in the country, Bloomberg reports.

The fund includes money for infrastructure and to provide financial incentives of up to 20% of incremental sales value over the next eight years, Bloomberg reports, citing a government statement.

India is the largest global supplier of generic drugs. The FDA says it provides 40% of U.S. generics. But India buys an estimated 70% of its APIs from China. As worries grew about how the COVID-19 outbreak in China would dent supply chains, India put export restrictions on 26 APIs and drugs.

While the FDA has reported one drug shortage in the U.S. due to the outbreak, so far the global supply chain for APIs and drugs has held up. The FDA is taking steps to help drugmakers boost the supply of hydroxychloroquine sulphate and chloroquine phosphate APIs along with hydroxychloroquine sulphate tablets to the U.S. because there is anecdotal evidence the malaria treatments might have a positive effect against the COVID-19 virus. The agency is allowing India’s Ipca Laboratories to temporarily ship the APIs and drugs from plants it earlier banned because of serious quality failures.

By Eric Palmer

Source: Fierce Pharma

Related News

March 27, 2020

EU regulators to propose 1-year MDR delay

Life sciences

Dive Brief: The European Commission is working on a proposal to delay enforcement of the EU Medical Device Regulation by one year, a spokesperson said Wednesday.   Policymakers are aiming […]

March 26, 2020

Turning pharma green: an eco-wish list for the industry

Life sciences

The reality of climate change is hard to ignore. As one of the biggest polluters, and simultaneously the industry tasked with trying to tackle the global health outcomes of environmental […]

March 26, 2020

Pfizer, Mylan say COVID-19 delays will postpone their Viatris merger

Life sciences

With the novel coronavirus pandemic continuing to hamstring operations, U.S. regulators have warned that major corporate transaction reviews could be held up. Now, thanks to COVID-19 delays, a generics megamerger […]