US opioid crisis hits Indian pharma companies
The opioid crisis in the US has hit Indian drug companies which once dreamt of riches and chased the restricted but lucrative business of opioid-based drugs in the North American continent. This week, India’s third-largest drug maker Lupin made an impairment provision of Rs 1,400 crore for Gavis Pharma, a company it had bought for $880 million three years ago for its portfolio of controlled drugs. Lupin has discovered that the business’ profitability is not as strong as it once believed, and other Indian pharma players may be coming to the same conclusion after rushing to acquire companies in this space following a sharp rise in prescriptions a few years ago. Opioid-based drugs are one of the most commonly prescribed medicines for pain relief across the world. The main ingredient of the drug is opium, a narcotic substance derived from poppy seeds. The total market size of opioid-based painkillers is estimated at $24 billion, with Fentanyl and Oxycontin being some of the comm...