Iran-Israel conflict impacts India's pharma sector, costs soar
The ongoing Iran-Israel conflict is making it harder and pricier for Indian pharma companies to get key raw materials from China.
Overall costs have jumped by 30%, with some ingredients seeing prices double.
Shipping fees have also shot up, adding even more pressure on the industry.
Prices of essential medicines skyrocketing
Prices for essentials like glycerin (up 64%), acetaminophen (up 26%), and solvents (up 20% to 30%) are all climbing fast.
Thiocolchicide (price rose from ₹3.4 lakh to ₹7 lakh, an increase of over 100%).
If these supply issues drag on, India could face shortages of everyday meds like antibiotics and vitamins.
Pharma companies stuck absorbing costs
India's pharmaceutical exports could face a hit of about $300 million to $500 million due to these disruptions, affecting shipments to West Asia/GCC routes and other markets.
Meanwhile, government price caps mean pharma companies can't pass higher costs onto customers right away, so they're stuck absorbing the hit for now, making things tough for both businesses and the people who rely on their medicines.