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Indian drug makers take a hit on quality compliance, R&D investments

The trend is unlikely to reverse in the near term, say experts

Sohini Das  |  Mumbai 

The return on capital employed (RoCE) of Indian drug makers has come down over the last five years because of higher investments in research and development (R&D) of new and complex generics, and quality compliance, data shows. The trend is unlikely to reverse in the near term, say experts.

The RoCE, a key metric that measures how well a company is generating profits from its capital, of top Indian drug makers has seen a decline between FY13-14 and FY18-19, shows data analysed by India Infoline (IIFL). For Lupin, for example, it has come down to 9.5 per cent from 38.2 per cent, whereas Sun ...

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First Published: Mon, February 10 2020. 22:16 IST
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