India Pharma - U.S. FDA Inspections, Return Of ‘The Overhang’?: ICICI Securities' Thematic View
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
India remains an important country for the U.S. for import of pharmaceuticals with it featuring in the top-10 overall exporters to the U.S. and among the top-four in pharma.
Pharmaceuticals is the third-largest imported commodity in the U.S. and the second-largest category in imports from India. Pre-covid, the frequency and number of inspections of manufacturing plants in India by U.S. Food and Drug Administration had increased significantly with growing abbreviated new drug application filings, especially for complex products.
We expect this trend to return with the environment normalising. However, it remains a double-edged sword since, pre-Covid the inspections were followed by a number of observations, official action indicated and warning letters.
High price erosion in U.S. generic markets among other macro factors has already pushed sector valuations into a trough; the rise in U.S. FDA inspections with adverse outcomes could further delay recovery from these levels.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.