Intense price competition in US generics market hits Indian pharma

Players say low prescription, double-digit price erosion are key reasons

The first quarter (Q1) of 2021-22 (FY22) saw most Indian pharmaceutical majors struggling to grow revenues and margins in North America. An unprecedented double-digit price erosion in generics had hit them where it hurt most.

Companies such as Zydus Cadila, Torrent Pharmaceuticals, Alembic, and Strides posted a dip in US revenue. Others like Dr Reddy’s Laboratories (DRL) and Cipla saw low single-digit growth.

Sun Pharmaceutical Industries (Sun Pharma), however, posted a gain in the US market, riding on its specialty drugs. It admitted though that the generics business was facing stiff competition.

R Ananthanarayanan, managing director and chief executive officer