Indian pharma has little to offer on job creation
The Indian pharma is not the space to look at when discussing job creation in the country over the past four years. The sector, where the bulk of major players look to the US as the biggest market to drive revenues, is coping with its unique challenges in the market. Multiple factors have contributed to the cost pressures faced by leading players in the sector. For instance, channel consolidation (acquisition and merger between wholesalers and chains sourcing generic drugs) has given them tremendous bargaining power that raises the prices of drugs. There is also the dimension of increased competition with new entrants joining in to tap the same market. In fact, many Indian companies are today competing with each other on the US soil. Then, there is also the component of regulatory overhang, with some of the companies being pulled up by the US drug regulator and import alerts being imposed impacting the future supply plans of some of the companies. Though some are ge...