Drug shortages in US market, compliance gains positive for pharma exporters

Shortage of drugs in the US market is at five-year highs

Concerns over price erosion in the US market, which has impacted the revenue growth of Indian pharma majors over the last four years, could be reversing. The drug shortages in the US market have increased by 37 per cent since December 2017. Kunal Randeria of Antique Stock Broking says drug shortages are at five-year highs and there is a direct correlation between drug shortage and prices. This is evident as price erosion peaked in 2017 when shortages were at their lowest levels.

Manufacturing and quality issues remain the single biggest reason for drug shortages, according to the US Federal Drug