War in West Asia hits India's pharma sector
After Iran's supreme leader was killed in recent US-Israeli strikes, the region is seeing fresh conflict—and it's hitting India's pharma industry hard.
With $1.75 billion in exports to the Middle East and North Africa on the line, companies are facing major supply chain headaches that feel a lot like the COVID era.
'We are facing a Covid pandemic kind of uncertainty'
Shipping routes are now much longer since the Strait of Hormuz shut down, adding nearly three weeks to delivery times.
Costs for fuel and raw materials have jumped, and air-freight prices for urgent medicines have shot up as much as five times.
"We are facing a Covid pandemic kind of uncertainty," says Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance.
If things don't improve soon, delays in important medicines could be next.