Pricing pressure the new worry for Indian pharma

Pace of drug price erosion in the US to increase to 10-12% from 7-8% currently

The intense pricing pressure in the US market, reflected in the 26 per cent dip in March 2017 quarter net sales of Sun Pharma’s US subsidiary Taro Pharma, saw India’s largest pharma company lose nearly eight per cent in intra-day trade on Tuesday. The stock closed 4.3 per cent down at Rs 612.55. The price correction was not limited to Sun Pharma with all pharma majors either hitting their 52-week or yearly lows. The BSE Healthcare Index was the biggest loser among sectoral indices, shedding over three per cent on Tuesday. 

Thus far in calendar year 2017, the Nifty Pharma